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Travel & Hospitality industry survey findings indicate a long recovery for the sector; support from the government critical: FICCI-Nielsen Report

Oct 10, 2020

Digital communication, ease of online information on safety measures taken by government to boost confidence of travellers

 

NEW DELHI, 10 October 2020: FICCI-Nielsen Report on 'Hotels and Tour Operators Survey on the Impact of Covid-19 on the Travel & Hospitality Industry' highlights the status of the hoteliers and tour operators from mid-June to July 2020, during the lockdown, along with the measures and mitigation plans to revive the industry.

 

FICCI-Nielsen Report also highlights the promotion of heritage, cultural, culinary, social, eco-tourism, rural, adventure, textile tourism, etc post lockdown and pandemic where the industry is connected to various other sectors such FMCG, transport, agriculture, health etc.

 

While States are gradually opening up to Tourism, the support from the Government is critical to help the industry revive and survive. The industry is looking forward to domestic tourism to kickstart the revival of the tourism economy. It is important that the states and centre synergise with common guidelines to ensure the smooth movement of tourists across states.

 

The current trends indicate that there is pent up demand to travel and the next few months may see people taking longer travels instead of weekend breaks. Digital communication and ease of finding information online on the safety measures taken by the government and stakeholders will help to boost the confidence of the consumer to start travelling.

 

The report states the comprehensive idea about the current situation in the Travel and Tourism sector in India. In the light of the global experience, it is worthwhile to note that there is a certain level of resilience in the sector.

 

The report comprises of a framework for assessing the policy interventions and financial support that the industry needs. By choosing Tour operators and Hoteliers, the survey kept in mind the backward and forward linkages they bridge and hence could arrive at a complete picture of the sector with respect to loans and RBI moratorium and training and on ground implementation of Standard Operating Procedure (SOP) that would be reassuring  domestic as well as foreign tourists.

 

The report highlights some fundamental changes in the way the industry works in various aspects of service and how to overcome the fear of domestic and foreign tourists to travel until the certain conditions be met.

 

Mr Dilip Chenoy, Secretary General, FICCI said that as the world is facing the COVID-19 challenges, the suspension of almost all economic and social activities has affected all sectors of the economy, especially Travel and Tourism.

 

"As the industry is struggling to survive and revive, the support by the Government of India is critical. Domestic Tourism is the backbone of our country and is key to the revival of the Industry. The Centre and the States need to synergize for the seamless movement of Domestic travellers," added Mr Chenoy.

 

 

Major findings of the study include:

 

Areas

Findings

Effect on Business due to the lockdown and pandemic

Majority of the hoteliers and tour operators from Delhi (which serves as a hub for destinations like Agra, Jaipur, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Uttar Pradesh); Mumbai (hub for Goa, Konkan, and part of Karnataka and Kerala) mentioned that the entire property/ hotel was shut down with zero operations during the lockdown.

Assistance provided to Employees during the lockdown due to pandemic

Maximum no. of the target respondents stated that they assisted their employees in the way of job security and job assurance.

Future prediction post lockdown and pandemic in tourism industry

Majority of the hoteliers and tour operators were not sure what will happen in the future; while some were hopeful if the government provides a training and on ground implementation of Standard Operating Procedure (SOP), that would be reassuring to domestic as well as foreign tourists.

Safety measures followed

In the context of initiatives to make guests feel more comfortable post lockdown scenario, majority of target respondents mentioned keeping sanitizers at prominent locations and prepared for contact less check in.

Expected decrease in domestic and foreign tourism in India post lockdown

Almost 30 per cent of target respondents estimated the domestic tourism sector in India to decrease by 41-50 per cent post lockdown. On the other hand, 25 per cent of estimated the inbound tourism to decrease by a massive 81-90 per cent.

Plans to mitigate the impact of pandemic on business operations

Majority of the target respondents mentioned to reduce the workforce employed in the organization to mitigate the cash flow situation.

Required Government initiatives to boost the sector

Majority of the target respondents were waiting for the Government to declare training and on ground implementation of SOPs for hotels, monuments and transporters; and the support from the RBI or Ministry of Finance or Tourism, mostly, to support salaries, fixed costs, such as electricity bills, rent, water bills, and other similar cost heads.

Beneficial effects of RBI moratorium on loans

About 48.89 per cent of tour operators were getting benefits of easing of working capital financing

Percentage of companies registered under MSME and whether beneficiary of relief formulated for MSME businesses

Around 74.81 per cent were registered under MSME and most of them have not accessed the benefits. It means that 25 per cent of operators may not benefit from the package that the government has announced for MSMEs.

Relief for MSME businesses through banks and NBCFs

Majority of the target respondents have not received any relief through the INR 3 Lakh Crore additional collateral free automatic loans for MSME businesses through banks and NBFCs. This infusion of loans would work like oxygen to the sector

Planned tourism sectors to promote post pandemic/lockdown

Tour operators will promote domestic tourism post lockdown & pandemic and focus on cultural tourism & heritage tourism.

 

 


Study