TravTalk India Online Magazine
At the first session of 3rd TravTalk Digital Conclave, which focused on inbound tourism through the topic ‘The Reality of No Tourism’, panellists discussed the present scenario where the inbound sector is witnessing zero billings and income, and faces threat to its survival.
Manas Dwivedi
This first session had panellists deliberating on the extent of damage done to the inbound tourism industry and how the government could provide relief. The panellists also largely believe that a major shift in the marketing and destination selling approach would help the industry a great way.
For Rajiv Mehra, Vice President, IATO, no one can clearly predict when travel and tourism will truly resume. “For tourism to start, we need to look for those tourists who have survived this pandemic and those who are ready to travel when the vaccine is available. The government and Ministry of Tourism should come out with SOPs and a list of dos and don’ts. The draft of the document is out, and we expect the official document to be out soon. Then, we will see how we can work and get tourism back on track,” he says.
To that, Bharat Bhushan Atree, Managing Director, Caper Travel Company, adds that inbound travel is not going to bounce back anytime soon. “I think, there will be a complete stop on inbound tourism with zero travelling allowed. It does not really depend on travel planners or operators anymore; it all depends on the policies of the government (both Indian and foreign) on how and when international borders will open. Another major concern is the potential loss of jobs in the country. It will be difficult to find a place for those dismissed from jobs. Being specialists in the travel industry, it will be difficult for many to find jobs in the other sectors. So, it is essential to take care of these people,” he believes.
Atree adds that the next six-eight months will be critical for business, for many it will be ‘make or break’. “A liquidity-rich support for the industry, anywhere between Rs3-4 lakh crore, will be required to fill the gap created in the industry by COVID-19. But, I really do not see that happening looking at current polices of the government. There should be no hesitation in saying that the COVID-19 pandemic is the new form of terrorism since it is the biggest crisis the travel industry has ever faced. Going forward, I would say adapting to the situation and keeping costs & liquidity in check will be the key. People should look at consolidation; mergers, joint ventures and working with right people who understand and grow your business and support each other’s company will be important,” he says.
Since the lockdown was announced, the tourism industry of the country has only been thinking about three things- impact, survival and revival, says Debjit Dutta, Director & CEO, Impression Tourism Services (India). “Now, however, my question is: Is tourism going to sustain with the virus? If yes, it is going to be a big challenge for all of us. People will be travelling for sure, but they will be ‘travellers’ and not ‘tourists’. There is a difference! Tour operators are not actually dependent on travellers, but on tourists for business. That brings me to my second point: Survival before revival. Yes, we do want support, because revival comes after we survive. Right now, we do not know if we will be able to survive or not? Are we doing something serious to save this industry?” he questions.
Dutta makes another valid and pertinent point, that “if we don’t have a survival plan and a strategic survival package, how much of the available resources will we require to start again or how much will be left in the industry to start with?” Considering the grass-roots segment of tourism stakeholders, he says, “It is a very serious challenge. Right now, the biggest crisis is about survival and, of course, it is a big opportunity for the industry to learn and reset everything for a better world. We do not get a reset button in life and sometimes we wish something could re-set things for us. Maybe, this is an opportunity for the industry to learn. In the last 15 years, due to technological development, the way we do business has transformed. Again, we are going through a transformation and this is a big opportunity to change, learn and press the reset button.”
Are charter flights an opportunity?
Atree doesn’t think that charter flights will begin anytime soon, not even from UK or Scandinavian countries. “The only hope here is Russia. Russians, I believe, are more or less like Indians in quickly adapting to a new normal as far as COVID-19 is concerned and that market is going to be resilient. So, I think that this sector can open up. I am monitoring the market very closely. At this point, Goa is COVID-19-free, but Russia is not and a number of cases are coming up every day. So, if the rising number of cases does not go down, Russia’s prospect also looks quite grim to me. We need to prepare and wait for the situation to get better and then we can look at charter flights from Russia swinging back to the country,” he adds.
Associations and business
Apart from coordinating with industry stakeholders, members and the government, travel trade associations are also playing an important role in lobbying for relief measures for the industry, claims Mehra. “At the same times, associations are working to give knowledge and support to members on running their organisations, on HR-related issues, legal issues, etc., because these are the main factors that are bothering all members and need to be addressed by experts in the field. We are doing very well at the moment and have given a lot of advice to people. Going forward, IATO will definitely promote domestic tourism as well,” he shares.
Mehra also feels that companies have to, with whatever reserves they have, pay salaries. “It is not a matter of six months. I would say we are looking at it continuing to March 31, 2021. I would recommend companies to have their auditing done and spend money wisely. Do not expect from the government alone; loans are not a good way of paying salaries, it is a double trap for us,” he says.
Price change post COVID-19
“In my opinion,” says Atree, “hotels and airlines will come up with good attractive packages and I think, if this thing does not work, they are going to spike prices. The demand for 5-star hotels is going to shoot up since travellers will be more concerned about health and hygiene.”
To this, Dutta adds, “The market runs on demand and supply. The need of the hour is flexibility in terms of cancellations, and luxury has to be pocket-friendly. There is a concern regarding an additional cost due to various SOPs and safety measures, which have to followed by everyone. This might increase prices. People will certainly be looking at stand-alone properties such as small, private and boutique hotels, since travellers would like to avoid places with huge crowds.”
