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LARRDIS (Lok Sabha Secretariat)

New Delhi

RESEARCH BRIEF

on

"Sustaining tourism during the Covid-19 pandemic"

(For the use of Members of Parliament)

March 2021

____________________________________________________________________________

This Research Brief is intended to serve only as a background aid to the Members of

Parliament. It is for restricted circulation and not for publication in any form.

[Prepared by the Social Affairs Wing of the R&I Division. Officers associated with the

preparation – Shri Anand Nain, Research Officer, Shri Ranganathan S. Sharma, Joint

Director and Dr. Vatsala Joshi, Director and supervised by Smt. Kalpana Sharma,

Additional Secretary. Feedback is welcome and may be sent to saw-lss@sansad.nic.in]

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Sustaining tourism during the Covid-19 pandemic

Introduction

1Tourism is an important contributor to the world economy. The tourism

industry not only generates revenues for a country, but it is also one of the most

important engines for economic growth and development. This sector

simultaneously offers the opportunity for economies to grow and people to earn

income, while tourism spending is associated with improvements in well-being

for consumers of tourism services. As a labour-intensive sector, tourism

generates employment, while fostering skills development and local

entrepreneurship. Its connectivity and mobility features play a key role in

regional integration and economic inclusion.

2The growing influence of the tourism sector as an economic powerhouse

and its potential as a tool for development are irrefutable. Not only does the

tourism sector spearhead growth, it also improves the quality of people‘s lives

with its capacity to create large scale employment of diverse kind. It supports

environmental protection, champions the diverse cultural heritage and

strengthens peace in the world. As the ultimate cross-cutting sector, tourism

contributes directly or indirectly to all of the Sustainable Development Goals

(SDGs).

Impact of the Covid 19 Pandemic

The World Health Organization (WHO) on March 11, 2020, declared the

novel coronavirus (COVID-19) outbreak a global pandemic.3 Tourism was one

of the first sectors to be deeply impacted by the pandemic, as measures

introduced to contain the virus led to a near-complete cessation of tourism

activities around the world. The COVID-19 pandemic has hit the tourism

economy hard with unprecedented effects on jobs and businesses. Destinations

that rely heavily on international, business and events tourism are struggling.

This sector also risks being among one of the last to recover with the ongoing

1 WTO Working paper on international trade in travel and tourism services: economic impact and policy responses

during the covid-19 crisis. 2 Annual Report of Tourism Ministry 2019-20

3 OECD (2020-12-16), ―Mitigating the impact of COVID-19 on tourism and supporting recovery‖, OECD Tourism

Papers, 2020/03, OECD Publishing, Paris. http://dx.doi.org/10.1787/47045bae-en

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travel restrictions and the global recession. This has consequences beyond the

tourism economy, with many other sectors that support and are supported by

tourism also significantly impacted.

4The impacts of COVID-19 on tourism threaten to increase poverty (SDG

1) and inequality (SDG 10) and reverse nature and cultural conservation efforts.

The pandemic also risks slowing down progress towards the Sustainable

Development Goals (SDGs). Tourism is directly referenced in three goals: SDG

8 on ―decent work and economic growth‖, SDG 12 ―responsible consumption

and production‖ and SDG 14 ―life below water‖.

Cultural implications

The global wealth of traditions, culture and diversity are among the

principal motivations for travel. The impact of COVID-19 on tourism places

further pressure on heritage conservation in the cultural sector, as well as on the

cultural and social fabric of communities, particularly indigenous people and

ethnic groups. For instance, with the closure of markets for handicrafts, products

and other goods, indigenous women‘s revenues have been particularly impacted.

Cultural organizations have also seen their revenues plummet. During the crisis,

90 per cent of countries fully or partially closed World Heritage sites, and around

85,000 museums were temporarily closed. Tourism, a sector built on people-to-

people interaction, is one of the major vehicles for promoting culture and

advancing intercultural dialogue and understanding.

