FHRAI wants PM to help hospitality industry

Seeking support, the apex body of the hotels and restaurants said the dismal performance of the sector during the first two waves of the pandemic and the possible impact the third wave was causing havoc to the industry

PRAVASISAMWAD.COM

The Federation of Hotel & Restaurant Association of India (FHRAI) has submitted a representation to Prime Minister Narendra Modi asking for a sector-specific special relief package. Seeking support, the ailing hospitality industry of the country, the apex body of the hotels and restaurants said the dismal performance of the sector during the first two waves of the pandemic and the possible impact the third wave was causing havoc to the industry.

In the letter, which is copied to Union Finance Minister, Nirmala Sitharaman, and Union Tourism Minister, G Kishan Reddy, FHRAI stated that the Indian hospitality industry had reported losses of a whopping sum of INR 1.40 lakh crores, and around 50 million jobs were lost due to the Covid-19 pandemic.

“The financial losses to the industry from these two waves were so severe that around 30 per cent of hotels and restaurants in the country were shut down permanently and the remaining establishments continue to run in losses even today”

— Gurbaxish Singh Kohli, Vice President of FHRAI

Gurbaxish Singh Kohli, Vice President of FHRAI mentioned further mentioned that as per industry estimate, the financial losses to the industry from these two waves were so severe that around 30 per cent of hotels and restaurants in the country were shut down permanently and the remaining establishments continue to run in losses even today.

“The successive waves and continued disruptions have created a volatile economic environment in the sector making survival the key focus. Being a highly capital-intensive industry, the hospitality sector has to manage a lot of overhead expenses even while it is not functioning. By availing of the credit facility provided by the Government as part of the relief packages and also by infusing its own capital, the sector tried hard to tide over the crisis and stay afloat. Taking due cognizance of the unparalleled situation in the tourism and hospitality sector as the ‘most distressed sector due to Covid -19’, kindly provide a sector-specific special relief package and enable the sector to survive,”

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