Project Report:: A Study On Tourism Industry-Pre & Post Coronavirus
Project Report:: A Study On Tourism Industry-Pre & Post Coronavirus
Project Report:: A Study On Tourism Industry-Pre & Post Coronavirus
Submitted by
Name of the Candidate : Kashish Thakkar
Registration Number : 017-1111-0933 -19
CU Roll Number : 191017-21-0720
Name of the college : The Bhawanipur Education Society College
College UID : 0101191659
Supervised by
Name of the Supervisor : Prof. Samreen Alam
Name of the college : The Bhawanipur Education Society College
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Annexure-1A
Supervisor’s Certificate
PLACE : KOLKATA
DATE : __________
Signature:
Name : Prof. Samreen Alam
Designation : Lecturer
Name of the College : The Bhawanipur Education
Society College
2
Annexure-1B
Student's Declaration
I hereby declare that the Project Work with the title “TOURISM INDUSTRY-
PRE & POST CORONAVIRUS ” submitted by me for the partial fulfilment
of the degree of B.Com. Honours in e-Business under the University of Calcutta
is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of
study. I also declare that no chapter of this manuscript in whole or in part has
been incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.
Signature :
Name : Kashish Thakkar
Address : N-68, Paharpur road,
GardenReach, Kolkata -700024
Registration No. : 017-1111-0933-19
PLACE : KOLKATA
DATE : ___________
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ACKNOWLEDGEMENT
4
Abstract
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CHAPTER-1
INTRODUCTION
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1 INTRODUCTION
India is a country with multicultural experiences, natural beauty, and rich heritage and has
always been an attractive tourist destination. Mountains, beaches, forests, deserts, deltas, and
architectural marvels give the country a distinct geographical entity. Yoga, Ayurveda, and
natural health resorts also attract tourists. In India total of 38 world heritage sites were
recognized by UNESCO as of August 2019, which is the sixth-highest in the world. Apart
from all these, the medical tourism industry has great potential due to the low cost of
treatment. The Indian tourism industry is one of the significant and vital contributors to the
economy of the country. As per United Nation World Tourism Organization (UNWTO),
international tourism receipts of the world in 2018 was US$ 1451 billion, of which India
contributes 6.6% in the Asia Pacific and 1.97% in the world. India ranked ten among 185
countries in terms of travel and tourism's total contribution to GDP in 2019, which was
almost US$ 194.30 billion. About generating employment and income, the tourism industry
seems to be more effective than other sectors. International tourism is an invisible export that
creates foreign exchange as other export industries create. Tourism creates a new channel for
young people to provide a large number of employment opportunities. Also, the Government
yields high tax revenue. In every ten jobs, travel and tourism industries support one position.
Travel and tourism worldwide support 330 million jobs and keep 182.2 million jobs in the
Asia Pacific, of which 5.56% under direct employment and 7.19% under indirect
employment. During the year 2014 to 2019, India gets the first position in terms of creating
tourism jobs. In this period Indian travel and transport industry created 6.36 million jobs
(Report WTTC 2019). Tourism is a sector that uses minimum natural resources and optimum
use of workforce and expertise. The travel and tourism industry is a sector that strengthens
the country's economy to help other sectors like transportation, food, beverage, culture,
sports, and more. Tourism helps promote cultural diplomacy, connects the people, and
promotes friendship and cooperation between India and other countries. As per the 2019-20
annual report of the Ministry of Tourism of India, more than 87 million people were
employed in the tourism industry in 2018-19, which is 12.75% of the country's total
employment. In India, tourism is also important from an economic point of view, as during
the year 2019 total of 17.42 million international tourists came to visit India and contributing
a substantial amount of US$ 29.962 billion in foreign exchange (Annual Report 2019). India
ranked 34 out of 140 countries as per the Travel and Tourism competitiveness report 2019.
India is a place for every kind of traveler and has something for everyone. Domestic tourism
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is also an essential contributor to the sector. During the year 2018 total of 1854.93 million
domestic tourist visits all over the country (Annual Report 2019-20).
The current outlook of the Travel and Tourism industry is highly uncertain because of the
Coronavirus pandemic. Due to this, the world is facing an unprecedented global economic,
health, and social emergency. The travel and tourism industry is the most affected sector
because hotels are closed, airplanes are on the ground, and all countries worldwide put travel
restrictions. This pandemic is the biggest challenge that the tourism industry has ever faced.
