The World Travel & Tourism Council (WTTC) has urged the Indian government to co-ordinate a countrywide response to the Supreme Court ruling, which has banned the sale of alcohol within close proximity of highways in the country. The unintended consequences of this ban are that it will have a significantly negative effect on hotels and restaurants in this zone, and will curtail future job creating investment in the industry.
On 1 April 2017, the Indian Supreme Court passed a ruling which bans the sale of alcohol within 500 metres from a national or state highway, which will have a serious impact on businesses in the Travel & Tourism industry.
David Scowsill, President & CEO, WTTC, said: “While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian Government to reverse or amend the current ruling. I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those establishments affected.
The impact of the ban on drunk driving is impossible to measure, as businesses beyond the stipulated 500 meters will still be allowed to sell alcohol. Businesses within the proposed banned distance, including many hotels, restaurants and bars that serve tourists, will lose customers and revenue. This not only means less income but also means that many people will lose their jobs as a direct result.”
Scowsill continued: “Travel & Tourism is an extremely important income stream within the country, the sector contributed INR14.1 trillion (USD208.9 billion) or 9.6% of India’s GDP in 2016 and supported over 40.3 million jobs, which is 9.3% of total employment in the country.
