InvestorQ : How is COVID-19 likely to impact the tourism and travel sector? I hear that it is likely to be the worst impacted?
Aditi Sharma made post

How is COVID-19 likely to impact the tourism and travel sector? I hear that it is likely to be the worst impacted?

Answer
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Aashna Tripathi answered.
5 months ago


It is being estimated by experts that nearly 40% businesses operating in the travel and tourism sector could face shutdown in less than 6 months. More than three-quarters of the travel and tourism companies have lost close to 100% of their revenues in the last three months and it is going to be a hard grind to recoup. In addition, another 30% of tourism companies may go for a temporary shutdown. Close to 40% off the travel companies have started aggressively cutting jobs or furloughing people. Nearly half of the tourism companies, according to the survey are deferring capital expenditure plans permanently. Tourism and travel companies have been requesting government to create a tourism fund to rescue these businesses and also to give GST relief. Tourism generates big foreign exchange for India and could be a major focus area in the future.