Volume 2 Issue 1 February 2020 24 pages For Private Circulation Only

A tourism industry communication by Indian Association of Tour Operators

Mixed budget for tourism

Cover depicts Lakshadweep Cover

Impact of coronavirus outbreak on travel trade

Updates from 1st luncheon meeting of 2020

Glimpses from iato day celebration Contents

Tourism integral to 's prospect of becoming a $5 trillion economy: PM Modi Explore Inside

Pg. 6 BUDGET 2020 IATO urges all its members and their Mixed Budget for tourism vendors to fully support Prime Minister ACTIVITIES Pg. 9 IATO’s action on issues Narendra Modi's initiatives: faced by members Prime Minister of India 9 naugurating development projects Pg. 10 iato day Iworth over `1,200 crore in , Members celebrate Prime Minister Narendra Modi said togetherness that his government is giving top priority to roads, highways, waterways Pg. 12 Then & Now and railways, especially in terms of A lighthouse beckons infrastructure. "Today when we talk SwacHH Bharat Abhiyan about a $5 trillion economy in India, Pg. 14 News You Can Use tourism is an integral part of it. Besides (Clean India Mission) Rakesh Verma is new nature, heritage tourism has a strong 12 role to play in achieving the goal. Joint Secretary, MoT Also, along with Varanasi other holy sites are being developed using new Pg. 16 iato events technologies," he said. "Developing st 1 Luncheon major spots of faith and spirituality meeting of 2020 around the country, the government is working to make them accessible and Pg. 18 taxing times convenient for pilgrims and tourists. Effect of TCS on For which, I have flagged off the Kashi- 16 overseas tour packages Mahakal Express to connect Varanasi with Onkareshwar and Mahakaleshwar," PM Modi further said. He also flagged Pg. 20 achivements off IRCTC’s Kashi-Mahakaal Express IATO felicitated in through video link. The first overnight Aurangabad private train in the country will connect three Jyotirling pilgrim centres of Varanasi in , and Ujjain Pg. 22 In Conversation Government committed and Omkareshwar in Madhya Pradesh. He also unveiled the 63-ft tall statue of 20 to back tourism Pandit Deendayal Upadhyaya.

Ban on single-use plastic Cover Picture Courtesy: Anuj Chauhan, unsplash.com

Honorary Secretary IATO Speaks is a publication of Indian News, Media & PR Committee Rajesh Mudgill Association of Tour Operators (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 Operators (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 | February 2020 3 President's Message President's Message

