Covid-19: Travel, tourism sectors likely to lose 8,500 crore

New Delhi: The Coronavirus pandemic could bring Indian travel, tourism and aviation sectors to a halt within next ten days, especially with the government suspending visas for a month, a move that could cause an immediate economic impact of at least Rs 8,500 crore, according to industry players. Industry bodies, including Indian Association of Tour Operators (IATO) and Assocham, foresee job losses in the sectors as companies try to tide over the situation by removing non-essential work forces and stopping recruitment, while calling the government to review the decision to suspend visas for a month and allow inbound travel through limited gateway cities.

"The ban on travel to India for a period of one month will have a cascading economic impact and will lead to job losses in the entire hotel, aviation and travel sectors. We estimate that it will lead to direct loss of not less than Rs 8,500 crore," IATO Secretary Rajesh Mudgill said.

Assocham Tourism and Hospitality Council Chairman Subhash Goyal said since the outbreak of coronavirus, the aviation and tourism industries in India have been adversely affected. "However, we were able to manage our expenses and keep the staff because some amount of essential travel was going on. The suspension of visas last night has come as an immediate blow to the entire tourism, aviation and hospitality industry," he said. Warning of the consequences of the step, Goyal said that "if no visas are valid, within next ten days this travel and tourism industry will come to a virtual stop. It would mean that everyone will cut down costs and terminate non-essential staff and stop recruiting additional staff."