Whenever an economic slowdown hits the world or the country, people have less income and
dispose less of it and save more for future contingencies. The covid-19 pandemic is one of
the worst crises the Travel and Tourism industry faces and impacts both segments, i.e.,
inbound tourism andoutbound tourism. Local, regional, national, and international travel
restrictions immediately affected the tourism industry. Whenever any widely spread decrease
hits the earth, tourism has always been the first to get involved because people could not get
out from their homes to travel. This time pandemic affects the world economy. People lost
their jobs worldwide, and no future aspect is showing to come out from pandemic and current
situation is uncontrollable and worse than it actually would have been. Fear of the virus
creates distancing among the people, which will hurt tourism. Indian travel and tourism
industry is staring at a massive loss because of travel restrictions and pandemic fears, keeping
people indoors. Every time, health and safety is the priority, and traveling is the last for
everyone. Whenever the world struck in a pandemic situation, people always think they are
more secure and safer in their own homes and avoid traveling to crowded places. People will
travel only to those places which are clean and less traveled because hygiene is essential.
Now the people will be very picky about their destinations. People will fear traveling by
public transport, and they prefer to travel by their vehicles. Whereas, as per the World
Economic Forum report 2019, India gets rank 105 out of 140 in health and hygiene, which is
not suitable for the country. Due to this, travel and tourism will have to struggle to grab
customers. The fear of getting infected from Covid-19 has impacted the travel and tourism
industry of the country domestically and internationally. Foreign travelers of many nations
have canceled their bookings. The Government gives social distancing directions to the
public transport industry and mandates air travel to left empty the middle seat to maintain
social distancing. Thus, they reduced seating capacity, which increased the flying cost, and
for this reason, the travel cost will also increase. Because of the emergency related to the
Covid-19 panic, many flights, domestic and international, can be canceled. International
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Transport Association estimates that the global loss of revenue to airlines would be about
US$ 214 billion while pending customer's refund due to cancellation of flights stands at US$
35 billion. The air transport industry is severely affected due to flight ticket cancellation. The
air transport industry's revenue has been reduced significantly, and this situation does not
improve soon.
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1.1 BACKGROUND OF INDIA’S TOURISM
Peninsular India is one of the largest democratic countries in the world. The economic
composition,civilisation, culture, natural and artificial beauties,ecosystem, and locational
advantages attract the attention of both domestic and foreign tourists. The recent experience
of the area showed that there have been amazing improvements in transportation, hotels,
accommodation, restaurants and tourism related markets in India. As a vibrant segment of the
economy, tourism is not only a potential source of employment generation, but also a
substantial source for foreign exchange earnings. According to the World Travel and Tourism
Council (WTTC), India’s tourism in 2018 was in third position out of 185 countries with
respect to the contribution to the nation’s total GDP. From 2019 records, this sector obtained
US$29.96 billion, reflecting a 4.8% growth when compared to the previous year; it reached
US$5.40 billion in the first part of 2020. India is in 34th place in terms of tourism
competitiveness (IBEF, 2020). In addition, the significance of this sector to the nation’s
overall economy can be seen in Figure below.
Recent trends in the tourism sector revealed that India has been blessed by digital
instruments for tourism-related activities, such as tourism planning, selecting destinations and
making the journey. Domestic tourists are the support system of the Indian tourism industry,
and it is a stylised fact that the increasing size of the middle income group and their
disposable income extends their support for the development of the tourism sector. The
authentic statistics published by both governments of India and the tourism department
revealed that, in 2019, a total of 10.89 million foreign tourists visited India, accounting for a
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3.2% growth. Mention should be made here that this sector has accommodated 4.2 crore
people, which is 8.1% of the nation’s total employment during the 2019. In fact, this is an
incredible achievement in a populous country like India, where people are striving for
employment and a higher income. Official predictions reported that this sector may generate
52.3 million job opportunities by 2028 (DPIIT, 2020). Unfortunately, COVID-19 entered the
tourism map of India and the
system collapsed.
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1.2 LITERATURE REVIEW
Farhan et al. (2019) proposed and designed an e-learning user in- terface with the
help of web programming languages, and also it was tested collecting quantitative
data from teachers and students to ensure that how effective it is. Using qualitative
and quantitative empirical ap- proaches, students and instructors have more excellent
knowledge of the scheme.
Yengin et al. (2019) In this analysis, the e-learning paradigm’s ef- fectiveness was
submitted to teachers, e-learning designers and illus- trated professional satisfactions
utilizing positive and negative feedback on variables linked to the teacher’s happiness
in e-learning systems.
Sarwar et al. (2019) proposed a mathematical model for online learn- ers using
machine learning techniques. The learners of this method were divided into separate
divisions. The learning material glossed through the ontology of classes, of which
three academic classes (C ++ , C #, and JAVA) were represented.
