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2nd lockdown spells doom for hotels & restaurants in Maharashtra
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Saturday, 29 May, 2021, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Hotel and Restaurant Association of Western India (HRAWI) has submitted a representation to Chief Minister Uddhav Thackeray for granting concessions to the hospitality industry in the wake of the second pandemic wave and the resulting lockdown.
The association has requested that hotels, restaurants and bars be allowed to re-open with permission to operate the restaurants and bars till at least 11pm with dine-in services.
It has also pleaded for waiver of various statutory charges including property tax and minimum water charges, electricity bills along with full relief in excise fees. HRAWI has also asked for SGST be temporarily waived off and that re-payment of loans, bank EMIs, and interest deferred for a period of 12 months.
Sherry Bhatia, President, HRAWI, said, “Government’s stringent lockdown order has severely impacted and affected the hospitality Industry. Businesses of a majority of hotels, restaurants and bars have come to a complete standstill making even survival a challenge. Of the approximately 2 lakh restaurants in the State, almost 50 per cent have permanently shut. Post the seven month-long lockdown last year, loss of employment in the sector has risen up to 50 per cent. Hospitality industry is at a tipping point and needs immediate Government intervention. We request to allow us to operate till at least 11pm with dine-in services. Hotels and restaurants will continue to operate while strictly adhering to the SOPs. To give a boost to business in pandemic times, the Government should waive off state GST until the situation normalises.”
The association has requested that the existing moratorium to be extended through a notification for an additional 6 months. The HRAWI has previously appealed to Government to compensate employees engaged in the industry and their families for the loss of income, and also support hoteliers and restaurateurs by waiving off all statutory fees, taxes and utility bills.
Pradeep Shetty, senior vice president, HRAWI, said, “At present the only revenue for a restaurant is coming through home delivery services which is barely 8 to 10 per cent of our actual business. This arrangement is not sustainable since restaurants have infrastructure and fixed costs. Under the circumstances the industry will require a waiver on payment of FL3 license fees and we request for facility in payment of excise fees by way of instalment. We also request for waiver in Property tax, and Energy and Water charges should be billed on the basis of actual consumption. This will only help us cut our losses.”
With regards to financial matters, the HRAWI has cited Kerala where its Government has asked banks in the State to stop all revenue recovery and property attachment proceedings for the next couple of months. The Government of Kerala has also directed the Kerala State Electricity Board (KSEB) and Kerala Water Authority (KWA) to stop collecting penalties and dues of consumers for next few months.
“The additional debt burden on business due to continued lockdown restrictions has brought upon coercive action, threats of NPAs and likelihood of business establishments shutting down thereby causing immense revenue and job losses. Government should also direct banks and statutory authorities to stop revenue recoveries till such time that the industry is allowed to function as usual. Government should announce soft loans to all hospitality establishments to restart the operations post lockdown,” added Shetty.
“We recommend that open spaces and terraces be used for restaurants to serve food to compensate for the loss of licensed space utilisation. We also request that 100 guests be allowed to participate in a weddings or meetings to reduce loss of revenue. Many hotels have large banquet halls where larger gatherings could be held with all social distancing norms. We assure that the industry will abide by all restrictions and follow SOPs prescribed,” concluded Bhatia.
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