Volume 1 IssueThe 1 June 2019 Business 24 pages For Private Circulation Only called Inaugural Issue iatoA tourism industry communication by Indian Association of Tour Operators Volume 1 Issue 1 may 2019 24 pages IATO demands Reduction in e-Visa fee

Members are priority

Cover depicts Incredible (North Kerala)

India Tourism Mart 2019 from September 23-25, 2019

New Government IATO welcomes new ministers

Prahlad hardeep Singh Patel singh puri Minister of State Minister of State for Aviation for Tourism (Independent Charge) (Independent Charge) ormer IFS officer Hardeep rahlad Singh Patel FSingh Puri has been given Phas been appointed as the independent charge of the the new Minister of State Civil Aviation Ministry in the new (Independent Charge) for Modi government. He has been The Ministry of Tourism, appointed as the Minister of State . He is (Independent Charge) of Ministry a five-time parliamentarian of Civil Aviation. He was the and was a front runner for Minister of State (Independent Modi’s second cabinet. He Charge) of the Ministry of Housing and Urban in the previous also served as a Minister of government. He is a member from Uttar Pradesh. State for coal in the government. He takes A former career diplomat, Puri joined BJP in 2014. over from Alphons Kannanthanam. In his career spanning 39 years as an IFS officer, he served in Winning the election from Damoh constituency in Madhya senior positions at the Ministries of External Affairs and Defence, Pradesh, Patel holds BSc, LLB, MA (Philosophy) degrees. held ambassadorial level posts in the United Kingdom, Brazil In the previous government, he was a member of several and served as Permanent Representative of India to the United committees like Committee on Public Undertakings, Committee Nations both in Geneva and New York. on Government Assurances, Standing Committee on Rural Development. He has also been a member of Executive He had earlier served in India’s Missions in Tokyo, and Colombo. Council of VV Giri National Labour Institute and member Born on 15 February, 1952, Puri did BA (Hons) History from of the Consultative Committee in the Ministry of Labour Hindu College, University of Delhi and was placed first in order of and Employment. merit in 1971. He completed his MA (History) in 1973.

Nitin Gadkari Minister of Railways Minister of Road Transport & Highways hartered accountant-turned- Cpolitician, Piyush Goyal has itin Gadkari will continue been reappointed as the Minister Nto handle Ministry of Road of Railways. Goyal, who worked Transport & Highways, while as an investment banker before also handling the Ministry becoming member of Rajya of Micro, Small & Medium Sabha, has handled several Enterprises (MSMEs). The key portfolios in the previous minister has been credited Modi government, including the for smooth construction Finance Ministry in the absence of Arun Jaitley. He has also and operation of bridges, flyovers and expressways in been Power, Coal and Corporate Affairs Minster in the past. the previous cabinet. He is also known to have played a During his tenure as Railways Minister, he announced Railways significant role in the implementation of the Pradhan Mantri Zone for Andhra Pradesh named South Coast Railways and Gram Sadak Yojana. was also instrumental in announcing new fast speed train, Vande Bharat Express. He is also known for the works during his tenure as a Public Works Department Minister in the state of Born in to Ved Prakash Goyal, who has been a Union when he constructed a series of roads, highways and flyovers Minister in the Vajpayee government, he followed his father’s across the state including the Mumbai-Pune Expressway, footsteps and joined BJP in 1984. He holds a stellar academic India's first six-lane concrete, high-speed, access controlled record and is an all-India second rank holder Chartered tolled expressway. He has also been the Chairman of Accountant and second rank holder in Law in Mumbai University. Maharashtra State Road Development Corporation.

IATO SPEAKS June 2019 3 IATO'S Well-Wisher

MESSAGE

I am pleased to note that the Indian Association of Tour Operators (IATO), an umbrella association of inbound tourism, is coming out with the New Look Newsletter, which will play a meaningful role in informing and educating tourism fraternity at large with the latest updates to ensure that ‘Incredible India’ is seen worldwide as a favoured destination among the travellers.

Tour operators and travel agents are essential to help ‘Tourism’ thrive in our ‘Incredible India’. In the Ministry, we have also taken path-breaking initiatives leading to positive growth of inbound tourism. The e-visa has played a remarkable role in boosting international tourist arrivals in India. This e-visa facility has now been extended to 167 countries. With efforts of Ministry of Tourism, relaxation in Restricted Area Permit (RAP) / Protected Area Permit (PAP) for Manipur, Mizoram, Nagaland and 29 islands of Andaman & Nicobar has been extended up to 2022.

The Ministry has recently launched its newly revamped website (www.incredibleindia.org). A series of infrastructure development projects are also in progress in our pre-identtified tourist circuits. A thematic and market specific ‘Incredible India 2.0’ campaign has been launched as part of the Global Marketing Plan to promote ‘India’ as a popular and most appealing tourist destination around the world.

The IATO is working closely with Ministry of Tourism and has been contributing immensely towards promotion of inbound tourism into India. I wish IATO and its team members all success and hope that members will take full advantage of this informative ‘new look’ newsletter to gain further knowledge/information to grow their business.

Yogendra Tripathi

4 June 2019 IATO SPEAKS President's Note

responsibilities of Mr. Gour Kanjilal, who completed his tenure in March 2019 at IATO as per his contract. Mr. Kanjilal served IATO for a complete 13 years after his retirement from Ministry of Tourism.