Vasconcelos et al. (2019) presented decision-making methods based on
multidisciplinary requirements and various criteria for the configura- tion of online
course programs. The decision-maker configuration model developed, program
institution-based mentors listed practices relevant to the consistency of service design
implementation processes.
Tawafak et al. (2019) present in intention to establish a perspec- tive to improve
university education and learning and the dynamics of course evaluations by
analyzing the relationship between the e-learning implementation variables and the
paradigm for technology adoption, presenting a high degree of relevance and
reliability outcomes.
Kardipah and Wibawa (2020) presented the evaluation for success and interview
guidelines, a flipped-mixed learning paradigm for devel- oping students’
programming skills, and examined the use of problem- based learning in FBL student
success inspired students to learn more.
Dey and Bandyopadhyay (2019) aim to conduct using the proposed blended learning
platform to show that underprivileged school students’ quality education can be
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provided. From this idea, we are launching a proposal on an e-learning system based
online and offline, both with a new blended learning module.
This study aims to assess the extent to which the outbreak of Coronavirus has impacted the
travel and tourism industry in India. The specific objectives of the study are as follows.
To sort-out the data of international tourist arrivals and global tourism receipt.
ii. To sort-out the data of domestic tourist arrivals and domestic visitor spending.
iii. To sort-out the data of travel and tourism total contribution to GDP and employment.
iv. To sort-out worldwide India's various rankings in travel and tourism.
v. To find the extent to which the Covid-19 virus has impacted the Indian travel and Tourism
industry as per the data analysis of companies engaged in the Travel and Tourism industry.
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1.4 RESEARCH METHODOLOGY
Covid-19 has emerged as an eclipse to the entire travel and tourism industry, not only in India
but also in the world. This disruption has caused to break the whole chain, i.e., airlines, travel
agents, tour operators, hotels, etc. Social distancing is not in early to going away. For this
study, a secondary research methodology has been implemented. A secondary source of data
has been
collected to understand the impact of Covid-19 on the Indian travel and tourism industry.
Several articles, journals, research papers, various national and international agency (like
World Travel and Tourism Organization, United Nation World Tourism Organization,
International Travel and Tourism Association, Indian Tourism Association, Ministry of
Tourism India, etc.), reports, and government documents, etc. are considered to collect the
necessary information for the study. For the analytical purpose, we use published half-yearly
data of twenty listed companies engaged in the business of travel & tourism. We select the
listed companies for the data analysis because the listed companies are compulsorily to
publish their result every quarter as per SecuritiesExchange Board of India (SEBI)
requirements. From this, we get the actual financial data of companies of the half financial
year (first two quarters) during the Coronavirus pandemic situation. We analyze the current
half-yearly (first two quarters) Revenue, Profit after Tax (PAT), and Earning per Share (EPS)
and the last financial year Revenue, Profit after Tax (PAT), and Earning per Share (EPS).
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1.5 LIMITATIONS OF THE STUDY
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CHAPTER-2
CONCEPTUAL
FRAMEWORK
NATIONAL AND
INTERNATIONAL
SCENARIO AND
GOVERNMENT
INITIATIVES
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2.1 Meaning & Introduction:
Tourism is a practice of travelling for recreational or leisure purpose. Tourism has become a
popular global leisure activity. It is a short term and temporary movement of people. It
provides a source of income for the country.
Tourism involves an overnight stay away from the normal place of residence. It includes
“travel” and “stay” in the place outside the usual environment. Tourism includes
transportation, accommodation and entertainment.
There are different types of tourism like adventure tourism, cultural tourism, medical tourism,
sports tourism, water tourism, wild life tourism, space tourism etc. It is rightly said that, “All
tourism is travel but all travel is not tourism”.
Tourism is related to pleasure, holidays, travel and going or arriving somewhere. It involves
movement of people to, and their stay at various destinations.
Tourism sector contributes foreign exchange earnings to the economy Tourism is:-
Domestic tourism:- When the travel is within the country.
International tourism:- When the travel is from one country to another country.
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2.2 Impacts of COVID-19 on Tourism Industry:
With airplanes on the ground, hotels closed and travel restrictions implemented, travel and
tourism became one of the most affected sectors since the very start of the virus spread
(infomineo, 2020). The Hotel Industry right now is staring at a loss of ₹ 90000 Crores in
revenue and it is expected to see only 30% occupancy till the next year and this organized
sector is likely to lose $25 Billion (timesnownews, 2020). Every component of tourism
industry is being affected with the closure of the borders of the countries due to spread of the
disease. The impacts of the pandemic can be seen on every area of the tourism industry viz.
aviation industry, hospitality industry, travel agency and tour operations.
