New Delhi, March 18, 2026: Highlighting the vulnerability of India’s tourism sector to global uncertainties, Jyoti Mayal, Chairperson of the Tourism & Hospitality Skill Council and former President of the Travel Agents Association of India, has called for the creation of a dedicated Tourism Fund to support the industry during times of crisis.
The tourism sector, which contributes nearly 8% to India’s GDP and supports over 40 million jobs, is often the first to be impacted by global disruptions—whether geopolitical conflicts, health crises, or economic slowdowns. These disruptions trigger a cascading effect across allied industries, significantly affecting employment and economic stability.
Tourism: A Critical Yet Vulnerable Sector
A slowdown in travel activity directly impacts hotels, airlines, tour operators, transport providers, artisans, and food suppliers. The ripple effect extends deeply into local economies, disproportionately affecting small and mid-sized enterprises that form the backbone of the sector.
Women, who represent a significant portion of the grassroots tourism workforce—including hospitality staff, craftswomen, and small vendors—are particularly vulnerable during such downturns.
Call for a Structured Tourism Fund
Emphasizing the urgent need for financial preparedness, Mayal has proposed allocating at least 1% of tourism’s GDP contribution into a structured fund to act as a financial buffer during uncertain periods.
“The government is creating war funds—why not for us, an industry that is the first to be hit each time global instability arises? A tourism fund is a present-day necessity. It would allow the industry to manage disruptions with greater confidence, support cash flows when travel slows down, and ensure that businesses—especially women-led and grassroots enterprises—do not collapse under pressure,” she stated.
Global Benchmarking and Policy Support
Mayal pointed out that several countries have already established dedicated tourism funds, recognizing the sector’s strategic importance. She urged India to adopt a similar approach to protect livelihoods and build long-term resilience.
In addition to financial support, she stressed the need for stronger coordination among stakeholders, including government bodies, airlines, and industry associations. Enhanced communication, flexible policies, and a unified response mechanism can help reduce uncertainty and support informed decision-making among travellers.
Boosting Domestic Tourism as a Stability Lever
Highlighting domestic tourism as a key stabilizing force, Mayal noted that India has the potential to sustain travel demand within its own borders during periods of international uncertainty.
“When international travel faces disruptions, domestic tourism can act as a parallel growth engine—ensuring continuity for businesses and safeguarding employment across regions,” she added.
A Strategic Imperative for the Future
Concluding her remarks, Mayal emphasized that tourism must be treated as a sensitive and strategic sector requiring structured support and long-term planning.
In an environment where global events can rapidly impact local economies, building resilience through proactive measures such as a Tourism Fund is essential—not just for industry survival, but for sustainable growth and the protection of millions of livelihoods across the country.
