Inhospitable terrain

Relatively unscathed in Europe, Cyprus has set the ball rolling to lift some bit of the overwhelming gloom that surrounds the hospitality and tourism industry. It is offering to take care of all continental travellers who test positive during their stay, as well as their families and close contacts. All visitors will be required to take a test in their own country before travelling. A corona-negative certification, in a way, would be the new passport. Goa, too, has opted for the production of a ‘negative certificate’ or mandatory testing of any person entering the state. Is conditional access to its beaches and hotels, with social distancing and hygiene rules outlined, on the cards? It’s hard to say. What the authorities expect, how the hosts measure up and the tourists react are all in the realm of uncertainty. Half of the respondents in a global survey may have sprung a surprise by expressing willingness to travel afar in 2020 itself, but the industry shares none of the optimism.

As the punishing heat scorches the plains, it is the hill states that are bearing the brunt. Himachal Pradesh and Uttarakhand are looking at a summer with near-zero business. For the Kashmir valley, under lockdown since August 5, 2019, it could well end up as a year without tourists. The huge impact on livelihoods is not difficult to fathom. Job losses are being predicted for 70 per cent of the estimated direct and indirect workforce of 5.5 crore in the country. As hotels shut down because of the credit stress, RBI’s six-month debt-servicing holiday is of little help, given the expected duration of demand decline. Any start of recovery is being seen as three to four quarters away.

The Centre’s package had barely anything for this critical GDP and foreign exchange-earner industry. There are no easy answers to the crisis, but an immediate bailout and assistance is necessary. For a start, the government can have a relook at the demands for interest and collateral-free funds for paying salaries and operating costs, and a part waiver of liabilities.