Travel Agency Industry demanding Government Relief Measures
Currently owners of travel agencies are reeling under severe pressure due to lack of business as a result of the coronavirus pandemic. What’s more, since many own vehicles for their travel services, the businesses are burdened with monthly payments that they are unable to make. While some owners are selling their vehicles, banks have impounded other vehicles in some cases, and owners have even started closing their businesses.
Dhanapal of Akilandeshwari Travels in Sriragam said“I spent 20 years building my travel business from scratch. But the coronavirus pandemic has made me vacate my office and sell my vehicle. This is the condition of everyone in the motor industry since they depend on EMIs (Equal Monthly Installments). As vehicles only provide profit only when they are running, the loss of livelihood, along with the EMIs, for the stationed vehicles is haunting everyone, including me”. Dhanapal, who provides travel services to all the southern states, says, “Three years ago, I bought the vehicle for Rs 5 lakh. Two days ago, I was forced to sell it for a meager Rs 1.5 lakh as rates have dipped in the market.”
When echoing a similar sentiment, bharathi Mohan, a freelance driver and car owner, says, “People in other businesses can revive their work. But that’s not the case with our industry. We have insurance dues and debts are increasing. Even if we start our business again, we need another three months to get back on track. If vehicles do not function properly, we need to spend on repairing them.” According to suresh, district secretary of Salai Pokuvarathu Thozhilar Sangam, the road transport workers union, “For a bus costing Rs 10 lakh, we pay an initial amount of Rs 3 lakh and we will get help from the banks to pay the remaining amount. Every month, we will have to pay an EMI of Rs 20,000. But since the lockdown was announced we have lost our livelihoods and we are unable to pay.” Though a moratorium on loans was announced for the lockdown period, suresh says it is only a temporary fix. To ease the problems during the crisis, the travel agency industry is demanding government relief measures, including cancelling of interest rates for EMIs, abstaining from collecting road tax, insurance bail-out for a few months and providing vehicle loans with subsidies