TOURISM

INDUSTRY
Rochana Yenigalla
22021141090
 Status of Labor in the Tourism Industry

No.of Workers No.of Companies

➢Tourism constitutes almost 3% of India's GDP.
➢Approximately 60 million people in 2021.
➢This includes both direct and indirect employment in
the sector.
➢A major source of employment for many people in the
country.
➢Includes hotels, travel agencies, tour operators,
transportation companies, and many others.
➢The tourism industry in India is highly fragmented,
with many small and medium-sized enterprises
operating alongside larger companies.
➢Approximately 2.4 million registered tourism
companies.

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Strikes Done By Indian Tourism Industry

Hotels Association Calls Strike on 29th June’2015

➢ Kerala hotel and restaurant association has called a one-day
a strike against the government move to unify the rates of
food items in hotels across the state.
➢ The association stated, “When the government is not able to
control the price of raw materials, it is highly objectionable
that it is trying to unify the price of food items in hotels and
restaurants”.

Leading Restaurants in TN Down Shutters to Protest

Steep GST Levy on 30th May’2017
➢ The 24-hour shutdown has been called by The Tamil Nadu
Hotels Association and The Chennai Hotels Association
after the Centre had proposed GST ranging between 5% and
18%.

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 Union Budget
In the Union Budget 2022-23:

• Rs. 2,400 crore has been allocated to

the Ministry of Tourism which is 18.42
%higher than the allocation for FY
2021-22.
• Rs. 1,181.30 crore is allocated for the
Swadesh Darshan Scheme.
• Rs. 235 crore for the Pilgrimage
Rejuvenation and Spiritual and
Heritage Augmentation Drive
(PRASHAD) Scheme.
 Trade Unions
➢ Indian Tourism and Hospitality Congress (IHTC)
➢ National Council for Hotel Management and
Catering Technology Employees Union
(NCHMCTEU)
➢ All India Federation of Hotel and Restaurant
Associations (AIFHRA)
➢ Hotel and Restaurant Employees Union (HREU)
➢ Indian Hotel and Restaurant Association (IHRA)
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➢ All India Tourism and Hospitality Employees
Association (AITHEA)
➢ Tourism and Hospitality Employees Association
(THEA)
➢ Hotel and Restaurant Employees' International
Union (HREIU)
➢ Hotel Employees Federation of India (HEFI)
➢ Hospitality and Allied Workers' Union (HAWU)
 Labour Laws
Tourism Industry

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The Minimum Wages Act, 1948

This act sets the

minimum wage that an
employer must pay to
an employee for their
work.
The Payment of Wages Act, 1936

This act requires

employers to pay
employees their wages
on time and in a manner
that is prescribed by
law.
The Payment of Gratuity Act, 1972

This act provides for the

payment of gratuity (a form
of retirement benefit) to
employees who have
completed at least five
years of service with an
organization.
The Employees' State Insurance Act,
1948

This act provides for the

establishment of a system
of health insurance for
employees in certain
industries, including the
tourism industry.
The Employees' Provident Funds and
Miscellaneous Provisions Act,
1952

This act requires

employers to contribute to
a provident fund (a
retirement savings plan) on
behalf of their employees.
The Industrial Disputes Act, 1947

This act provides for the

settlement of industrial
disputes through
conciliation, arbitration,
and adjudication.
The Industrial Disputes Act, 1947

• The Workmen’s Compensation Act,

1923
• Indian Trade Unions Act, 1926
• The Weekly Holidays Act, 1936
• Employer’s Liability Act, 1938
• The Maternity Benefit Act, 1961
• Payment of Bonus Act, 1965
• Equal Remuneration Act, 1976
• The Inter-State Migrant Workmen
Act, 1979
 “
Present IR Scenarios
in Indian Tourism
Industry

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➢ In general, the industry is known for having a relatively informal and flexible labor market,
with a high degree of informality and precarious employment. Many workers in the industry,
particularly in the informal sector, may not have formal contracts or benefits, and may not be
protected by labor laws.
➢ However, there are also more formalized sectors of the industry, such as hotels and resorts,
where workers may have more stable employment and better working conditions. In these
sectors, industrial relations may be governed by collective bargaining agreements and other
labor laws.
➢ Overall, the industrial relations scenario in the Indian tourism industry is shaped by a range
of factors, including the size and type of the company, the sector in which it operates, and
the specific laws and regulations that apply.

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Emerging Issues
in Tourism
Industry
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➢ Sustainability
➢ Overcrowding
➢ Security and Safety
➢ Terrorism
➢ Technology
➢ Political Instability

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Role of IR
Manager

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 Managing and improving the relationship between the organization and
its employees.
 Handling issues related to wages, benefits, working conditions, and
labour relations.
 Responsible for negotiating and managing collective bargaining
agreements with labour unions, mediating disputes between employees
and management, and implementing employee relations programs.
 Involved in creating and implementing policies and procedures,
developing and maintaining positive relationships with stakeholders, and
representing the organization in negotiations with government agencies
and other external organizations.

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Possibile Reforms in the Tourism
Industry

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Encouraging responsible Improving accessibility Promoting cultural
tourism exchange

Developing sustainable Strengthening local Promoting education and

tourism infrastructure economies awareness

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Latest
News
Articles

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➢ In July 2021, the Tamil Nadu state government decided to
implement an integrated mega tourism plan, which included new
lighting arrangements, improving roads leading to tourist spots,
spiritual places and adventure tourism spots. It also includes
unveiling a new tourism policy, establishing more hotels, resorts,
and convention centres and increasing contribution of public and
private sectors in the tourism sector.
➢ In July 2021, Andhra Pradesh Tourism Authority urged
stakeholders in the tourism sector in the state to register with the
Andhra Pradesh Tourism under the Tourism Trade Registration
and Facilitation Guidelines 2020.

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THANK YOU!

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