India to issue free 5 lakh tourist visas; easy loans to travel agents

The first 5 lakh tourist visas that are issued as soon as India allows entry to this category of guests can be free of charge. Authorities-recognized travel agents and tour guides will now be eligible for a mortgage of up to Rs 10,000 and Rs 1,000 respectively, without any processing costs or additional collateral requirements.  India to issue free 5 lakh tourist visas.

Federal Finance Minister Nirmala Sitharaman has laid out these steps to ensure the tourism sector devastated by the Covid-19 remains half a fiscal package on Monday.

Pre-Covid 2019 noted approximately Rs 1.1 crore of international tourist arrivals (FTA) who together spent $30 billion on leisure and business.               

This feature can only be accessed by tourists. The plan, which ignores this chief's income of 100 crore rupees, could be relevant until March 31, 2022 or even the issuance of basic 5 lakh visas.

The Tourism Revival package for more than 11,000 registered tour guides and travel stakeholders comes in the form of a new home equity scheme where working capital or private loans can be provided to people in the tourism sector. To liquidate responsibilities and restart businesses affected by the pandemic.

“The scheme will cover 10,700 regional tour guides recognized by the government, both in the Union and States Ministry of Tourism; and 904 travel and tourism stakeholders (travel agents) recognized by the Union Tourism Ministry. Loans will be granted with a guarantee of 100 % Up to Rs 10 lakh per agency and Rs 1 lakh per tour guide. There will be no processing fee besides foreclosure/prepayment fee waiver. The Minister of Finance has assured that no additional guarantees will be required. Travel has been one of the worst victims of the pandemic.  The Federation of Hospitality and Tourism Associations of India (FAITH), a major entity of Indian tour operators, warned in March, just before the second wave, that nearly 70% of the nation's estimated workforce of Rs 5.5 million (direct and tilted jobs) in The sector is out of work, about 3.8 million people, as a result of the coronavirus pandemic.

He had stated that Indian tourism companies are experiencing bankruptcies, business closures and massive unemployment. He said that more than Rs 5 crore from the direct tourism business and nearly twice the entire financial year is at risk.

MP Bezbaruah, Joint Secretary of the Hotel Federation of India stated: “FM's announcement on Visa Free carries a very strong symbolic message that we have the confidence to welcome visitors and that tourism and hospitality are a solid pillar of the post-Covid economic recovery strategy. We sincerely hope that these measures will be followed Logically through measures until the industry recovers and is ready to receive tourists. Measures such as liquidity support and legal tax exemption. HAI would like to congratulate the Secretary of State on this initiative and looks forward to some realistic initiatives to create jobs and livelihoods through the renewable hotel and tourism industry.”

According to the Federation of Hotel and Restaurant Associations of India, nearly half of all hostels and dining venues in the country are closed completely. Airlines and airport companies are struggling to survive. Without a receptive tourism company, travel agents, tour guides, and all those associated with the travel industry are going through a tough time. The travel business has been seeking a quick cut from the federal government since last year.

Before the second wave, both Indian Airlines and airport operators requested the resumption of domestic international tourism. This was even thinking about travelers from international Covid-protected sites earlier this year but a devastating second wave changed all things.

“The government’s proposal to offer free tourist visas to the first 5 lakh tourists, once visa issuance resumes, is a welcome first step that will help revitalize inbound tourism from India, which has been on hold since the start of the pandemic,” Mandeep S  Lamba, President of HVS ANAROCK (South Asia).

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