guides at Fatehpur Sikri by taking up the matter in Hon’ble Supreme Court and many more for the benefit responses came in from hotels and airlines. We also of whom offer a tax refund scheme for visitors and I am of members. requested the Ministry of Tourism, Government of India hopeful for a positive outcome. to advise all the hotels and airlines not to charge the The Union Budget 2020-21 is out. Kudos to Hon’ble Union cancellation fee. All this was done to keep our country’s I have always tried to do my best in serving this great Finance Minister for giving quantum time to tourism image high in such a situation and cooperate with IATO of ours. We have seen many successes and in the budget. Hon’ble Minister clearly indicated that foreign counterparts/clients in this difficult time. achievements that we should be proud of. Today, IATO the government intends to improve tourism –100 more is a far stronger association in every aspect than it was airports to developed by 2024. Allocation of `2500 crore Members were pleased to note that with the regular a decade ago. I give credit for this to all of you. However, for tourism promotion means an increase of 14.19 per efforts of IATO the validity of Airport Passes were there is still a vast latent development potential in our cent over last year. Five archaeological sites are to be extended till March 31, 2020 and that too only for the tourism industry and we must collectively work hard to developed into iconic sites with onsite museums. More tour operators. realise it. Pronab Sarkar Tejas trains will connect iconic tourist destinations and heritage centres. Even 550 railway stations will On issue of SEIS a representation was made by IATO As I will leave my responsibility for the present term Dear Friends, be provided with Wi-Fi which is the need of the hour. in consultation with M/s. Ernst & Young with follow- as President IATO, my abiding memory will be the love However, as IATO what we recommended from our side up meetings with the authorities. We placed before and kindness that I have always received from you. It Greetings from IATO! for Budget 2020-21 pertained to removal of cascading them that the SEIS benefit was a relief to boost our is both a debt that I will never be able to repay and a effect of GST on tourism Industry, exemption of GST on industry which has encouraged tour operators to decoration that I will always wear with pride. The time has come to hand over the reins to my next foreign exchange earnings and extending all benefits venture into new markets to promote and market successor in April 2020. The Election date shall be that are being given to exporters of goods and IT India tourism at their own cost. This has been sorted We will keep IATO image high with the new committee announced very soon. I am happy to complete my two industry, which have not been considered in the budget. out and all pending cases have been cleared. We coming at the helm after the IATO election in April 2020. terms in succession as President with your support and Our efforts will continue in pursuance of all our pending have also recommended to continue SEIS benefits good wishes. It gives me immense satisfaction that I issues till they are resolved. for another five years with Commerce Ministry with I wish you all the best in your endeavours. could do justice to my position with my 100 per cent higher percentage to help sustain tourism business by dedication and hard work towards the responsibilities IATO Annual Day was celebrated on the February 23, our members. Yours, and sailed through inspite of many hurdles and 2020 at Delta 105. The response from our members was challenges. This could not have happened without the overwhelming. Our members with their families had a Tax Refund for Tourists (TRT) scheme would support of my present Executive Committee. fun-filled day and great camaraderie was visible. significantly boost India’s appeal for travellers and put local retailers on a level-playing field in competing with Pronab Sarkar As you all know that I joined IATO Executive Committee IATO members attended in large numbers at global regional travel and shopping destinations such as the President in 2001 and worked under many leaders and learned a travel trade fairs in Dubai, Italy, France, Spain and UAE, Thailand, Singapore, China and Malaysia – each lot from Mr. Subhash Goyal, Maharaj Wahi and Mr. Vijay other destinations. I wish them all success and Thakur. Having associated with the Tourism Industry good business. after studying Tourism from Delhi University in 1975 and working experience with big companies helped gain As you all must have seen, our previous training practical knowledge, which enriched me to deliver to programmes had tremendous impact on all those the best of my abilities for the Association and take the who had participated from our membership. They Indian tourism suffers $500 million losses following IATO flag high. Four years ago when members elected all acquired the knowledge that shall benefit their coronavirus cancellations me as President and entrusted me with responsibilities, organisation. The demand is progressively increasing, I took them up with diligence as my tool, truth as my so keeping all in this mind we planned more such ATO has estimat- Hong Kong and neigh- beacon and a prayer that I might always do the right training programmes in three states i.e. Odisha, Ied that there could bouring countries,” things in a balanced manner and put all efforts to keep Maharashtra and Gujarat. be losses up to $500 said Pronab Sarkar, the IATO image high. I thank all the members who have million because of President, IATO. He extended their support to take forward IATO activities We received email/telephone calls from some of our cancellations from said losses for do- and achieve the goals it had envisaged. members that cancellations were being received by tourists from China mestic tour operators them from China due to coronavirus as restrictions and other countries would be much higher, In my tenure a lot has been accomplished starting from had been made for travellers going to and coming from due to the coro- as many outgoing lo- getting special status during demonetisation, reducing China. We were informed by some of the members navirus outbreak. cal tourists to China monument entrance fee, amendments in e-Visa, that hotels and airlines were not agreeing to waive According to an es- and other countries addition of more countries in the e-Visa regime and off cancellations charges for such cases or refund the timate, more than were also cancelling for cruise tourism, double / multiple entry and pocket advance payment made for booking of hotel rooms/air 50,000 Chinese tour- bookings after the of 120 days, reduction in e-Visa fee during season tickets. The matter was taken up with FAITH, FHRAI, ists were expect- outbreak. “There is a and off season, reduction in GST, removal of hurdle of HAI, IHHA, ITDC and all the big hotel chains to advise all ed to visit during panic in the tourism SEIS, promotional funds for international marketing by the hotels to honour such cancellations and not to levy January-February sector as thousands MOT, roadshows in various countries, air connectivity the cancellation charges and make full refund in case and most of these of bookings have been and introduction of new / additional flights by Air of advance payment as per force majeure clause, which bookings have now cancelled,” said EM India. IndiGo and Vistara, special extra baggage rate is beyond anyone’s control. Similar letters were sent to been cancelled, as Najeeb, Senior Vice for IATO members by IndiGo, training programmes Air India, IndiGo, Vistara and Spice Jet with the request India has blocked the entry of peo- an immediate loss of up to $500 mil- President, IATO. He said foreign as across different cities of India, withdrawal of revised that there should be nil cancellations charges on their ple from China and Hong Kong apart lion as the coronavirus outbreak has well as domestic tourists were cancel- guide policy by ASI, guiding by regional level/state level domestic sectors for such cancellations. Encouraging from many other countries. “We fear hit the arrival of tourists from China, ling travel to Kerala. Source: Manoj Kumar, Reuters, February 13

4 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 5 Budget 2020 Budget 2020