Impact of COVID-19 on Transportation Sector:
Transportation sector is also a big hit during COVID 19. From rickshaw pullers to airlines, all
have been affected economically by the pandemic. (Harikumar, 2020). As per the report
given by CPPR (Centre for Public Policy Research), in a study conducted in September 2020,
Major findings regarding adverse impacts of COVID 19 on transportation:
Due to reduced travel demand, Transport operators would face severe financial constraints
in the immediate future.
Public transport would be less preferred due to safety concern.
It may take 1 -2 years on recovery on transport to normalcy.
Government support is much needed by private sector, as these are adversely impacted.
Impact of COVID-19 on aviation industry:
The dramatic drop in demand for passenger air transport (and freight, to a lesser extent) due
to the COVID-19 pandemic and containment measures is threatening the viability of many
firms in both the air transport sector and the rest of the aviation industry, with many jobs at
stake (OECD, 2020).
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COVID-19 is the largest shock to commercial air travel and aviation since World War II
(IATA, 2020). According to IATA annual review report, 2020, the pandemic has the worst
impact on the global aviation industry, previously the adverse impacts of 9-11 attack and
Global Finance Crisis were thought to be worst. As the disease spread, its impact on air
transport was felt globally, beginning in February to a low point in April, when passenger
traffic was down 94% from the year before and much of the industry was grounded (IATA,
2020). According to ICAO report, 2020, there is a reduction of overall reduction of 51% of
seats offered by airlines and 2,887 to 2,892 million passengers in the year 2020 as compared
to baseline (business as usual, originally-planned).
And there is approximate USD 358 billion potential loss of gross passenger operating
revenues of airlines.
Figure 3 reveals the passenger revenue loss of different regions between the time period of
January to November 2020 as compared to baseline. Asia and pacific is the worst hit with the
loss of USD118 billion loss of passenger revenue during this period. Major setbacks also
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faced by industry in form of job loss.Aviationsupported jobs potentially fall by 46 million to
41.7 million (-52.5%) (IATA, 2020) and Direct aviation jobs (at airlines, airports,
manufacturers and air traffic management) fall by 4.8 million (a 43% reduction compared
with pre-COVID
situation) (IATA, 2020). As per IATA report, the airline passenger traffic at global level will
not return to the pre-COVID levels until 2024. The industry has to face the hard time before
achieving the same level of pre-COVID situation.
2.3 NATIONAL SCENARIO
The Indian tourism sector is one of the crucial drivers of development in the services sector in
India. The impact of the tourism sector as an economic powerhouse as well as its potential as
a tool for economic development cannot be ignored. The sector also contributes heavily to
foreign exchange earnings and thus is considered one of the key sectors which drives overall
economic growth in the country. The key contributions of the tourism sector in India as per
the Annual Report of the Ministry of Tourism for 2019–2020 are as outlined below:
1. The foreign tourist arrivals in 2019 were of the order of 10.89 million with a 3.2% growth
over the corresponding numbers for the previous year.
2. Foreign exchange earnings during 2019 were estimated at `210,981 crores with a growth of
8.3% over the previous year.
3. Domestic tourism was a key segment contributing to the overall industry and there were
an estimated 1,854.93 million domestic tourist visits all over the country.
4. Indian travel and tourism sector significantly contributes to the country’s GDP as well as
employment.
Tourism along with the hospitality sector contributes direct and indirect employment to many
people, propels consumption of many items and gives a boost to allied sectors such as food
and beverage, transportation, accommodation, various leisure and recreation activities, etc.
The COVID-19 pandemic is expected to have a debilitating effect on the Indian travel and
tourism industry which includes a direct impact on hotels, travel agencies, tour operators,
restaurants and tourist destinations and have an indirect impact on land, air and sea
transportation. It is estimated that the overall losses to the sector could be of the order of
US$16.7 billion. The lockdown and the travel ban have had a serious impact on the inflow of
foreign tourists into India. According to the Ministry of Tourism, foreign tourist arrivals in
March 2020 were almost 66% lower than the number of foreign tourist arrivals in March
2019. Foreign exchange earnings from tourism in rupee terms during the same period
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indicated a decline of 64%. The lockdown has had an impact on tour operators and travel
agencies with both current bookings as well as future bookings being adversely affected. The
peak period for
Indian travellers going abroad is usually the months of March and April and with the
pandemic being at very dangerous levels during this period, almost 90% of hotel bookings
and flights have been cancelled leading to significant revenue losses for all tourism-related
stakeholders.
