‘We need to be competitive, otherwise we will lose business to our neighbouring countries’
An exclusive interview with Subash Goyal, president, IATO
What is your new agenda for the 31st IATO Convention?
The new agenda inter-allia includes to draw out a comprehensive event programme which showcases the needs of our industry partners, networking sessions, business sessions and highlighting the emergent issues and experts deliberating on the theme of the convention and destination presentations. The theme for this year’s convention is ‘Tourism– we will change the Indian economy’ wants all the delegates joining the IATO convention to have lasting memories.
What are your plans for 2015?
As IATO, we envisage to take positive steps to achieve success on the following:-
· Government is now committed to have e-tourist visa for 150 countries as announced during the Budget 2015/16 and we will continue to put pressure till e-tourist visa is announced for all 150 countries
– Streamlining of taxation system to avoid harassments
– Exemption of service tax (based on foreign exchange earnings just like physical exporters are exempted)
– CENVAT credit allowed to tour operators
– To approve GST by end of the year. GST should not be five per cent on tourism and hospitality industry, otherwise we will out price ourselves with neighbouring countries like Thailand, Malaysia, Singapore, Srilanka, Dubai etc
– More focus on civil aviation, airports to be developed under PPP model
– To create five new tourist circuits across the country
– To develop Goa as major convention centre with world class facilities based on PPP model
– To enhance rail connectivity in North East
– Internet connection in villages (will help to promote rural tourism)
– To help the tourism ministry and the Prime Minister in his Clean India Campaign
– Gaya to become international Buddhist destination
Under your leadership, what are the new initiatives that you have planned?
The initiatives which are getting our priority attention include:-
Regular Training Programme: For IATO members, training programmes are an effective way to gain knowledge expertise, to learn new techniques and trends in travel management to update their skills mainly in mobile technology and internet marketing.
IATO Brand Identity: Due to global economic scenario, consumers are looking for brands which can provide utmost value for their money and this makes IATO presence more relevant than even before.
New market situation and take advantage: I believe that 2014-15 is potentially going to be much busier compared to 2013. The initiatives that we have seen over the years are definitely encouraging and these are market driven. Everyone in the industry is awaiting the announcement on GST/SGST as that is going to have real impact on tourism business. We need to be competitive, otherwise we lose business to our neighbouring countries. We need to be pro-active and put emphasis on customer satisfaction.
Proper use of Technology: We need to reduce the cost of delivery through technology and have to adopt also sustainable practices to have sophisticated niche products to attract tourists round the year.
Exemption of tax: Legitimate business expenditure need exemption from tax. We desperately need a rule based system to remove the discretionary taxation that is not only inefficient but also impossible to administer. What we need, a simplified tax system that has reasonable rates. I would continue to plead for tax rationalisation as tax system in much of the world have undergone extensive evaluation to reach a steady state condition where rates change rarely.
Look at the road ahead: India’s growth spiral has been going up when it comes to tourism. The best part has been development of infrastructure and we will ensure the progress continues.
What are the primary challenges that the industry is facing? How does your association address these challenges?
Challenges are of continuous nature and we are seized with the issues and constantly in touch with all the concerned authorities. The major issues are:
– For the E-tourist visa, more countries be added like UK, Italy, Spain, Poland, Sweden and other countries which offer tourists round the year are important for us.
– Bio-metric process be stopped in the countries where these have proved cumbersome and put tourists to lot of inconvenience. In fact for this reason only, they are dropping India from their holiday programme. We want bio-metrics to be done on arrival at Indian airports.
– Multiple entry visa be given while giving e-tourist visa. Now it is only valid with one entry. Validity period of visa may also be increased for 90 days from 60 days at present.
– Civil Aviation Policy be announced at the earliest.
– Railways have created problems by refusing renewal of rail travel agent licenses. We will plead that this is restored at the earliest.
– New Tourism Policy be announced and should also announce financial incentives.
– Infrastructural development policy with focus on safety and security and thematic tours for tourism growth in a sustainable manner.
– Highway developments and linking hinterland tourist cities.
– Tourism education and international standard in tourism education.
– India Tourism offices overseas and head of the offices be posted which remained vacant for over three years.
– Withdrawal of restricted area permits in North east for all states to facilitate tourist’s packages by tour operators.
– Tourism finance issues for projects loans/ long tenure low interest bans.
– Withdrawal of luxury tax which is dampening the interest of tourists and making our packages costly and we can’t meet the packages price given by our competitive countries.
– To boost inland water tourism and cruise tourism as per New Tourism Policy.
– Medical tourism special consideration for visas, marketing assistance etc.
– Relaxed norms and reducation of landing fees etc (for Goa) other places for charters.
– MICE promotional strategies and financial assistance to tour operators.
– International travel bodies convention in India and government support.
– IATO as partners in Chambers of Commerce/ other ministries tourism related activities like tourism education in school, higher studies, make in India policy, medical related in health ministry.
All these, will be deliberated and expert inputs will be taken. Thus there will be an all-inclusive discussions on issues so that positive steps are taken and thereby boost tourist traffic to India and balanced growth in all aspects of tourism.
All these have been brought into the notice of the concerned government authorities. They are already seized with the matters. Already ministry of tourism, Government of India has resolved our MDA issues, visa issues (with e-tourist visa), deferring bio-metric process in France and Poland and included more countries under e-tourist visa. There is continuous dialogue with us in all these matters.