of the tribes in India are stored. The the various measures including the tax repository will further be enriched rates for the middle-income segment and strengthened. might help in having disposable income in the hands of the public. Generation The iconic tourism sites in India will of disposable income would lead to the also be connected by more premium spending for their travel too. The Sensex Tejas Express-like trains for the ease of has started looking up, but we still must tourists. Apart from that, five archaeo- wait for the overall result of the budget logical sites around the country will be in the coming days. developed as iconic sites with on-site museums. These sites are Rakhigarhi Rajiv Mehra, Vice President, IATO said, in Haryana, Hastinapur in UP, Shivsa- “It’s encouraging that the Finance Min- gar in Assam, Dholavira in Gujarat and ister spoke at length about tourism this Adichanallur in Tamil Nadu. An Indian time in the budget and made a number Institute of Heritage and Conservation of announcements including a hike in would be established under the Minis- the Budget for tourism promotion by al- try of Culture and a tribal museum will Pronab Sarkar, President, IATO locating `2500 crore, making 100 more come up in Ranchi. The institute will airports operational by 2024 and dou- have a deemed university status. been allocated for developing roads to bling the aircraft fleet to 1200. Most im- Mixed budget for tourism key heritage sites around the country. portantly, I am happy that government On the aviation connectivity front, Si- announced more Tejas-like trains to The Union Budget for year 2020-21 presented by the Finance Minister, Nirmala Sitharaman on tharaman announced building 100 more Sharing his views on the budget, Pronab iconic tourist destinations, which has February 1, 2020 found ample mention for promotion of tourism in the country with allocation of airports around India by 2024 under Sarkar, President, IATO said, “Kudos been IATO’s demand and it will certain- the UDAN scheme and also doubling of to Hon’ble Union Finance Minister for ly boost tourism. The state governments `2,500 to the Ministry of Tourism. giving quantum time to tourism in the budget. The Finance Minister clearly t is indeed encouraging that the Fi- With a focus on developing infrastruc- indicated that the government intends Inance Minister spoke at length about ture, FM Sitharaman said the 17 ‘iconic to improve tourism. Steps like develop- tourism this time in the Union Budget. sites’ will be transformed into world- ing 100 more airports by 2024, allocation She made several announcements that class destinations to give a boost to the of `2,500 crore for tourism promotion augur well for tourism in India. A hike tourism sector. The iconic tourism sites with an increase of 14.19 per cent over in the budget for tourism promotion would enhance visitor experience which last year, five archaeological sites to be by allocating `2,500 crore, which is an would lead to increased visits of both developed into iconic sites with onsite increase of 14.19 per cent over the domestic and international tourists at museums, more Tejas trains to connect previous year, when `2,189.22 crore these destinations. She said the govern- iconic tourist destinations and heritage was allocated. ment will take measures to ensure that centres is encouraging. Even the an- the rich tribal culture of the country nouncement of 550 railway stations to `1,378.53 crore has been allocated for is preserved. be provided with Wi-Fi is the need of the building tourism infrastructure, while hour. However, as IATO what we recom- `575.50 crore has been allocated for pro- The Finance Minister expects mended from our side for Union Budget motion and publicity. For the Ministry of the state governments to devel- 2020-21 pertained to removal of cascad- Culture, an allocation of `875.33 crore op a roadmap for certain iden- ing effect of GST on tourism industry, has been made for Central schemes tified destinations and formu- EM Najeeb, Senior Vice President exemption of GST on foreign exchange Rajiv Mehra, Vice President and projects. late financial plans during earnings and extending all benefits that 2021, against which speci- aircraft fleet to 1200 from current 600. are being given to exporters of goods will also have to play a major role in fied grants will be made She also announced major road infra- and IT industry, which have not been promoting tourism since the Centre will available to the states in structure development with the com- considered in the budget. Our efforts will now provide grants if they develop road- 2020-21. pletion of Delhi-Mumbai and Chennai- continue in pursuance of all our pending map and financial plans for certain iden- Bengaluru Expressway by 2023. Apart issues till they are resolved.” tified destinations. As far as road con- With the objective of from re-curation of the country’s oldest nectivity is concerned, what will benefit The government allocated preserving rich tribal Indian museum in Kolkata, four more EM Najeeb, Senior Vice President, IATO us in the long run is the introduction of `2,500 crore for the promotion cultural heritage, a museums will undergo renovation. The said, “The Union Budget 2020 looks as the Chennai-Bengaluru and Delhi-Mum- of tourism. This is an increase digital repository will government has also proposed setting an effort to get over the economic slug- bai expressway, which would be ready be developed where up a tribal museum in Jharkhand and a gishness we have been facing already. by 2023.” of 14.19 per cent over the documents, folk songs, maritime museum at Lothal, the Harra- It looks as if the government is trying to previous year, when `2,189.22 photos and videos about pan age maritime site near Ahmedabad raise the GDP level to 6-6.5 in 2020-21 Rajesh Mudgill, Hony. Secretary, IATO crore was allocated their evolution, place of origin, by the Ministry of Shipping. `1.7 lakh from the present five per cent. Various said, “The good thing about this year’s lifestyle, architecture, education crore has been allocated for transport measures are envisaged to bring back union budget was that the government level, traditional art, folk dances infrastructure, while `900 crore has the economy on track. Having a look at has talked about tourism at length but Nirmala Sitharaman, Finanance Minister, Government of India and other anthropological details

6 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 7 Budget 2020 Activities

Rajesh Mudgill, Hony. Secretary Ravi Gosain, Hony. Treasurer Rajnish Kaistha, Hony. Joint Secretary

now, we don’t know, what exactly is go- ments in infrastructure, increase mar- Rajnish Kaistha, Hony. Joint Secre- ing to come out in terms of implementa- keting budget to `2,500 crores, which tary, IATO said, “Budget 2020 was ex- tion. I think the government should have will boost tourism within India. Tourism pected to bring some relief to industry Actions taken on issues faced allocated more funds for promoting tour- is one of the major forex earner and em- but nothing major was there for us. ism because I personally feel that a lot of ployment generator for the country, its Rather new TCS, both for outbound things are yet to be done in the tourism multiplier affects are known to every- and Indian DMCs selling tour industry. Tourism can really generate one. There was a constant demand from packages in neighbouring countries by members the number of jobs, which the govern- travel trade industry to various govern- puts us in a disadvantageous posi- ments in Centre to give industry status tion. The only silver lining is that PM Identifying pertinent issues faced by IATO members in the industry, the association is in talks with respective to tourism, remove cascading effect of Modi talks about tourism as an inte- authorities and is taking necessary steps to resolve and provide relief to the travel trade. Here is a look GST and put inbound tourism industry gral part of government’s $5 trillion at par with other service exports. Any economy dream. at actions, IATO is taking up.

