Kerala Tourism has been a significant contributor to the economy of Kerala for decades with revenue of Rs 45,019 crores to the sector in 2019 and providing employment to 1.5 million people (directly or indirectly). Kerala received more than 1.19 million foreign tourists and 18.4 million domestic tourists last year with an impressive annual growth of 8.52% and 17.81% respectively. However, COVID-19 virus pandemic has brought the entire Tourism industry to a grinding halt with an estimated loss of Rs 20,000 crores.
The tourism stakeholders with no income for almost six months find it difficult to function without working capital assistance. There is a great need for State Government to come up with a scheme to support the Tourism industry of Kerala.
Department of Tourism, Government of Kerala, has envisaged a loan scheme in association with the SLBC Kerala to support the tourism industry of Kerala to mobilize working capital to make the industry afloat in the wake of serious losses due to COVID-19 global pandemic.
The Government would like to introduce a loan interest subvention policy, wherein Government will bear 50% of the loan interest as subvention for the loan availed by the tourism industry under this scheme, for the first 12 months. The entire share of interest should be paid by the borrower from 13th month onwards. A repayment holiday of 6 months will be applicable for all the loans.
Under this scheme, the interested Tourism Industry stakeholders can apply for the soft loan from the designated commercial banks at an interest as applicable to the board approved policy of respective banks, of which, the borrower should pay 50% of the loan interest for the first 12 months, and the entire share of interest in the following months. The remaining 50% of the interest, subject to a maximum of 4.5% for the first 12 months will be absorbed by Department of Tourism.
Sharing his views on the same, E.M. Najeeb, Chairman, ATE Group, Senior Vice President of Indian Association of Tour Operators; Former President of KTM Society and as President, CKTI said “I personally met the Honourable Minister at PRD chamber at Govt. Secretariat and thanked him for the package and support provided for the Tourism on behalf of CKTI and the entire Tourism industry. He has informed me that another package for houseboat sector, Homestay sector and guides will be announced this week itself. Let us all appreciate the efforts of Hon minister , Hon CM , Ms. Rani George IAS , Balakiran and all officers at the Tourism minister’s office as well as all the Tourism Industry leaders who have worked tirelessly for this achievement.”
