Indian travel industry crisis.
Indian tourism could run into thousands of crores of rupees.
The coronavirus pandemic could deal a crippling blow to the Indian travel and tourism industry, specially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. According to industry chamber CII, this is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments - inbound, outbound and domestic, almost all tourism verticals - leisure , adventure, heritage, MICE, cruise, corporate travels.
The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurants, family entertainment venues and air, land and sea transportation have been hit.
In an impact assessment of the coronavirus pandemic, CII Tourism Committee said inbound foreign tourism of over USD 28 billion in value terms accounts for an average 60-65 per cent between October to March.
"As the news of the virus started picking up from November, the percentage of cancellat ..
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Flights not to operate untill May 3rd.
The Directorate General of Civil Aviation (DGCA) India has announced that all domestic and international scheduled airline operations in India will remain suspended until 2359 hours of May 3, 2020. The office of DGCA also announced the continuation of travel and visa restrictions relating to Covid-19. The statement said the restrictions will not apply to international all cargo operations and flights specifically approved by DGCA.
This move came in after Prime Minister of India, Narendra Modi extended the nation-wide lockdown period until May 3 in his today’s address.
Commenting on this, India’s Civil Aviation Minister, Hardeep Singh Puri tweet reads, “There were good reasons for the lockdown to be extended until May 3. We can consider lifting restrictions on both domestic and international flights thereafter.
“I understand the problems being faced by people who need to travel and request them to bear with us.”
Airlines have been the worst hit due to the coronavirus pandemic and the lockdown as the business has come to a grindfing halt. Air Deccan had to shut its services owing to significant drop in business. Many airlines have asked their employees to take pay cut while other stringent measures could come into force once the airlines resume operations.
Indian carriers are estimated to report a consolidated net loss of over $600 million (over Rs 4,230 crore) in 2019-20, according to aviation consultancy CAPA as it downgraded its full-year profitability projection made in June.
In June, it projected a consolidated net profit of $500-700 million in the optimistic case.
Currently, there are four budget carriers and two full service airlines -- IndiGoNSE 0.65 %, GoAir, SpiceJet, AirAsia India, Vistara and Air India. Noting that it has revised downwards full-year profitability projections for all carriers, it said the industry has failed to capitalise on Jet Airways' closure and relatively softer fuel prices, as evidenced by an estimated industry loss of $350-400 million in the second quarter of the current fiscal.
"The potential benefits of consolidation and capacity rationalisation in the wake of Jet's demise, and relatively benign fuel prices, have largely been squandered. Carriers pursued very a ..
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