Indian hospitality industry faces loss of over INR 1.30 crore lakh due to COVID-19 pandemic: FHRAI
The Federation of Hotel and Restaurant Associations of India (FHRAI) in a statement released on Sunday May 30, 2021 said that the Indian hotel industry, during the coronavirus (COVID-19) pandemic, suffered a loss of income of more than INR 1.30 lakh crore. This was calculated for the 2020-21 fiscal year because the pandemic had a severe impact on the sector.
Details on the matter were submitted by the body during a meeting with Prime Minister Narendra Modi and other cabinet ministers, with the aim of receiving immediate support from the central government. The motive was also to help the industry collapse in these difficult times.
The statement shared by the body read: “The total turnover of the Indian hotel industry in fiscal year 2019-20 was Rs 1.82 lakh crore. According to our estimates, during Fiscal year 2020-21, around 75% of the industry’s revenue has been wiped out. That’s over Rs 1.30 crore in revenue has been hit, âadding that several companies in the sector have closed their doors due to crisis.
Sharing more information, FHRAI Vice President Gurbaxish Singh Kohli said the effect had been visible since March 2020 as the industry struggled to manage both statutory obligations and capital spending. Businesses are struggling to repay their loans. Also, paying interest in this scenario is impossible because the surge effect affected the industry in the worst possible way.
Kohli added, âWithout a moratorium on IMEs and interest payments, the industry will collapse completely. We ask the government to offer a specific sector policy that can mitigate any negative financial impact, including debt obligations accumulated or to be accumulated towards banks, institutions or any other entity, taking into account the current circumstances and its repercussions to long term. Without wasting any more time, the government should make the necessary special arrangements to remove statutory charges for the hospitality sector. Kohli said.
The body also suggested that the government should offer exemption from excise license fees, electricity and water fees, property tax, etc. The organization said ignoring the industry during this time would ensure that many companies do not come back. FHRAI Vice President Surendra Kumar Jaiswal said: âIn addition to the extension of the three-year moratorium, the industry will need full loan interest relief from March 2020 until that business be normalized. “
On top of that, demands have been made to compensate workers in the sector who lost their jobs during the pandemic effect, as their families suffered the brunt of the loss of jobs and income.