The Covid-19 pandemic disruptions due to travel restrictions and country-wide lockdown have brought the entire tourism industry to a standstill, and unlike other sectors, the tourism sector is expected to recover slowly, especially leisure tourism. This will have a direct impact on states/UTs like Uttarakhand, Rajasthan, Kerala, Himachal Pradesh, Goa, Sikkim and other north eastern states where tourism is the key source of revenue to the state. Revised OECD estimates on the Covid-19 impact point to 60 percent decline in international tourism in 2020. This could rise to 80 percent if recovery is delayed until December. However, with the upliftment of lockdown, the tourism sector of India is likely to grow at a faster pace, as a result of opening of economy after a long lockdown. The outlook for the industry is positive in the medium term.