It is estimated that average revenue losses in the March– April period compared to the
corresponding period in 2019 would be of the order of 50%–80% for tour operators and
travel agents across the country (Niti, 2020). The COVID-19 pandemic is also expected to
have a disastrous impact on employment. The travel and tourism industry in India employs
around 87.5 million people either directly or indirectly. It is estimated that around 40–50
million people employed in this sector could lose their jobs due to this pandemic which is up
to 57% of the workforce of the sector. In addition, several employers in this sector have
announced wage and salary cuts across various employee levels and this could further impact
the livelihoods of people employed in this industry (Mallapur, 2020). Another key
stakeholder who has been badly affected by this pandemic is the consumer or the tourist
itself. As the COVID-19 pandemic is continuing to spread with expected community
transmission in many countries, tourists’ hope for necessary movement and travel across is
becoming more and gloomier. It has been very difficult days for the tourist in terms of
understanding the new normal in the changed post-pandemic era with multiple shocks with
respect to his physical as well as emotional wellbeing. Rapid reduction in income with
uncertainty about the future source of income means, the average consumer would allocate
more of his resources towards essential items and postpone any travel plans till there is clarity
on the resolution of the pandemic through a possible vaccine or cure.
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2.4 INTERNATIONAL SCENARIO
The COVID-19 pandemic outbreak has brought the global tourism industry to a virtual
standstill. The massive drop in the tourist arrivals, the partial and complete lockdowns by
entire countries and restrictions on travel, both domestic and international, has had a
cascading effect on tourism revenues, tax collections, employment levels and the very
survival of several businesses linked to the tourism sector. The impact of the pandemic on
global tourism is expected to manifest itself in terms of a sharp decline in tourist arrivals, a
loss in GDP contributions as well as a deep impact on employment and jobs in the industry.
These impacts are expected to be worldwide with some regions being more impacted than
others. Another significant impact that the COVID-19 pandemic is expected to have is in
terms of a significant drop in the number of jobs in tourism and related sectors. Travel and
tourism have historically been a significant contributor to the global economy with the sector
accounting for 10.3% of global GDP and having a growth rate of 3.5% as compared to a
2.5% real economy GDP growth worldwide as of 2019. The sector is a huge contributor to
job creation and employment and in 2019, 1 in 10 jobs was in this sector (World Travel and
Tourism Council, 2020). The World Travel and Tourism Council (WTTC) also estimates that
one in four jobs over the last five years was created in the travel and tourism sector. Given
this significant contribution, an assessment of the impact that the COVID-19 pandemic will
have on jobs is in order. The sharp drop in international and domestic tourist arrivals along
with a significant downturn of travel and tourism sector had expected impact on the tourism
GDP. Travel and tourism GDP was of the order of US$8.9 trillion in 2019 and accounted for
10.3% of the global economy. As can be seen, the maximum impact on travel and tourism
GDP would be faced by Asia Pacific and North America with Europe being a close second.
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2.5 Government Initiatives
The Global Tourism Crisis Committee related to COVID-19 held its third virtual meeting on
16 April 2020. The meeting was chaired by the Secretary General UNWTO and included
highlevel representatives from both public and private sectors, and international organisations
such as WHO, International Civil Aviation Organization (ICAO), IATA, WT TC. The
Secretary of Tourism highlighted the efforts made by the Ministry of Tourism, Government
of India to combat the crisis. During the meeting, the participants were informed about the
initiatives undertaken by UNWTO and other tourism stakeholders to meet the challenge
posed
by COVID-19. The following is a list of the Indian Ministry of Tourism initiatives conducted
to elevate and combat the effect of COVID-19 on the tourism industry in addition to its
recommendations to the Ministry of Finance for providing a relief package for the tourism
sector:
The Ministry of Tourism launched the ‘Dekho ApnaDesh’ web-series with a view to
create awareness about tourist destinations in the country. Twenty-six webinars
covering lesser-known tourist destinations and promoting the concept of responsible
tourism were held in April 2020. Approximately 42,000 people registered for the
webinars, which were well received by the travel industry, students and the public
(Ministry of Tourism, 2020);
An ‘Extraordinary Tourism Ministers Virtual Meeting of the G-20’ chaired by H.E.