I am happy that all our sub-committees are very active now and are conducting meetings on regular basis. With their inputs, we will achieve more in this year for the betterment of our industry. Coinciding with roadshows in Australia and New Zealand, a meeting of Australia and India Joint Working Group meeting was held on April 15, 2019 in Sydney, where I participated and raised the issue that members are facing both for inbound and outbound. IATO had submitted its proposal for the roadshows for 2019- 20 and Ministry of Tourism, Government of India, Pronab Sarkar has planned roadshows for the whole year starting with the US and Canada from June 24 and in Africa from July 1, 2019. Dear Friends, I recently had a meeting with National Skill Council My best wishes in the new financial year and I am sure (Tourism and Hospitality Council) and will have you had good business in the last season. another meeting with them soon where we will give our inputs for training as well as placement of We are pleased to present you the newsletter with a trained students. We are also happy to inform you new look and would try to make it more informative that Zia Siddiqui has been nominated as Chairman for the members and also shall increase its circulation. of Standard Sub Committee of Tourism & Hospitality M/s. DDP Publications has been given the responsibility Skill Council. The committee members unanimously of editing and printing and I am sure they will do nominated him. a commendable job with their vast experience in the field. As you know, India Tourism Mart 2019 is being held from September 23-25, 2019. IATO has been given You may be aware that at the Ministry of Tourism, the responsibility of selecting the hosted buyers Meenakshi Sharma has been promoted to from overseas. Soon, we will be sending you the link Director General Tourism. We had a courtesy call to which you can forward to your foreign operators to be congratulate her and took up the opportunity to raise considered as hosted buyers. our pending issues like Revision in Guidelines for tour operators for the benefit of medium and small tour We have submitted our recommendation for the operators, Revision in MDA Guidelines by removing Union Budget 2019-20 to the Ministry of Finance and clause of 5% increase in foreign exchange earnings Ministry of Tourism. Some of the highlights of our in three cumulative years. Rates of handling of Fam demands which we are making to the government are: trips have been revised, however, we have requested a) The parameters / definition of “export of services” that tour operators’ bill/invoice should be sufficient may be relaxed in the case of tour operators and the and supporting documents from the hotels and other services of tour operators earning foreign exchange for suppliers should not be required. the country may be accorded with the status of “export of services”; b) Remove the cascading effect of GST IATO is soon going to appoint a PR Agency and we shall on tour operators; c) Reduce visa fee and no visa fee initially appoint it for six months to gauge its potential during off-season. and will continue further if found suitable. IATO has appointed M/s. Your Reputation Consultancy (YRC) We will request your valuable inputs to make the for revamping the website as well as marketing our newsletter more informative and useful to members. website in selected overseas markets and social media. During our active members' meet, it was proposed Wishing you all the best for the coming business to make an Annual Business Plan and a Five Year season 2019-20! Plan for development of IATO’s role in advancing the industry for which a committee has been formed.

We have appointed Rahul Chakravarty as the COO at IATO and we hope he would also provide his valuable Pronab Sarkar contribution. He will be assuming charge of all job President

IATO SPEAKS June 2019 5 Secretary's Communication

Team IATO Office Bearers

Pronab Sarkar President

E M Najeeb Senior Vice President

Rajiv Mehra Vice President

Rajesh Mudgill Rajesh Mudgill Honorary Secretary

Ravi Gosain Dear Members, Honorary Treasurer

In keeping with our promise to you at the time when you elected Rajnish Kaistha the new EC, I am glad to inform all of you that many steps have Hony. Joint Secretary been taken in the positive direction which will benefit all our members. Subhash Goyal Immediate Past President These initiatives have been taken by me, as EC liaison, with the co-operation and understanding of our EC. I will continue doing my best for you all.

You may already be aware that amongst the important steps taken by us was the formation of different committees to take up various responsibilities that I thought were necessary, so that your problems and welfare could be attended to effectively.

We want more members to get involved as I believe that the real strength of our association will come from its honoured members and their individual strengths and ideas. Executive Committee I am happy to note that all these committees are dedicated and Members are trying to do their best.It will take a bit of time to streamline things. In the meantime, I would like to thank our Newsletter, P S Duggal Media & PR Committee which has begun its work; it helped us to start this new look newsletter magazine for you. Raj Bajaj

I have also been sending you regular updates and Viney Tyagi announcements on your email. Please look into your inbox. I hope you are all receiving them. Deepak Bhatnagar

Yours faithfully, Tony Marwah

Zia Siddiqui

Sunil C Gupta

Rajesh Mudgill P Vijaysarathy Honorary Secretary

6 June 2019 IATO SPEAKS IATO appoints COO

Explore Inside 10 13 Rahul Chakravarty n an endeavour to ensure smooth Ifunctioning of the association, Indian Association of Tour Operators (IATO) has appointed Rahul Chakravarty as the Chief Operating Officer (COO) to enlarge the scope and area of operations in the 1600-member body. In his current role, Chakravarty will be overseeing all aspects of operational management of the association. He took over office on April 1, 2019.

14 18 He was earlier working with Federation of Indian Chambers of Commerce and Pg. Yesterday & Today Pg. Taxing Times 9 16 Industry (FICCI), heading the tourism Tourism: Then and Now GST: Scope for division for the last 15 years. During his improvement? previous stint, Chakravarty has displayed Pg.11 iato TIMES Industry challenges and commendable performance and racked Pg.17 Members Rendzevous up an impressive track record. He has concerns at the fore New Membership been instrumental in the remarkable approved Pg.12 Sub-CommitteE Affairs growth of the travel division of FICCI Empowering members with the launch of various travel-related Pg. Eco Calls with digital skills 19 programmes, including The Great Indian Able & Sustainable Travel Bazaar (GITB). Pg.13 Chapter Sparks Maharashtra Pg.21 necessary reminders Gour Kanjilal, who was the Executive Chapter at its best Statutory compliance due Director of IATO for the past 14 years, dates - June 2019 bid farewell to IATO, citing age and Pg.14 News You Can Use other considerations. The IATO leadership is confident that IATO pitches for e-visa Pg.22 convention update fee reduction Chakravarty, with his vast experience, Setting new benchmarks will help the organisation to grow. Cover Picture Courtesy: Kerala Tourism

Honorary Secretary IATO Speaks is a publication of Indian News, Media & PR Committee Rajesh Mudgill Association of Tour Operator (IATO). All information is derived from sources, we feel Neelam Thakur (Convener) reliable and passed on to the members without Atul Rai Editorial Board any responsibility on our part. IATO assumes Neelam Thakur no responsibility for returning any unsolicited Harish Chopra matters. Jurisdiction is restricted to Delhi. Manish Poddar Atul Rai Indian Association of Tour Operator (IATO) Manoj Matta Harish Chopra IATO Speaks is owned by IATO and printed & 310, Padma Tower II, 22, Rajendra Place, Manish Poddar published on their behalf by DDP Publications Pvt. Ltd. & is printed at Modest Print Pack New Delhi - 110 008 Manoj Matta Pvt. Ltd., Delhi Tel : 91-11-25750028, 25754478, 25738803 E-mail: [email protected]

IATO SPEAKS June 2019 7 Letters from Members State concerns Monthly data on FTAs to India Highlights regarding Foreign Tourist Arrival (FTA) brought to the fore and FTAs on e-Visa during November, 2018.

