Tourism can beat 'Trumpian' tariffs, says former G20 Sherpa Amitabh Kant

Former G20 Sherpa Amitabh Kant urges Rs 20,000 crore for global tourism promotion, saying the sector can offset US tariffs and boost India's growth and jobs

In an environment of geopolitical flux amid talk of trade tariffs being levied by the United States, tourism is the sector that can compensate for potential losses, former G20 Sherpa Amitabh Kant said on Tuesday at the national conclave organised by the Federation of Associations of Indian Tourism and Hospitality (FAITH).

 

“This is a massive opportunity to galvanise ourselves to bring in radical reforms. We should use it to simplify our GST norms to just two slabs, simplify personal tax, remove quality control orders that have impacted trade liberalisation, reduce taxes on inputs and components, and clean up our cities to make them great destinations. Moreover, we should use this as an opportunity to drive tourism simply because no other sector can beat Trumpian tariffs,” Kant said.

   

The former NITI Aayog chief also called for Rs 20,000 crore for the tourism industry to promote India and penetrate global markets.

 

“This is the moment to ensure that we become the most competitive economy in the world. You need to look at sectors that will drive India’s growth story with job creation. This sector can compensate for Trumpian tariffs more than any other sector by penetrating every global market with a brand campaign that will get you tourists from across the world,” he added.

 

The World Travel and Tourism Council (WTTC) has projected that the travel and tourism sector will contribute almost Rs 42 trillion to India’s economy by 2035, supporting 64 million jobs. 

 

“Trump has brought absolute unpredictability and inconsistency to trade policies across the world. But I am quite hopeful that India should be able to arrive at a win-win situation with the United States at the end of 20 days,” Kant said.

 

Speaking at the same event, Suman Billa, additional secretary and director general, Ministry of Tourism, said there is a growing need for joint promotions with industry, states and brands beyond the realm of tourism.

 

“Brands like Royal Enfield and Fabindia can be leveraged for tourism and build the soft power that we have. There is no other sector that can create jobs across the spectrum. And we need to understand that tourism creates a demand that cannot be taxed at foreign borders,” Billa said.

 

FAITH is the apex tourism policy and strategy think tank of national associations such as the Indian Association of Tour Operators (IATO), Hotel Association of India (HAI) and Adventure Tour Operators of India (ADTOI), among others. It aims to double the sector’s contribution to India’s GDP to 10 per cent by 2047 from 5 per cent at present. The conference aims to chart a roadmap towards Tourism Vision 2047 — a $3 trillion tourism economy generating 100 million inbound tourists, 20 billion domestic visits and 200 million tourism-related jobs.