Rupee impact: Tour operators demand tax incentives

KOCHI: The Centre and the states should cut the service taxes and provide income tax exemption to tourism industry if India wants to take full advantage of fall in rupee to promote itself as a low cost destination to overseas travelers, according to Subhash Goyal, president of Indian Association of Tour Operators (IATO).

They should consider such incentives for at least five years like they offered for IT industry. Almost the entire earnings from the tourism industry come to the country unlike other commodity exports which involve import of raw materials. Besides, it generates lot of employment, Goyal said on the eve of 29 thannual IATO convention being held in Kochi in association with Kerala Tourism Department from September 8 to 10.

He said it would be a golden opportunity for the India to compete with countries like Sri Lanka, Singapore, Malaysia, Thailand who are going all out to promote their countries to tourists. With recession continuing in Europe, Indian tour operators are looking at new destinations like China, Japan and Middle East for inbound tourists. Australia is another destination where tourism industry is conducting road shows.

E M Najeeb, chairman of Kerala chapter of Indian Association said the convention, which is coming after eight years to Kerala, is expected to benefit the state in a big way. Kerala tourism is expected to grow by around 15 to 20 % post IATO convention, he said.

Around 1100 delegates from various parts of the country have confirmed participation in the convention, while the organizers are expecting another 300 spot registrations. Minister of state for tourism Dr K Chiranjeevi and Kerala Chief Minister Oommen Chandy will be the key speakers at the inaugural function on Sunday.