IATO State Chapter Chairmen from different Month Year FTA Growth regions voice issues in their respective states. November 2018 10,12,128 1.4 % IATO had suggested many November 2017 9,97,738 measures to Uttarakhand. Higher reaches of the hill FTAs on e-Tourist Visa state that otherwise were seen as a challenge are November 2018 2,61,959 22.5 % coming up well. November 2017 2,13,835

(Latest data yet to be released) Prateek Hira Source: Market Research and Statistics, Ministry of Tourism Chairman—Bihar, Uttar Pradesh & Uttarakhand Chapter $24 bn more on online bookings Online bookings in India are projected to rise from The biggest challenge we 25% to 35% as internet penetration increases. are facing in Karnataka is interstate taxes. We are closely working with the state government to re-implement the South Zone permit.

S Mahalingaiah Chairman—Karnataka Chapter

MTDC has never interacted with any trade body. Its investments are also not on the right track. It took us a As India’s travel spending is set to grow from $94 billion long time to get MTDC guides in travel spending to $136 billion by 2021, around 57 per after repeated follow ups. cent of the incremental bookings will be online. A latest study by Bain & Company and Google states that frequent Himanshu Agashiwala flyers research online and make decisions on the basis of Chairman—Maharashtra Chapter availability of flights. Medical tourism to boom in India

The primary challenge is waste Medical by international travellers management and maintaining is set to grow to USD13.3 bn by 2022. cleanliness of the beaches. A KPMG India & Google report We, along with other trade states that 1.5 million medical bodies, have made petitions to tourists are expected to visit improve beach cleaning. India in 2022. The market in the counry has grown rapidly Adolfo Fernandes over the past decade, with India Chairman—Goa Chapter becoming one of the largest global medical tourism hubs.

8 June 2019 IATO SPEAKS Yesterday & Today Tourism: Then and Now 1982 was a significant year. It was the year of inception of ‘Indian Association of Tour Operators’ (January 13). A year later in 1983, Taj Mahal was declared by UNESCO as a World Heritage Site.

lashback 1982! You film ‘Gandhi’ had released in India This is also the beginning of a new could hear the restless recreating the inspiring saga of understanding about tourism in tak-tak-tak of typewriters Mahatma Gandhi’s life on screen. Incredible India. In this era of digital and telex machines, their realities, the traveller has an instant faithfulF iron keys hammering down 1982 was a significant year. It was access to nearly any information, visual, on paper in noisy rhythm. Sturdy the year of inception of ‘Indian place or services he desires in Incredible black telephones with circular dials Association of Tour Operators’ India at the click of a mouse and on graced the tables, their numbers (January 13). A year later in 1983, his mobile device. Travel to ‘Incredible peeping lazily from every hole. Dates Taj Mahal was declared by UNESCO India’ is also now being marketed were managed from fancy calendars as World Heritage Site. Local guides, and sold through virtual connect hanging on walls and interstate auto drivers and rickshawalas and information flow. The traditional calling was a challenge; trunk calls across Agra city began to pick up methods of repeated door-to-door would take hours to get through. foreign languages almost overnight. presence across the Indian borders may It was a time when most touristic one day become a thing of the past. itineraries were conventional and Fast forward 2019! India’s tourism mainly anchored around monuments has witnessed an eventful Meanwhile the new generation of archaeological and historical journey. It has evolved entrepreneurs are waiting at glory. Friendly white ambassador and so much more has the door to enter mainstream cars drove around Delhi roads with changed during the last tourism. Their mindsets their never-say-no chauffeurs who 37 years (1982 - 2019). IATO, with its are potentially ready to would impress foreigners settled in Today, the rules and 1700+ members imagine and tap into the the backseat with their skilful driving dynamics of India’s amazing possibilities hidden and amuse them with their whimsical tourism business stand lead the brand in the colourful rural folds of use of Hinglish vocabulary. Handy redefined. This period appeal of India’s cultural magics and picture postcards of monuments and has rearranged the this Earthly enchanting landscapes. They horse tonga sketches were posted order of thought and are eager to contribute in away by the visiting tourists into red preferences in the mind wonder called taking tourism in Incredible post boxes. Meanwhile, somewhere of the traveller. It has ‘Incredible India further through far away in the northern hills, awakened in him a India’ innovative travel concepts, occasionally a handful of trekking revised perception marketing of new products enthusiasts would be driving over a about India. and places. Welcome to 2019! broken road, their fatigued vehicle rattling on towards some unknown This mega cultural Since 1982, IATO has seen milestone in anticipation of their fabric called ‘Incredible much. Its members have first glimpse of the Himalayas, while India’ is now being seen by him as contributed with defining roles their mountain guide awaited them in the fascinating Earthly address and purposes. They have helped to isolation somewhere at the other end. that offers for him an appealing strengenthen it over the years. IATO, This was 1982. menu of multiple destinations with its 1700+ members lead the brand and experiences, ecstatic nature appeal of this Earthly wonder called It was also the year when our cities sojourns, wellness and spiritual ‘Incredible India’ with their services, graduated from black and white fulfilments, an entire subcontinent products, expertise and ideas. televisions to colour TV and the sitting of mystic origins, where the very rooms had lit up with excitement ancient co-exists with the modern in and awe on that day. In the same a grand fusion of vibrance, harmony The author, Neelam Thakur (Neel) has been a devoted tourism professional for over 3 decades. year, Richard Attenborough’s epic and promise! [email protected]

IATO SPEAKS June 2019 9 IATO Times Members are priority IATO discussed the concerns of members and sub-committees at its monthly luncheon held in April 2019.

10 June 2019 IATO SPEAKS IATO Times Industry challenges and concerns at the fore IATO shared the progress with Services Export Promotion Council (SEPC)/Directorate General of Foreign Trade (DGFT) license renewal, visa fee and MOT Fam trip issue at the monthly luncheon meeting in Delhi.

