Webinar Proceedings Hospitality and Travel Trade Under Post COVID-19 & Rejuvenation Strategies, Goi Initiative to Support
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Webinar Proceedings Hospitality and Travel Trade Under Post COVID-19 & Rejuvenation Strategies, GoI Initiative to Support S. Glory Swarupa Dibyendu Choudhury National Institute for Micro, Small and Medium Enterprises (An Organisation of Ministry of Micro, Small and Medium Enterprises, Govt. of India) Yousufguda, Hyderabad - 500 045 ISO 9001: 2015 Certified Contents Background 1 Context 1 Survey Method 1 Ist WEBINAR Tour Operators & Travel Agents : Northern Region 3 Talking Points 4 2nd WEBINAR Tour Operators & Travel Agents : Western and Central Region 6 Talking Points 7 3rd WEBINAR Tour Operators & Travel Agents : Eastern Region 9 Talking Points 10 4th WEBINAR Tour Operators & Travel Agents : North-Eastern Region 11 Talking Points 12 Conclusion 13 Outcome with suggested interventions: 19 Issues Affecting India’s Adventure Tourism 21 Issues Affecting India’s Cruise & Marine Tourism 25 Way Forward 26 WEBINAR PROCEEDINGS 1 Webinar Series on Hospitality and Travel Trade under MSME Post COVID-19 & Rejuvenation Strategies Govt. of India Initiative to Support BACKGROUND The Indian economy has been experiencing significant slowdown over past few quarters. India’s real GDP decelerated to 4.7%, it is the lowest in over six years in Q3 2019-20 (Ministry of Statistics and Programme Implementation, 2020). Investment and consumption demand had been languishing and numbers of incentive measures have been taken to bring back the economy on a growth path. There was a strong hope of recovery in the last quarter of the financial year. However, the COVID-19 pandemic was disruptive to the growth and could hit India’s exports to COVID-19 infected nations and affected everyone in this world. The three major contributors to GDP - private consumption, investment and external trade will get affected. The outbreak has presented fresh challenges for the Indian economy now, causing severe disruptive impact on both demand and supply side elements which has the potential to negative India’s growth story. CONTEXT “How to overcome this crisis and stay contextual” this might be the only question in the mind of the all the SMEs in the backdrop of COVID-19 Hygiene Disruption. Therefore, ni-msme organised a series of special Webinar on the topic titled “Hospitality and Travel Trade under MSME post COVID-19 & Rejuvenation Strategies, Govt. Of India Initiative to Support” in association with Ministry of Tourism Five Zones (Northern, Western, East, North Eat and Sothern Zone) with the Industry Experts, Bankers and Entrepreneurs as panel of subject matter experts. These Webinars had been open for the MSMEs only and free entry for all the MSMEs to clarify their doubts. COVID-19 is having an unprecedented impact on the Indian tourism industry. The impact on demand is well known, but less known is the impact on the thousands of Micro and Small Enterprises that make up the supply side of the tourism industry. SURVEY METHOD ni-msme in association with Ministry of Tourism, Govt. of India has conducted series of Webinars with a survey to understand the impact on the members of Tourism sector to provide a comprehensive assessment of the status and intentions of tourism businesses. The responses received are overwhelming and also will serve to reinforce the findings emerging from Tourism industry outreach programmes. The survey was developed by ni-msme in discussion with Regional Tourism offices of India, and the draft survey was tested with small group members in Telangana Region. WEBINAR PROCEEDINGS 2 The survey was designed to cover the key points arising from the industry’s progression through the COVID-19 period. This included COVID-19 impacts on businesses, what mitigation actions are being taken, jobs lost, what government support is being utilised and what further support is needed. In addition to the quantitative questions, several text questions invited comments. This survey was undertaken internally using the online survey tool Google Forms. It was released on 2nd November 2020. Key quantitative results will be made available for the concerned department, with further analysis set out in this report and in separate sector and regional reporting. The other Panel Members touched few important aspects including the challenges and opportunities as highlighted in the proceedings further. WEBINAR PROCEEDINGS 3 1st WEBINAR Tour Operators & Trav el Agents : Northern Region 6th November 2020 Webinar was scheduled on 6th November 2020 for Northern Zone, Ministry of Tourism. Dr. Dibyendu Choudhury, Faculty Member, National Institute for Micro, Small and Medium Enterprises and Mr. Anil Oraw, Dy. Director General from India Tourism Delhi represented their concerned departments