TravTalk India Online Magazine
The Indian Association of Tour Operators (IATO) has given its recommendations to the Ministry of Tourism on issues faced by its members, and also appealed for a change in guidelines under MDA and recognition to tour operators. Rajesh Mudgill, Honorary Secretary, IATO, shares more details.
Manas Dwivedi
During a virtual interactive members’ meet of IATO, spoke about the recent activities of the Association and updates from its interaction with Ministry of Tourism and other government departments to provide relief to members.
Sharing details on the most important issue of SEIS, Mudgill said, “IATO has very strongly recommended the government on SEIS refunds. The money should be distributed as early as possible and instead of seven per cent, we have requested to make it 10 per cent. There are certain proposals from the Ministry of Tourism that we have received, and on that we have given our recommendations.”
Marketing Development Assistance
Mudgill shared that for Marketing Development Assistance (MDA), the Ministry has proposed that the amount should be increased from Rs 2.5 lakh to Rs 4 lakh per trip.
“Also, an increase of Rs 2,000 has been proposed for lodging, from Rs 8,000 to Rs 10,000 per day for five nights. IATO has recommended that it should be for at least seven nights, when IATO members are visiting foreign countries for a particular trade fair. It would really be helpful if members can extend their stay and do the sales calls to consolidate the business. This will definitively help. This is the time when we need to do some aggressive marketing to bring business back to India,” he added.
Marketing and promotions
“For online promotions,” informed Mudgill, “the Ministry has proposed that tour operators can do promotions up to Rs 50,000, and 50 per cent of that will be refunded by the Ministry for doing online promotions. Since online marketing is increasing day by day and our reliance on online marketing is going to be more and more, it is important to put more focus here. So, we have requested the upper limit to be Rs 1 lakh, and Rs 75,000 should be refunded.”
He added that for international marketing, the Ministry has proposed that tour operators can have three trips to international markets, but IATO has recommended at least four trips if not five. “We are not saying that there should be an increase in expense cap for each trip; we think that the same amount can be distributed over four or five trips and the upper limit of Rs 12 lakh can remain intact. More trips will definitely help the members and they will be able to utilise the funds to the maximum,” he said.
MOT recognition to tour operators
“The Ministry has proposed only one category of tour operators. Whether you are doing domestic, inbound, M!CE or adventure, the category will be one – as ‘tour operator’. However, in the adventure category, where it has some specific requirements, tour operators will have to furnish some additional information and requirements. Regarding the staff, there should be minimum two employees and maximum four, out of which at least one should be a tourism graduate or diploma holder from IITTM or some other recognised university. What IATO has recommended is that people with seven years of work experience in any of the organisations approved by MOT and member of IATO, such employees be considered as qualified staff even if they don’t have a tourism degree or diploma. We have also recommended that for companies with a turnover of up to Rs 5 crore, the minimum staff condition be waived off,” he added.