Minister of Tourism, Kingdom of Saudi Arabia was held on 24 April 2020. The
purpose of the meeting was to facilitate collaborative action to protect tourism
businesses and jobs, and support visitors in meeting the unprecedented challenge
posed by COVID-19. The Ministry of Tourism and Government of India participated
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and took suggestions on measures that could be taken to revive the confidence of the
industry, consumers and stakeholders;
The Ministry of Tourism set up a portal ‘Stranded in India’ aiming to facilitate and
extend support to foreign tourists who were stranded because of the cancellation of
flights and the lockdown. The site also provided Helpline numbers of the Ministry of
Health & Family Welfare, Bureau of Immigration, Ministry of Tourism, and Ministry
of External Affairs. A total of 2,142 foreign tourists have sought assistance through
the portal up to 30 April 2020;
The Ministry of Tourism circulated and disseminated information on all travel-related
advice and guidelines,issued by the Ministry of Health and Family Welfare and other
Ministries/Organizations. This related to various steps to be taken by tourists, hotels
and other stakeholders in all travel and hospitality associations;
Hotel associations were advised not to deny accommodation to foreign tourists and to
follow required procedures prescribed by the Ministry of Health and Family Welfare.
OYO Hotels collaborated by opening up their accommodation units across the
country for stranded tourists. This information was shared with States/ UTs,
Embassies and others in order to utilise the accommodation units for tourists;
The India Tourism Development Corporation Ltd advised accommodating tourists in
the Samrat Hotel in Delhi; this was done as and when required. A total of 72 foreign
tourists checked into Hotel Samrat from 1 March 2020 to 31 March 2020;
The Minister of State for Tourism and Culture launched the Incredible India Website
in Chinese, Arabic and Spanish to attract tourists from these regions. The function
was attended by senior officials of the Ministry,
foreign delegates and stakeholders of the tourism industry.
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2.5(A) Short-term Measures
Short-term measures are the instant actions required to revitalise the tourism industry by
pulling it from financial quicksand. To some extent, these efforts will rescue the tourism
sector from the recent problems created by COVID-19:
All sub-sectors of the tourism industry are looking for their minimum survival and are
waiting for interim relief to pay salaries, Equated Monthly Instalment (EMI), interest,
etc. The banks have already declared that all banks and Non-Banking Financial
Companies (NBFCs) are eligible to allow a moratorium to the tune of three months on
loans. However, the Indian Confederation of Commerce (ICC) suggested that, given
the amount of damage, the government should extend this to at least six more months;
In addition, the ICC advised that there should be a six to nine month moratorium, not
only on all principal and interest payments but also on tax payments. There should
also be a deferment of advances and overdrafts;
A prominent suggestion also offered by the ICC was that a complete Goods and
Service Tax (GST) holiday for a period of 12 months must be given to the tourism
industry to ensure its survival;
On their part, the government of India announced 1.7 lakh crore (Indian Rupee) as a
special package for the sectors that were badly affected by COVID-19. However,
experts and business fraternities suggested that the Indian government should increase
the assistance amount to 2.5 lakh crore;
In the wake of the Coronavirus outbreak, the ICC asked the Reserve Bank of India
(RBI) to ease the working capital crunch of India’s tourism. In addition, ICC
27
suggested that, for the Indian tourism industry, the banks should clear the credits
faster, particularly for the benefit of the travel and hospitality segments;
Experts in the tourism sector suggested a subvention on term loans and loans offered
in the name of working capital, or the interest rate should be reduced;
Moreover, the ICC strongly suggested an excise exemption (particularly for liquor),
the removal of fees for permit renewal of any forthcoming licenses exclusively in the
tourism industry of India;
Further, the authorities suggested the transfer of funds from the Mahatma Gandhi
National Rural Employment Guarantee Scheme to the tourism industry to manage
outstanding salaries.
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obtain a certificate from their home country and produce it at the time of immigration;
this will create a win-win situation;
The government of India and tourism authorities should ensure a great level of safety
and security measures at all levels for both domestic and foreign tourists. Preferably,
those authorities should target domestic tourists first and then slowly focus on
international tourists; this is because international fraternities will take time to visit
India.
CHAPTER-3
PRESENTATION
OF
DATA,ANALYSIS
AND FINDINGS
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3.1 ANALYSIS AND INTERPRETATION
Qno.1- Age of the respondents?
50 responses
Figure-1
INTERPRETATION :- The above Figure 1 shows the age group of all the respondents
who were taken as samples for the study. By analysing the same we could conclude to the
following :-
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Qno.2- Sex of the respondents?
50 responses
Figure-2
INTERPRETATION :- The above Figure 2 shows the Gender of all the respondents
who were taken as samples for the study. By analysing the same we could conclude to the
following:-
52 % of the respondents i.e. 26 were ‘male’.
