Home » Trending » MakeMyTrip CEO Rajesh Magow urges government, ‘Travel and Tourism sector is in need of a survival package’

MakeMyTrip CEO Rajesh Magow urges government, ‘Travel and Tourism sector is in need of a survival package’

Rajesh Magow, the co-founder and group chief executive officer of MakeMyTrip Ltd has said that the travel and tourism industry does not need a stimulus but a survival package from the government. The immediate need of India’s aviation and tourism is to survive and rebuild their businesses. Travel and tourism industry is worst hit by the COVID-19 pandemic, it’s even worse than the Severe Acute Respiratory Syndrome, 9/11 attacks, dotcom bust or the global financial crisis and unfortunately this crisis is going to have a serious and far reaching consequence on public health and economy.

The current need of the industry is liquidity for the short and mid terms to help meet the fixed costs and as well to rebuild business from scratch. Any support on loans with easy terms for mid to long term would be a great help from the government to the industry. So, the loan should be lended according to the record and loan paying capacity of the industry but with long-term view. It is not going to be an easy call for the banks within defined norms for loans, RBI is requested to make some changes to ensure that the liquidity easing being done and actually reach the industries who need it and save a thousands of jobs.

And now, at this point of the time industries do not need stimulus package to uplift the slow growth of economy but they need a survival package to fight the existential crisis and save the industry. While some industries with cash can survive for some months but micro, small and medium industries have been impacted very badly. Travel and tourism is worst hit sector by the pandemic and will recover very slowly, it is going to be a long journey to meet the conditions of before COVID-19 level.

If the virus spread is contained the industries can get back on feet till July, August or September with essential and domestic travelling with restrictions. The industries have to practice social distancing norms and sanitization and hygiene improvements at every stage of journey. Social distancing is going to become new normal in the upcoming time.

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