- March 24, 2020 / 5 min readFHRAI demanded a stimulus package from the government to be given to the hospitality industry, which is reeling under huge losses due to the outbreak
On Thursday FHRAI (The Federation of Hotel & Restaurant Associations of India) demanded a stimulus package from the government to be given to the hospitality industry, which is reeling under huge losses due to the outbreak.
FHRAI Vice-President Gurbaxish Singh Kohli said in a statement that "Almost all tourism verticals have been severely impacted by the crisis. However, it is the hospitality industry that has been hit the most. Our members have reported cancellations reaching a critical stage of 90 percent."
He also said that advance bookings are also of no support this time as there is uncertainty in containing this virus spread globally.
The hospitality sector is highly labour intensive and employs a large chunk of people. "The industry employs the largest workforce and hoteliers have a responsibility towards taking care of their employees. This includes ensuring that they are paid on time as well as their well-being, especially now in the face of the pandemic," FHRAI Joint Honorary Secretary Pradeep Shetty told ET.
Apart from this, what industry is essentially facing is the lack of working capital. “The working capital is draining rapidly, which is hit by almost 90 percent for both larger establishments and budget hotels and restaurants. Paying taxes including advance tax and GST is now straining the liquidity and is making it extremely difficult to manage the day to day operations,” Kohli added.
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