The Indian hotel industry has taken a hit of over Rs 1.30 lakh crore in revenue for financial year 2020-21 because of the impact of the Covid-19 pandemic, the Federation of Hotel & Restaurant Associations of India (FHRAI) said on Sunday.
The apex industry body said it has submitted a representation to the Prime Minister and a few other Union ministers urging immediate support from the government to save the hospitality sector from imminent collapse and has requested for several fiscal measures to bail them out.
“The Indian hotel industry’s total revenue in 2019-20 stood at Rs 1.82 lakh crore. According to our estimates, in 2020-21, around 75 per cent of the industry’s revenues got wiped off. That is more than Rs 1.30 lakh crore revenue hit,” the FHRAI said in a statement. The businesses are steadily closing and non-performing assets (NPAs) are rising, it added.
Since March 2020, the industry has been struggling to manage its statutory and capital expenditure obligations. Repayment of loans with interest is not just difficult but impossible under a more severe economic environment because of the present surge, FHRAI vice-president Gurbaxish Singh Kohli said.
Without a moratorium on EMIs and interest payments, the sector will completely crumble, he added.
“We request the government to offer a sector-specific policy which can mitigate all the adverse financial impacts, including debt obligations accrued or to be accrued towards banks, financial institutions or any other entities,” Kohi said.
