‘LTC fund diversion to hurt travel sector’ – Times of India

CHENNAI: An umbrella body of the hospitality industry expressed disappointment over the government’s decision to divert leave travel concession (LTC) to buy consumer goods.
Federation of Associations in Indian Tourism & Hospitality (FAITH), said that coming on the back of a prolonged lockdown, the travel and tourism was looking at festive season holidays to boost travel demand when people look to travel to their home state.
After almost 8 months of nil to now very limited tourism activity, festive season was one of the few demand drivers that the Indian tourism travel and hospitality industry was looking forward to. The industry was hoping for more tax-based stimulus in the hands of all citizens to travel when spent against GST rated travel agents, hotels tour operators, tourist transporters and restaurants.
“Instead redirecting the LTC money of government employees to buy consumer goods would dry up those funds for the travel sector. Additionally, it would also send a vote of no confidence to the tourism travel & hospitality industry which was looking to get back on its feet after ‘Unlock’,” FAITH said in a statement.
Additionally, since this is a 4-year block scheme it will also cut away funds for future travel demand source for the next year when the LTC block ends in 2021. This goes against the spirit of domestic tourism push and year 2021 as domestic tourism year being planned by the tourism ministry.