As they say domestic tourism is the Pending cases of SEIS for tional markets and increase the SEIS change Earnings (FEEs) for the country base of pyramid for tourism promo- the tour operators benefits percentage from five per cent to and foreigners will be encouraged for tion, so we expect that the right push The issue of SEIS is of prime concern for seven per cent, if not 10 per cent. IATO’s shopping in India. Finance Minister Nirmala in infrastructure development shall IATO members. IATO is in talks with Su- efforts have borne fruit and the Addi- help create better overall facilities. man Sharma, Additional Director Gen- tional Director General, Foreign Trade, Tourist Facilitators Sitharaman said the 17 ‘iconic Another recent post budget announce- eral, Foreign Trade and Amit Sharma, Suman Sharma has agreed to settle all Certification Programme sites’ will be transformed ment of ` 2,000 crore push for lifting up Deputy Director General, Foreign Trade the pending cases of tour operators. A workshop on Incredible India Tourist into world-class destinations tourism in Kashmir and Ladakh region and has made a representation on the is- Facilitators Certification Programme to give a boost to the is being talked about, so hopefully it will sue faced by tour operators while claim- Tax Refund for Tourists was held on the December 12, 2019 at help in long term.” ing SEIS benefits. A representation was (TRT) scheme the Samrat Hotel, New Delhi. IATO has tourism sector made by IATO in consultation with Ernst IATO delegation met Sanjay Mangal, been requested by the Ministry of Tour- Subhash Goyal, Past President, IATO & Young with a follow-up meeting with Commissioner, GST-II, CBIC, Ministry of ism (MOT), Government of India to ad- said, “We are a little disappointed with them on January 3, 2020. IATO has pro- Finance, on December 6, 2019 regarding vise all members of the association to Subhash Goyal, Secretary General, FAITH the budget. While the additional alloca- posed the authorities that the SEIS ben- Tax Refund for Tourists (TRT) scheme encourage their staff and team members one of this could provide impetus to our tion of budget for tourism was a great efits have been a relief to boost the trav- and also wrote to him to consider issu- to take advantage of this course and reg- ment is looking at. I am happy that the industry which is already in turmoil due move, along with 550 stations to be pro- el industry which has encouraged tour ance of notification for implementation ister online on MOT’s website. This will government is now taking tourism very to several reason beyond our control. vided with Wi-Fi, nothing has been done operators to venture into new markets of tax refund for the tourists’ scheme increase knowledge of the staff and help seriously, but on the ground we need to Secondly, new TCS on outward remit- about coastal areas. Even island tour- to promote and market India tourism provided for, under Section 15 of the promote India to the foreign tourists in a do more work.” tance will also impact Indian travel and ism or river tourism could have been fo- at their own cost and expenses and in- IGST Act 2017 as it would significantly much better way. tourism trade negatively because cus- cused on. What is most important is that crease their inbound tours and the same boost India’s appeal for travellers and Ravi Gosain, Hony. Treasurer, IATO tomers can skip the travel professionals foreign airlines should be allowed to op- has already been inbuilt into the pricing put local retailers on a level-playing said, “The Union Budget 2020 was to save TCS and buy their travel require- erate, an open-sky policy should be in for the past years. These inbound tours field in competing with regional travel Survey questionnaire on MDA mixed for tourism industry as whole. We ments online from overseas players. I place and ATF price should be reduced. lead to flow of foreign exchange into our and shopping destinations such as the IATO members were requested to participate are happy that the Modi government has think this is a serious issue which needs It’s a good budget for start-ups and for country. IATO is actively engaged with UAE, Thailand, Singapore, China and in a survey conducted by National Productivity thought about tourism as mainstream to be corrected immediately. Our associ- people in the lower- or middle-income the authorities to continue SEIS benefits Malaysia – each of whom offer a tax Council on ongoing overseas promotion and economic development and announced ation has already submitted strong dis- bracket, but nothing has been done to to tour operators for another five years refund scheme for visitors. This will publicity inluding Marketing Development to develop few new circuits and invest- sent to the government on this matter. give a boost to tourism.” to enable them to compete in interna- significantly increase the Foreign Ex- Assistance (MDA) scheme.

8 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 9 IATO Day IATO Day Celebrating togetherness, members experience army camp life on IATO Day Around 450 IATO members along with their family members enjoyed a day out at army theme park, Delta 105 near Manesar, Haryana on February 23, 2020. Members spent the annual picnic event getting along and doing many fun-filled activities. Different prizes were given to winners of games and activities on the occasion.

10 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 11 Then & Now Then & Now

12 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 13 News You Can Use News You Can Use

