Tourism in Jammu & Kashmir is facing the brunt of double whammy of ‘negative publicity’ and GST on tourism-related activities in the region, a Parliamentary panel has noted.
Concerned at the declining tourism in the picturesque State, the committee headed by Rajya Sabha member Kanwar Deep Singh has asked the Government to hold talks with the countries which have issued advisories against travel to J&K and also reconsider implementation of the GST on tourism sector in the State.
“It (GST) must be done in a cautious and phased manner in order to ensure that the delicate State of tourism in the region is not adversely affected,” said the report on ‘Development of Tourism in Jammu & Kashmir’ which was submitted in Parliament recently.
The panel noted with concern that the implementation of the GST on tourism has a manifold effects, mostly negative on the economy of the region. The committee was informed by the stakeholders that sourcing of products and materials is an issue. Unlike other States, the residents of J&K and its business owners spend huge amounts of money on procuring essentials, most of which have to be flown in, which increases their capital expenditure.
“Most wholesale traders insist on payment in cash which is a major issue, as the support from the Government must be processed via the Public Financial Management System (PFMS) payment system which insists on digital transactions.
“Furthermore, the committee was informed that small business owners for small scale hotels, bed and breakfasts and home stays cannot list their properties on various travel intermediary websites as there is a levy of an 18 per cent of GST, which cuts across the little profit that they might make, making their venture unsustainable,” said the report.
In this regard, the committee recommended that the implementation of GST on tourism related activities in the State must be reconsidered.
It also took serious note of the negative publicity of the State, which it said were based on incorrect facts, was resulting in lesser tourist arrivals, causing financial losses to hoteliers as well as travel agents, who have to pay idle wages and fixed bills, causing huge financial burden on them.
The panel urged the Ministry to initiate dialogue with the countries which had issued travel advisories against the State for their withdrawal. “The advisories issued by various countries were based on ill-informed facts and unnecessary assessment of local conditions and acted as an impediment in attracting foreign tourists. The print and electronic media, both domestic and international, have an important role in projecting the favourable situations existing in J&K.
“The Ministry should also involve its counterparts in Information and Broadcasting and External Affairs for the removal of advisories imposed by various countries against travel to the hill State.”
To counter the negative publicity, the committee, recommended that the Ministry of Tourism should organize their own publicity campaign and also engage Youtube and social platforms like Instagram and Snapchat and social media influencers to promote a more positive image of the State.
Furthermore, the State Government must engage with business chambers such as ASSOCHAM, CII and FICCI to invite and encourage companies to host meetings and visits in the region, it said.