Job creation in hospitality space going unnoticed
Hospitality players should tell politicians about 25 mn job creation, says Amitabh Kant, while seeking their help for the demand of industry and infrastructure status
India's G20 Sherpa Amitabh Kant on Monday asked hospitality and tourism sector players to tell politicians about creation of 25 million jobs by 2030 while seeking their help for the demand of industry and infrastructure status.
Speaking at the 6th Hoteliers' Conclave organised by the Hotel Association of India (HAI), Kant said somehow the tourism industry has failed to tell the politicians that it is a big creator of jobs, while agreeing with their demand for industry status. "If you look at tourism, I think from a perspective of a political lens, the politician only understands one thing and that is how many jobs is the tourism sector creating," he said. Kant further said, "Tourism has a huge multiplier impact for every direct job that you create, you create seven indirect jobs, but I think somehow the tourism industry has failed to tell the politicians that we are a big creator of jobs." In terms of employment, Thailand creates close to 20 million jobs, Malaysia about 15 million jobs and India creates 7.8 million jobs from the tourism sector, he added. "It will be worthwhile for the tourism industry to have a target of telling the political system across Centre and States that if you give attention to tourism we will create 25 million jobs by 2030 and it is doable target," Kant suggested in response from HAI leaders who sought his help to get industry and infrastructure status for the sector. If the target is put before the political system that 25 million jobs will be created by the tourism sector, it will have a huge impact on the minds of the political system and they will do everything possible for tourism, he added. "To my mind that's the only language which will be understood that you should push at State level," Kant asserted.
He agreed with the demand for tourism sector to be granted industry status, saying, "when you treat a sector as a commercial sector, the power tariff is much higher. The interest rates are higher, and it's necessary that tourism is treated as an industry." With the substantial high power tariff, the day-to-day operations of players are impacted, he acknowledged. "My view on that is very clear that all states must see every activity in every sector of the tourism industry (sector) as a industry," Kant said, adding while 11 States have done it, many have not extended the full benefits of it to the players. He asserted that the tourism sector is "an industry because it is a very major job creator" and pushing it as an industry will really help both at the Centre and State levels. Kant also asked the industry players to grab the opportunity in the MICE (Meetings, Incentives, Conferences and Exhibitions) segment, saying India now has the world's best convention and expo centres with the opening of the Yashobhoomi and Bharat Mandapam. India's share in MICE is less than 1 per cent in the global market that is over $500 billion, he said lamenting that this is an area where India has lagged behind.