Exemption of GST on Rakesh Kumar Verma joins as 3.2% growth in FTAs; 24% hike in ITDC signs MoU with services provided to new Joint Secretary, MOT e-Tourist Visa arrivals in 2019 Gujarat Tourism foreign tourists akesh Verma, a 1993-Batch retary, Department of Science, oreign Tourist Arrivals (FTAs) the month of December 2019, a total of he India Tourism Development ATO was asked by RPunjab cadre officer, has Technology & Environment, Gov- Fduring the period January-De- 3,77,092 tourists arrived on e-Tourist TCorporation (ITDC) has signed IMinistry of Finance joined as the new Joint Secre- ernment of Punjab; Secretary, cember 2019 were 1,08,95,305 as Visa as compared to 3,08,430 during an Memorandum of Understanding to make a separate tary, Ministry of Tourism. He has Medical Education & Research; compared to 1,05,57,976 in January- the month of December 2018 register- (MoU) with the Tourism representation about succeeded Suman Billa, who has Commissioner, Municipal Cor- December 2018 registering a growth ing a growth of 22.3 per cent, revealed Corporation of Gujarat (TCGL) on exemption of GST on joined UNWTO as Director, Tech- poration of Ludhiana; MD of of 3.2 per cent, reveals recently statistics by MOT. During January- February 13, 2020 for development services provided to nical Cooperation and Silk Road Punjab ICT Corporation (Punjab released statistics by Ministry of December 2019, a total of 29,28,303 of heritage sites in the state. As part foreign tourists in Nepal, Development. Before this ap- Infotech); Deputy Commissioner, Tourism (MOT). FTAs in December tourists arrived on e-Tourist Visa as of the MoU, ITDC would provide Rakesh Verma Bhutan, Sri Lanka and neighbouring pointment, Verma was serving as Joint Secretary, MOT Patiala and Kapurthala. He has 2019 were 12,25,672 as compared to compared to 23,69,941 during Jan- consultancy services for innovative/ countries, if the tour package is the Secretary, Technical Educa- also held the Directorial post at 11,91,948 in December 2018 register- uary-December 2018, registering a decorative lighting and illumination combined with India package. IATO tion and Industrial Training. He has been the Department of Technical Education ing a growth of 2.9 per cent. During growth of 23.6 per cent. of important monuments and sound said that GST may be exempted on appointed for a tenure of five years or and Transport Department. An alumnus and light show at other important the services provided outside India i.e. until further orders, whichever is earlier. of IIT Delhi, Verma has pursued B.Tech in places in Gujarat. in neighbouring countries even if the He has also held posts like Principal Sec- Computer Science and Engineering. package includes an India tour. As a result of tax exemption, bookings will Skill development in Bhubaneswar 7 projects worth come to Indian tour operators as one IATO organised a skill development continuous tour package instead of Validity of Airport Entry Passes workshop on 'Double `594 crore for such bookings going to tour operators Your Leads' (Digital Marketing level-B) based in neighbouring countries. in Bhubaneswar, Ladakh and J&K This will add considerable foreign extended till March 31, 2020 Odisha. Akshar Yadav, the trainer exchange for the country. for the workshop, n order to provide an impetus to he Indian Association of Tour Op- Director-General-Bureau of Civil Avia- talked about the use Itourism, the Ministry of Tourism of effective digital Terators (IATO) has informed that tion Security has extended the validity marketing through has sanctioned seven projects the Bureau of Civil Aviation Security, of Commercial Airport Entry Passes up appropriate mediums. worth `594 crore in Jammu & Meeting with DG, Government of India has extended the to March 31, 2020. Necessary directives Kashmir and Ladakh under the validity of Airport Entry Passes for tour have been issued to all regional direc- Swadesh Darshan and PRASAD Tourism on MDA operators till March 31, 2020. Earlier, tors of Bureau of Civil Aviation Security scheme for development of tourism n a meeting held with Meenakshi the Bureau had extended the validity to take necessary action accordingly,” infrastructure. The schemes ISharma, Director General till January 31, which initially expired said an IATO circular. The extension provide financial assistance to state (Tourism) on January 16, 2020, IATO on December 31, 2019. “We are pleased has been given only to the tour opera- 180 sites identified for governments / UT administrations. discussed issues such as revision in to inform you that with our regular fol- tors, till the time a new mechanism for With a total sanction of `594 crore, guidelines of MDA Scheme. IATO has low-up with Ministry of Civil Aviation/ passes is finalised by the Bureau of Civil Swachhta Action Plan activities six projects are for Swadesh Darshan been requesting that the clause of Bureau of Civil Aviation Security, the Aviation Security. scheme for the development of requirement of five per cent increase nder the the Himalayan circuit while one in the foreign exchange should be USwachh Bharat project worth `42.02 crore for removed. The issue related to the Mission, the Min- development of Hazratbal is for the revision of guidelines for recognition Vistadome coach operational istry of Tourism PRASAD scheme. as Inbound Tour Operators was (MOT) has identified also discussed, where various to promote tourism 180 tourist sites for recommendations have been made organising Swach- Jallianwala Bagh including requirement of trained staff wo Vistadome coaches are being tadome coaches have been planned for hta Action Plan closed till April 12 and office space. Toperated by IR, one in Vishakhapa- the production programme of 2019-20. (SAP) activities dur- tnam–Araku Sector by train no. 58501- ing the year 2019-20 allianwala Bagh would remain 58502 Vishakhapatnam Kirandul Pas- to create Swachhta Jclosed for visitors due to its ongoing Health Ministry has issued senger and other in Mumbai–Madgaon Awareness amongst renovation work till April 12, 2020. Sector by train no. 11051-11052 Dadar the tourists, stu- The work on restoration and allied travel advisories on COVID-19 Madgaon Janshatabdi Express. The dents of schools/colleges and stake- interpretation centre, Wi-Fi, illumi- services, which is estimated to cost outbreak for travellers visiting occupancy of the Vistadome coach run- holders across the country. nation, ramps, pathways, publica- around Rs 20 crore, is being done under China and other affected areas ning on Vishakhapatnam–Araku Sec- tion sale counter etc. are provided the supervision of the Archaeological tor is 99.34 per cent for the period from Besides, Swachhta Pakhwada and at the World Heritage and tick- Survey of India (ASI), and the target and started thermal screening 01.04.2019 to 31.12.2019, while that of Swachhta-Hi-Seva activities have eted monuments. Further, existing date for the renovation to be completed of all international passengers Mumbai–Madgaon Sector ranges from also been undertaken by MOT at facilities are upgraded as per re- is March 31. A new 15-foot-wide exit at all airports in India. 62.21 per cent to 98.19 per cent during several locations across the country. quirement and its upgradation is a gate has been constructed. the same period. An additional 10 Vis- Facilities like drinking water, toilet, continuous process.

14 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 15 IATO Events IATO Events Updates from first luncheon meeting of 2020 Apart from the in-house announcements, IATO stressed on working for small tour operators and recommending the Ministry of Tourism, Government of India to change guidelines of approval and help resolve issues of the members.