44 % of the respondents i.e. 22 were ‘female’.
04 % of the respondents i.e. 02 were ‘prefer not to say’.
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Qno.3- Types of tourism product do you represent?
50 responses
Figure-3
INTERPRETATION :- The above Figure 3 shows the Types of tourism product shown
to all the respondents who were taken as samples for the study. By analysing the same we
could conclude to the following:-
52 % of the respondents i.e. 26 were chooses ‘individually owned tribal business’.
48 % of the respondents i.e. 24 were chooses ‘tribally owned destination’.
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Qno.4- Cancellation received as a result of COVID-19 for 2020?
50 responses
Figure-4
INTERPRETATION :- The above Figure 4 shows the Cancellation received as a result
of COVID-19 for 2020 to all the respondents who were taken as samples for the study. By
analysing the same we could conclude to the following :-
82 % of the respondents i.e. 41 were chooses ‘Yes’.
18 % of the respondents i.e. 09 were chooses ‘No’.
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Qno.5- Estimated loss in booking for the destination for 2020?
50 responses
Figure-5
INTERPRETATION :- The above Figure 5 shows the Estimated loss in booking for the
destination for 2020 to all the respondents who were taken as samples for the study. By
analysing the same we could conclude to the following :-
04 % of the respondents i.e. 02 were chooses ‘No losses in revenue expected’.
22 % of the respondents i.e. 11 were chooses ‘less than 10%’.
14 % of the respondents i.e. 07 were chooses ‘11-25% Decrease’.
26 % of the respondents i.e. 13 were chooses ‘26-50% Decrease’.
34 % of the respondents i.e. 17 were chooses ‘Greater than 50% Decrease’.
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Qno.6- Laying off employees in COVID-19 for 2020?
50 responses
Figure-6
INTERPRETATION :- The above Figure 6 shows the Laying off employees in
COVID-19 for 2020 to all the respondents who were taken as samples for the study. By
analysing the same we could conclude to the following :-
74 % of the respondents i.e. 37 were chooses ‘Yes’.
26 % of the respondents i.e. 13 were chooses ‘No’.
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Qno.7- Estimated loss in revenue for the destination for 2020.
50 responses
Figure-7
INTERPRETATION :- The above Figure 7 shows the Estimated loss in revenue for the
destination for 2020 to all the respondents who were taken as samples for the study. By
analysing the same we could conclude to the following :-
06 % of the respondents i.e. 03 were chooses ‘No losses in revenue expected’.
20 % of the respondents i.e. 10 were chooses ‘less than 10%’.
28 % of the respondents i.e. 14 were chooses ‘11-25% Decrease’.
26 % of the respondents i.e. 13 were chooses ‘26-50% Decrease’.
20 % of the respondents i.e. 10 were chooses ‘Greater than 50% Decrease’.
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Qno.8- Anticipation of impact of COVID-19 on your business & travel industry?
50 responses
Figure-8
INTERPRETATION :- The above Figure 8 shows the Anticipation of impact of
COVID-19 on your business & travel industry to all the respondents who were taken as
samples for the study. By analysing the same we could conclude to the following :-
04 % of the respondents i.e. 02 were chooses ‘No impact’.
10 % of the respondents i.e. 05 were chooses ‘1-3 months’.
28 % of the respondents i.e. 14 were chooses ‘4-6 months’.
58 % of the respondents i.e. 29 were chooses ‘Longer than 6 months’.
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3.2 FINDINGS OF THE STUDY
Some governments have been providing financial support, either directly or through
soft loans and guarantees to the industry.
Countries have also been assisting firms to retrain staff. For example, In Jamaica, the
government gave free online training certification classes to 10,000 tourism workers
to help improve their skills.
New initiatives to reignite the sector could perhaps help. In Costa Rica, for example,
national holidays have temporarily been moved to Mondays to boost domestic
tourism by extending weekends.
A shift toward ecotourism can be made. Ecotourism is a fast-growing industry
focused on conservation and local job creation. It could definitely give an additional
boost to the industry.
Improve crisis management strategies to better prepare destinations and the sector
more broadly to respond to future shocks.
Touchless service delivery and investments in digital technology could be a bridge to
recovery.
