KTM Writes to FM Nirmala Sitharaman for One-year Loan Moratorium

KOCHI:
India’s top tourism industry body Kerala Travel Mart Society (KTM) has appealed to Union Finance Minister Nirmala Sitharaman for urgent relief measures for the country’s tourism and hospitality sector, reeling under severe distress caused by geopolitical tensions in West Asia and mounting operational costs.

In a memorandum to Sitharaman, KTM President Jose Pradeep sought a time-bound moratorium of at least one year on repayment of loans, both principal and interest, for stakeholders across the tourism ecosystem.

The industry body cited that the continuing instability in West Asia has seriously disrupted travel patterns, triggered flight cancellations and drastically affected tourist arrivals, resulting in sharp fall in revenues of hotels, tour operators, transport providers and allied businesses.

KTM also highlighted the additional burden created by the recent steep increase in LPG prices for commercial customers, which has significantly escalated operating expenses for hospitality establishments when inbound tourism is already hit.

“The tourism sector remains a major contributor to employment generation and foreign exchange earnings. Timely intervention and policy support are crucial to ensure the resilience and recovery of the industry,” the letter said.

The organisation urged the Union Government to give necessary directions to the institutions concerned to extend repayment relief to the tourism sector without adversely affecting the credit ratings of borrowers.

Further, KTM wanted the Centre to look into the possibility of coming out with a support mechanism similar to the Emergency Credit Line Guarantee Scheme (ECLGS) that was implemented during the COVID-19 pandemic. According to KTM, such a scheme would help tourism businesses access additional working capital with sovereign backing and support employment retention across the sector. KTM expected an early and favourable response from the Union Government.