uring the first monthly interac- our smaller members are not affected, without any clause, which would allow tive luncheon meeting of 2020, and they also get the benefit of MOT our smaller agents to go abroad and Dthe association shared industry recognition. We are working in that di- do promotions.” updates and discussed issues with mem- rection and I am quite hopeful that in bers. Sharing details, Rajiv Mehra, Sen- a month’s time, something should hap- Rajesh Mudgill, Hony. Secretary, IATO, ior Vice President, IATO, said, “We had shared that they are trying to change the meetings with various ministerial depart- guidelines of approval. “The majority of ments, and the most important one was our members are small-time operators, the burning issue of DGFT scripts, which and their turnover is less than `2 crore. has been stopped by the department. We We want to give them this benefit that really had to work very hard and I would The meeting was held on they should be exempted from having a especially like to thank Suman Sharma, January 17, 2020 at Hotel Le specified office, staff requirements and Additional Director General, Directorate Meridien, New Delhi, where various other conditions. They should be General of Foreign Trade (DGFT), who allowed to operate from their residence, accepted our justifications and has start- IATO apprised members about because dynamics of business have to- ed giving those scripts now. It has been a validity of airport entry passes tally changed,” he said. big accomplishment.” and MDA scheme. Apart from that, IATO apprised mem- Mehra also informed that they are in dis- bers that the validity of airport passes, cussion with the Director General (DG), which expired on December 31, 2019 Tourism, on the MOT criteria of recog- and currently has been extended till nising inbound agents. He shared, “We pen.” Another important issue is of the March 31, 2020. IATO has been working had a meeting with Meenakshi Sharma, MDA scheme. Mehra said, “In our meet- towards not getting them discontinued DG, Tourism, on the long-pending de- ing with the DG, we again highlighted even after that and is in discussion with mand of amending the MOT rule so that that the MDA scheme should be revised MOT for the same.

16 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 17 Taxing Times Members Rendezvous

events calender

MITT March 17-19 Moscow Effect of TCS on overseas UITT March 25-27 Kyiv New Membership GITB April 19-21 Jaipur tour packages ATM April 19-22 Dubai Approved w.e.f. January 30, 2020 IMEX May 12-14 Frankfurt In order to widen and deepen the tax net, the Finance (No. 2) Bill, 2020 introduced by the Finance Indaba May 12-14 Durban ACTIVE Allied IT&CM China August 3-5 Shanghai Minister in the Parliament on February 1, 2020, proposes to amend Section 206C to levy TCS on overseas Ace Voyages Amazing Destination Travel and COTTM September 9-11 Beijing remittances and also for sale of overseas tour packages. 5/95, Ground Floor, Subhash Nagar Services LLP ITB Asia October 21-23 Singapore New Delhi- 110027 Flat No.15 A, Pocket A-11, Kalkaji Tel: 011-41031999 New Delhi-110019 seller of overseas tour package ing outside India are covered tourists to Nepal, Bhutan WTM London November 2-4 London Tel: 011-41055607 (M) 9911996999 A(i.e. tour operator) receiving any by TCS provisions. The Indi- and other neighbouring Email: [email protected] ILTM Cannes December 7-10 Cannes, Email: [email protected] amount from a buyer of such pack- an tour operator organising countries. The foreign tours France Web: www.amazingholidaysinindia.com age, shall be liable to collect TCS at the tour packages outside India are organised by Indian Web: www.acevoyages.co Mr. Ashish Kumar, Partner rate of 5 per cent. In non-PAN cases, the even for such class of cus- tour operators in Nepal, Mr. Arun Bali, Director (M) 9871791938 rate of TCS shall be 10 per cent. The tomers is required to collect Bhutan etc. The Indian tour (M) 9873981999 TCS provisions would not apply if the TCS at the rate of 5 per cent. operator XYZ is the seller World Travel Experiences buyer is TCS provisions, however at- of an overseas tour pack- Freedom Voyages India Pvt. Ltd. 253, 4th Floor, Studio No.6, Shahpur Jat (a) liable to deduct tax at source un- tractive, may operate against age and FTO is the buyer. Any issues WZ-470, A Ground Floor New Delhi-110049 der any other provision of the In- the interest of tourism in- In this scenario, the Indian Shop, Hari Nagar Tel: 011-40393786 Email: [email protected] come Tax Act and he has deducted dustry in the country which S C Kamra tour operator is required to New Delhi-110064 Advocate & GST Consultant you want to Web: www.worldtravelexperiences.com such amount. has already been fractured charge 5 per cent TCS on Tel: 011-25405454 for IATO Mr. Rituraj Choudhary, Partner (b) the Central Government, State Gov- due to internal setbacks and billing to FTO. Since FTO ? Email: [email protected] (M) 9718400356 ernment, embassy, High Commis- cut-throat competition from is not a taxpayer