Tourism association in Himachal seeks financial help from state govt to save industry amid COVID-19 resurgence

Amid imposition of strict restrictions in the country due to rising COVID-19 cases and deaths, the Himachal Pradesh Tourism Industry Stake Holders Association has expressed concern over the tourism industry facing financial setbacks and urged the state government to provide financial assistance and other reliefs to save the industry.

"The tourism industry is ruined. The tourism stakeholders are facing a financial crisis. The financial setbacks since the last four years have broken the backbone of the industry. Because of the present circumstances arisen due to COVID-19, it has become impossible to meet day-to-day expenses for the hotels, restaurants, taxi operators, adventure operators, water sports operators, photographers, and all other tourism units," said Mohinder Seth, President, Tourism Industry Stake Holders Association, Himachal Pradesh, in a statement.

"The tourism units are not able to pay the interest and EMI of loans raised by them due to loss faced by the industry for the consecutive second year. The stakeholders fear the loans raised by them may slip to NPA," adding that the hoteliers, restaurants and other tourism unit owners are unable to meet staff salaries, electricity water bills and other fixed expenditures.

Seth informed that tourism in Himachal Pradesh is continuously suffering financial setbacks for the last four years, adding that the tourism industry suffered revenue losses in the summer season in 2018 due to acute water shortage in Shimla and in 2019 due to Lok Sabha elections till mid-May.

He also stated that in 2020, due to the COVID-19 induced nationwide lockdown, the tourism industry remained completely shut for around eight to nine months and lost its main summer season when tourism in the state is at its peak.

"This year again consecutively for the second year, the tourism in Himachal will lose business in the summer season. Half of the tourist season has already slipped out of the hands of the tourism stakeholders due to the situation that has arisen in almost every part of the country due to the second wave of COVID-19 and restrictions imposed just before the starting of the main season which contributes a major chunk of revenue for the whole year to sustain the industry," stated Seth.

He said that the business travellers stopped coming or are hesitating to come to Himachal Pradesh because of the state government advisory which makes it mandatory for people coming to the state to present a COVID-19 negative report.

He further stated that many services are dependent on these business travellers coming from neighbouring states.

"We request that the business travellers may be exempted from advisory of COVID negative report. The tourism industry pins hope for financial help from the government end enable the stakeholders to come out of the situation that arose due to the pandemic. In case the financial help is not provided to the tourism stakeholders will be compelled to close down their units which may result in employees 100 per cent job loss and due to inability to pay loans raised by tourism units from the bank's in the present scenario it will difficult for stakeholders to save their tourism units," said the Tourism Industry Stake Holders Association President.

He said that the tourism stakeholders expect financial assistance from the government by way of working capital limits under the Interest Subvention Scheme by the earliest to sustain in the present situation, adding that the tourism industry may take another two to three years to come back on track and become self-sustainable.

"The hospitality industry stood with the government in 2020 and still stands with the government in the present situation which arose due to the second wave of COVID-19 nationwide. We urge the government to provide financial assistance and other reliefs to save the tourism industry which creates maximum direct and indirect employment and contributes 10 per cent share in GDP of the State," added Seth.

India recorded 3,49,691 new COVID-19 cases, the highest single-day spike since the pandemic broke out last year.

According to the official data issued by the Union Health Ministry, the country has recorded 2,767 new deaths due to COVID-19 in the last 24 hours.

The country's total infection count has mounted to 1,69,60,172 cases, while 1,92,311 people have so far succumbed to the viral infection so far. Currently, there are 26,82,751 active COVID-19 cases in the country, said the official data of the ministry.

( With inputs from ANI )