The Federation of Associations in Indian Tourism & Hospitality (FAITH) has said that the coronavirus impact could render 3.8 crore people jobless, which is around 70 per cent of the total workforce in the tourism and hospitality sector. As a result of this pandemic, Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment. It also said there should be a support fund for twelve months to support basic salaries with direct transfer to the affected tourism employees.
It mentioned that a large percentage of total tourism business activity of India, which is estimated at $28 billion plus in forex and upwards of Rs 2 lakh crore in domestic tourism activity will be at economic risk through the year. Thus, in excess of Rs 5 lakh crore of direct tourism industry and almost double that of total economic activity is at risk.
Besides, it added with declining revenues, almost all tourism businesses are running out of working capital. However, with the responsibility of staff and payment of their salaries, EMIs to service, advance tax, PF, ESIC, GST, excise and other state levies, bank guarantees, security deposits, this industry needs your support now more than ever.