in India, talk about Web: www.freedomvoyages.com Ms. Madhu Ranjan Sinha, Partner sion, Consulate, Trade represen- neighboring countries. This is no tax credit will be available to the Write to us at Mr. Ravi Makkar, Director [email protected] tation from a foreign State or any elaborated hereunder. FTO. This adds to the cost of the FTO. (M) 997144041 (M) 9999477922 other notified person. The FTO may in turn ask the Indian [email protected] Ms. Sunita, Director Effect on Indian tour tour operator to bear the cost of TCS and make us your mouthpiece. (M) 9971555500 Ghum India Ghum The TCS provisions target overseas operators himself. In either case, cost of the tour 609, 6th Floor, Sethi Bhawan tour packages which offer visit to a The collection of TCS may affect the will go up. We will make sure that Rajendra Place Trinetra Tours Pvt. Ltd. foreign country or countries outside business of Indian tour operators for you are heard. New Delhi-110008 607, Ansal Majestic Tower, India and includes expenses for travel the reason that the Indian tourists are TCS provisions will also result in diver- Tel: 011-47528194, 41548194 or hotel stay or boarding or lodging or likely to switch over to direct booking sion of business from FTO to the tour Vikas Puri Email: [email protected] any other expenses of similar nature or from an overseas tour operator located operator located in Nepal, Bhutan or New Delhi-110018 Web: www.ghumindiaghum.com related expenditure. This means that in the destination country. In the case other neighbouring countries by elimi- participation Tel: 011-41586631-32 Mr. Sarvjeet Sankrit, Proprietor TCS provisions would not apply to in- of booking from overseas tour opera- nating the Indian tour operator from Fax: 011-41586639 [email protected]  IATO members attended the 8860133194 bound tour packages i.e. tour packages tor, TCS provisions would not come into the supply chain. This means loss of Email: [email protected] monthly luncheon meeting in Web : www.trinetratoursindia.com organised or conducted in India for the picture for the reason that the overseas business and employment for the Indi- large numbers. Election dates Mr. Tapas Banerjee, Managing Director Global Connect Hospitality buyers who may be Indians / NRIs or tour operator who does not have any ans and consequential loss of GST rev- announced. foreign citizens. establishment in India is not required enue to the Indian government. (M) 9810261373 O-99, Sector-12, G.B. Nagar Noida- 201301 to collect TCS from the Indian buyers. If Mr. Agrim Banerjee, Vice President  IATO members participated in (M) 9810855999 Tel: 0120-4523341 An overseas tour package is pro- this happens, it may entail: In a nutshell, the new provisions of the AccorHotels Showcase on Email: [email protected] posed to be defined as under:- • Loss of business of Indian tour op- TCS levy are not in the interest of February 26, at Pullman New Web: www.exoticmiles.com “Overseas tour programme pack- erators. tourism industry which is already Delhi, Aerocity. Lotus Premium Voyages Pvt. Ltd. Mr. Rajesh Kumar Singh, Partner age” means any tour package which • Loss of employment opportunities in bad shape and needs support Office No.#204, 2nd Floor, Caxton House Email: [email protected] offers visit to a country or countries or territory or territories outside In- in the country due to setback of from the government. It is high time  IATO members invited to attend 2E Jhandewalan Extension (M) 7290024810 dia and includes expenses for travel business of tour operators in India. that the Ministry of Finance should Camel Festival from January New Delhi-110055 or hotel stay or boarding or lodging • Loss of GST revenue to the review these provisions and not 11-13 in Bikaner, Rajasthan. Tel: 011-43507337 Corporate Solutions Redefined or any other expenditure of similar government. enforce the same upon Indian Rajasthan Tourism offered Email: [email protected] India Pvt. Ltd. nature or in relation thereto. tourism industry for survival and 50 complementary rooms for Web: www.lotuspremiumvoyages.com 8-2-467/4/A/A, Road No.1 Overseas Tour Packages promotion of this industry. members. Mr. Pawan Kumar, Managing Director Banjara Hills It is nowhere mentioned that overseas for foreign buyers / tourists [email protected] Hyderabad-500034 Tel: 040-47004800 tour programme packages should be As already mentioned above, TCS pro-  IATO members invited for (M) 9910083475 Email: [email protected] purchased by the buyer’s resident in visions do not apply on 'inbound tours' national seminar on tourism in Mr. Devesh Khandelwal, Director Web: www.csrglobal.in India. It implies that even the overseas conducted by tour operators for foreign The amendment will take [email protected] Odisha on December 21, 2019 at Mr. Sugirtham Jayaseeli, HR Manager tour packages purchased by persons buyers / tourists directly or through effect from April 1, 2020 The Park hotel, New Delhi. (M) 9999214337 (M) 9160482211 holding foreign citizenship and resid- FTO. However, FTOs may send foreign

