6th May 2017
All Active Members,
Subject: Information sought by DGFT/Ministry of Commerce.
Placed below please find an email from FAITH regarding ECGC (Export Credit Guarantee Corporation of India) cover and bad debts. This appears to be in the interest of our members.
To facilitate FAITH to take up the matter in respect of tourism sector with the Ministry of Commerce/DGFT, this is to request you to provide us the information on this subject. We also need your suggestions about high bank charges on Inward Remittances, which is deterrent to our business.
On receipt of this information, the inputs will be sent to FAITH for taking up with the concerned authorities.
This may kindly be treated as most urgent.
With best regards,
During one of the meetings at DGFT/Ministry of Commerce, exporters were discussing the issue of ECGC cover and bad debts where the buyers do not pay for the goods exported by them.
I took up this issue for the tourism sector that tour operators/ hoteliers etc. normally do not extend credits but at times during regular business, some credit is extended and we the Indian tour operators/hoteliers do not have any recourse to recover the outstanding amount if the foreign tour operator does not pay. I requested them to extend similar scheme to the tour operators also. The concerned officer asked us to submit a detailed letter and also giving reasons why we need this facility, based on which it will be considered.
Similarly, the exporters were talking about the high bank charges on the inward remittances which was quite positively received by the Government officials. I immediately mentioned that the same problem we in tourism sector are also facing where the charges by the bank on inward remittances or the payment through credit cards are very high. The bank charge is actually hurting business because overall margins in tourism sector have already shrunk to the concerned authorities including Department of Financial Services and Reserve Bank of India.
May I request you to please have some information gathered on this and have it sent to FAITH at your earliest convenience. I believe these steps will be beneficial to tour operators.
Thanks & regards,
SARAB JIT SINGH
VICE CHAIRMAN – FAITH