India should give deemed exporter status to tourism: Thomas Cook India MD

India’s tourism industry is not in need of dole outs but requires structural changes as the industry’s contribution to the economy is significant, Thomas Cook India managing director Madhavan Menon said.

“If the government is serious about exports to revive the economy then inbound tourism contributes significant foreign exchange. The government should consider granting deemed exporter status to the industry,” Menon told ET.

He explained that deemed exporter status would help promote entrepreneurship in the industry by providing tax breaks and low cost loans.

“The industry’s annual contribution to the economy is as high as $25-30 billion due to the multiplier effect it has on spends in other sectors, making it an important lever for economic revival,” he said.

He noted that the industry had taken a beating due to the pandemic with 10 million jobs having been lost.

Further, he highlighted the need to make India more competitive as an international travel destination, observing that this required a strategic plan involving marketing efforts not only by the tourism ministry but also the ministry of external affairs.

“We need to market India as a safe and hygienic destination. We need to get our embassies involved in selling India as a tourist destination. At this point in time, foreign tourists are only seeing the number of cases and deaths reported here,” he said.

The tourism industry created 39 million jobs in 2019 and accounted for almost 8% of employment, Menon said, underlining the need for support to the sector.

While lauding the government’s recent announcement of 500,000 free visas for international travellers, he noted that the real boost would come from enhanced marketing efforts not limited to print media and promotional films but also a strong digital outreach.