70% of hotels & restaurants could close in 45 days : FHRAI
The Hospitality sector has been hit hard and FHRAI has bad news. The Federation of Hotel and Restaurant Associations of India has warned that approximately 70% of restaurants and hotels could close within the next 1.5 months with the Covid-19 pandemic crippling the travel sector. With absolutely no relief from the government, the industry stares at bankruptcy, job losses, and definite closures of major establishments across India, said the organization. There are approximately 53,000 hotels and 70 lakh restaurants in the organised category and about 2.3 crore restaurants in the unorganized sector in India.
“With not even the slightest reassurance, let alone any stimulus or relief package from the government, the industry is looking at a major catastrophe including massive job loss, bankrupt enterprises and definite closure of at least 70% of hospitality establishments across the country,” the 1955-founded FHRAI said in a statement while urgently seeking a stimulus package to avoid such large scale shutdowns.
“The entire industry is confused, hysterical and in disbelief after listening to the FM’s speech. There was no mention of hospitality and tourism at all. The hospitality and tourism industry generates close to Rs 17 lakh crore contributing roughly 10% of India’s GDP and supports over 4.3 crore jobs translating to almost 9% of total employment. The government has chosen to completely ignore us yet again,” pointed Gurbaxish Singh Kohli, FHRAI VP and president of Hotel and Restaurant Association of Western India (HRAWI).