Hanging by a Thread
Hospitality Talk|June - July 2020
Gurbaxish Singh Kohli, Vice President, FHRAI and President, Hotel and Restaurant Association of Western India (HRAWI) dwells on how sustenance has become difficult for the industry.
Gurbaxish Singh Kohli
Hanging by a Thread

As the lockdown has been extended and no concrete relief measures have been given to the industry, what does your calculation say as far as damage is concerned?

It is extremely unfortunate that the governments at the Centre as well as in the State have not given the industry any indication of support. We have been submitting various recommendations over a period of time to the government for a stimulus package and are hanging by a thin thread hoping for some relief which has not yet even been hinted. However, if nothing comes through, the industry is doomed. I’m sure the government knows this; therefore, the industry is very confused at the inaction. This is the second month since all hotels and restaurants have been shut. There is no revenue but there are outgoings and this has already drained us out. In the next few months, at least 30 per cent of the total establishments may shut down. The industry is staring at Rs 1.6 trillion in losses in the first half of 2020. The hospitality and tourism industry contributes nearly 10 per cent to the Indian GDP of which restaurants contribute almost 2.5 per cent. If the situation does not change and in the absence or further delay of timely impetus and stimulus for the better, the hospitality industry will completely collapse.

What changes would this industry see post lockdown?

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