Kerala government has announced two majorTourism financial packages to restart and revive the ailing tourism sector due to COVID 19 pandemic and travel restrictions imposed across the globe.
Kerala Tourism is passing through an unprecedented crisis with no business and no income for almost five months now. COVID 19 has affected the lives and livelihood of people across various sectors and it is not Tourism alone which is affected. It is not only Kerala, but all states in India as well as other countries are going through this crisis. The people dependent on Tourism for a livelihood are finding it difficult to make ends meet and some of them are trying their hands at alternative job opportunities to sustain them.
In order to provide some support to the employers and employees in the Tourism trade, the Department of Tourism, Government of Kerala under the leadership of Mr. Kadakampally Surendran, Minister for Tourism, Government of Kerala and Mrs. Rani George IAS, Secretary, Kerala Tourism has conceptualized two schemes for the survival and revival of the sector.
Mr. Kadakampally Surendran, Minister for Tourism, Government of Kerala has announced the package named Chief Minister’s Special Tourism Loan Fund along with the Government Orders of the financial package, schemes, and guidelines. He said that the loan is for existing tourism enterprises in a tune of loans up to Rs 25 lakh and a loan of Rs 20,000 to Rs 30,000 to the workers and employees in the tourism sector. We hope that this would be a small help for those in need in the sector and few more proposals for the houseboat sector, Homestays and guides are under the consideration of Government and it is expected that we may get approvals for those soon and will be announced this week itself.
Mr. Surendran has also added that the government is planning to reopen the tourism sector by September after providing loans to the ailing sectors in the state. The regional travel and domestic tourism segment from neighboring states will be promoted in the first phase.
Mr. Kadakampally Surendran, Minister for Tourism, Government of Kerala addressing the Kerala State Tourism Advisory Members and trade representatives during a Virtual Conference today ( august 18, 2020. Mr. P. Balakiran IAS, Director and Mrs. Rani George IAS, Secretary, Kerala Tourism Department are also seen.
Kerala Tourism department has decided to bear 6 % of the interest rate on every loan and this amount will be given directly to the bank and subsidy of 50 % of the interest for the first one year for every loan availed by the tourism entrepreneurs.
Mrs. Rani George Secretary, Kerala Tourism said “Considering our requests and requirements, SLBC and KSCB have come forward to issue two loan schemes for those in the tourism sector and the Department would extend support with interest subvention. We have kept in mind to cover almost all categories in the sector and are trying to bridge the gap with different schemes”.
Since April 2020, Kerala Tourism industry stakeholders and various tourism organizations under the Confederation of Kerala Tourism Industry (CKTI) and Kerala Travel Mart Society (KTM) were requested the Kerala government for a financial package to the travel, tourism and hospitality sectors for mere existence and revival of the sector. Kerala Tourism industry is facing major crises continuously since 2015 including Bar closure, Okhi, Nipah Virus threat, major floods in 2018, and 2019 followed by Corona related global travel restrictions in 2020.
Mr. E.M. Najeeb, President, CKTI,” said ” I personally met the minister at PRD chamber Govt Secretariat and thanked him and Chief Minister Mr. Pinarayi Vijayan for the package and support for Tourism on behalf of CKTI and the entire Tourism industry of Kerala. Kerala Tourism industry is wholeheartedly welcomed the Tourism sector financial package and we are already working on a proposal for a phased reopening of Kerala Tourism”.
Mr. P. Balakiran IAS, Director said “Kerala Tourism Department, Kerala Tourism has been a significant contributor to the economy of Kerala for decades and for revenue of Rs 45, 019 crores to the sector in 2019 and employment to approximately 1.5 million people directly and indirectly. However COVID 19 virus pandemic has brought the entire tourism industry to a grinding halt with an estimated loss of Rs 20,000 crores. This effect of COVID 19 is expected to affect the tourism industry for more than 6 months before the tourist gets enough confidence to travel. Tourism stakeholders with no business and co income for almost five months and it is difficult to function without working capital. Kerala Tourism department is working for a bailout package since April and finally, we are happy to announce loan schemes worth `455 crores along with this package. For this purpose, an amount of 355 crores would be required and Kerala Bank and state-level bankers committee has agreed to provide this amount through various schemes and also sanction Rs 20,000 to Rs 30,000 to the workers as loan and there will be no repayment for the first six months. Both Entrepreneurs and workers will benefit through these schemes and more 2500 small entrepreneurs will be benefitted this package.
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