To overcome the losses due to the current Covid-19 pandemic, the Tourism Federation of Jammu on Monday demanded fresh loans from the J&K Bank for the sustenance and the revival of the tourism industry.
In a statement, Jammu Tourism Federation said J&K Bank Executive President, Sunil Gupta and Zonal Head, Sunit Kumar organized a meeting with the travel trade fraternity from Jammu.
The meeting was also attended by Vikram Gujral, one of the Board of Directors, at Rail head Complex Jammu. Raman Suri Gen. Sec. Tourism Federation of Jammu, B.B. Kotwal Chairman Bhaderwah Tour and Travel Association.
During the meeting, the Tourism Federation demanded interest deferment and interest-free moratorium of existing bigger tourism projects as well as low cost funding for new upcoming projects.
“However, for the self and family-funded small units (around 80% of total capacity), that are outside the ambit of bank loans, special loans should be provided for their Sustenance and revival.”
Raman Suri said that during and post lockdown, it is believed that around 70 percent i.e. 3.8 crore out of a total estimated workforce of 5.5 crore could get unemployed in the travel and tourism industry pan India.
He informed all the attendees that the Jammu province has around 900 hotels, lodges and guest houses registered with the department while a substantial number operate without any licensing and are unregistered.
“Out of all registered hotels, lodges and guest houses, a maximum of 2% are star rated and more than 80% cater to economy or budget category pilgrims/tourists.”
Raman Suri added, in Jammu province, around 1200 travel excursion agents are registered with the Department of Tourism.
“Between 10,000 to 25,000 tour guides, commission agents and service providers are working in an unorganized manner and more than 15,000 people are directly employed in units registered with the Tourism department.”
In Kashmir province too, Raman Suri added, the same patterns are found.
He pointed out that all the small units, facilities and agents form around 80% of the tourism industry in J&K.
The statement said Chairman Tourism Federation of Jammu Rajesh Gupta had already submitted a letter to the LG, G C Murmu, briefing him regarding the ground situation of tourism industry in J&K, and had also urged some relaxations and special reliefs for the tourism industry players including reliefs in bank loan repayments.
“The demand of time is to protect the 80% of total tourism stakeholders, who have not availed any bank loans. For them, the special loans for sustenance should be for meeting the expenditure period of lockdown, and the revival part should be to cover the expenditure for infrastructure modifications.”
He said the interest on their loan for the first five years should be borne by the banks under its Corporate Social Responsibility (CSR) funds.
“This initiative will also bring these unfinanced units, which have very strong profitability margins but require hand holding at this crucial time, under the ambit of banking.”
Raman Suri said, this unique format will have no impact on the UT/ Central Budgets and the suggestion is specifically aimed to help those tourism units, which form around 80% of the total tourism industry in J&K, and are catering to the budget category tourists and pilgrims, and have not availed any bank loans and government concessions so far.
Prior to this meeting, the Finance Committee of Tourism Federation of Jammu comprising Raman Suri, Sd. Amrik Singh, B. B. Kotwal and Tapan Dubey, had conducted extensive research to understand the problems being faced by the Tourism Industry in J&K and to find a way out to weather this storm.