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CHAPTER-4
CONCLUSION,
RECOMMENDATIONS
AND
BIBLIOGRAPHY
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4.1 CONCLUSION
India is a diverse tourism destination. Only India is a country where tourists can enjoy all
kinds of tourism together, i.e., wildlife tourism, adventure tourism, heritage tourism, cultural
tourism,
religious tourism, ecotourism, and health tourism. Indian travel and tourism industry has been
a significant contributor to the country's GDP and generates many employments. The Indian
tourism industry is notable for the economy of land and its rapid growth. According to the
calculation done by World Travel and Tourism Council, Tourism generates US$ 194.28
billion or 6.85% of India's GDP in 2019 and supported 8.01% of total employment, i.e., 39.82
million. World Travel and Tourism Council estimates that the travel and tourism sector's real
contribution to GDP is reached US$ 393.7 billion by 2030. But now, the travel and tourism
industry is coming to a halt due to the Covid-19 pandemic. The travel and tourism industry is
mainly affected due to the decision to limit the people's movement. The Government
discourages people from visiting public places, restaurants, pubs & cinemas, social gathering
and closing all school & colleges. Only precautions that may keep the virus away from
spreading, holding hand clean, and staying away from crowd are some doctors suggest by
doctors in the absence of anti-Covid-19 medicine. Coronavirus outbreak has an unforeseen
impact on our lives, livelihoods, societies, economies, and a growing risk of massive loss of
jobs and global recession. The top concern of the hospitality industry is ensuring the safety of
staff and the guests. The lockdown disrupted the life of billions and created the scenario of
economic collapse. In a half-year period, the companies earn only 24.80% revenue in
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comparison to the preceding halfyear. The loss of income in six month period is Rs. 23636.27
Crore, which is approximately equal to the Nominal GDP of Manipur or Arunachal Pradesh
state of the year 2017-18. This half-year revenue loss is equal to 75.20% of the preceding
half-year revenue. Companies earn losses in the half-year period instead of profit in the prior
fiscal year. Net loss of companies in the half-year period is 74.70% of current half-year
revenue. Net loss in Q1 is 253.36% of last year's Q1 profit, whereas Q2 loss is 134.86% of
last year's Q2 loss. The current half-year EPS is negative Rs. 212.21 whereas the companies
earn positive Rs. 321.59 EPS in the previous full-year period. It means that the companies
should make 165.99% of last year's EPS to get the previous year's EPS position. In actuality,
the loss to travel and tourism industries are more than this study's findings because this study
is based on the BSE listed companies. Still, in India, there are thousands of small and
unorganized travel and tourism service providers not considered in this study. Thousands of
persons who work with small and unorganized sector had severely affected, and still, they all
are not in the condition to earn their living. The whole chain of tourism- hotels, restaurants,
tour operators, travel agents, venues of family entertainment, and air, land, and sea transport
will get into a slump. No one understands what is happening and how to protect themselves
and their business from this economic collapse. No one in the world knows or can accurately
predict how all these pandemic conditions go out, and vaccines can be developed, and people
overcome the fear of infection. The only good news is that most of the patients recover from
disease and develop antibodies (natural vaccination) to safeguard them from illness again in
the future. No one can precisely predict the financial damage from the Coronavirus
pandemic. When Covid-19 new cases reduced and the spread is controlled, people will start
traveling, and the tourism industry will boost. Suppose the Indian Government adopts the
right policies. In that case, it will undoubtedly doubt that the Indian travel and tourism
industry continues to grow towards a higher ranking in terms of the tourism economy and
support millions of jobs again.
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4.2 RECOMMENDATIONS
India tourism will see tremendous boom as there will more Foreign tourist will be coming to
India from 2023 on regular basis as they are slowly realising and experiencing real India.
All these days Foreign media projected India In bad light. But now in this Covid times they
are searching for adventure destinations and all of them now are deciding to visit India
because they are in first place and tops their bucket list.
The top destinations will be Kerala, Karnataka, Goa, and all North Eastern States, Jammu
Kashmir, Himachal Pradesh, and Uttranchal.
Already some International flights in 2023 are getting booked for India.
And Hotels are also planning start accepting the bookings from July or August of this year for
foreign tourists.
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4.3 BIBLIOGRAPHY
Information and data related to the project has been taken from the sources below.
WEBSITE :-
https://en.wikipedia.org/wiki/Impact_of_the_COVID-19_pandemic_on_tourism
https://journals.sagepub.com/doi/full/10.1177/09722629211043298
https://www.longdom.org/open-access/the-impact-of-covid19-in-the-indian-tourism-
and-hospitality-industry-brief-report-61261.html
https://www.imf.org/external/pubs/ft/fandd/2020/12/impact-of-the-pandemic-on-
tourism-behsudi.htm
https://incredibleindia.org/content/incredible-india-v2/en.html
https://edition.cnn.com/travel/article/india-travel-covid-19/index.html
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