The impact of two successive Covid waves on the Indian economy has been massive to the extent that it might need a union budget-like exercise to quantify the loss. Although there’s hardly any sector that hasn’t been affected, in terms of severity, it’s perhaps the tourism industry which has seen most of the bleeding. However, except for a few financial newspapers, there aren’t enough talks by the mainstream media and as such the industry which ranks among the top five in the country in terms of employment generating capabilities, remains a silent weeper. The prospect of a turnaround after the 2020 shock was washed away in little time with the onslaught of the 2^nd wave and for players irrespective of size, it’s an existential crisis. Unless the governments, especially the Centre come up with rescue packages, for millions employed in the industry, untold miseries will only prolong.

Among the countless woes the industry is facing, it’s the liquidity crisis arising out of prolonged shutdowns due to Covid restrictions that is the most prominent. According to a latest assessment, hotel occupancy levels in India dropped by a steep 17 % and room rates too declined by almost 9% in April 2021 alone, compared to March 2021 figures when the 2^nd wave was still lurking to gain ground. The entire spectrum of services the tour and travel operators provide, ranging from air/bus ticketing to hotels/packages and those in between and over and above are in a state of full halt and even going by the best-case scenario, it will take at least 4-5 years for the industry to return to pre-Covid business activity levels. Earnest appeals have come and in yet another addition to the long list, the Federation of Indian Chambers of Commerce & Industry (FICCI) on Wednesday appealed to the Centre seeking a moratorium on all working capital, principal, interest payments, loans and overdrafts which ended in August 2020, to be extended by one more year. Prior to this, the Indian Association of Tour Operators which is a conglomerate of more than 1,600 travel agents, hotels, airlines and transport operators etc. wrote to the Central government requesting a rationalization of GST rates from the current slabs of 18 and 12 % to a flat 5% as a sop for tiding over the massive financial misfortune. However, there were no discussions both in the recently held 43^rd and 44^th rounds of meetings.

It’s not comprehensible why the industry which has always been a great revenue earner and employment giver is receiving so little patronage at this hour of distress. The Centre must shoulder the bulk of the onus and all states including Arunachal Pradesh must also play the role of benefactor in best-possible ways.