IATO Seeks Immediate Budgetary Allocation of Rs 1000 cr To Attract Foreign Tourists
IATO believes that tourism can bring in foreign earnings at a time when global trade is facing unprecedented disruption due to tariff war
Chennai: With foreign tourist arrivals still lingering below pre-pandemic levels, the national body of tour operators has asked the government to constitute ‘India Tourism Board’ and immediate budgetary allocation of Rs 1000 crore to boost inbound tourism.
According to the Indian Association of Tour Operators, foreign tourist arrivals have not yet touched 2019 levels. IATO believes that tourism can bring in foreign earnings at a time when global trade is facing unprecedented disruption due to tariff war.
Of the total allocation for tourism, the government has allocated a meagre amount to promote inbound tourism and a fraction of the funds allocated years before. Due to lower funds, the tourism industry is not able to conduct Overseas Travel Meets in source markets. According to industry, the embassies in the source markets are supposed to promote inbound tourism. However, they are not able to promote tourism well.
To step up promotions for the upcoming season, IATO has written to the Prime Minister to provide immediate budgetary allocation of Rs 1000 crore under Incredible India Campaign and formation of “India Tourism Board” under the PM’s leadership with the specific objective of increasing FTAs. These measures are required as the coming season is a few months away and can help boost inbound tourism in this financial year.
“Unlike goods, India's tourism export or foreign tourists spending in India, which is non-tariff based, brings direct foreign exchange earnings into the country. This positions inbound tourism as a stable, sustainable, and immediate contributor to India’s current account with valuable foreign exchange, employment generation and balances forex trade deficit,” said Ravi Gosain, President IATO. This sector alone has the potential to contribute 1-2 per cent to the GDP.
“To enhance FTA numbers besides the steps suggested above. We need simplified Visa facilitation, expanding the scope of e-Visas, fast-tracking group tourist visas and exploring Visa fees waivers for select countries. Further we need to incentivise international airlines and air charters to improve air connectivity to key tourism circuits, especially in tier-2 and tier-3 destination”, according to Gosain.