Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
05 JUNE, 2020
The rapid spread of COVID-19 has brought the travel and tourism sector to a complete shutdown. As the entire world is under the pandemic lockdown, border closures and travel restrictions have particularly hit this industry hard. People still have unfulfilled travel plans in their bucket list. But nobody knows when the tourism will resume since the impact of the recent outbreak could last longer than expected.
However, the restrictions on the travel will eventually be lifted, and the situation will improve gradually. But, this does not mean that things will precisely be normal as they were before COVID-19. When travel does begin again, the priorities and plans will change. People will first choose a road trip to a place closer to home or travel domestically, before planning an international trip. The travel expenses are likely to be higher than before. Hence, the banks and other financial institutions are chalking out travel loans for globetrotters.
We are looking at the new normal for travelling. It could mean a shift to private rentals over hotels and an increase in the use of travel insurance.
While the other industries can recover fast, the COVID-19 pandemic will have a more substantial impact on the travel and tourism sector. The tourism industry needs time to heal, because of the restrictions on the movement of people.
You have already rated this article