Srinagar: Kashmir Tourism Joint Forum today held a press conference and highlighted the issues and challenges being faced by various stakeholders of the tourism sector.
Following is the detailed press release issued by the joint forum at the end of the press conference. Ziraat Times produces the full text of the press statement here without any changes or editing:
As you all are aware that Kashmir tourism came to an instant grinding halt due to the travel advisory issued by State Home Department asking tourists to leave Valley by 5th August, 2019 thus resulting to a total closer of the Tourism activity to Valley which is continuing and may not likely recover before January or February as Tourism is the first casualty due to any sort of law & order disturbance. This Travel Restriction Advisory has put the entire Tourism Trade to a great loss of revenue, besides continuous losses being faced by entire trade on account of staff salaries, other wages, rent, electricity and daily routine expenses, besides mental agony faced by all of us. Although the Govtt has removed the Travel Advisory, but Tourism Trade has the last recovery. We may have restarted the Tourism from April 2020 onwards, but Global Pandemic, COVID – 19 played havoc on our already crippled Tourism Industry till November 2020. However some improvement in Tourism activity had started from December 2020 till March 21 but unfortunately 2nd Covid Waive again disrupted the Tourism activity and recovering now seems only from 2022. In connection with the varied Tourism related issues & financial crunch faced by the Tour & Travel Operators of Kashmir Valley, due to the advisory issued by the State Govtt on 03rd August, 19, the Tourism Trade has come to a grinding halt resulting to a total projected loss of around Rs 1350 crores till November 2020.
We do share some joy that just recently Govt announced a relief of around 3 Crores to the weaker section of the Society such as Shikara Wallas, Pony Wallas Etc, indeed a welcome step, but the amount is too meager for them to survive till the next tourism season starts not likely before 2022. However, we regret to inform that the legitimate Tour Operators, numbering around 700 – 800 who are the front runners in promoting destination have been ignored and left at the mercy of God. It is paramount to give brief about the Tour Operators and their financial implications as under:
- TOUR OPERATORS ARE THE FRONT RUNNERS IN PROMOTING DESTINATION JAMMU & KASHMIR WITHIN COUNTRY OR ABROAD AND SPENDS AT AN AVERAGE OF 9 – 10 LACS ANNUALLY ON THE PROMOTIONAL ACTIVITY BY PARTICIPATING IN TRADE FAIRS, PUBLICATION OF BROCHURES AND PROMOTION THRU VARIOUS MODES SUCH AS SOCIAL MEDIA ETC. TOUR OPERATORS CONTRIBUTE 70% OF TOURISM ARRIVAL TO J&K. THE RISK IS IMMINENT IN CASE OF ANY UNCERTAINITY, BE IT THE POLITICAL DISTURBANCES IN THE PAST OR DUE TO PRESENT GLOBAL PANDEMIC.
- TOUR OPERATORS ALSO REFERRED AS DESTINATION MANAGEMENT COMPANIES CANNOT RELIEVE THEIR TRAINED STAFF UNLIKE OTHER STAKE HOLDERS AS THE TRAINED & PROFESSIONAL STAFF IS ALWAYS THE BACK BONE OF A DMC. THUS TOUR OPERATORS CONTINUE TO FACE LOSSES BY PAYING THEIR STAFF WAGES, OFFICE RENTALS, COMMUNICATION AND OFFICE AUTOMATION ANNUAL EXPENSES.
- PAYMENT OF INTEREST AND EMI’s TO THE BANKS ON REGULAR BASIS, SINCE TOUR OPERATORS MAKE GENUINE PAYMENT OF INCOME TAXES AND RELIGIOUSLY PAYING GST TO THE NATIONAL \ STATE EXCHEQUER.
- TO CONSIDER BUSINESS LOSS COMPENSATION FOR AT LEAST 500 DAYS TO BE REIMBURSED TO LEGITIMATE TRAVEL AGENTS \ TOUR OPERATORS. WAIVER OF ELECTRICITY CHARGES FROM AUGUST 2019 TILL MARCH 2022. ALTHOUGH OUR LOSSES HAVE HAMPERED SINCE 3 DECADES STARTING 1990.
Consideration of Travel and Tour Operators as Tourism Unit & Industrial Unit under MSME:
- THE TRAVEL AND TOUR OPERATORS HAS GAINED POPULARITY AND NEEDS TO BE RECOGNIZED AS A TOURISM UNIT WHICH HAS NOT BEEN INCORPORATED SO FAR AND HAS BEEN MISSED OUT PREVIOUSLY. ALL INDUSTRIAL BENEFITS TO BE GIVEN TO TOUR OPERATORS AS ARE GIVEN TO THE HOTELIERS AT PAR. MARKET DEVELOPMENT SCHEME (MDA) TO BE INTRODUCED ON THE PATTERN OF MINISTRY OF TOURISM – GOVERNMENT OF INDIA & OTHER STATE TOURISM DEPARTMENTS SO THAT TOUR OPERATORS ARE FINANCIALLY SUPPORTED TO TAKE EXTENSIVE MARKETING BY WAY OF PRINTING OF PROMOTIONAL MATERIAL / BROCHURES / CD’S & PEN DRIVES, AIR TRAVEL BY NATIONAL CARRIER ETC., BESIDES PARTICIPATION IN ALL MAJOR ROAD SHOWS, BOTH NATIONAL & INTERNATIONAL.