Mehra feels that if airlines leave the middle seat empty, prices will definitely go up. “But, if we are allowed to sell all the seats, then I don’t think airfares will go up that high. Foreign tourists will prefer more hygiene and would prefer five-star hotels that are affordable. Hotel prices might not go up, neither should the transport cost go up,” he feels.
Closing remarks
“We have to monitor every month, be it an organisation or the country or the association, as to what is happening. It also has to be seen which country is safe and which is not. Once this happens, Ministry of Tourism should also start promotions. Do not expect things will change overnight. It will take some time, at least one month for the change to be effective. That is the time we should accelerate overseas promotions with our campaigns, so that people start coming to our country. I request everyone to save resources and use them wisely. I think that inbound tourism will revive only by April 2021,” says Mehra.
Dutta believes that the most important thing right now is to get the vaccine as soon as possible. “This is the only hope for the growth of tourism. Without it, it will be a very different world to live in, which is certainly not good for the industry. Meanwhile, the priority should be survival. Whatever planning needs to be done, we need to do it now to save the industry in the days to come. We must understand the transformation and adapt to it as soon as possible. I do not see any recovery in inbound tourism before the next 18 months unless and until we get a vaccine for COVID-19,” he says.
For Atree, as far as marketing is concerned, it depends on what the government and Ministry of Tourism are going to do. “In my view, people should monitor every month in which way and where they are heading, and take necessary corrective steps. The market investment scenario, as far as inbound is concerned, is going to shrink by 60-70 per cent. The only mantra to go forward is to save and spend wisely. Inbound tourism will start limping back from January 2021, with bookings only trickling in. In the next 18 months, inbound tourism is going to bounce back and that too with a bang. Whosoever is able to survive till then, will be the winner,” he concludes.
IATO takes on the responsibility
“As an association, we have been following up with hotels and airlines for refunds. I would like to mention that IATO has been successful in getting refunds from various agencies. Ever since the lockdown got more extreme, things have slowed down. Hotels are not giving refunds; airlines are not giving refunds. We have written to the PMO, finance minister, NITI Aayog and every other place, and we are still quite hopeful that some relief will be given to us by the government. Now, as far as survival of our members is concerned, we have arranged a special session for them with lawyers and HR experts, to understand salary disbursements. As far as monetary relief is concerned, it will only come from the government. We, as an association, cannot give any monetary benefits to members, but we are definitely there for all our members for any other kind of support. We have also successful in getting a letter issued by Ministry of Tourism for refunds related to ITB Berlin, which are now under process. We have recommended that tourists from select countries be given visas to come to India.”
-Rajiv Mehra
Importance of technology
“As far as travel is concerned, the industry is going to be driven by technology. It is going to play a major role. Firstly, we need to understand that we need to use technology to encourage tourists to come to India. How do we do this? With travel technology, one should start curating virtual reality products on cities, monuments and destinations that are less explored. Virtual reality can help garner the attention of tourists, increase customer experience and help develop new products. With the support of technology, travel companies can start live streaming of tourism-related shows on their websites, to boost tourism consumption. One can showcase tourism attractions, the culture, food products and even offer discounts.”
– Bharat Atree
Can regional tourism be a way out?
“Even before the COVID-19 outbreak, the industry had laid emphasis on promoting regional tourism. The biggest advantage we have in East and Northeast India is the shared border opportunity with Nepal, Bhutan and Bangladesh. With this, there is a bigger opportunity for is in terms of cross-border tourism in the region. We have to see from where the business will start in the post COVID-19 era. Bangladesh is the biggest inbound tourist market for India, so there is a bigger opportunity to boost cross-border tourism with them since people will start travelling to nearby destinations first. Inbound and outbound travel will take longer to bounce back, but with close proximity, nearby destinations can do really well. To further boost prospects, I believe that there should be a visa-free entry for tourists from Bangladesh to India, to increase the numbers.”
– Debjit Dutta
What would be an ideal plan B?
“The only plan B I can see is to depend on oneself. Do not wait for anyone. If the government support does not come, you have to do it on your own. One suggestion I would give is that the government should tell the public somehow to only work with government-recognised travel agents. If I am a government-approved tour operator, then I could service a government employee or domestic tourist. We are talking about inbound tour operators going into domestic tourism. Let LTC be available to these approved tour operators.”
– Rajiv Mehra
“Frankly, I only expect a GST waiver for two years, practically. To survive, one should not hesitate to take any decisions in the best interest of the company. The most important thing can be closing all the loss-making departments. The only mantra which will work at this time to move forward is to save and spend wisely. If the government comes up with some sort of a plan, fine, but otherwise, one has to take steps oneself. Do not wait for anybody.”
– Bharat Atree
“I think, support can be of two ways- direct support (like financial support and hand holding) and indirect support (to survive and then revive). We have to work this out. Whatever we do today will impact our future. So, we need to act first because it is essentially survival of the quickest. We need to know whether we are getting any indirect support or not so that we can plan accordingly. Indirect support can be in terms of tax benefits or other benefits to be given to tour operators, including promotional support in the days to come. This has to be planned, designed and announced right now.”
– Debjit Dutta
