{"id":10251,"date":"2020-06-19T11:39:19","date_gmt":"2020-06-19T11:39:19","guid":{"rendered":"\/blog\/?p=10251"},"modified":"2024-12-27T13:32:24","modified_gmt":"2024-12-27T13:32:24","slug":"what-will-it-take-for-the-tourism-industry-to-recover","status":"publish","type":"post","link":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/","title":{"rendered":"What will it take for the tourism industry to recover?"},"content":{"rendered":"\n

We\u2019ve all seen how the coronavirus has brought the world to a\nstop. The travel and tourism sector, in particular, has faced a lot of heat due\nto this pandemic. Looking back at the impact of the coronavirus crisis on tourism in\nIndia and internationally, it\u2019s clear that this sector has taken a tough blow.\nOne estimate by the Confederation of Indian Industry (CII) reveals that India\u2019s\ntourism sector may suffer an overall loss of Rs. 5 lakh crores. That\u2019s not all.\nThe CII also estimates that job cuts in this industry could impact around 5\ncrore people.<\/p>\n\n\n\n

What will it take for the tourism industry to recover? <\/strong><\/h2>\n\n\n\n

In spite of the adverse impact of the coronavirus crisis on tourism in\nIndia, there\u2019s a small lining of hope. The recent developments in China\u2019s\ntravel and tourism sector may give us a peek into how things may play out for\nour own industry. With restrictions being lifted in China, hotel bookings in\nthe country went up by 40% in early March. Peak daily flights showed an\nincrease of 230%.<\/p>\n\n\n\n

For India, although that phase may be at least 6 to 9 months in\nthe future, there are still some ways in which the negative impact of the coronavirus crisis\non tourism and travel can be cushioned. Here are some plausible ideas\nthat could work.<\/p>\n\n\n\n

Governmental aids<\/strong><\/h3>\n\n\n\n

The tourism industry contributes to around 10% of the country\u2019s\nGDP. Intervention from the government can help this key segment of the economy\nbounce back. Measures to prevent bankruptcy and solutions to work around mass\nlayoffs are the need of the hour. Deferment of statutory liabilities like\nadvance tax and GST can also help travel companies survive this crisis.\nAssistance from governmental bodies may prove to be crucial in helping this\nsegment of the economy get back on its feet.<\/p>\n\n\n\n

Flexible lending programs<\/strong><\/h3>\n\n\n\n

The travel and hospitality industry needs financial assistance to\nundo the impact of the\ncoronavirus crisis on tourism in India. However, with travel coming to\nan unprecedented halt, it\u2019s unlikely that companies in this sector will be able\nto repay loans with strict terms. Instead, flexible lending programs that help\ntravel and tourism companies financially after taking into account their paying\ncapacity. An increase on the moratorium period can also be helpful for\ncompanies in this sector.<\/p>\n\n\n\n

Focus on domestic travel<\/strong><\/h3>\n\n\n\n

Aside from governmental and lending aids, another development\nthat could help the tourism sector recover is domestic travel. While\ninternational travel may not pick up significantly in the near future, domestic\ntourism could show signs of improvement once the lockdown and other\nrestrictions are lifted. By focusing on this domestic travel, the tourism\nindustry could cash in on this area and begin its journey towards recovery.<\/p>\n\n\n\n

Additional Read: <\/strong>How to Prepare for Coronavirus If You Have a Planned Travel Ahead?\u00a0\u00a0\u00a0\u00a0 <\/p>\n\n\n\n

Conversion into quarantine facilities<\/strong><\/h3>\n\n\n\n

If the pandemic escalates, the requirement for quarantine\nfacilities will shoot up drastically. Here\u2019s where the hospitality sector, which\nforms a key part of the tourism industry, can step in. Many state governments\nhave already approached members of the Hotel Association of India with a bid to\nconvert the premises into quarantine facilities. Hotels can monetize this\nopportunity by making arrangements with the relevant state governments to set\nup such facilities.<\/p>\n\n\n\n

Given these developments, what\nare your investment\noptions like?<\/strong><\/p>\n\n\n\n

If you\u2019re a new investor, it\u2019s likely that you\u2019re understandably\nworried about your investment\noptions during this crisis. This may be even truer if you\u2019ve already\ninvested in stocks or assets of companies operating in the tourism industry. If\nthat\u2019s the case, panic selling may not be the best idea. A more prudent\nlong-term solution would be to hold your assets until the industry recovers, so\nyou can start cashing in some gains.<\/p>\n\n\n\n

