×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Centre sets up body to assess loss to tourism

The Centre has slashed the budgetary allocation for the Ministry of Tourism by 19% from Rs 2,500 crore in 2020-21 to Rs 2,026 crore in 2021-22
Last Updated 09 February 2021, 16:05 IST

Under attack for ignoring the big tourism and hospitality sector that employs over 80 million people, the government has engaged economic think-tank NCAER to conduct a study on economic losses for households engaged in tourism and suggest ways for their recovery.

A senior government official told DH that since the travel restrictions have yet not fully lifted, the sector can look up only after social distancing norms are at a bay. The government stands ready to extend help to the sector financially and through policy changes. The situation is still evolving.

“The budget allocation at this juncture when many countries have imposed travel restrictions would not have helped much. We are mindful of the crisis and help will come at the right time,” the official said.

The Centre has slashed the budgetary allocation for the Ministry of Tourism by 19% from Rs 2,500 crore in 2020-21 to Rs 2,026 crore in 2021-22.

The budget has allocated Rs 1,088.03 crore for the development of tourism infrastructure for the financial year 2021-22 as compared to Rs 1,655 crore last fiscal.

The government data shows a jaw-dropping 93% decrease in foreign tourist arrivals in 2020 as compared to a year-ago period.

The travel and hospitality industry is battling the worst crisis in the century due to the Covid-19 pandemic.

Federation of Associations in Indian Tourism & Hospitality (FAITH) had recently said that the Budget was a great opportunity for the government to revive the tourism Industry and save at least 30-40 million jobs which are on the verge of extinction out of the 75 million people who are directly and indirectly employed in this industry.

ADVERTISEMENT
(Published 09 February 2021, 15:55 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT