- May 19, 2020 / 4 min readThe tourism and hospitality industry has no cash inflow and does not expect any change in fortunes at leats till mid-2021.
Almost 70% of hotels and restaurants in India are staring at closure within the next 30 to 45 days, the Federation of Hotel and Restaurant Associations of India (FHRAI) warned on Monday after hospitality sector that is one of the worst sector hit by the corona pandemic failed to get any relief from the government.
India has about 53,000 hotels and 70 lakh restaurants in organised category and 2.3 crore restaurants in unorganised sector, said FHRAI.
“With not even the slightest reassurance, let alone any stimulus or relief package, from the government, the industry is looking at a major catastrophe including massive job loss, bankrupt enterprises and definite closure of at least 70% of hospitality establishments across the country,” shared FHRAI in a statement while urgently seeking a stimulus package to avoid such large scale shutdowns.
“The entire industry is confused, hysterical and in disbelief after listening to the FM’s speech. There was no mention of hospitality and tourism at all. The hospitality and tourism industry generates close to Rs 17 lakh crore contributing roughly 10% of India's GDP and supports over 4.3 crore jobs translating to almost 9% of total employment. The government has chosen to completely ignore us yet again,” pointed Gurbaxish Singh Kohli, FHRAI VP and president of Hotel and Restaurant Association of Western India (HRAWI).
The tourism and hospitality industry has no cash inflow and does not expect any change in fortunes at leats till mid-2021, depending on the treatment of the pandemic. “Apprehension in people’s minds coupled with a weakened economy will make getting back on our feet without government intervention impossible. Migrants constitute about 65% of hotel industry’s employment and roughly 60% of hotels in the country are in the economy or mid-market segments. With migrants making their way back home, if and when we do resume business, we won’t have the same kind of manpower we had. Our projections indicate that within the next 30 to 45 days as many as 70 per cent of hotels and restaurants put together will close down. The FHRAI calls upon the government for its urgent attention and plead to bail us from this eventuality,” Kohli said
Search for top Restaurant Suppliers in your city