India suspended tourist visa amid coronavirus threat in the country
Amid rising COVID 19 cases and to contain the spread of the deadly virus in the country, India has suspended tourist visas until April 15. Moreover, people arriving in the country especially from seven specific countries will be quarantined as a precautionary measure. Move to suspend tourist visa has come after World Health Organisation (WHO) declared coronavirus a pandemic urging countries to push efforts to contain the deadly virus.
As India suspends visa, here's how it will impact the country
- One of the worst-hit sectors is surely going to be the tourism industry as it could witness at least Rs 8,500 crore hit in its revenues.
- After visa suspension, the low tourist footfall is going to affect the hospitality sector.
- Not only tourism and hospitality industry, it is going to hit the aviation industry, which is already witnessing massive losses due to the deadly coronavirus.
- Hotels, tour operators, tour guides and those depending on daily earnings from tourists will also be hit.
- Government's tax collection will also be impacted.
- Tour operators estimate January-March quarter earnings could fall by more than 60 per cent.
Loss in revenue generation from foreign tourists
India witnesses nearly one million overseas tourists annually that generates close to Rs 2,200 crore revenue, but with visa suspension, earnings from the tourism industry is hugely going to be impacted.
Job market in tourism industry to take a hit
Indian Association of Tour Operators (IATO), and Assocham saw job losses in the sectors as companies try to tide over the situation by cutting non-essential workforces and stopping recruitment.
"The ban on travel to India for a period of one month will have a cascading economic impact and will lead to job losses in the entire hotel, aviation and travel sector. We estimate that it will lead to direct loss of not less than Rs 8,500 crore," IATO Secretary Rajesh Mudgill told PTI.
"If no visas are valid, within the next ten days this travel and tourism industry will come to a virtual stop. It would mean that everyone will cut down costs and terminate non-essential staff and stop recruiting additional staff," said Assocham Tourism and Hospitality Council Chairman Subhash Goyal.
Indian aviation industry already facing impact, visa suspension to hurt more
Since the outbreak of coronavirus, the aviation and tourism industries in India have been adversely affected, said Assocham Tourism and Hospitality Council Chairman Subhash Goyal.
The suspension of visas has come as an immediate blow to the entire tourism, aviation and hospitality industry, he added.
Hotel bookings on hold, especially NRI segment
Since November, when coronavirus made news, hotel room cancellations began and crossed the 80 per cent mark. New bookings are almost completely on hold, including the NRI segment which accounts for 60 per cent of the tourism revenues mostly in the months from April to September, Federation of Hotel & Restaurant Associations of India (FHRAI) Vice President Gurbaxish Singh Kohli said.
18% drop in hotel rates, shooting down revenues
There has been about 18 per cent drop in hotel rates and we are receiving cancellation requests from various travellers who are wary of taking up trips domestically as well, said Yatra.com Co-Founder and COO, Corporate Travel & Head Industry Relations, Sabina Chopra.
Visa suspension going to be worst hit crises for tourism industry
Visa suspension, according to CII, is going to be worst hit crises to hit the India tourism industry impacting all its geographical segments -- inbound, outbound and domestic, almost all tourism verticals - leisure, adventure, heritage, MICE, cruise, corporate and niche segments.
Markets, malls, local shops to suffer due to low footfall
With less number of tourists, local shops in tourists specific places, malls, local market everyone is expected to be impacted due to visa suspension and likely to witness less earnings.
Medical tourism also going to suffer
Another segment which will be impacted is going to be medical tourism industry as people who are planning to travel to India will think twice as coronavirus cases continue to rise in the country.
Impact on education sector
Not only for tourists, India is home to thousands of students who seek to pursue higher education, therefore, a visa ban may also impact the education sector.
ALSO READ | Urban Company to offer COVID-19 health insurance, income protection cover to professionals
ALSO READ | Infosys vacates Bengaluru office building after employee suspected for coronavirus