and explained the theme and idea behind conceptualizing this Webinar. Session Name of the Speaker Idea and Concept of this Webinar Dr. Dibyendu Choudhury, Faculty Member, ni-msme Current Challenges & Opportunities for Mr. Anil Oraw, Regional Director (North) & the Tourism Sector as a whole Dy. Director General, MoT Challenges and Opportunities for Mr. Sanjay Basu, Sr. VP ATOAI Adventure Tour Operators WEBINAR PROCEEDINGS 4 Challenges and Opportunities for Mr. Chetan Sharma, General Secretary, ADTOI Domestic Tour Operators Current Challenges and Opportunities Mr. P. Udaya Shanker for MSME’s & Govt. Schemes Govt. Schemes to Promote MSME’s -1 Mr. Balbheem Vaidya, AGM (SME) LHO, Hyderabad Govt. Schemes to Promote MSME’s -2 Mr. Sanjay Jain, Regional Incharge & GM, SIDBI TALKING POINTS 1. Mr. Sanjay Basu, Sr. Vice President, ATOAI • Tourism and hospitality going through a phase of “survival, revival and growth” • Industry still is in survival mode, growth stage in from here another six months • Tourism most impacted and going to be the worst impacted and last to recover amongst all other sectors estimated to get into growth stage by next year mid-June onwards. • International tourism seeing zero cash flow since March. • Need for immediate handholding and financial support by the Govt for survival. • Govt. should give a message to the world for a tentative starting date of tourism in India so that tourism sector can prepare and plan. If timely help is not provided, MSMEs in tourism sector may close. Here mere loan will not serve the purpose of survival, more subsidy is needed from Govt. Private NBFC’s also to be sensitized and their help also needs to be extended for this sector. • Policy side 10-20% outstanding loan might not give the relief to any of the enterprises, rather this is needed to be 50% or more including the cash flow support. 2. Mr. Chetan Gupta, General Secretary, ADTOI • Challenges about the banking system and paperwork needed for the loan sanctioning including the process time is very long. • There had been several surveys done on MSME segment within the Tourism Sector, but no specific measures been taken addresses those issues so far. • MSME needs to be linked with DoT to facilitate approved agents & operators as service providers. • MSME needs to form a committee. Nobody from tourism sector is there as a member of the committee and it seems that is one of reason for no significant measures had been taken for this segment. WEBINAR PROCEEDINGS 5 3. Mr. P. Udaya Shanker, Former Director General I/c, National Institute for Micro, Small and Medium Enterprises Mentioned about Udyam Registration, Champions, Swadesh Darshan, Pilgrimage Rejuvenation and Spirituality Augmentation Drive (PRASAD), Destination travel, Hotels, Food, Medical Services, Community engagement, Eco tourism and changing strategies during this challenging time as opportunities. 4. Mr. Balbheem Vaidya, AGM (SME)-LHO, State Bank of India, Hyderabad, • MSME Financing related to tourism • 3 major schemes: MUDRA, Stand-Up (SC, ST and Woman Entrepreneurs) India and CLP • CGTMSME, upto Rs. 2 Crores • Credit Limit (CLP) Scheme with Credit Dispensation scheme • CCECL – Common COVID Emergency Credit Line, SBI initiative • GECL – 44k accounts benefited in Telangana alone to support outstanding loan. • CGTMSE- Credit Guaranty Scheme 5. Mr. Sanjay Jain, Regional Incharge & GM, SIDBI • Explained about MSME definition • Package announced under Atmanirbhar Bharat • Institutional Buildup • PMSVANidhi for the street vendors • Finance required by MSMEs • TreDS • Credit Financing Scheme • Innovative ways of financing to MSMEs 115 people actively participated from Northern Zone WEBINAR PROCEEDINGS 6 2nd WEBINAR Tour Operators & Travel Agents : Western and Central Region 12th November 2020 Session Name of the Speaker Idea and Concept of this Webinar Dr. Dibyendu Choudhury, Faculty Member, ni-msme Current Challenges & Opportunities for Mr.Venkatesan Dhattareyan, Regional Director the Tourism Sector as a whole (West & Central India) India Tourism Mumbai, MoT Challenges and Opportunities for Mr. Pratul Trivedi, Secretary, ADTOI, MP Chapter Domestic Tour Operators Challenges and Opportunities for Ms. Vasuki Sundaram Inbound Tour Operators Chairperson, IATO, Maharashtra Chapter Current Challenges and Opportunities Mr. N. Srinivasan for MSME’s & Govt. Schemes Director, Swell Financial Services Pvt. Ltd. Govt. Schemes to Promote MSME’s -1 Mr. Balbheem Vaidya, AGM (SME), LHO, SBI, Hyderabad Govt. Schemes to Promote MSME’s -2 Mr. Ajit Nath Jha, General Manager, SIDBI Regional Office, Pune WEBINAR PROCEEDINGS 7 TALKING POINTS 1. Mr.Venkatesan Dhattareyan, Regional Director (West & Central India), India Tourism Mumbai, MoT • Travel Trade • Quarantine measures on many countries spoken • Talked on Social and Democratic cause for COVID-19 • Demand came down;