Published on : Friday, June 11, 2021
Senior delegates of India’s apex Hospitality Association – Federation of Hotel & Restaurant Associations of India (FHRAI) met the Tourism MinisterPrahlad Singh Patel and Minister of MSME Nitin Gadkari to discuss the deteriorating state of the Hospitality and Tourism industry and to recommend immediate fiscal measures to save it from imminent collapse.
The Association submitted representations suggesting key policy changes for the revival of the sector. The FHRAI was represented by Gurbaxish Singh Kohli, Pradeep Shetty, D V S Somaraju and Narendra Somany. The delegates apprised the Ministers on the dismal state of the industry on account to the two lockdowns.
The Association representatives also met and submitted the representation to Arvind Singh, Secretary, Ministry of Tourism and Rakesh Kumar Verma, Jt. Secretary, Ministry of Tourism. The Association recently also held a virtual meeting with the Principal Economic Advisor, Ministry of Finance – Sanjeev Sanyal with recommendations specific to the Hospitality sector.
The Tourism Ministry acknowledged the industry’s concerns and assured that necessary help will be extended to support the hospitality industry. It has also reassured that sector’s issues and recommendations offered by the FHRAI delegates will be raised with the Prime Minister and the Finance Ministry.
The Tourism Ministry is closely following up with the Ministry of Finance on the SEIS scheme and other concerns will be addressed on a one-on-one basis with the respective Ministries. The MSME Minister too has expressed that they are aware of the hardships the industry is going through and that will look into the industry’s concerns favourably with regards to the ECLGS scheme and the RBI’s Resolution Framework. Sanyal too has expressed that they will consider the industry’s demands favourably and at the earliest.
The industry’s total revenue in FY 2019-20 stood at Rs.1.82 lakh Cr and as per our estimates, in FY 2020-21, approximately 75 per cent of the industry’s revenues got wiped off. That is more than Rs.1.30 lakh Cr revenue hit for the Indian economy. The total loan outstanding to the hospitality industry is over Rs.60,000 Cr today.