“The hospitality industry will bounce back,” says Suresh Nanda – Chairman of Claridges Group of Hotels
In FY2020-21, the hospitality industry witnessed a decline of 75 percent revenue when compared to the previous fiscal year.
Suresh Nanda of the Claridges Group of Hotels commented on the critical situation facing the hospitality industry amid the recent explosion of Covid-19 cases and said that the industry will rebound once restrictions are lifted on movements. In the wake of the Covid-19 cases and newly imposed restrictions on movement, the sector entered a critical phase once again.”
In the wake of severe economic impact, several hospitality industry bodies, including the FHRAI (Federation of Hotel & Restaurant Association of India), have asked PM Modi for immediate fiscal support. “The industry will rebound from the past year’s experience, as it has become resilient.”. “We need immediate support from the government in the form of packages,” says Suresh Nanda.
Thirty percent of hotels and restaurants in the country have permanently closed due to financial losses, and about twenty percent haven’t reopened. The remaining 50 percent continues to lose money and revenues are below 30 percent of pre-Covid levels. Financial institutions have placed the industry on the negative list,” said Pradeep Shetty, joint secretary of the FHRAI.
“I completely agree with the demands of FHRAI such as granting a moratorium on EMIs and interest payments, waiver of statutory charges, property tax, water charges, electricity charges, the excise license fee for the time being,” he says. He also explained that the present time is a crucial juncture in the history of the industry, and therefore urged the government to support the cash-starved industry immediately.
The hospitality sector is one of the most employment-intensive sectors in India, directly and indirectly supporting millions of people. The second Coronavirus wave has once again forced hotel and restaurant owners to shut down their operations, resulting in the loss of several thousand jobs. There is a possibility some of them will face a never-returning situation this time. I believe we need to save them so that they can bounce back once the situation becomes normal,” says Suresh Nanda.
He also remarked that when the current wave fades away, “the industry will bounce back as businesses have learned to become more resilient and know how to cut costs while providing better services.”.
Suresh Nanda is a global business leader and is the Chairman of the Claridges Group of Hotels.