New Delhi: Launch of ‘Return to your Roots’ tourism packages for NRIs, promoting India as a safe destination and adding tourism to the Concurrent List (both central and state governments can enact laws listed under it) are some of the recommendations made by a parliamentary committee to boost the tourism sector.
In a report tabled Tuesday, the Parliamentary Standing Committee on Transport, Tourism and Culture emphasised on the role that the tourism and hospitality sector can play in helping India reach the $5 trillion economy goal. The two sectors were one of the hardest-hit by the Covid-19 pandemic and the nationwide lockdown.
The 31-member standing committee also noted that the tourism ministry has set a target to increase the sector’s GDP contribution to Rs 8.4 lakh crore. To this end, the report recommends that the sector be exempted from budgetary cuts.
The committee also said that tourism sector could be “a catalyst” for the recovery of the economy and will need direct government support through stimulus packages, rationalisation of GST and liquidity support.
It further called for an aggressive push for India’s promotion as a ‘Safe Tourism Destination’, to bring back the industry to its pre-pandemic numbers.
The committee suggested that the ministry should “position India as a favoured tourist destination in the tourism generating market overseas and increase India’s global share to the tourists market by working out country-wise Foreign Tourists Arrivals from various overseas source markets”.
Also read: India’s new tourism model is small local rentals, homestays. 2021 budget needs to catch up
NRI programmes, LTA benefit
The committee’s report suggested launching a ‘Return to your Roots’ programme for NRIs and PIOs (People of Indian origin) to boost domestic and international tourism in this fiscal year.
The report also advised the government to incentivise and boost domestic travel by allowing citizens to avail Leave Travel Allowance (LTA) benefit on domestic tours including travel fare and accommodation charges for a period of two years.
LTA refers to an allowance provided by the employer to his employee to cover travel expenses during leave from work. The allowance is eligible for income tax exemption under the Income Tax Act, 1961.
Furthermore, the standing committee suggested the ministry incentivise Meetings, Incentives, Conferences and Events (MICE). India earns only 1 per cent revenue from MICE, and the report said, steps should be taken to bring them to domestic hotels.
It also recommended adding travel and tourism to the Concurrent List, to streamline the sector and build synergy between states and the central government.
“Since tourism is a multi-sectoral activity, inclusion of the sector to the concurrent list will play an important role in facilitating the issues involved with multiple Ministries\Organisations at central level as well as with the States\UTs to create convergence and synergy of actions across multiple agencies and programs,” the report noted.
Also read: Not just temples — Odisha makes big ecotourism push, eyes ‘top tourism destination’ tag
Relief measures for the sector
Several relief measures were also recommended by the standing committee, which was headed by Rajya Sabha MP T.G. Venkatesh.
According to the panel, there is no uniformity in the tax structure of the tariffs levied on hotel rooms and therefore due to an increase in these tariffs, India is losing out on tourists.
In order to reign in room tariffs, the committee recommended that the “levy of taxes on hotels should be rationalised and industrial rates of power supply, water supply, property tax should be changed instead of commercial rates”.
This, in the committee’s view, could be a “game changer” for the industry.
To enhance the export competitiveness of tourism, the panel also suggested that all income made by tourism and hospitality entities in convertible foreign exchange should be considered as exports, and therefore be exempted from GST.
Also read: Why Indian economy seems set for revival in the new year after a tough 2020
(Edited by Rachel John)
the world is fed up with the fossil fueled economy and countries are stampeding to gallop into a hydrogen based economy. scientists are spending their midnight oil to improve upon the technology of producing clean green eco environ friendly hydrogen. IOCL in india has an ambitious plan to step up their efforts to go for hydrogen production. In five years from now people all over the world will be moving on hydrogen fueled cars, bysses, long haul trucks, cargo ships, airplanes, steel, cement, other metal industries guzzling fossil fuels to turn to hydrogen as their fuel to run their mills. TERI india has already preapred their blue print and come out with their report to chalk out the transition path for india to adop hydrogen fuel economy.!!!