IATO bids farewell to its Executive Director, Gour Kanjilal

he Indian Associa- decision to double the visa fee Vice President, IATO, shared, tion of Tour Opera- for foreign tourists has been “We can now apply online to tors (IATO) dis- strongly taken up by us with get the SEPC license re- Kanjilal has cussed the concerns Ministry of Tourism (MOT) newed. As soon as the new Tof members, sub-committees and Ministry of Home government comes in and we held various and shared the progress that Affairs (MHA).” have the new rates available, tourism the Executive Committee had we would be able to apply assignments made in the last month at its IATO also announced the for DGFT. The revised leaving behind monthly luncheon meeting. appointment of Rahul rates for MOT Fam trips have E M Najeeb, Senior Vice Chakravarty as its COO and also been circulated to all an indelible President, IATO, said, “We the farewell of Gour Kanjilal the members” impression of had a very interactive lunch- who served as its Executive excellent PR eon meeting with queries on Director for the last 14 years. The association is also gear- GST matters as well as the Updating about the SEPC/ ing up for IATO Convention to visa fee. The government’s DGFT issue, Rajiv Mehra, be held in September.

IATO SPEAKS June 2019 11 Sub-Committee Affairs Empowering members with digital skills The skill development workshop was attended by 55 members comprising small and medium tour operators and their owners, directors and high-level executives.

Zia Siddiqui EC Liaison—Skill Development Committee

n a constant endeavour to study Zia Siddiqui, EC Liaison— Talking about participation, the growing competition in the Skill Development Commit- Siddiqui said, “Initially, industry, international as well tee, IATO, informed that the Skill we had decided to take as domestic, IATO is working workshop focused on lead 25 participants, but such Itirelessly to support tour operators generation, concept and strat- Development was the enthusiasm among to face such situations and em- egies, contextual marketing, Committee's the members that we power them with digital skills. In this identifying leaks, effective next workshop ultimately agreed upon context, the association organised a email marketing, targeted ‘Get Overbooked’ 55 participants. two-day digital marketing workshop, Facebook advertising and ‘Double Your Leads (Digital Market- other useful digital marketing is scheduled on This shows there is a need ing Level-B)’ under the leadership concepts. “Every year, IATO June 10-11, 2019 to have such initiatives of the Skill Development Committee. works out a few programmes which can be very success- Organised on May 13-14, 2019 for for its members from April ful. After the success of owner/director of small/medium tour to September. The focus this this workshop, we are operators or General Managers and year is on digital marketing to train and going to organise the next workshop high-level executives, the workshop educate various levels of leadership and ‘Get Overbooked’ (Digital Marketing focused on making the small and me- tour operators. We are also starting Level - C) on June 10 and 11, 2019 to dium tour operators ready to take some programmes for the junior staff enhance the internet and social media on competition with OTAs and face like office attendants to provide them marketing advance knowledge of other challenges. professional knowledge,” he said. the members.”

12 June 2019 IATO SPEAKS Chapter Sparks

Vasuki Sundaram Chairman (Maharashtra Chapter) Maharashtra Chapter at its best

he new team of Indian As- Members can get together and market sociation of Tour Operators the product together. So there is more (IATO) recently held its productivity and there is co-operation first meeting after Vasuki amongst them,” she says. “The Chapter will SundaramT , Chairman (Maharash- tra Chapter), was officially selected Another area that her team is working focus on adding in December 2018. Despite being on is visibility for the association and more and more relatively new in the position, Sunda- its members at shows and exhibitions ram has managed to hit the ground such as the India International members from running. She is clear in her vision for Travel & Tourism (IITT) held in the state and the chapter and the association and Mumbai recently. this is reflected in the roadmap she continue to have has drawn up. “Our focus area for The chapter is also working with a dialogue with this year is increasing our member- Maharashtra Tourism Development the government” ship. We are hoping that members will Corporation (MTDC) to conduct more come together and lay more empha- recce and familiarisation tours sis on collaborating with each other. for members.

IATO SPEAKS June 2019 13 News You Can Use

Orchha in tentative India Tourism Mart 2019 list of UNESCO World from September 23-25 Heritage sites

rchha town in Madhya Pradesh, Ofamous for its architectural heritage from the Bundela dynasty, has been included in the tentative list of UNESCO’s World Heritage sites after the Archaeological Survey of India (ASI) sent a proposal to the UN body. For any

he India Tourism Mart (ITM) will Goyal mentioned that the association Tbe held from September 23-25, 2019 expects to shortlist around 500 at The Ashok, New Delhi, confirmed international buyers in this year’s ITM. Federation of Associations in Indian Around 250 buyers attended the show Tourism and Hospitality (FAITH). The in 2018. “With every detail available association expects to shortlist around online, the selection process is very 500 international buyers. transparent. Representatives of MOT heritage or any historical site to will be a part of the process. This year, become part of UNESCO’s World "FAITH has finalised the dates for we are not allowing operators who Heritage list, the site has to be on the second edition of ITM. This time attended the show last year. We are in the tentative list. After it makes to around, we are planning a much the process of appointing an advertising the tentative list, another proposal bigger and better show as compared and marketing promotion agency. We is sent to UNESCO. The ASI, in its to last year," informed Subhash Goyal, have already called for tenders and will earlier proposal, had requested Honorary Secretary, FAITH. soon be finalising it,” he mentioned. to include Orchha in the list of cultural heritage. Chardham Yatra 2019 IATO pitches for e-visa fee reduction

n a bid to increase the number In view of the above, IATO President Iof foreign tourists to India amid has requested the ministry to send country’s neighbouring countries its recommendation to Niti Aayog providing relief in visa fee, IATO for considering reducing the tourist has proposed the Ministry of e-visa fee and charge a flat rate Tourism to reduce the visa fee. of $25 to $30 per person for all The association said that the nationals or rollback the hike which increase in the e-visa fee in June was done in June 2018. IATO has also 2018 has hampered the growth of requested for considering zero visa international tourist arrivals in fee for tourists during the off season, the country. i.e. April to September every year, as other than the hotels in hill area, hardham Yatra in Uttarakhand The main reason for IATO’s occupancy in hotels in rest of Chas started welcoming pilgrims request is that India’s neighbouring less than 50 per cent. The President in the state from May 7, 2019. It countries charge very low visa fee as asked the ministry to consider the has been notified that Government compared to our country. Moreover, above recommendations for minimum of Uttarakhand has no policy for Thailand has made itself visa free of 3 years to give a boost to tourism directing pilgrims through a particular till October 2019. Recently, UAE sector. He also said that the initiative route. However, Government of had also abolished visa fee for the can also help us to achieve target of Uttarakhand strives to provide basic tourists below 18 years of age who 20 million tourists in a few years and facilities across all routes. are accompanied by their parents to Foreign Exchange Earnings of USD promote family tourism. 100 billion by 2023.