- THE TOURISM INCENTIVE SCHEME SHOULD BE EXTENDED FOR NEXT 15 YEARS AND TRAVEL AGENTS & TOUR OPERATORS SHOULD BE INCLUDED IN THE SCHEME AND ALL PENDING CASES SHOULD BE RELEASED AT EARLIEST.
- THE PEOPLE OF THE STATE WHO ARE HEAVILY DEPENDENT ON EARNINGS FROM TOURISM HAVE SUFFERED MOST WITH TOURISM TO STATE DROPPING ALMOST TO ZERO LEVEL IN 1990 DUE TO TURMOIL AND DID NOT REVIVE TILL 2002. IT WAS DUE TO THE STRONG RESOLVE OF THE TOURISM TRADE THAT IT SHOWED UPWARD TREND UPTO 2014, THOUGH AT A SLUGGISH PACE. BUT UNFORTUNATELY DUE TO UNREST SINCE JULY 2016, THE TOURISM GRAPH HAS TOUCHED ZERO LEVEL AGAIN, HENCE IMPOSING GST TO THE DOWN TRODDEN TOURISM INDUSTRY OF JAMMU & KASHMIR IS ANOTHER SETBACK, AS IT HAS MADE THE DESTINATION OVER-PRICED, WE URGE THE UNION GOVERNMENT TO WAIVE OFF GST TO THE TOURISM INDUSTRY OF JAMMU & KASHMIR FOR SOME YEARS TILL THE TOURISM REVIVES TO ITS PRISTINE GLORY.
- THE TOURISM TRADE IS THE MOST FRAGILE BUSINESS ACTIVITY IN THE KASHMIR AND UNCERTAINTY PREVAILS AT EVERY DEVELOPMENT POLITICAL OR LAW & ORDER. WE REQUEST SOME NEW INCENTIVE SCHEME FOR THE BETTERMENT FOR TOURISM TRADE & TOUR OPERATORS BE EVOLVED AT THE STATE LEVEL AS ALSO AT THE CENTRE LEVEL SO THAT THEY CAN WORK TENSION FREE. SUCH SCHEMES WILL PROVIDE A HEALING TOUCH TO THE EXISTING TRAVEL TRADE PRACTITIONERS. THE ALREADY EXISTING INCENTIVE SCHEME FOR OFFICE AUTOMATION ETC. SHOULD BE OPEN FOR ALL AREAS INSTEAD OF CERTAIN TOURIST HUBS ONLY.
- TOUR OPERATORS INVOLVED INTO THE ADVENTURE ACTIVITY HAVE RAISED HUGE INFRASTRUCTURE AND EQUIPMENT FOR WHITE WATER RAFTING, PARAGLIDING, SNOW SKIING, MOUNTAINEERING, TREKKING AND CAMPING EQUIPMENT AND EQUIPMENT’S FOR OTHER ALLIED SOFT AND HARD ADVENTURE ACTIVITIES, THEY HAVE PROCURED THIS EQUIPMENT BY GETTING LOANS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS, THE ADVENTURE TOUR OPERATORS ARE FACING TREMENDOUS PROBLEMS AS SINCE LAST 3 YEARS THEY HAVE NOT BEEN ABLE TO PAY ANY EMI TO BANKS, INSTEAD TO MAKE THEIR BOTH ENDS MEET THEY HAVE STARTED SELLING THEIR ASSETS, THESE OPERATORS ARE AT THE VERGE OF EXTINCT. UNDER THE SITUATION WE NEED A COMPREHENSIVE BAILOUT PACKAGE SO THAT WE CAN PAY THEIR DEBTS AND RAISE THE EQUIPMENT’S AFRESH.
At the end, we demand Comprehensive bailout package for all Tour Operators, be it Leisure, Adventure or Pilgrimage Operators in the shape of interest waiver for various loans raised by tour operators in different segments like purchase of Tourist Taxis, Adventure Tourism Equipments, Trekking & Camping Equipment, Office Automation, Technology Tools, Power Back-ups, Staff Trainings, Term Loans and Soft Loans to be sanctioned with subsidized rate of interest for next 5 years. We also demand GST waiver for all Tourism products for next two years. The Major Annual Expenses of not less than Seven to Eight Lacs are spent annually by a Tour Operator on six months advance Promotional activity such as participation in Trade Fairs, Printing of Publicity Material, Pen Drives & on Vendor Management thru Google etc., besides expenses on Travelling & Boarding \ Lodging.
