The IATO has reached out to the Honorable Prime Minister, urging decisive action to rejuvenate inbound tourism in the country. In its communication, the tourism body delineates the factors contributing to the decline and proposes measures that could reignite inbound tourism, which has persistently lagged behind the levels observed in 2019-20.
The missive highlights a recent parliamentary statement by Union Tourism Minister G Krishna Reddy, revealing that only 85.9 lakh Foreign Tourist Visitors (FTVs) ventured to the country in 2022, a stark contrast to the 3.14 crore recorded in 2019. The letter outlines various reasons for this downturn, including the discontinuation of incentives for inbound tour operators based on their foreign exchange earnings, previously allocated for overseas marketing and promotions. It also underscores the dearth of adequately trained tourism personnel in Indian Embassies, impeding regular interaction and follow-up with foreign tour operators. Additionally, the letter points to the cessation of budgetary support for overseas promotion activities, such as Fam Trips to India and overseas road shows. The absence of funds within the Ministry of Tourism for participation in overseas travel marts, coupled with the cumbersome approval process from the Ministry of Finance, is identified as a major obstacle in promoting inbound tourism.
According to Mr. Rajiv Mehra, President of IATO, “While the decline in FTV numbers during the COVID era was expected, the current situation is far from normal, and our numbers are nowhere close to the 2019 levels. This discrepancy does not reflect the true essence of our country, which boasts abundant natural beauty and a rich cultural history.”
Mr. Mehra further states, “In our letter, we have put forth several recommendations to boost these numbers. We have appealed to the government to provide financial support to inbound tour operators through a 5% incentive on their net foreign exchange earnings. This incentive should be earmarked for overseas promotions and marketing for a minimum of five years or until inbound tourism to India rebounds to the 2019-20 levels. Additionally, we propose the deployment of trained MOT officers at our consulates or embassies to facilitate regular interaction and follow-up with foreign tour operators. We advocate for advanced planning, allocating dedicated budgetary funds to the Ministry of Tourism for aggressive overseas promotion through electronic and print media, participation in travel marts, Fam trips, and other essential measures for the revival of tourism. Moreover, we emphasize the immediate establishment of a National Tourism Board, headed by an individual passionate about tourism.”
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