5During such challenging times, domestic tourism is providing a much

needed boost to help sustain many tourism destinations and businesses and will

continue to be a key driver of recovery in the short to medium term. Domestic

Tourism helps in the process of nation building and connects the citizens to their

history, culture, environment and at the same time develop a sense of patriotism.

Governments have been using domestic tourism as a tool to eliminate local

poverty, generate employment and economic growth, upgrade infrastructure and

alleviate pressure from overcrowding of destinations. Domestic travel helps

address seasonality within regions while also dispersing tourists to the less

4 UN Policy Brief: COVID-19 and Transforming Tourism - AUGUST 2020

5 Inputs provided by the Tourism Ministry

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visited rural areas. Domestic Tourism is considerably less receptive to crises,

whether economic, natural, health or political. It is, therefore, an excellent shock

absorber, especially in the case of economic crises. Due to its income

redistribution effect (from tourists to local populations) and its various multiplier

effects all throughout the value chain, it is an excellent tool for territorial

development, easing social tensions and as a launch pad for new destinations.

In the present COVID 19 scenario when international travel has come to a

standstill, Domestic Tourism is the answer to the crisis ridden tourism industry to

survive and sustaining jobs at the local level. Domestic Tourism can be the

perfect driver in achieving an effective recovery by focusing on the new normal

which includes reviewed standards and operating models, meets the new traveler

needs and requirements, and ensures the sector‘s business continuity and

sustainable growth.

6What to do now

Profound changes in the structure of travel and tourism demand and supply

are expected to reshape the sector in the aftermath of COVID-19. The

uncertainty regarding the evolution of the virus, its health effects and the

repercussions in the economy render imperative alternative approaches to

business as usual by individuals, businesses, governments and international

organizations. Learning from past major structural transformations should

motivate stakeholders to embrace a strategic approach, based on current evidence

and careful scenario analysis. In practice, it means that governments need to

consider more than one scenario, and work on multiple fronts simultaneously.

This allows for quick reflexes in policymaking.

What people can do?

COVID-19 has impacted people with regard to both tourism supply and

demand. Consequently, tourism sector professionals, as well as tourists

themselves, need to take into account the "new normal". Due attention must be

paid to changes in tourism products and services, the necessary safety concerns,

as well as the interpretation of the sector trends. People can adopt the following 6 WTO Working paper on international trade in travel and tourism services: economic impact and policy responses

during the covid-19 crisis.

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measures to survive in this pandemic:

a) Maintain flexibility of employment opportunities within the sector

b) Upskilling and reskilling to adapt to the evolving labour market needs

c) Keeping an eye out for the tourism offers and destinations of the future

What can businesses do?

While travel and tourism businesses have suffered disproportionally

compared to other service sectors, there are certain measures that they can take in

order to mitigate the effects of the current crisis and better prepare for the future.

Taking the opportunity of the fall in demand, tourism businesses can aim at both

optimising procedures and undertaking initiatives that would better position them

in the COVID and post-COVID travel and tourism market.

7Policy Responses

Globally, the tourism policy makers are responding in different ways.

However, most of them agree on the need for two distinct phases of intervention

— immediate response and recovery. The first relates to interventions that

respond to the immediate crisis. This implies the abrupt removal of almost all

forms of tourism demand for an unspecified time and the corresponding shock to

the industry. The second phase refers to the preliminary, followed by longer-term

measures to help the sector recover once signs of imminent recovery are

identified. Policy interventions in the first phase focus on survival and support the

private sector to maintain workforce. In the second phase, they focus on sector-

wide reinvention, recovery, and building resilience.

Although countries and international organizations have implemented a

range of measures to mitigate the socio-economic impacts of COVID-19 and to

stimulate the recovery of tourism, the magnitude of the crisis requires extra efforts

and continued support.

