Indian Market & Trends

MoT to make MDA scheme simpler, give higher budgets


Indian tourism service providers will be able to soon rejoice with several changes being planned to the Ministry of Tourism’s government’s Marketing Development Assistance (MDA) scheme that provides financial support for overseas promotion and publicity for government approved travel trade vendors such as hoteliers, travel agents, tour operators and tourist transport operators.

The suggestions were put forth by the International Association of Travel Operators (IATO) that has inbound operators across segments including incentives, MICE, leisure, FIT as member. IATO Vice President, Rajeev Kohli said that the ministry had accepted almost all suggestions put forth by the travel body.

Among the key changes, the Ministry has agreed to not holding travel service providers to an annual growth rate of 15%. Also, unlike earlier when vendors with turnover of under 15 crore were eligible for the scheme, now the the cut off limit has been increased to Rs. 20 crore.

The number of overseas trips has been cut to four from five though with a limit of Rs 2.5 lakh per trip as opposed to Rs 2 Lakh earlier. Agents can undertake the four trips for any combination of sales or study tours, exhibitions etc. As earlier, Air India will be the designated airline for the MDA scheme.

Musafir Namah Bureau




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