As the Covid-19 cases in India cross 4,000 with worldwide cases at 1,284,665, KPMG, a multinational professional services network, has put together a paper that offers a foresight on the business landscape, including aviation and tourism in India. Analysing the impact, the study throws some light on the overall situation of Indian economy amid the pandemic: Steps taken to contain its spread, such as nationwide restrictions for 21 days and a complete lockdown of states, have brought economic activity to a standstill and could impact both consumption and investment. While Indian businesses, barring a few sectors, can possibly insulate themselves from the global supply chain disruption caused by the outbreak due to relatively lower reliance on intermediate imports, their exports to Covid-19 infected nations could take a hit. In sum, the three major contributors to GDP – private consumption, investment and external trade – will get affected. Here are the excerpts on the analysis of the impact of the pandemic on Indian aviation and tourism industries: With international and domestic travel closed, demand for turbine fuel will substantially decline. Indian Association of Tour Operators (IATO) estimates the hotel, aviation and travel sector together may incur loss of about ₹85 billion due to travel restrictions imposed on foreign tourists. The World Travel and Tourism Council (WTTC) estimates the crisis to cost the tourism sector at least US$22 billion, the travel sector shrinking by up to 25 per cent in 2020, resulting in a loss of 50 million jobs. On account of Covid-19, the Indian tourism and hospitality industry is staring at a potential job loss of around 38 million, which is around 70 per cent of the total workforce.
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