14 June 2019 IATO SPEAKS News You Can Use

Any issues 2.5 mn tourist Indore airport you want to arrivals on gets ‘international’ talk about ? e-Visa in 2018 status he Bureau of Immigration, he Home Ministry has given Your magazine is the TIndia had issued over 2.5mn Tits approval to Devi Ahilyabai e-Visa last year, a five-fold jump Holkar Airport to set up an best place to let others know from 2015. Reportedly, the number immigration counter- providing how exactly you feel about of e-Visas issued by the Bureau has it the status of an international risen from 5.29 lakh in 2015 to 25.15 airport. This will enable the various new initiatives or any lakh last year. On the other hand, airport to commence direct ongoing schemes. the number of regular or paper international flight operations visas issued by Indian missions from the city. The airport would abroad has come down from 45 now be called Devi Ahilyabai Write to us at lakh to 35 lakh in the same period. Holkar International Airport. It facilitates round the clock [email protected] operations and was given its and make us your mouthpiece. World Standardization Certificate by the UK. Reportedly, the first We will make sure that international flight from the city you are heard. will be started by Air India to Sharjah in next two weeks.

Upcoming MOT Roadshows Ministry of Tourism, Government of India is organising Incredible India Roadshows in the US, Canada and Africa in June and July 2019*, respectively, as per the following schedule:

Vancouver Washington DC USA & Canada USA & Canada June 26, 2019 June 24, 2019 (Monday) (Wednesday) Boston USA & Canada June 25, 2019 San Francisco (Tuesday) USA & Canada Seattle June 28, 2019 (Friday) USA & Canada June 27, 2019 Port Louis (Thursday) Africa July 05, 2019 Johannesburg (Friday) Africa July 01, 2019 (Monday) Durban Africa July 03, 2019 (Wednesday)

* Updated till May 31, 2019

IATO SPEAKS June 2019 15 Taxing Times GST: Scope for improvement? India’s biggest tax reform yet has been met with an equal measure of praise and criticism. S C Kamra, Advocate & GST Consultant for IATO, provides a detailed analysis of the implementation of GST on tour operators.

he Goods and Services Tax or FTO. The Govt. should relax GST taxpayers are under GST is a destination- based in- this parameter and accord mandate to specify the place of direct VAT on supply of goods the special status of export/ supply along with name of the as well as services across the deemed export to the services state in the tax invoice. The Tboard on all India basis including J&K. of the tour operators earning problem arises when the tour GST is levied by both the centre and the foreign exchange. operator serves the foreign states. Various indirect taxes which were tourists in multiple cities in levied up to June 2017 were subsumed In case the tour operator se- India spread over different in the GST sloganed as ‘One Nation One lects to pay 18% GST (model states/UTs. IGST is charged Tax’. As far as tour operator industry GST rate for services), he on the entire invoice value to is concerned, the government specified can claim ITC on all input S C Kamra the client/ FTO. On the other Advocate & GST Consultant concessional 5 per cent GST without services and goods includ- for IATO hand, provisions of section extending the benefit of input tax credit ing capital goods used for 13(7) of IGST Act, 2017 calls (ITC) of goods and services used in the providing output services. 18% for determination of value on supply of output service. However, ITC GST means 9% CGST + 9% SGST proportional basis amongst various states is allowed on input services procured or 18% IGST, as the case may be. /UTs where services are actually rendered. from another tour operator working in Similarly, 5% GST means 2.5% CGST This puts the taxpayer into the exercise the same line of business. Except this + 2.5% SGST or 5% IGST, as the case of making state-wise calculations/ split limited credit, a tour operator paying may be. Under the GST regime, tour of entire invoice value and compute GST 5 per cent GST is barred from availing operator services are taxed under 5% accordingly by putting the relevant State ITC in respect of bunch of input services tax slab with denial of ITC. 5% tax on code. Such an exercise should be avoided such as office rent, telephone, leased entire package value results in taxing and the law should be simple. line, office equipments, computers, AMC all input services procured by the of office and office equipment’s, courier, tour operator once again. This has GST @18% is applicable on private ferry insurance of office premises and office resulted into cascading of taxes in tickets in Andaman island. The ferry equipments, rent-a-cab, outdoor cater- the entire supply chain. To overcome is not luxury ferry or cruise but it is a ing, servicing of motor vehicles, civil such difficulty, the Govt. may fix up means of transport. These are normal construction including repair, alteration, a deemed taxable value of say 10% - AC transport ferries. Since there is no renovation in office premises, etc. 15% of gross amount so that the tour other way of transportation to reach operator pays 18% GST on the said from one island to another island, GST Although tour deemed taxable value and no ITC should be fully exempted or maximum operators are is allowed. it should be pegged at 5% GST as in Under the earning precious the case of road transport. Secondly, foreign ex- Currently, levy of IGST is fully exempted considering that Andaman is an under GST regime, change through in case services are provided to a foreign - developed island, the rate of GST on tour operator inbound tours tourist in relation to tour conducted hotels in Andaman should be exempted services, yet wholly outside India (refer sr. No. 54 of or drastically cut down to promote services are these services IGST Notification No. 9/2017-IT(R) dated tourism in the island. taxed under are not accorded 28.06.2017). Very often the tour opera- 5% tax slab with with the status tors conduct tour of foreign tourists in of ‘export’ under India include neighbourng countries denial of ITC GST law. The like Nepal, Bhutan, Sri Lanka, Mal- place of supply dives, etc. Since the tour is not con- of services ducted wholly outside India, it does rendered by tour not fall within the exemption entry operator is linked 54. It is suggested that the Govt. with the place of performance and not should exempt portion of package the location of customer. This is provided tour pertaining to tour conducted in in section 13(3)(b) of the IGST Act, 2017. neighbouring countries even Consequently, the tour operator has to if the package tour include pay GST even on billing to foreign client/ India tour.