8Potential long lasting tourism policy implications

Sustainability may become more prominent in tourism choices, due to 7 REBUILDING TOURISM COMPETITIVENESS - Tourism response, recovery and resilience to the COVID-19

crisis, Markets & Technology Global Tourism Team | July 2020 World Bank

8 OECD (2020-12-16), ―Mitigating the impact of COVID-19 on tourism and supporting recovery‖, OECD Tourism

Papers, 2020/03, OECD Publishing, Paris. http://dx.doi.org/10.1787/47045bae-en

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greater awareness of climate change and adverse impacts of tourism.

Natural areas, regional and local destinations are expected to drive the

recovery, and shorter travel distances may result in a lower environmental

impact of tourism.

Domestic tourism is expected to benefit, as people prefer to stay local and

visit destinations within their own country. Domestic tourists are often

more price-sensitive and tend to have lower spending patterns.

Traveller confidence has been hit hard by the crisis, and the ongoing

uncertainty. This may lead to a decline in demand and tourism

consumption that continues well long after the initial shock.

Traveller behaviour will be influenced by the evolution of the crisis, as

well as longer term consumer trends that are reshaping in the way people

travel. This may include the emergence of new niches and market

segments, and a greater focus on safety protocols and contactless tourism

experiences.

Safety and hygiene have become key factors to select destinations and

tourism activities. People are likely to prefer ‗private solutions‘ when

travelling, avoiding big gatherings, and prioritising private means of

transport, which may have an adverse impact on the environment.

Structural change in tourism supply is expected across the ecosystem. Not

all businesses will survive the crisis and capacity in the sector is likely to

be reduced for a period, limiting the recovery.

Skills shortages in the tourism sector may be exacerbated, as many jobs

are lost and workers will redeploy to different sectors.

Reduced investment will call for active policies to incentivise and restore

investment in the tourism sector to maintain the quality of the tourism

offer and promote a sustainable recovery.

Digitalisation in tourism services is expected to continue to accelerate,

including a higher use of automation, contact-less payments and services,

virtual experiences, real-time information provision.

Tourism policy will need to be more reactive and in the long term it will

move to more flexible systems, able to adapt faster to changes of policy

focus. Crisis management will be a particular area of focus. Safety and

health policy issues also.

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Measures taken by India

The Ministry of Tourism has taken the following initiatives for the

development and promotion of domestic tourism in the country:

Dekho Apna Desh: The Ministry had launched the Dekho Apna Desh

(DAD) initiative in line with the appeal of the Hon‘ble Prime Minister

asking every citizen to visit at least 15 destinations by the year 2022 to

promote domestic tourism. DAD is promoted extensively on social

media accounts and the website of the Ministry and by the Domestic

India Tourism offices. Under this initiative ministry carries out a series

of webinars showcasing the diverse culture, heritage, destinations and

tourism products of the country. As on date 52 webinars have been

organised with a viewership of more than 2 lakhs. To create a mass

awareness, the Ministry has also launched an online pledge and Quiz

on DAD on the MyGov.in platform.

Bharat Parv and Paryatan Parv: The Ministry has been organizing

the Bharat Parv and Paryatan Parv in collaboration with the States/

UTs and other central ministries / Departments for the last four years

to showcase the rich culture, history and heritage of India to the

citizens. The objective of these events is to draw focus on the benefits

of Tourism and reinforcing the principle of tourism for all.

Domestic Tourism campaigns and promotion on Social Media and

website: Promotion campaigns are carried out through DAVP in

Domestic market on Electronic and print media promoting domestic

tourism. Ministry also carries out promotion of destinations, products,

festivals, cuisines etc. of the country on its social media handles.

Development of Tourism Infrastructure: The Ministry of Tourism

under its Swadesh Darshan and PRASHAD schemes have sanctioned

projects worth approx. Rs. 6500 crores for the development of the

tourism infrastructure to provide a better experience and facilities to

the visitors.

Social awareness campaigns: The Ministry runs campaigns under the

brand line Atithi Devo Bhava on sensitizing the citizens on social

issues like respect towards women, cleanliness, graffiti etc.

