The World Travel & Tourism Council (WTTC) has urged Government of India to co-ordinate a countrywide response to the Supreme Court (SC) ruling, which has banned the sale of alcohol within close proximity of highways in the country. The consequences of this ban includes negative effect on hotels and restaurants in this zone, and will curtail future job creating investment in the industry, said WTTC.
On April 1, 2017, the SC had passed a ruling which banned the sale of alcohol within 500 metres from a national or state highway.
David Scowsill, president and CEO, WTTC, said, “While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian government to reverse or amend the current ruling. I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those establishments affected. The impact of the ban on drunk driving is impossible to measure, as businesses beyond the stipulated 500 meters will still be allowed to sell alcohol. Businesses within the proposed banned distance, including many hotels, restaurants and bars that serve tourists, will lose customers and revenue. This not only means less income but also means that many people will lose their jobs as a direct result.”
Travel and tourism sector contributed INR14.1 trillion – 9.6 per cent of India’s GDP – in 2016 and supported over 40.3 million jobs, which is 9.3 per cent of total employment in the country.
India’s travel and tourism sector is forecast to be the third fastest growing market in terms of total GDP over the next decade. However, this is only expected to be achieved if the government continues to recognise the importance of business and leisure travel in the country. WTTC has welcomed the government’s commitment to this sector as one of the five key pillars of its economic plans in its 2014 election manifesto.
WTTC has further recommend an urgent review of the alcohol ban judgement and has urged the government to apply GST at the lower levels in the forthcoming GST reforms. Scowsill opined that 18 per cent standard rate is uncompetitive and too high.
“We congratulate India on the new electronic visa on arrival scheme. There is a need to introduce multi entry visas and to promote awareness of the scheme. We urge the government to deploy more marketing funds into the Incredible India campaign. Competition between countries is intense and more stand out is required. We recommend continued and sustained investment in travel infrastructure of airports, ports, rail, and road links. Growth will be slowed without this investment.
We welcome last year’s sweeping reforms to the aviation industry, including the ability of foreign investors to own 100 per cent of airlines. An ambitious 15-20 year plan for aviation is now required, providing low-cost domestic flights between world-class airports,” added Scowsill.
