Travel & hospitality cos warn of likely job cuts

New Delhi: The travel and hospitality sector has expressed disappointment with the 'Atmanirbhar Bharat' economic stimulus, saying the government ignored its pleas for assistance despite the industry being a critical contributor to the country’s GDP and foreign exchange earnings. Industry executives ET spoke with said an unprecedented wave of layoffs could soon start in the industry in the absence of any immediate bailout and assistance.

Industry body Federation of Associations in Indian Tourism and Hospitality (Faith), the policy federation of all national associations, said its 10 weeks of constant discussions with government officials have come to a naught and the industry is in a state of shock. Over the last few weeks, Faith had raised several requests with the prime minister, EG-6, finance, commerce and aviation ministries, and had been working in coordination with the tourism ministry.

“The direct and indirect economic contribution of the tourism industry in India, which includes airlines, hotels and others, is estimated at about 10% of India’s GDP. No cash flow is expected for many quarters over FY20-21 for key segments like international inbound and outbound travel. What will the companies do? We are now looking at largescale bankruptcies and job losses across cities and towns,” said Faith CEO Aashish Gupta.