16 June 2019 IATO SPEAKS Members Rendezvous

Pioneering helicopter tourism New Membership approved with effect from Mart’, the mega promotional tool of the tourism industry in the state. May 6, 2019 Pioneering helicopter tourism, medical value travel and golf tourism Active (Change of Status) in Kerala, Najeeb has business Narmada Holidays LLP presence in Delhi, Mumbai, Chennai, No.11, Aishwarya, 33/18 Vekatraman Hyderabad, Bengaluru, Coimbatore, Street, T. Nagar Kannur, Calicut, Kochi and Chennai- 600017 Thiruvananthapuram and overseas Tel: 044-42136446 Associate offices in Abu Dhabi, Dubai, Sharjah and Mussafah.

The Founder Chairman and Managing Allied Director of Airtravel Enterprises, Senkay Travel with Difference Pvt. Ltd. Najeeb is also the Group Chairman of Senior Vice President C-1, First Floor, SDA Commercial Complex, the The Great India Tour Company and Opp. IIT Main Gate Chairman - Green Gateway Leisure. New Delhi-110019 E M Najeeb A tourism expert member in various Founder Chairman and MD Tel: 011-49890000 Airtravel Enterprises government committees, he is a committed campaigner for environment Senkay Global Tours and Event and ecology. Najeeb is a graduate in Management Pvt. Ltd. ain initiator of the public- English literature from Kerala University, C-1, First Floor, SDA Commercial Complex, Mprivate partnership in the Postgraduate Diploma in Journalism from Opp. IIT Main Gate tourism industry in Kerala, E Bhavan's Rajendra Prasad Institute of New Delhi-110019 M Najeeb is one of the frontline Communication & Management, and MBA Tel: 011-49890000 players in forming ‘Kerala Travel from New Port University, USA. Dook Travels Pvt. Ltd. 905-906, 9th Floor Kanchanjunga Building, 18, Being Limca Book record holder Barakamba Road, Connaught Place New Delhi-110001 before starting his own inbound Tel: 011-4000100 travel and tourism business at 26. He has also been awarded twice at the Travel India Professionals National Tourism Award, in 2009 6E Central Market, Ashok Vihar Delhi- 110052 and 2014. Tel: 011-45587544 A marketing professional, social media Aspire Overseas Travels savvy and a travel enthusiast, Gosain B-20, Sector-122, Noida-201301 has travelled to all continents of the Tel: 0120-4297221 world with more than 85 countries for promotion of India tourism as Journey Bees well as visiting their tourism sites. 303, 3rd Floor, Garg Plaza, His passion for travel and sharing his Plot No.4, LSC, Chowki No.2, experience with Indians encouraged Gulabi Bagh, Delhi-110052 Honorary Treasurer him to start the outbound operations Tel: 011-23656056 simultaneously in 2014. Ravi Gosain i-land informatics Ltd. MD, Erco Travels and Tourism He is also a Limca Book record 58/114, Prince Anwar Shah Road Enterprises holder, being part of first Indian self Kolkata-700045 driving expedition to Icelandic Glacier Tel: 033-40046483 Langjokull, the second largest glacier ost Graduate in Tourism (Master in Iceland. He drove 1032 km in seven My Voyage Pof Tourism Administration) from days on a special four-wheel drive H.No. 03, Near Housefed Complex, Jiwaji University, Gwalior, Ravi vehicle in 2015. Involved in IATO Basistha Road, Guwahati – 781006 Gosain worked only three years in affairs since 2011, he has been an Tel: 0361-2262228 various travel agencies in Delhi active EC member.

IATO SPEAKS June 2019 17 IATO Briefings

Rajasthan to Briefing of IATO members unveil new on National War Memorial tourism policy spirit to protect he Rajasthan government their motherland. Twill soon come up with a new IATO would be the tourism policy, informed Sreya catalyst to energise Guha, Principal and give a definitive Secretary, shape to this noble Tourism, Arts cause. Accordingly, and Culture two visits by IATO Department, members were Government organised at the of Rajasthan. memorial as per Elaborating on schedule on the 10 the policy, she choing the vision of Ministry of and 14 May, 2019. Over 60 IATO members said, “At present ETourism, Government of India were briefed by the defence authorities the policy is at IATO made an effort to highlight the on the aspects related to conducting the draft significance and importance of the tourists, both domestic and international, stage. The National War Memorial so that tourists at the National War Memorial. They also thrust areas from India and across the world visit took a tour of the war memorial with an are to develop new destinations, the monument situated in the heart of aim to create an awareness in India and develop rural destinations and Delhi and get a first-hand knowledge the world of this coveted site through the generate employment.” of the glory of Indian soldiers and their visit of tourists.

Tourism to Immigration check post for contribute foreign tourists $280.5 billion to ATO has advised its members to take Assam, and got the entry and their Isuitable precaution and ensure that passports were stamped and signed Indian GDP by 2026 foreign tourists and their international after checking e-visa. However, the clients enter India through the group was de-boarded from the flight he total contribution of travel authorised immigration check posts at Kolkata airport when it was noticed Tand tourism to Indian GDP is through airport, land check post, rail by immigration officials at the counter forecasted to increase by 4.97 per check post or river port. After one of that the passport was signed and cent per annum to $280.5 billion by the IATO members faced a problem, stamped in Deosiri, Assam, which was 2026, according to a recent report with one of his group holding multiple not the authorised immigration check commissioned by CII and Deloitte. entry e-visa, entered through an un- post. Eventually, the group faced a lot The value of the hotel industry is authorised check post in the country. of trouble and they also had to spend expected to continue to grow at five extra days in Kolkata. Besides, a rate (averaging 8.1% annually The group, after its visit to India, a penalty of USD 400 per person was throughout the went to Bhutan and re-entered India imposed for such violation, i.e. entering forecast period), through Gelephu Border. They got the India from a non-notified place. So, as India seeks permission to enter India at Deosiri, all the members are advised to stay to diversify the cautious in such types of tourists matters. For easy served. Its value reference, below is the will increase to $39.8 billion by 2020. link of Immigration While the hotel industry contributes check posts - www. less than 1.5% of GDP, this merely mha.gov.in - where attests to the diversity and strength details of all the of other industries, such as IT, authorised check posts mining and infrastructure. is provided.