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Quiz / Essay Competitions at Schools and institutions: The

Ministry through its field offices organises quiz programmes, poster

making and essay competitions at institutes of hotel management

(IHMs), Indian institutes of tourism and travel management (ITTMs),

Schools to create awareness about history, heritage, tourism products

and destinations in the country.

Promotion of Fairs/ festivals/Events – To create awareness among

the masses the Ministry celebrates special events / days with citizen‘s

participation like International Day of Yoga, World Tourism Day,

Constitution Day, Independence day and other regional festivals.

Aerial Photography: The Ministry of Tourism has commissioned

serial photography of key cities and cultural assets (Delhi, Chennai,

Kolkata, Mumbai, Bengaluru, Udupi, Aurangabad, Iconic Tourist

sites) across the country during lockdown.

Improvement in connectivity: The Ministry of Tourism, with a view

to enhancing air connectivity to tourist destinations in the country has

had 46 tourism routes included under the Regional connectivity

scheme (RCS) – UDAN 3 Scheme of the Ministry of Civil Aviation.

The Ministry of Tourism will extend financial support for the

operationalisation of these routes on the pattern of the viability gap

funding and will release funds to the Ministry of Civil Aviation for the

same. Of the 46 routes, 16 routes have been made operational as on

date. The Ministry has held discussions with the Ministry of Road

Transport & Highways (MoRTH) regarding improving road

connectivity to important tourist destinations in the country. Based on

discussions held, the Ministry had forwarded a list of 50 tourist

destinations which could be taken up by the Ministry of Road

Transport & Highways in the first phase. It has further been discussed

that where good road connectivity already exists, setting up of

Wayside Amenities, prominent signages and beautification of the area,

at a distance of 15-20 kms on either side of the tourist destination may

be considered.

Communication with Industry Stake Holders: The Ministry and the

Regional offices are regularly communicating with the Travel Industry

and other stakeholders on issues related to opening up of Tourism

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sector, handling of tourists, protocols of safety and security, service

standards etc.

SAATHI Initiative: To rebuild the trust of the domestic and

international traveler in terms of India being a safe destination to

travel in the post COVID scenario, the Ministry of Tourism launched

the System for Assessment, Awareness and Training for Hospitality

Industry (SAATHI). As India opens up for tourism, hotel owners can

easily get themselves trained and certified through the SAATHI

website following three easy steps. The First step involves Self

Certification in which users will be informed about the key elements

and a certification will be generated. Following, this a participation

certificate will be awarded to owners enrolling for a free webinar. The

final step involves site assessment (paid), certifying the ground

preparedness of the hotels, and homestays.

Measures taken by the Ministry during the Crisis: The Ministry of

Tourism put in place various measures for crisis management and

support tourism stakeholders and particularly foreign tourists, who

were stranded in India. Following measures were taken by the

Ministry:

i) Setting up of COVID-19 Cell

ii) Dissemination of Advisories and Guidelines in respect of

COVID-19

iii) 24x7 HelpLine

iv) Coordination with Hotels regarding stranded guests

v) Accommodation to Foreign Tourists by ITDC

vi) Joint Working Group with State Tourism Officers

vii) Setting up of ―Stranded in India‖ Portal

Relief Measures by the Government: In order to ensure the

survival of the businesses and retention of the employees, the

Government and RBI have announced various economic stimulus

measures.

viii) RBI has given 3 months moratorium till June 2020, which has

been extended for a further up to 31st December, 2020.

ix) The Government has further announced the Atamnirbhar

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Bharat package vide which Rs 3 lakh crore collateral free

automatic loan has been made available for the Micro

Medium and Small Enterprises (MSMEs). The loan will have

a 4-year tenure and 12-months moratorium.

The Government waived off PF contribution for three months for

organisations with less than 100 persons and 90 per cent employees

below 15000. Under the Atamnirbhar Bharat package, PF

contribution of both employer and employee has been reduced to 10

per cent each from existing 12 per cent each for all establishments

covered by EPFO for the next three months i.e. up to September 2020.

