New Delhi: Government’s recently announced package for tourism sector is a welcome blow to beleaguered industry as it braces for recovery with easing restrictions following drop in new covid cases -19, the rating agency Crisil Ltd said on Tuesday.
The measures announced by the government on Monday, which include working capital / personal loans to travel and tourism players, are expected to put capital in the hands of hard-hit tour operators and other stakeholders to restart business, the company said. ‘rating agency.
However, the impact of the political decision should only be visible after the increase in vaccination rates and the full opening of international travel, he added.
“Guarantee working capital or personal loans up to ₹10 lakh for travel and tourism players and up to ₹1 lakh for travel guides is expected to benefit around 11,000 stakeholders. This will help them honor their existing obligations, saving 200 to 300 basis points on interest charges and restarting businesses, ”said Manish Gupta, senior director of Crisil Ratings.
“The decision to provide five free one-month tourist visas until March 31, 2022 represents just one ₹An allowance of 100 crores, but more importantly, it sends the message that India is preparing to welcome tourists. This could give budget-conscious travelers a boost ahead of the incoming season, which typically starts from October, ”Gupta added.
Crisil said that the extension of the Emergency Credit Lines Guarantee Scheme (ECLGS) by ₹1.5 lakh crore to ₹4.5 lakh crore for sectors affected by the pandemic is positive for the economy.
“The highly fragmented tourism industry includes players such as travel agencies, individual travel agents, car rental companies and tour guides whose businesses were all but wiped out when the pandemic ended travel. But all of these measures only pave the way for what the sector critical needs – the openness of inbound and outbound travel, which is currently very limited, “the rating agency said.
With improving immunization rates, Crisil expects an opening in the second half of this fiscal year (fiscal year 2022), but that would also depend on the policies of foreign countries. “Domestic travel, however, is expected to start to rebound, as state-level lockdowns ease,” he said, adding that the tourism industry could recoup at least 35-40% of its revenue. at the pre-pandemic level during the fiscal year.
Never miss a story! Stay connected and informed with Mint. Download our app now !!