18 June 2019 IATO SPEAKS Eco Calls Able and sustainable Hotel properties are huge resource consumers and waste generators, so adoption of green initiatives is imperative. This article highlights the importance of a sustainability policy for the hospitality industry.

ustainability is often referred If we look at only to as future-proofing. It waste generation, is the process of meeting going by the statistic Identification of sources of waste, is vital. It is today’s demands without that about one to essential to do a comprehensive listing at this Scompromising on future needs. six kilograms of point as this is the fundamental data around Sustainability in an organisation waste gets generated which reduction targets can be framed comprises action in three spheres - per room in a day, economic, environment, and social. Niranjan Khatri the quantum of Founder, iSambhav There is scope in every industry to waste that could be adopt sustainable business practices, generated is likely to be around 6.6 especially in the million to 39.6 million kg annually, hospitality so there is a huge scope for waste industry. reduction among other things. practices, training, and skill Adoption of development. There is a sustainable Methodology scope in practices Waste management is one component • Conduct of regular audit to ensure improves of a sustainability policy. An compliance to targets. every industry the financial organisation conscious about waste to adopt performance generation and keen to reduce waste sustainable of an will have a tangible target to work Benefits organisation. towards. This process involves a Brand value improvement business It helps a series of steps that include: Sustainable practices help a business practices business • Identification of sources of waste, differentiate itself and position itself adhere to which is vital. It is essential to do a as ethical. It is an important tool governmental comprehensive listing at this point in customer engagement through regulations as this is the fundamental data awareness creation. A sustainability aiming to around which reduction targets policy helps an organisation walk encourage can be framed. the talk, otherwise it runs the risk of sustainable business practices, losing credibility. differentiate an organisation in the • Application of the principle of eyes of investors and customers, reduce, reuse, recycle, and Increase in productivity and increase its brand value, and promote refurbish. If there are materials reduction in cost innovation. As a means to achieve that cannot undergo any of the Sustainable practices help all this, framing a policy providing a aforementioned processes, they streamline operations and create strategic approach for an organisation have to be replaced by more efficiencies. Contrary to the belief that to achieve sustainability is essential. sustainable alternatives. sustainability is expensive, it actually helps in waste reduction and savings. Scope • Putting processes in place to This includes resource efficiency; The number of hotel rooms in India ensure adherence to benchmarks reduction in wastage of food, water is estimated to be around 6.6 million. through technology, efficient and electricity; and promotes reuse.

IATO SPEAKS June 2019 19 Research & Analytics Hotel Market Performance 66% 64%

61%

inr inr inr 5,550 inr 5,600 inr 5,950 inr 3,358 3,584 3,927

2016 2017 2018

Average Daily Revenue per Occupancy Rate (ADR) available room Rate (%) 2019 Forecast (RevPAR)

hile 2019 performance may anticipate the hotel industry to record be dampened by the election, its highest occupancy ever since the The industrywide Wexpect the tide to change in beginning of the century, outpacing ADRs in 2018 grew 2020 as market sentiments recover 2006, which was recorded as a on the assumption that the country superlative year for the industry at a rate faster than will(-(=39/23;# enter the year with a stable in this metric. long-term inflation government%QSRKWXXLIPEVKIWXJPIIXWMR and strong economic rate of 4.5% XLI[SVPHF]GSYRXV]-RHMELEWXLI growth. Should the above two In 2018, the industry witnessed an LMKLIWXVEXMSSJEMVGVEJXSRSVHIVXS parametersEMVGVEJXMRWIVZMGI squarely line up India-wide RevPAR growth of 9.6% combined with little new supply over 2017 to arrive at an absolute expected to open in 2020, we RevPAR of 3,927. Source: HVS ANAROCK, India Hospitality Industry Review 2018

6EXMSSJEMVGVEJXSRSVHIVXSEMVGVEJXMRWIVZMGI

 -RHME India has highest ratio

 -RHSRIWME of aircraft on order

 +IVQER] India is currently the fastest growing major aviation market in the world, and optimism about future expansion is reflected in the  6YWWMER*IHIVEXMSR fact that amongst leading markets, India has the highest ratio of aircraft on order to  'LMRE aircraft in service, amongst the 10 largest fleets in the world by country. In India, for example, the propensity to fly is 0.1 trips .ETER  per capita today but by 2037 will rise to 0.4, or roughly four times greater. India's  9RMXIH7XEXIWSJ%QIVMGE airlines have an order book of close to 1000 aircraft, valued at over USD50 billion. By 2050, the country's commercial fleet is  9RMXIH/MRKHSQ expected to exceed 5000 aircraft. In antici- pation of the long-term requirements of the  %YWXVEPME country’s aviation industry, the Government of India is exploring measures to encourage

 'EREHE the establishment of aircraft leasing opera- tions domiciled in India. Source: CAPA India Research and Analysis 7SYVGI'%4%*PIIXW(EXEFEWI

