Category Archives: Associations

CAPA India’s preliminary estimates for the near-term impact on the Indian industry states that as a result of the significant reduction in flying, Indian carriers may initially ground around 150 aircraft (including almost all of the international fleet), with this number expected to increase as more domestic operations are curtailed over the coming weeks. Based on the latest cancellations, international capacity is currently estimated to be down by 60-70 per cent year-on-year, although the situation is evolving on a daily basis. India has banned entry by all foreign nationals (with some very limited exceptions) until at least April 15, 2020. Foreigners account for around 25 per cent of international air travellers to/from India. However, India has also blocked the entry of its own nationals from the European Union and several other countries, and has advised its citizens not to travel overseas. If the decline in traffic continues to be severe, the majority of the fleet could be grounded by April.

Gurbaxish Singh Kohli, Vice President, Federation of Hotel & Restaurant Associations of India (FHRAI) and President of HRAWI, has said that the association’s hospitality institute has launched new courses that were to start from March 2020. He says, “We have an institute called FIHM, which is short for FHRAI IHM in Greater Noida and keeping the demand for shorter courses in mind and so many new trends emerging, we have introduced short-term courses on FOSTAC and FSSAI that involve skill development. This is also something that the government is pushing. We have these courses ready and they were due to start immediately but now we have kept it on hold because of the unfortunate coronavirus situation. We will start them as soon as it comes under control. Apart from short-term courses, we also have the regular courses but we have stressed in these short courses as that’s the need of the hour. There will be guest lecturers and visiting facility for this as well.”

In a letter to PM Modi, Federation of Hotel & Restaurant Associations of India, (FHRAI), has requested the following concessions for the industry because of the health pandemic. Firstly, a complete GST holiday for 6 months (Central and State Level). Second deferment for fiscal statutory compliance deadlines such as payment of direct or indirect taxes. Thirdly the deferment for repayment of loans, Bank Emi’s etc for a period of 6 months. Fourthly the reduction of bank interest rate by almost 200 basis points with immediate full transmission for working capital. The Hospitality industry is a labour intensive one and is the biggest employment generator of both direct and in direct jobs, and, therefore, the industry has to take care of a large number of employees. On top of that, the hospitality Industry requires a lot of working capital, which is seriously hit by almost 90% of both larger establishments and budget hotels and restaurants, and to pay taxes such as advance tax and GST. Now, in an event of such a pandemic, we have been managing the system with our own cash reserves. In addition to that, a lot of hoteliers have taken loans to construct and run their establishm·ents, and, in such a state, adhering to the on-time payment of EMI’s or the re-payment of loans seems an onerous task.

Federation of Associations in Indian Tourism and Hospitality (FAITH) has been sharing a regular updates with the Ministry of Tourism(MOT) and Prime Minister’s Office (PMO) on the impact of COVID-19 on the industry and apprise the Government on the effect of the outbreak has been till now. The update letter reads, “This is one of the worst crisis ever to hit the Indian tourism industry  impacting all its geographical segments – inbound, outbound & domestic, almost all tourism verticals— leisure, adventure, heritage, mice, cruise, corporate & niche segments. The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurant, family entertainment venues & air, land & sea transportation.” – Inbound foreign tourism of $ 28 bn + in value terms accounts for on an average basis almost 60-65%  between October to March. As the news of the virus started picking up from November, the percentage  of cancellations started going up in this segment exponentially and is reaching a peak of almost 80% now in March in many Indian locations. The value at risk from this segment will be in multiples of tens of thousands of crores. – The forward bookings for the inbound season of October 2020 – March 2021, which should have started picking are all muted.  These are showing highly discouraging signs with cancellations of important global travel marts which are marketplaces for contracting for the next season. – The value of NRI segment from developed markets whose major season for visit to their families and relatives is around 60% + during April to September. There are reports of large-scale forward cancellations from these and unless the progression of the virus stops the almost entire value …

In the wake of the Coronavirus outbreak across the world, the Outbound Tour Operators Association of India (OTOAI) has decided to postpone its Convention to another date. The Convention was scheduled to take place in Antalya, Turkey from March 15-18, 2020. Once things are back to normal, the OTOAI Convention will take place in Turkey with fresh dates. Riaz Munshi, President, OTOAI shares, “It is unfortunate that we had to postpone the convention, but given the prevailing circumstances, we thought it is best to do so. The decision has been taken keeping the safety of our delegates in mind as we would never do anything that might put their health in jeopardy. I am sure that the effect and spread of Covid-19 will subside with time and once that happens, we will re-announce the convention with a fresh set of dates.” Himanshu Patil, Vice President and Convention Chairman, OTOAI, added, “We would like to thank all the members of the travel trade, media and our partners in Turkey who have been extremely supportive. We look forward to your continued support in the future also and we are confident that as soon as the Covid-19 cases are curbed, we will announce the new dates of the convention.” In a statement, the Destination Turkey said, “Turkey is very eager to host all the delegates and the preparations are still in order. While Turkey has not reported a single confirmed case of COVID-19, the decision has purely been taken keeping the various travel advisories being issued in mind.”

