75% dip in foreign tourist arrival in Covid-19-hit 2020

Last year, foreign tourist arrivals stood at 2.68 million and 'no formal study has been instituted for assessment of loss of revenue in 2020'

India witnessed a dip of 75.5% in foreign tourist arrival last year due to travel restrictions to control the Covid-19 pandemic, the government informed Rajya Sabha on Monday.

Only 2.68 million or 26.8 lakh foreign tourists came to India last year as against 10.93 million in 2019, 10.56 million in 2018 and 10.04 million in 2017, Tourism Minister Prahlad Patel said in a written reply in Rajya Sabha.

Though the data on domestic tourists for 2020 yet to be compiled, he said, there were 2,321.98 million domestic tourists in 2019 and 1,854.9 million in 2018.

The Ministry does not have an assessment of loss of revenue in 2020 as no formal study has been instituted. "However, several rounds of discussions and brainstorming sessions with industry stakeholders indicate massive loss of revenue, foreign exchange and jobs. In view of the highly unorganized nature of the sector, the impact in numerical terms can only be ascertained in due course," Patel said.

To a separate question, Patel said the record of the revenue generated through tourism was not maintained by the Ministry of Tourism.

He also said the ministry has no plans to approach the GST Council for reducing the goods and services tax on all hotel rooms to 12%.

The ministry is aware of the tax levied on various tourism products and services, including hotels, as the same directly impacts the country's tourism competitiveness vis-a-vis other countries, he said.

"At present, the Ministry of Tourism has no plan to approach the GST Council for reducing GST (goods and services tax) on all hotel rooms to 12 per cent, since the GST Council decides the rate of taxation after taking into consideration the factors affecting various segments of business as well as to ensure optimum revenue generation required for overall development of the economy," Patel said.

He also informed the House that the tourism ministry has taken up the issue of GST with the Ministry of Finance from time to time and some changes have been made to the GST slabs for the sector.

The threshold limit for applicability of 28% GST rate was increased from Rs 5,000 to Rs 7,500 per room per day by the Ministry of Finance. The basis for determination of the applicable rate has been changed from declared tariff to actual tariff, he said.