Coronavirus-led lockdown has dealt a heavy blow to India’s travel and tourism sector but the industry may find some respite in the MICE sector in the coming months.
Coronavirus-led lockdown has dealt a heavy blow to India’s travel and tourism sector but the industry may find some respite in the MICE sector in the coming months. “While certain demand is expected to be impacted on account of the ongoing Covid-19 concern, India is also expected to benefit from it as demand for MICE from other Asian countries is expected to be diverted to India to some extent,” a CARE Ratings industry report said on Monday. However, the same will start showing results only after the current financial year, the report added. Several industry reports have earlier said that the travel and tourism industry is one of the worst hit due to lockdown.
“On back of marginally positive sentiments for the domestic tourism and MICE led by social and industrial activities, we expect the momentum to pick up going forward and the industry to register a growth of about 3-5% in revenues for FY20-FY21,” the report added. Travel and tourism is one of the biggest contributors to India’s GDP and it also accounts for over 12% of employment generation. However, due to ongoing turbulence, the sector now stares at major job losses with about 38 million jobs hanging by thread, according to an FHRAI report. IThe impact rings loud globally as well with global travel expected to decline by 25%, according to the World Travel and Tourism Council. Also, India is expected to report losses to the tune of Rs 5 lakh crore, however, the figure remains dynamic and will largely depend on how the lockdown situation persists.
Meanwhile, travel and tourism is not the only sector which is bleeding due to coronavirus lockdown. Aviation industry is also expected to report major revenue losses as flight operations remain suspended throughout the country. Earlier, Minister of Civil Aviation Hardeep Singh Puri had said that his “heart goes out” to people who are struggling and said that the government will allow flights to operate as soon as it is confident that the coronavirus situation is under control.