Indian hospitality industry takes Rs 1.3 lakh cr revenue hit
Posted: Posted Date – 19:17, Sun – 16 May 21
New Delhi: India’s hospitality industry has hit over Rs 1.30 lakh crore in revenue for the financial year 2020-21 due to the impact of the COVID-19 pandemic, the Federation of Hotel and Restaurant Associations said on Sunday. Restaurants of India (FHRAI).
“The total revenue of the Indian hospitality industry in the financial year 2019-20 stood at Rs 1.82 lakh crore. By our estimates, in fiscal year 2020-21, around 75% of industry revenue was wiped out. This represents more than Rs 1.30 lakh crore in revenue,” the FHRAI said in a statement.
Businesses are regularly closing and non-performing assets (NPAs) are increasing, he added.
Since March 2020, the industry has struggled to manage its statutory obligations and capital expenditures. Repaying loans with interest is not only difficult but impossible in a tougher economic environment due to the current surge, said FHRAI Vice Chairman Gurbaxish Singh Kohli.
“We call on the government to come up with a sectoral policy that can mitigate any negative financial impact, including debts incurred or to be incurred to banks, financial institutions or any other entity, given the current circumstances and its long-term repercussions. ,” Kohli said.
“Without wasting any more time, the government should make the necessary special arrangements to remove statutory charges for the hospitality sector,” Kohli said.
The hospitality industry should be offered exemption from property tax, water charges, electricity charges and excise license fees for the lockdown period, he added.
Working capital support with a low interest rate from the government will help hotel establishments.
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