In FY2020-21, the hospitality assiduity witnessed a decline of 75 percent profit when compared to the former financial time.
While opining on the critical situation of the hospitality assiduity amid the recent swell in Covid-19 cases, Suresh Nanda Claridges Group of Hotels has said that the assiduity will bounce back formerly restrictions on movements are eased. The hospitality industry was on the verge of rebounding until a rise in Covid-19 cases and recently assessed transportation restrictions forced it back into crisis mode.
Lately, several hospitality assiduity bodies including the FHRAI (Federation of Hotel & Restaurant Association of India), have asked PM Modi for immediate financial support amid severe impact. The assiduity will bounce back as it has come flexible from the once one-time experience. We still need quick government assistance in the shape of packages,” Suresh Nanda adds.
Since the shutdown began, 30 percent of hotels and cafés around the country have closed permanently owing to financial losses, with another 20% still shuttered. he says. The remaining 50 percent continue to run in losses and earnings are below 30 percent of the pre-Covid situations. The fiscal institutions have marked the assiduity in the negative list,” said Pradeep Shetty, common clerk, FHRAI.
I completely agree with FHRAI’s requests, such as dormancy on EMIs and interest payments, waiver of statutory costs, property duty, water charges, electricity prices, and the excise license amount, for the time being, he says. Nanda also called the present time a pivotal juncture where the conduct of the government will decide the future of the assiduity, hence he requested immediate support of the government to the cash-starved assiduity.
Hospitality is one of the biggest employment-ferocious sectors supporting millions of people across India directly and laterally. During the alternate coronavirus surge, it has formerly again forced small and medium Hotels and cafes to shut their operations, forcing several thousands of people out of jobs. This time, some of them may find themselves in a no-return scenario. We need to preserve them so that they may recover before the situation returns to normal,” Suresh Nanda adds.
Still, he also said that when the current surge will fade down, the assiduity will bounce back as the businesses have acclimated to come more flexible and know how to cut costs while icing better services. Suresh Nanda Claridges is a global business leader and is the Chairman of the Claridges Group of Hotels.