The travel and hospitality industry has faced a massive blow due to the coronavirus pandemic. Restaurants, hotels, airlines, and many other industries are facing the brunt of the lockdown. With inter-state and international borders closed for a prolonged period, the revenue earnings of the hotels have dropped drastically. A luxury resort in Kerala even converted its 500 feet swimming pool into a fish pond to recover the losses. Ever since the nationwide lockdown, most of the hotels in India had been with almost zero income for a period of nearly five months. The hotel sector in India is one of the worst-hit segments in the economy.
Hyatt Regency Mumbai Shut Down Until Further Notice
The waves of the pandemic completely rocked the travel and tourism industry. While many hotels and restaurants were hoping for a road to recovery in 2021, the second gave them an even harder blow. It is therefore, not surprising to learn that many hotels and restaurants are shutting down their operations. One of the biggest names that have suffered the most losses is Hyatt Regency Mumbai. The five-star hotel has decided to shut down until further notice as the hotel owner is not able to support the operations.
Hotel Industry Has Shrunk By 47 Percent
According to the recent data of National Statistical Office (NSO), the Indian hotel industry has shrunk by 47 percent in the April-June quarter. Two year ago, the sector had witnessed a growth of 3.5 percent during the same period. The tourism industry had contributed nearly 9 percent to India’s GDP in 2019 and created about 87 million jobs.
Measures Government Should Take To Help The Industry Recover
When the second wave was at its peak in April and May, the Federation of Hotel and Restaurant Associations of India (FHRAI), sought immediate help from the government of Prime Minister Narendra Modi. It was a desperate appeal for aid to save the hospitality sector from imminent collapse. Here are a few ways government can help the industry recover.
1. Offer Financial Assistance To The Workforce
The government should provide financial assistance to ensure the remuneration of employees, owners, and their families. They should support the hospitality businesses with a bailout for rent and salaries. In addition, the workforce should be provided with health insurance in case of infection and consequent loss of income.
2. Ease The Water & Electricity Bills
To help the hotel owners, the government should go easy on the water and electricity bills so that the owners who are already running losses can pay their staff instead of the bills.
3. Waive The Statutory Fees & Property Taxes
The government should waive all statutory fees and taxes. Reducing statutory fees and property tax can help the landlords. Ignoring the hospitality industry even now will push it to the point of no return.
Also read: Shimla’s Favourite Indian Coffee House Might Shut Down After Facing Losses Amid Pandemic
About 20-25% of hotels in India are facing the risk of permanent closure and it’s high time the government stands in support of the industry.