The Pacific Asia Travel Association (PATA) has announced the cancellation of its Annual Summit scheduled to take place from March 31- April 3, 2020, in Ras Al Khaimah, UAE due to evolving dynamics of the spread of the COVID-19 globally. In 2021, the summit will be hosted by Ras Al Khaimah Tourism Development Authority (RAK TDA) and for next year’s event will be announced in due time, announced Dr Mario Hardy, CEO, PATA. Delegates who have paid the registration fee or purchased tickets for the PATA Foundation Charity Dinner have the option of transferring the registration fee and/or the Charity Dinner ticket fee to the PATA Annual Summit 2021 or receive a full refund.

The Indian Association of Tour Operators (IATO) will have its elections on April 25, 2020 at The Ashok, New Delhi. The information was shared by Rajesh Mudgill, Hony. Secretary, IATO during the last interactive luncheon meeting of the current Executive Committee of the association took place on February 28. He said that official notification about the election will be soon shared with the members. Akshay Kumar, CEO, Mercury Himalayan Explorations will be the returning officer.

Amusement Parks in India attract over 30 million (3 crore) visitors annually. Children & Youth visit the park either in school groups or with families and constitutes 50% of park visitors. Adults constitute the remaining 50% as they either visit with their families or in corporate groups. India has over 160 plus amusement parks and the future growth of the sector are going to be away from the city limits along with resorts and hotels at a tourism destination. The figures were revealed at the 20th IAAPI Amusement Expo 2020, the biggest B2B exhibition on sourcing for amusement, leisure and recreation industry supported, by Ministry of Tourism (Incredible India). It was inaugurated by Amanda Thompson, Chairperson – International Association of Amusement Parks and Attractions (IAAPA) with Sohansinh Jadeja – President – Indian Association of Amusement Parks and Industries (IAAPI), along with key office bearers.

Upset by the recent proposal by the IT department to impose 5% TCS on overseas remittance as well as sale of overseas tour package, the travel trade has united to file online petitions on the PMO website urging the government to withdraw the same, claims Pradeep Saboo, Partner, Guideline Travels LLP. He said that he realised there was an urgent need to represent the travel trade to the government on this issue. “Even though I am not part of any trade association, I wanted to bring the industry together in some small way. I have started encouraging travel agents and tour operators like me to go on the PMO grievance website and post their contact details along with the message for withdrawing TCS.” The link for this is https://pmopg.gov.in/pmocitizen/Grievancepmo.aspx where the agent will need to fill in the contact details and put in their suggestion. To help with this, Saboo has also created a ready message that they can copy-paste in the feedback box. He started this on Friday, February 14, 2020 and more than 5,000 individuals signed up for this within the first 48 hours. Saboo pleads, “Please spare two minutes to make a difference to our trade which is facing a very difficult time. This will also affect those who sell cruises.” Saboo adds that he will arrange a meeting between the various trade associations and the travel agents and tour operators soon, post which they will look to send a delegation to meet the PMO or the Finance Ministry.

The Association of Domestic Tour Operators (ADTOI) has launched its Tamil Nadu Chapter at Hotel Ambassador Pallava in Chennai recently. PP Khanna, President, ADTOI, revealed that it is the 11th chapter of the association, which is aimed to bring more tourist traffic to the state. Kalaimamani VKT Balan of Madura Travel Service is the Chairman of ADTOI Tamil Nadu Chapter, while P. Ashok Kumar from Maanas Sarover Tours & Travels has been named as the Secretary. Vishnu Vasanth Kumar from Emperor Traveline is the Treasurer and R. Saraswathi is named as the Lady Entrepreneur Officer (LEO) of the Chapter. The Chief Guest at the launch was K. Pandia Rajan, Minister of Tamil Development, Culture, Archaeology, Govt. of Tamil Nadu and Guest of Honour was V. Krishnamoorthy, Deputy High Commissioner of Sri Lanka, Thiru. Saravanan Karathihayan, Consulate General of Malaysia; V Irai Anbu IAS, Addl Chief Secretary, Director – Anna Institute of Management, Government of Tamil Nadu; and Officials from Ministry of Tourism, Government of India, officials from national Associations of TAAI & TAFI, invitees from local Travel, Tourism & Hospitality fraternity including ADTOI members. ADTOI delegation of 11 Managing committee members was led by PP Khanna, President from Delhi participated in the launching ceremony.