20 June 2019 IATO SPEAKS Necessary Reminders

Statutory compliance due Travel Shows attended by dates - June 2019 India Tourism Offices 07 June 10 June Name of The Show Place Date India Tourism New York TDS/TCS LIABILITY GSTR-8 RETURN FILING DEPOSIT DUE DATE Canadian Meetings & Events Expo Toronto 13-14 Aug 2019 Due date of depositing GSTR-8 is a return to be filed IMEX Americas Las Vegas 10-12 Sept 2019 TDS/TCS liabilities for by the e-commerce operators Vancouver International Travel Expo Vancouver 27-28 Sept 2019 previous month. who are required to deduct Feria International Turismo America Latina Buenos Aires, 5-8 Oct 2019 TCS under GST. 10 June Argentina Salon International Tourism Voyage (SITV) Montreal 22-27 Oct 2019 New York Times Travel Show New York 26-28 Jan 2020 GSTR-7 RETURN 13 June FILING DUE DATE Travel & Adventure Show Chicago 8-9 Feb 2020 For filing GSTR-7 by GSTR-6 RETURN FILING Travel & Adventure Show Los Angeles 15-16 Feb 2020 person liable to deduct DUE DATE TDS under GST for Vitrina Turistica ANATO Bogota, Columbia Feb 2020 (TBA) For filing return by Input previous quarter. Service Distributors for Spring RV Show & Sale Toronto 28 Feb-Mar 3, 2020 previous month. Travel & Adventure Show Washington D.C. 7-8 Mar 2020 10 June Travel & Adventure Show San Francisco, Bay Area 21-22 Mar, 2020 WTM LATAM Sao Paulo 31 Mar- Apr 2, 2020 GSTR-1 RETURN 20 June FILING DUE DATE India Tourism To report details of outward GSTR-3B RETURN NATAS 2019 Singapore 2-4 Aug 2019 supplies of taxable goods FILING DUE DATE and / or services made during MATTA 2019 Kuala Lumpur 6-8 Sept 2019 previous month. For filling GSTR – 3B return for previous month. ITE Ho Chi Minh City Vietnam 5-7 Sept 2019 IT & CMA, (Incentive Travel & Bangkok 24-26 Sept 2019 15 June Conventions Meetings), 20 June ITB Asia Singapore 16-18 Oct 2019 ADVANCE TAX DEPOSIT st 1 INSTALLMENT India Tourism Paris GSTR-5 RETURN FILING Due date for First IFTM -Top Resa Paris, France 1-4 Oct 2019 Installment of advance tax DUE DATE for FY 2019-20. Due date of GSTR-5 ILTM Cannes, France 2-5 Dec 2019 (for Non-resident Taxable Salon Mondial du Tourisme à Paris (MAP) Paris, France 14-17 Mar 2020 20 June person) for the Previous month. India Tourism Moscow GSTR-5A RETURN Kazakhstan Intl. Tourism Fair Almaty, Kazakhstan 17-19 Apr 2019 FILING DUE DATE 30 June Pacific International Tourism Expo Vladivostok, Russia 24-26 May 2019 Return by person providing GSTR-9A RETURN online information and OTDYKH Leisure Moscow, Russia 10-12 Sept 2019 database access or retrieval FILING DUE DATE services by a person located Taxable Persons paying tax INWETEX-CIS Travel Market St. Petersburg, Russia 12-13 Sept 2019 outside India made to non- under Section 10 of CGST Act, PATA Travel Mart Astana, Kazakhstan 18-20 Sept 2019 taxable persons in India for the the composition scheme, are previous month. required to submit their UITM Kiev, Ukraine 2-4 Oct 2019 annual returns in Form GSTR 9A. (FY 2017-18) World Travel Show Warsaw, Poland 18-20 Oct 2019 30 June Tashkent International Tourism Fair Tashkent, Uzbekistan 13-15 Nov 2019 TTR Bucharest, Romania 14-17 Nov 2019 GSTR-9 RETURN FILING 30 June DUE DATE Greek Tourism Expo. Athens, Greece 6-8 Dec 2019 GSTR-9B RETURN Annual Return to be filed by Regular Holiday World Prague, Czech Republic 13-16 Feb 2020 Taxpayers filing GSTR 1, GSTR 2, FILING DUE DATE and GSTR 3. It needs to be filed Annual return to be filed by UTAJAS Budapest, Hungry Feb 2020 (TBA) electronically on the GST portal e-commerce operators who directly or through a facilitation have filed GSTR 8 during Moscow Intl. Travel & Tourism Exhibition (MITT) Moscow, Russia 17-19 Mar 2020 centre (For FY 2017-18) the FY 2017-18

IATO SPEAKS June 2019 21 Convention Update Setting new benchmarks

After organising a successful convention in Visakhapatnam last year amid the presence of senior ministry officials, key state officials and industry stalwarts, the Indian Association of Tour Operators (IATO) is now preparing to organise a much bigger and better 35th convention.

fter raising pertinent is- where discussions were aimed at by 2020. Last year, for the first time sues of the industry at its around the challenges and possibili- we crossed the 10 million mark which 34th annual convention in ties of achieving 20 million foreign was a doubling of the numbers in just Visakhapatnam last year, tourists by 2020, managed to reach its three years. We also need to take a cue AThe Indian Association of Tour Opera- intended objective. from Kerala Tourism model which has tors (IATO) is now mulling worked along with the private sector plans to conduct its next At present, India to double their numbers.” Another convention. The Execu- welcomes a little over strategy that the panellists agreed tive Committee is working 10 million FTAs per year. on was for India to focus on its th to streamline things so The 34 IATO This was revealed by neighbouring countries. that the association can Convention Rashmi Verma, the erst- host another successful pondered while Secretary, Tourism, convention. Last year, the Government of India. She 34th Indian Association of over the said, “In 2017, we had a Tour Operators (IATO) an- challenges and growth of 15 per cent in Any feedback or nual convention met with possibilities foreign tourist arrivals. suggestion? a successful conclusion of achieving in Visakhapatnam that We also saw a 20 per cent saw a huge presence from 20 million rise in foreign exchange We would love to hear the ministry including the foreign tourists earnings. We have set from you, send in your Minister of State (I/C) for by 2020 ourselves a very tough Tourism KJ Alphons who target by our tourism comments to: attended the inaugura- minister – that of achiev- [email protected] tion. The three-day event, ing 20 million tourists

22 June 2019 IATO SPEAKS

IATO's widespread presence across the country with its state chapters

Punjab Chapter Jammu & Kashimir Chapter (Ludhiana) (Srinagar)

Himachal Chapter & Chandigarh (Shimla) North East Chapter Chapter (Guwahati) (Chandigarh) IATO Headquarter (Delhi) Rajasthan Chapter Sikkim & North (Jaipur) Bengal Chapter (Darjeeling) Bihar, Uttar Pradesh & Uttarakhand Chapter (Lucknow)

Madhya Pradesh Chapter (Bhopal) West Bengal Chapter (Kolkata)

Maharashtra Odisha Chapter Gujarat Chapter Chapter (Bhubaneswar) (Ahmedabad) (Mumbai)

Andhra Pradesh & Goa Chapter Telangana Chapter (Panaji) Karnataka (Hyderabad) Chapter (Bengaluru) Tamil Nadu, Puducherry & Andaman & Nicobar Chapter (Trichy) Kerala Chapter (Kochi)