Tourism body TAAI seeks 'One India One Tourism' approach in budget

The Travel Agents Association of India (TAAI) has requested a 'One India One Tourism' approach, which includes the 'One Tax Structure' in the Union Budget to revive the pandemic-hit domestic travel, tourism and hospitality industries.

In addition, the Association has been advocating for the inclusion of Aviation Turbine Fuel (ATF) in the GST program to make air travel "more viable" for all stakeholders, and also for the extension of the Emergency Credit Line Guarantee Scheme (ECLGS). 

In the upcoming Budget, there will be several measures to support the entire travel tourism and hospitality sector, which will help it revive and survive, TAAI said in a statement on Saturday. 

According to the Association, it is extremely critical for both the federal and state governments to work in tandem to facilitate this sector and encourage it to be placed on the concurrent list for Industry status to improve its structure.

A TAAI study said governments should attempt to increase middle-class disposable income to encourage discretionary spending. 

Other steps that the TAAI expects to be included in the Union Budget include strengthening MSMEs, creating a fund of funds scheme for technology adoption and reviving the Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgrades.  

In order to revive this struggling sector, "we need 'One India, One Tourism' approach inclusive of 'One Tax Structure," TAAI said in the statement, adding that, important points to consider are e-visa waivers for all tourist visas for 2022-2023, to support inbound tourism export earnings. 

Further, it has sought a double allocation of budgetary resources for the Ministry of Tourism so it can conduct intensive global outreach to boost inbound tourism, as well as extended domestic tax credits for Indian citizens and Indian companies to enhance domestic retail and MICE (meetings, incentives, conferences and exhibitions) demand. 

A global bidding fund is also being considered by TAAI in the Union Budget 2022-23 to support Indian MICE companies bidding for global MICE events in India. 

Last but not least is the need for a structured mechanism to ensure the survival of travel agents and operators, the report says. 

According to TAAI, payments from travel agents to principals are unsecured debt, and some form of mechanism, whether it's an escrow account, guarantee, or underwriting procedure is needed to secure travel agents' payments.