A recent study on the covid impact on tourism was conducted by the National Council of Applied Economic Research (NCAER). The report showed that there was a significant number of job losses in the tourism sector after the lockdown was put in place. The report, a draft of which was approved by the tourism ministry, is yet to be published.
The tourism ministry referernced the NCAER report in the opening day of Parliament when Lok Sabha MPs Raju Bista and Ramesh Kaushik raised the issue of 14.5 million jobs that were lost in 2020 Q1. Another 5.2 million jobs were lots in Q2 and 1.8 million jobs in Q3 of 2020-21.
It also said the Foreign Exchange Earnings (FEE) fell by 76.3% between January and December of 2020, comparing it to 2019.
The report suggests that revival will take three to four years and are assessing the impact of household income loss and the dependence on its revival to revive the tourism sector.
India’s travel and tourism sector accounts for nearly 2.5% of the GDP. The related associations including hotels, tour and travel operators have all made appeals to the government for relief to tide over the current losses and also help for future planning.