MOT revises MDA guidelines

To promote inbound tourism, Ministry of Tourism (MOT) has released the revised guidelines for Marketing Development Assistance (MDA) scheme for overseas promotions by tourism service providers.

Manas Dwivedi

Under the new guidelines that took effect from the beginning of this month, service providers will be entitled to more financial benefits and a simple claim process. Under the MDA scheme, MOT extends financial assistance to state governments/ UTs and approved tourism service providers across the country for undertaking the promotion and marketing of tourism to India from overseas markets.In view of the current COVID situation and the distress the inbound tourism industry has seen in the country, the Ministry has enhanced the scope and reach of the Scheme so as to provide maximum benefits to the stakeholders in the tourism industry. The new guidelines have changed the eligibility criteria to avail the scheme. The approved tourism service provider, with foreign exchange earnings above `2 crore up to a maximum of `25 crore in any one year will be eligible for the financial support. The overall ceiling of the extent of support will be `3.50 lakh. Sharing his view on the new guidelines, Rajiv Mehra, VP, IATO, says that the reforms were a long-standing demand. “Earlier, the eligibility criteria used to be minimum `25 lakh for foreign exchange earnings, which has now been increased to minimum `2 crore. I think, there is some typographical error or it has been done unintentionally because if it’s really `2 crore, then what about companies with earnings between `25 lakh-`2 crore? This constitutes most small tour operators and this change will be harsh on them; they require this assistance. So, IATO has written to government that minimum requirement should remain `25 lakh and maximum limit be increased to `50 crore. We have also requested that this year, MDA be permitted for all MOT-recognised operators,” he shares.