The Central Government has also given relief from various regulatory

compliances under Income Tax Act, Companies Act and GST Act for

varying period in the wake of COVID-19 crisis to ensure business

continuity and survival.

Relief measures by the States: The Ministry of Tourism has also

taken up with the State Governments regarding various fiscal and

regulatory relief measures relating to State and Local Governments.

The key demands of Industry relating to State and Local

Governments are:

i) Relief from regulatory compliances

ii) Relief from penal provisions for delays in dues

iii) Relief from excise fees

iv) Relief from electricity duty

v) Relief from property tax

9The ministry has planned a detailed strategy to utilize technology to the

fullest extent to overcome the setback created by the pandemic. Incredible India

digital platform, in collaboration with Google, features a variety of 360 degree

walk-throughs and stories for prominent tourist attractions across the country. The

content is provisioned on major tourist destination pages within the Incredible

India website. These embedded walk-throughs provide an engaging experience to

the viewer by providing them with immersive 360 degree photos. 360 degree walk-

throughs have also been provisioned for prominent World Heritage Sites in India.

9 Unstarred question no 56 answered in Lok Sabha on 14 September 2020.

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Digital media will be utilized fully to promote and spread awareness about

the tourist destinations and activities and involve people to prepare them for their

visits when the situation becomes normal. Incredible India Web Portal and Mobile

App is further being enriched with content and tourist friendly features offering a

high degree of personalization.

The Ministry of Tourism has launched the Incredible India Tourist

Facilitator (IITF) Certification Programme – a digital initiative that aims at

creating an Online learning platform with the objective of creating a pool of well

trained and professional Tourist Facilitators across the country. This will help in

creation of employment at the local level and even in the remote areas of the

country having tourism potential.

10In order to tap international tourists, the Ministry of Tourism through the

India Tourism Offices overseas proposes to undertake various promotional

activities which include participation in travel fairs and exhibitions; advertising in

the local print, electronic, outdoor and digital media; organizing webinars to

highlight success stories around COVID-19 in India to build confidence among

foreign tour operators and travellers, organizing Road Shows, India Evenings,

Know India Seminars & workshops; organizing and supporting Indian Food

Festivals and cultural festivals; offering brochure support to tour operators, and

joint advertising/joint promotions with airlines, tour operators and other

organizations, joint promotions in collaboration with the Indian Missions abroad

etc.

World Tourism Day 2020

The World Tourism day was celebrated on 27 September 2020 with the theme of

―Tourism and Rural Development‖. This observation comes at a critical moment as

countries around the world look to tourism to drive recovery, including in rural

communities where the sector is a leading employer and economic pillar. The 2020

edition also comes as governments look to the sector to drive recovery from the

effects of the pandemic and with the enhanced recognition of tourism at the highest

United Nations level. This was notably illustrated with the recent release of a

landmark Policy Brief on tourism from the UN Secretary-General Antonio

Guterres in which he explained that ―for rural communities, indigenous peoples

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Unstarred question no 184 answered in Lok Sabha on 14 September 2020

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and many other historically marginalized populations, tourism has been a vehicle

for integration, empowerment and generating income.‖

Challenges

Historically, tourism has shown a strong ability to adapt, innovate and

recover from adversity. However, this unprecedented situation requires new

approaches and strong multi-level response and partnerships. 11

The COVID-19

global crisis is unprecedented. The uncertain lifecycle, geographical and temporal

distribution and intensity of the pandemic make it impossible at this time to predict

the actual timing and path of recovery. However, one thing is certain - the global

travel and tourism industry is already facing and is likely to continue to face

extraordinary challenges. The five biggest of these are i) increasing focus on health

and hygiene standards; ii) understanding how demand is changing (including the

role of domestic and regional tourism); iii) interpreting changing business models

due to consolidation and corporate restructuring; iv) mobilizing innovation and

technology solutions impacting distribution and market access; and v) guiding

public investments in destinations to position them for a more sustainable and

resilient tourism industry post COVID-19.