18 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 19 Achievements Updates & Response IATO felicitated in Aurangabad for Impact of coronavirus support in improving air connectivity outbreak on travel trade MECC Aurangabad First and Aurangabad Tourism Development Foundation (ATDF) felicitated IATO has requested hotels and airlines to not levy cancellation/retention charges for cancellations due to Pronab Sarkar, President and Rajiv Mehra, Vice President, IATO on January 25 for their tireless efforts to coronavirus outbreak. The Ministry of Tourism has also issued notice on Self Reporting Form for all travellers bring Aurangabad on the itineraries of all major flight operators of India. arriving from coronavirus affected countries.

ATO received email/telephone calls The matter has been taken up with precautionary measures put in place Ifrom some of the members that can- FAITH, FHRAI, HAI, IHHA, ITDC and all to prevent flow of travellers from the cellations are being received by them the big hotel chains to advise all the ho- affected countries also have slowed especially from China due to coronavius tels to honour such cancellations and do down the FTA. However, tourism sur- as restrictions have been not charge the cancellation passes and surmounts all fear factors, made for travellers going to charges and make full refund and the history shows that it comes and coming from China. Sim- in case of advance payment back with more vigour after every such ilarly, Indian government has as per force majeure clause, challenge. India is safe for the travel- also issued advisory for the which is beyond any one’s lers and would receive tourists in good India travellers to not to trav- control. Similar letters have number soon.” el to China. In this regard, been sent to Air India, In- advisories have been issued diGo, Vistara and Spice Jet Encouraging responses by General Office of the Min- with the request that there from hotels and airlines istry of Culture and Tourism, should be nil cancellations IATO has also requested the Ministry of Government of China and on their domestic sectors for Tourism, Government of India to advise EM Najeeb China Association of Travel Senior Vice President, IATO such cancellations. all the hotels and airlines not to charge the cancellation fee. We need to keep our country’s image high in such a situation and cooperate with foreign counter- "Tourism surpasses parts/clients in this difficult time. and surmounts all fear factors, and the Cancellation waiver history shows that it charge on Air India domestic flights comes back with more On request of members, IATO ap- vigour after every such proached CMD, Air India and Director challenge. India is safe Commercial, Air India for waiving off for the travellers and cancellation charges on Air India do- mestic flights due to coronavirus and would receive tourists withdrawal of e-Visa/Regular Visas is- in good number soon" sued to Chinese nationals/other nation- th alities residing in China. Services and have advised suspending Three positive cases of coronavirus 5 Bharat Parv celebrations domestic and foreign group travel and were detected in India in the state Cancellation of air tickets have requested to properly handle the of Kerala, however, there has not booked on IndiGo reasonable demands of tourist itinerar- been a single spread through In response to emails dated Janu- ies, cancellations and refunds and mini- human transmission. ary 28 and January 31, 2020 sent to mise financial losses. All this is being IndiGo Airlines, IATO was informed done to ensure that coronavirus does Sharing information about the impact, that all bookings received from Chi- not spread into our country. EM Najeeb, Senior Vice President, na and cancelled due to coronavirus IATO, who is also the Regional Chap- for travel period between IATO has been informed by some of the ter Chairman of IATO’s Southern Re- January 24, 2020 to February 29, 2020 members that hotels and airlines are gion said, “The coronavirus threat has will be cancelled with nil cancellations not agreeing to waive off cancellation affected the FTA inflow to the state subject to the conditions. Members The 5th edition of Bharat Parv that commenced on January 26, 2020 at the Gyan Path and adjoining lawns, Red Fort, New Delhi as part of the 71st Republic Day charges for such cases or refund the during the season. Apart from other are advised to contact the respec- celebrations with the central themes of ‘Ek Bharat Shreshta Bharat’ and ‘150 years of Celebrating the Mahatma’, concluded on January 31, 2020. The closing ceremony was graced by Yogendra Tripathi, Secretary (Tourism), Rupinder Brar, ADG (Tourism), Gyan Bhusan, Economic Advisor, Ministry of Tourism, Govt of India, advance payment made for booking of nations, India is also affected by the tive sales team of IndiGo in case of G Kamala Vardhana Rao, Chairman & Managing Director, ITDC, and other senior officials of the Ministry of Tourism. hotel rooms/air tickets. fear perception of the travellers. The any clarification.

20 February 2020 | IATO SPEAKS IATO SPEAKS | February 2020 21 In Conversation Government committed to boost visitor numbers to India Apart from undertaking several steps to boost the number of visitors to the country, Rupinder Brar, Additional Director General, Ministry of Tourism shared that the government is focused on developing the heritage and culture of India and many other ongoing projects at different stages across India.

n the recent months, the Ministry of creating wayside amenities, whether ITourism (MOT) has undertaken a maintained by National Highways Au- number of steps to boost visitor num- thority or by state governments. Discus- bers to the country. From promoting the sions are also on with Ministry of Rail- heritage of India and improving hinter- ways to improve facilities at platforms,” land connectivity to organising well-tar- said Brar. geted conclaves and empowering tourist guides with certification programmes, International Buddhist Conclave the Ministry is keeping itself busy in en- This year, MOT will organise a Buddhist suring India gets the numbers that it is conclave that, Brar revealed, will be held targeting, shared Rupinder Brar. in late September or early October 2020. While dates have not been finalised yet, Sharing details on the project, Brar said, MOT is gearing up for it and expects ac- “Of these steps was the inauguration of tive cooperation from all stakeholders in Kutni Island Resort near Khajuraho, the process. Madhya Pradesh, on January 18, 2019. Kutni Island Resort has been launched Working with the travel trade under the fully funded Swadesh Dar- On working closely with the travel trade, shan scheme of MOT. The project has Brar said, “Tour operators are the ones Rupinder Brar been completed in two and a half years Additional Director General, Ministry of Tourism who execute what we do in terms of and is situated on a reservoir. It houses policy thought and vision statements. 10 double-occupancy rooms and is a Hence, we continue to have a lot of in- beautiful facility. We want to encourage teractive meetings and workshops with people to visit.” them. It is an ongoing exercise. Also, We are working very closely with we are working very closely with stake- 20 million tourists by 2024? the stakeholders in identifying holders in identifying key markets from Despite a growth of 3.2 per cent in the where we can increase footfalls to In- number of foreign tourists in 2019, Brar key markets from where we can dia and also create a specific strategy claimed that there is no reason why increase footfalls to India and also depending on each of these markets. India could not get 20 million tourists create a specific strategy depending We are engaging with tour operators to by 2024. “In fact, we are sure to cross on each of these markets create and curate itineraries that are this target. As long as we put the right specific to these markets. We are also products, right processes and the right in continuous dialogue with NITI Aayog. promotions in place, there is no rea- There is a lot of organic interaction that son why we cannot achieve the target,” helps both of us develop our strategies she shared. about a place and of course, you can as we move forward.” also win prizes when taking the quiz,” MOT is also developing the Vision Docu- Brar added. ment 2020 with the Prime Minister Of- fice, “In line with the focus on domestic Providing last-mile connectivity Around 4,000 registrations tourism, we have also launched the ‘Ek “We are also working with Ministry of received for the Incredible Bharat Shreshtha Bharat’ quiz up until Civil Aviation (MoCA) to increase con- India Tourist Facilitator June 30, 2020. The idea is to educate nectivity under UDAN. We are working people about the tourism offerings in with Ministry of Roads to not only up- Certification (IITFC) the country. We encourage everyone to grade, but also provide last-mile con- programme since its join the programme on mygov.in for this nectivity to these places that are be- inception on January 1, 2020 quiz. It’s about 20 questions that tell you ing developed. We are also working on

22 February 2020 | IATO SPEAKS IATO's widespread presence across the country with its state chapters

Jammu & Kashimir Chapter (Srinagar)

Punjab Chapter (Ludhiana) Ladakh

Himachal Chapter Haryana & 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) Lakshadweep Islands

Kerala Chapter (Kochi)