Due to the COVID-19 pandemic – the Indian hotel industry has a taken a hit of over Rs 1.30 lakh crore in revenue for the fiscal year 2020-21, as told by the Federation of Hotel & Restaurant Associations of India (FHRAI) on Sunday.
FHRAI said that they have submitted a representation asking for immediate help from the Prime Minister to save the hospitality sector from collapsing.
"The Indian hotel industry's total revenue in FY2019-20 stood at Rs 1.82 lakh crore. As per our estimates, in FY2020-21, approximately 75 per cent of the industry's revenues got wiped off. That is more than Rs 1.30 lakh crore revenue hit," the FHRAI said in a statement.
The statement further continued saying “The businesses are steadily closing and non-performing assets (NPAs) are rising.”
Gurbaxish Singh Kohli, Vice-President of FHRAI said – since the beginning of Coronavirus pandemic from March 2020. The hospitality industry has been struggling to manage its statutory and capital expenditure obligations. Due to which repayment of loans with interest is impossible and if no step is taken immediately then the industry will collapse.
"We request the Government to offer a sector-specific policy which can mitigate all adverse financial impact including debt obligations accrued or to be accrued towards banks, financial institutions or any other entities, in view of the current circumstances and its long-term repercussions," Kohli said.
“While FHRAI understands that the government has to prioritise, ignoring the industry even now will push it to the point of no return. Without wasting any more time, the government should make necessary special provisions to waive statutory charges for the hospitality sector,” he added further.
Pradeep Shetty, who is the Jt Honorary Secretary of FHRAI requested to the government that working capital support with a low rate of interest from the government will help the industry.
"We also request the government to compensate employees engaged in the industry and their families for the loss of income," he said.