Invest in mutual funds<\/strong><\/p>\n\n\n\n

If you\u2019re apprehensive about investing in\nany one stock in particular, you could opt to purchase mutual funds. Here, you\ncan invest in funds that consist of assets from various top performers in the tourism industry, so your\nrisk is spread out considerably. A few months or years down the line, when this\nsegment of the market picks up once again, your investments will begin to\ngenerate returns.<\/p>\n\n\n\n

The Moneyfy app from Tata Capital can help you here. Designed keeping both new and seasoned investors in mind, this app is your one-stop shop to invest in thematic mutual funds rated by Morningstar and by Value Research.<\/p>\n\n\n\n

You can also balance out your investment portfolio by investing in mutual funds that consist of other assets. For instance, with the Moneyfy app from Tata Capital, you can invest in gold funds and in tax-saver funds (ELSS). By including such diverse options in your portfolio, you can make sure that your risk-to-reward ratio is balanced.<\/p>\n\n\n\n

Additional Read: <\/strong>Understanding Mutual Fund Terminologies<\/a><\/p>\n\n\n\n

Investing today can help you achieve your vacation goals\neffortlessly. For instance, if you\u2019re already dreaming of your next vacation\nonce the tourism industry bounces back, take action and invest in the right\nfunds today. This way, you can finance your vacation next year, once things are\non the upswing again.<\/p>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

All in all, it may take a combination of various measures for the tourism sector to recover. However, if the companies involved play their cards right, they can come out of this crisis safely, and resume business as usual in the future. In the meantime, it\u2019s advisable that investors like you follow the markets and adopt a \u2018wait and watch\u2019 approach, particularly when it comes to stocks and mutual funds that invest in the travel and tourism sector.<\/p>\n\n\n\n

Download the App<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

We\u2019ve all seen how the coronavirus has brought the world to a stop. The travel and tourism sector, in particular, has faced a lot of heat due to this pandemic. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":10254,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[68],"tags":[],"yoast_head":"\nUnderstand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/\" \/>\n<meta property=\"og:site_name\" content=\"Moneyfy Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-19T11:39:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-27T13:32:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2020\/06\/covid-19-impact-and-recovery-on-tourism.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/\",\"url\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/\",\"name\":\"Understand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2020-06-19T11:39:19+00:00\",\"dateModified\":\"2024-12-27T13:32:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b\"},\"description\":\"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What will it take for the tourism industry to recover?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"Moneyfy Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/www.tatacapitalmoneyfy.com\/blog\"],\"url\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Understand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog","description":"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Understand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog","og_description":"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!","og_url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/","og_site_name":"Moneyfy Blog","article_published_time":"2020-06-19T11:39:19+00:00","article_modified_time":"2024-12-27T13:32:24+00:00","og_image":[{"width":770,"height":400,"url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2020\/06\/covid-19-impact-and-recovery-on-tourism.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/","url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/","name":"Understand the Impact of Covid - 19 on Tourism Industry & its Recovery? - Tata Capital Blog","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2020-06-19T11:39:19+00:00","dateModified":"2024-12-27T13:32:24+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b"},"description":"The Travel industry has been badly hit by the coronavirus crisis. The recovery cycle depends on a lot of factors and collaborations from various segment. Read on to understand in detail!","breadcrumb":{"@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-will-it-take-for-the-tourism-industry-to-recover\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What will it take for the tourism industry to recover?"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"Moneyfy Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/d82891f59a900962b0e93fee2be1099b","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0e9e78de7f84add076f397dd13acc708?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/www.tatacapitalmoneyfy.com\/blog"],"url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/author\/admin\/"}]}},"featured_image_url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2020\/06\/covid-19-impact-and-recovery-on-tourism.jpg","_links":{"self":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/10251"}],"collection":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/comments?post=10251"}],"version-history":[{"count":9,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/10251\/revisions"}],"predecessor-version":[{"id":37602,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/posts\/10251\/revisions\/37602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/media\/10254"}],"wp:attachment":[{"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/media?parent=10251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/categories?post=10251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-json\/wp\/v2\/tags?post=10251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}