Forty percent of Indian tourism businesses are at risk of shutting down

Chattisgarh Fort before lockdown (image source : wikimedia commons)

A recent survey done by the Business of Travel Trade portal (, over 45% of the people fear that the packaged tours business will be over within the next 1 year. The reason for this fear is COVID restrictions that have halted growth for many businesses in India.

It is reported that more than 80% of tourism businesses have no revenue at all. It is estimated that around 40% of the travel companies are under the risk of being completely shut down. This can happen within the next 6 months. Also, more than 30% of these companies have already started to go under a temporary closure of their business activities.

This data was acquired after conducting the survey by’s tracker. This survey was conducted with a partnership with the top national tourism associations. These associations represent several different sectors of the travel and tourism business.

The survey also showed an increase in job losses and possibility for this to increase further. Several companies have also been deducting staff salaries to keep their business active.

The tourism industry has not received any economic relief package from the government. This was the biggest disappointment for the people involved in the Tourism industry.

It is estimated that more than 10% of India’s total employment is affected by the economic stress of the tourism sector. Many tour operators and airlines have refunded all the bookings they made in advance. Most of these refunds and cancellations came as a bad sign to these businesses who were in the hope of reviving their business after the first phase of the lockdown. With a new surge in the coronavirus cases there seems to be less hope for the tourism industry to revive completely.

According to this survey, there are around 20% of people who believe that the travel industry revenues will recover once the travel relaxations with safety guidelines are introduced.

The following interview with the Chief Minister of Himachal Pradesh addresses the problems faced by the tourism industry in his state.

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