Key points:
- Federation of Hotel and Restaurant Associations of India (FHRAI) along with Hotel and Restaurant Association of Western India (HRAWI) demand relaxation of the curbs for restaurants.
- Associations have said that many businesses will soon shut down permanently, it will lead to huge job losses.
- Along with relaxation of night curfew timings for restaurants,associations have also asked for waiver of statutory payments, including excise license fees and property tax, among others.
Amid the rising number of Covid-19 cases, there is a concern of imposing a second complete lockdown. Federation of Hotel and Restaurant Associations of India (FHRAI) along with Hotel and Restaurant Association of Western India (HRAWI) has demanded relaxation of the curbs for restaurants.
Actual business for a restaurant starts at 8pm and the night curfew from 8pm is as good as closing down the businesses, said the association. They have also said that many businesses will soon shut down permanently and it will lead to huge job losses. Along with the relaxation of night curfew timings for restaurants, the associations have also asked for a waiver of statutory payments, including excise license fees and property tax, among others.
The associations, in a letter to Maha CM Uddhav Thackeray, have said that, “Since October 2020, the restaurants in Maharashtra were allowed to operate under restrictions (at 50% capacity with time restrictions). But resurgence of pandemic at regular intervals leading to more severe restrictions have shattered all its revival efforts. The rental and salary expenses, servicing of debts taken earlier, negative cash flows and the statutory payment obligations have made hospitality the most unviable and unsustainable business under the present situation.”
Gurbaxish Singh Kohli, Vice-President, FHRAI said, “The impact of Covid-19 is all pervasive in our economy but its impact on the hospitality industry has been extremely disruptive. The hospitality sector is the biggest causality of the Covid-19 pandemic, the first one to fall and the last to recover. The industry had lost all its business after the lockdown came into effect.”
“As of today, 30% of hotels and restaurants in the country have shut down permanently due to financial losses. Over 20% of hotels and restaurants haven’t opened fully after the lockdown and the remaining 50% continue to run in losses, and revenues are below 50% of the pre-Covid levels. Tourism and hospitality account for close to 10% of India’s GDP and support around 90 million jobs. Under the present conditions, non-viability will lead to the closure of hotel and restaurant business in the state and massive job losses.”
