In continuation of its G20 Think Tank Workshop Series, NITI Aayog organised a significant workshop titled “Implementing Goa Roadmap for Tourism” on November 4, 2023. This event, held in collaboration with India Foundation and the Ministry of Tourism, Government of India, served as a platform for experts and stakeholders to deliberate on the plan for sustainable tourism development in Goa.
The discussions at the workshop revolved around a plethora of issues, opportunities, and challenges that currently confront the sustainable development of the tourism sector in India. One prevailing theme that emerged was the vital role played by local tourism in generating income and uplifting the cultural heritage of the region.
Participants emphasised the importance of local tourism in developing sustainable tourism circuits, thereby fostering economic growth while ensuring environmental conservation.
One of the primary concerns voiced during the workshop was the need to strike a balance between increasing visitor capacity at tourist destinations and the commitment to environmental protection, green tourism practices, and sustainability. This delicate equilibrium was recognized as pivotal in preserving the natural beauty and cultural richness of the region.
The workshop also shed light on critical issues and action points derived from the Goa Roadmap, highlighting the challenges and opportunities brought about by the digital revolution and the growing necessity for environmental stewardship. It concluded with a collective goal to carry forward the spirit of the Goa Roadmap, promoting collective action and shared responsibility in building a tourism sector that can sustainably support both the planet and its people.
The outcome of this workshop, as highlighted in an officially issued statement, will be an essential document that outlines the way forward for implementing the Goa Roadmap for Tourism within the context of India.
The Goa Roadmap itself was finalised during the concluding meeting of the G20 Tourism Working Group in Goa on June 21, 2023, culminating in the Goa Declaration. The Goa Roadmap is seen as a pioneering effort to harness tourism as a driving force to achieve the Sustainable Development Goals (SDGs), a sentiment supported by the G20 New Delhi Leader’s Declaration (NDLD), which recognised the Goa Roadmap for Tourism and the ‘Travel for LiFE’ program as policy blueprints for leveraging tourism for sustainable socio-economic development.
The workshop was structured around four thematic sessions, with V. Vidyavathi, Secretary of the Ministry of Tourism, Government of India, delivering the address during the plenary session. Suman Bery, Vice Chairman of NITI Aayog, presided over the workshop and provided insights into the importance of gender-led development in the tourism sector.
PATA developed an online learning course tailored specifically for tourism SMEs. These businesses constitute around 80 per cent of all tourism enterprises but often face vulnerabilities, particularly during crises, due to constraints in capacity, time, and resources. These workshops, created to help SMEs in building resilience, were conducted in four Southeast Asian countries, recording 120 participants.
He emphasised the contemporary challenges related to the dispersion of tourism and the potential solutions that could arise from collaborative efforts between the private and public sectors.
The thematic sessions explored various topics, including “Green tourism” with a focus on making the tourism sector more sustainable, responsible, and resilient. Another session concentrated on “Tourism micro-, small, and medium-sized enterprises (MSMEs)” and the role of these enterprises, startups, and the private sector in fostering innovation and dynamism within the tourism sector. “Digitalisation” was another critical theme, discussing the utilisation of digital technologies to enhance competitiveness, inclusion, and sustainability in the tourism sector. The final session emphasised the “Strategic management of tourist destinations,” particularly those with a focus on heritage and religious tourism.
The workshop witnessed the participation of experts from more than twenty government bodies and private institutions, including the Ministry of Environment, Forest, and Climate Change, Trade Promotion Council of India, Confederation of Indian Industry, National Council of Applied Economic Research, Indian Hotels Company Limited, Indian Venture & Alternate Capital Association, Indian School of Business, Indian Institute of Technology Kanpur, Small Industries Development Bank of India, United Service Institution of India, Jamia Millia Islamia University, MakeMyTrip, Adventure Tour Operators Association of India, and more.
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The Travel Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have once again appealed to the Ministry of Finance, Government of India, seeking the abolition of Tax Collection at Source (TCS) for Overseas Tour Packages. The appeal follows a series of communications between TAAI and TAFI and the concerned authorities, including the Ministry of Finance and the Central Board of Direct Taxes (CBDT), regarding the challenges faced by the travel industry due to the proposed implementation of TCS.
Both the associations have not only requested a meeting with the ministry to discuss the matter of TCS but has also appealed for the postponement of the scheduled increase in TCS, which is set to take effect from October 1, 2023.
In a detailed letter addressed to the ministry, TAAI and TAFI highlighted the significant challenges posed by the TCS and its potential impact on the travel industry. According to the governemnt’s circular no 10 of 2023 dated June 30, 2023, the TCS rate is set at 5 per cent for overseas tour packages with a cost of up to INR7 lakh. Any additional amount beyond this threshold will be subject to a TCS rate of 20 per cent.
The travel industry, particularly travel agents and tour operators in India, is grappling with the repercussions of the TCS, which has reportedly led to a diversion of business to overseas tour operators operating from India. This shift has not only affected the revenues of the Indian government through income tax and GST but has also impacted the livelihoods of Indian tour operators involved in outbound tours.
Additionally, concerns have been raised regarding the potential risks posed by overseas companies that may not deliver services as expected, raising questions about quality and sustainability. The absence of a mechanism to monitor the INR 7 lakh per traveler limit and uncertainties regarding payments made for such packages using overseas credit cards have added to the industry’s apprehensions.
While major metropolitan areas such as Bengaluru, Chennai, Delhi, Hyderabad, and Mumbai are leading the surge in travel demand, tier-2 cities like Coimbatore, Jaipur, and Vizag are also witnessing a significant uptick in road travel. Additionally, the insights reveal a consistent trend of higher bookings from Thursday through Sunday, primarily due to the appeal of weekends.
TAAI said its previous representations on the matter have consistently called for the complete abolition of TCS on overseas tour packages. The association has emphasised the need for an effective monitoring mechanism that eliminates any loopholes, benefiting Indian citizens, tour operators, and the government alike.In its latest appeal, TAAI has urged the Ministry of Finance to postpone the implementation of TCS and engage in a consultative dialogue with the association, which has been a prominent representative of travel agents and tour operators in India since 1951. This, TAAI suggests, should remain deferred until the next financial year, allowing for further discussions and deliberations.
Whereas TAFI also requested the finance minster to take action on the matter and asked the government to roll back TCS on foreign tours and instead mandate a standard 2.5 per cent charge on all foreign spends by individuals who hold a valid PAN Card.
“It is our understanding that originally TCS on overseas tours was envisaged to track those who don’t pay taxes and yet spend money on overseas travel. This could effectively be achieved by levying a standard 2.5 per cent TCS on all foreign spends across all channels. This would also eliminate the need for complex monitoring systems to track spending across multiple channels and platforms. This will create a level playing field, eliminate the bias in favour of overseas tour operators and the travel industry of India will have a fair chance to compete on the global stage, ” TAFI President Ajay Prakash said in the letter to the Finance Minister.
Prakash added that they are anticipating positive response from the government at the earliest.”All we’ve got is a response saying it’s been forwarded to the the appropriate department,” he said.
With the implementation date of TCS just three days away, TAAI awaits a response from the ministry, emphasising the urgency of the matter and the need for a collaborative resolution that addresses the concerns of all stakeholders involved in the travel industry.
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