Industry elated after MOT’s relief

Persistent efforts by inbound tour operators has resulted in the MOT relaxing the rules of recognising tourism service providers in the country, by considering the turnover of FY2019-20 instead of FY2021-22, which didn’t see any business for the industry owing to COVID-19. The decision has spread a wave of delight among the stakeholders.

Nisha Verma

The Union Ministry of Tourism (MOT), in a recent order, has relaxed the requirement of validity of minimum annual turnover for recognising tourism service providers. The recent order states that for recognition of tourism service providers, the MOT will accept  the minimum annual turnover for financial year 2019-20 instead of FY2021-22. To be recognised, the applicant must have minimum annual tumover of `20.00 Lakh.

It has been a longstanding demand by the industry, and the MOT’s order also stated that requests/representations from stakeholders have been received for exemption in the annual turnover of the FY2021-22. “It has been submitted that the entire tourism industry was affected by COVID-19 pandemic till 2021-22 and therefore they are unable to fulfil the requirement of minimum turnover. It has been requested that exemption for the same may be given by the ministry,” it said.

Thus, the ministry has decided that annual turnover of FY2019-20 would be accepted for recognition, and it would be applicable till 31 December 2023. “Subsequently, the turnover for the financial year 2022-23 would be required,” stated the order.

The news was received with much aplomb across the industry. An elated Rajiv Mehra, President, IATO, said that IATO had been requesting the ministry for the same for the last 1.5-2 months. “I had spoken with the Additional Secretary, Rakesh Verma, several times on this issue, and he had assured that he will get this done. Finally, the order has come. Our members were facing a problem because during 2021-22 they didn’t have any business, and hence their MOT recognition was not being extended. Thus, now with the 2019-20 balance sheet to be given, which everyone has, they can renew MOT recognition once again. It is a great relief to our members,” he said.

EM Najeeb, Senior Vice President, IATO, also called it a welcome move by the government. “This is excellent and timely help to the tour operators, travel agents and transport operators from the MOT. It is a good gesture and we are thankful to the ministry,” he said.

Ravi Gosain, Vice President, IATO, agreed that it is an appreciable gesture. “It’s a great decision from MOT for which IATO wrote to them a few days back. We are happy that our members can keep their recognition intact because of no businesses during pandemic. It’s an appreciable gesture from Secretary and Additional Secretary of Tourism, and we can’t thank them enough for this kind consideration,” he added.

It’s a move that will benefit smaller tour operators, said Rajnish Kaistha, Honorary Secretary, IATO. “Many of our smaller tour operators, who found it difficult to survive and operate during last more than two years, are now beginning to revive. Such MOT approved tour operators need handholding and help during these tough times. Thus, this extension of 19-20 forex earnings shall help them in big way to have a new lease of life by remaining MOT approved and encourage them to join MOT roadshows and participate in international fairs abroad. Overall, it shall help our

beleaguered industry to come back to life. We would like to thank MOT for this one and IATO President Rajiv Mehra for his continuous efforts.”

Appreciating the move, Sunil Mishra, Honorary Treasurer, IATO, shared, “This change has been requested personally by IATO President for some time and is a much-needed move in light of the current COVID-19 situation. IATO appreciates the Ministry of Tourism’s understanding of the challenges faced by the travel industry.”

Even Nasir shah, Chairman – IATO Jammu & Kashmir Chapter, said that it is a welcome step from the MOT. “This will surely benefit small tour operators to get recognition from MOT and create more confidence in carrying forward their business,” he underlined.