IATO Urges Financial Relief Package from Union Govt

India’s apex body of the tourism industry, Indian Association of Tour Operators (IATO), has sought a financial relief from the union government to stabilize losses caused by the nationwide lockdown to prevent the spread of pandemic Coronavirus. The association said that the survival of the sector was at stake.

In a statement said by the association, the authorities concerned said, “Although, we completely support the lockdown, but the tourism industry has suffered heavy losses because of zero cash flow during this period. The situation has however put the put the survival of the entire industry in question”. 

“As such, in order to get rid of the prevalent crisis, the IATO need scrapping of GST in entirety for period of one year for all outbound, inbound and domestic bookings”, the statement released by the IATO said.

The IATO also said, “Tourism industry seeks advances paid to hotels, airlines and to state governments for luxury trains, wildlife safaris and road tax to be entirely refunded”.

The statement said that the industry was also seeking a ‘financial bailout package’ to release the salaries of the employees and operational cost of office was based on the turnover of the company.

The apex body of the tourism industry said, “A 9-to-12 months deferment (without any interest) on all principle and interest payments on bank loans and doubling overdrafts bringing in liquidity for allowing business continuity is also required”.

“This financial assistance is very much needed because of governments directives both by the Centre and state government, not to lay off staff and to pay full salary to all their employees”, said the IATO President, Pronab Sarkar.

He also added that the industry was not certain how long this situation would continue and whether the industry would be able to revive its business under the situation of zero business.