Recovery will require phased actions and creative policies enabling all

stakeholders to adapt to a new business landscape. The public and private sectors

along with destination communities will need to work together to create solutions.

Historically, demand is known to rebound after a crisis, though the recovery time

may vary. In this instance, the tourism sector can expect substantial change in

supply and demand patterns emerging from this crisis. There will likely be a

downturn in disposable income leading to less travel for some groups and renewed

travel for higher-end market segments. Corporations are likely to experience

consolidation as Small and Medium Enterprises (SMEs) face extended distress and

even bankruptcy.

The COVID-19 pandemic will undoubtedly leave a deep imprint on the

structure of the travel and tourism industry. Collapsing consumer demand, low

11

REBUILDING TOURISM COMPETITIVENESS - Tourism response, recovery and resilience to the COVID-19

crisis, Markets & Technology Global Tourism Team | July 2020 World Bank

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cash reserves, and a lack of access to flexible lines of credit has forced many

smaller travel and tourism operators to close. At the same time, while the larger

firms are better positioned to withstand this crisis, they are also facing significant

challenges as demand is not recovering anytime soon.

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Way out

Encouraging news on vaccines has boosted the hopes for recovery but

challenges remain with the sector expected to remain in survival mode until well

into 2021. As countries gradually lift travel restrictions and tourism slowly restarts

in many parts of the world, health must continue to be a priority and coordinated

heath protocols that protect workers, communities and travelers while supporting

companies and workers must be firmly in place.

As travel restarts in some parts of the world, limited connectivity and weak

consumer confidence, the unknown evolution of the pandemic and the impact of

the economic downturn present unprecedented challenges to the tourism sector.

Supporting the millions of livelihoods that depend upon a sector affected by

months of inactivity, and building a sustainable and responsible travel experience

that is safe for host communities, workers and travellers are key to accelerating

recovery.

This crisis is also an unprecedented opportunity to transform the relationship

of tourism with nature, climate and the economy. It is time to rethink how the

sector impacts our natural resources and ecosystems, building on existing work on

sustainable tourism; to examine how it interacts with our societies and other

economic sectors; to measure and manage it better; to ensure a fair distribution of

its benefits and to advance the transition towards a carbon neutral and resilient

tourism economy. A collective and coordinated response by all stakeholders can

stimulate the transformation of tourism, together with economic recovery

packages, and investments in the green economy.

Harnessing innovation and digitalization, embracing local values, and

creating decent jobs for all, especially for youth, women and the most vulnerable

groups in our societies, could be front and centre in tourism‘s recovery. To that

12

UN Policy Brief: COVID-19 and Transforming Tourism - AUGUST 2020

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end, the sector needs to advance efforts to build a new model that promotes

partnerships, places host people at the centre of development, advances evidence-

based policies and carbon neutral investment and operations.

Conclusion

Tourism is at a crossroads and the measures put in place today will shape the

tourism of tomorrow. The survival of businesses throughout the tourism ecosystem

is at risk without the continued government support.

While addressing the immediate socio-economic impacts of COVID-19 on

tourism and accelerating recovery to protect millions of livelihoods, this crisis is an

opportunity to rethink the tourism sector and its contribution to the SDGs, nature,

and the Paris Agreement on climate change, an opportunity to work towards a

more sustainable, inclusive and resilient tourism. The COVID-19 crisis is a

watershed moment to align the effort of sustaining livelihoods dependent on

tourism to the SDGs. There is a need to consider the long-term implications of this

crisis while capitalising on digitalisation, supporting the low carbon transition, and

promoting the structural transformation needed to build a stronger and a resource

efficient future. Only through collective action and international cooperation will

we be able to transform tourism, advance its contribution to the 2030 Agenda and

its shift towards an inclusive and carbon neutral sector that harnesses innovation

and digitalization, embraces local values and communities and creates decent job

opportunities for all, leaving no one behind.

This Research Brief has been prepared based on press releases, journals, reports,

policy documents and inputs provided by the Ministry of Tourism.