HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > NewsTrack

Near term outlook for tourism sector looks gloomy due to COVID-19 impact

Monday, September 21, 2020, 14:19 Hrs  [IST]

According to Dalal Street Investment Journal, Since India went into a stringent COVID-19 lockdown in March 2020, the tourism sector has been hit the hardest due to the resulting travel restrictions as well as a slump in the demand among travellers.

The current consumer sentiment is dominant by uncertainty, financial instability and fear of safety. Given various travel restrictions imposed by the Indian government as well as governments across the globe, forward bookings for various conferences and leisure travel bookings to foreign destinations have already been cancelled. In India, most of the summer holiday bookings (for the states of Kerala, Rajasthan and Goa) have also been cancelled (about 40-50 per cent) thereby, impacting domestic tourism.

Despite being given the go-ahead to welcome tourists after restrictions were lifted, many big tourism destinations had to shut their doors again, following a spike in Coronavirus cases. The travel sentiment too took a back seat with the number of COVID-19 cases quickly spiralling out of control within a month. This has left the sector, which includes hospitality, tour operators, transport, restaurants, guides and other related jobs, gasping for air. The sector is now estimating that the scenario is unlikely to change much until a vaccine is found, which may not be launched until next year. India’s tourism revenue loss is projected to be 10 lakh crore, with an estimated four-five crore people losing their jobs.

The government is making serious efforts to boost investment in the tourism sector. In the hotel and tourism sector, 100 per cent foreign direct investment (FDI) is allowed through the automatic route. The hotel & tourism sector has attracted foreign direct investment (FDI) worth $862.78 million or Rs 6,390.06 crore during the January-March quarter of FY20, as compared to $1,216.10 million or Rs 8,666.87 crore in October-December quarter of FY20. 

The near term outlook of Indian tourism sector looks gloomy due to the outbreak of Coronavirus disease pandemic with many prospective domestic and foreign tourists cancelling their travel plans. With the nationwide lockdown that started on March 24, the country witnessed a whopping 65 per cent fall in foreign tourists’ arrival in March, both in the yearly and monthly term.

The Indian travel and tourism sector and the entire value chain linked to the sector are likely to lose around INR 5 lakh crore or USD 65.57 billion. The sector’s recovery might be slow but once the situation created by COVID-19 gets normal, the tourism sector will be the first one to see major growth. Indians who were earlier planning to visit foreign destinations will visit only domestic destinations and this will give strength to the sector.

The sector’s recovery is key for the economic revival as it is one of the major employment generators and has a multiplier effect on the economy. Meanwhile, the government is encouraging domestic travel through initiatives like Dekho Apna Desh and ‘Incredible India’, which in turn, will provide some respite to the sector. Besides, the government has identified 17 sites across the country to develop them as iconic tourist sites, which will serve as a model for other tourist destinations. Improvement in India’s ranking in travel & tourism competitiveness index is also an encouragement for the tourism sector in the country. 

Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
* Name :    
* Email :    
* Message :  
»  FHRAI Pleads To The PM For Urgent Intervention, Requests For Sector Specific Special Relief Package
»  Making Tourism Accessible for All : Arindam Basu, General Manager, Marketing Delta Corp Ltd
»  Cancelled Christmas, New Year bookings result in INR 200-crore loss for hospitality sector
»  OUTLOOK for 2022 : M.P.Bezbaruah,Secretary General, Hotel Association of India
»  Oxford University Press organoses panel discussion on 'Future of Hospitality Management in India post Covid-19'
»  Revenue management in the aftermath of Covid-19
»  Chaliyar River Paddle 2021 successfully concludes with an objective to boost tourism in Kerala
»  Charcoal Concepts invests 150 Cr in the rising QSR sector in India
»  Kerala Tourism Department to open more ‘Foodie Wheels’ restaurants in State
»  IHG Hotels & Resorts introduces IHG Business Edge program for the MSME sector
»  International Institute of Hotel Management launches the IIHM Global Centre for Tourism and Hospitality Research
»  Sommet Education Group partners with Kingdom of Saudi Arabia’s Tourism Development Fund
»  Nataraj Sarovar Portico awarded best hotel of Bundelkhand Region by UP Tourism
»  Indians love long weekends, the British prefer short weekend breaks: OYO’s World Tourism Day Report 2021
»  Sunday brunch returns to 1911 restaurant on the occasion of World Tourism Day
»  Edesia restaurant at Crowne Plaza Today New Delhi Okhla celebrates World Tourism Day with ‘The Culinary Renaissance’ Food Festival
»  Ministry of Tourism inks MoU with MakeMyTrip and Ibibo to promote self-certified SAATHI hotels
»  ITDC’s CMD G Kamala V Rao to hold additional charge of DG Tourism
»  CII ties up ITC Hotels to launch vocational education in hospitality sector
»  Hurrem’s announces entry into city’s luxury hospitality sector via a partnership with JW Marriott Mumbai Juhu
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar

© Copyright 2016 Saffron Synergies Pvt Ltd