Hospitality body says new Maharashtra Covid rules to hurt hotels, eateries

Urges state to allow operations till 11 p.m. at least as against 10 p.m. currently

Maharashtra government’s latest regulation for hotels and restaurants that mandates them to close down after 10pm amid the rising number of Covid-19 cases, will have an adverse impact on their overall operations and will “debilitate the sector,” the apex body Hotel and Restaurant Association of Western India (HRAWI) said in a statement.

It has requested the state government to allow it to operate at least till 11 p.m. “Hotels and restaurants had just started to return to normalcy after about 15 months of restricted operations. After the two successive lockdowns, hotels and restaurants have infused significant capital to reopen and restart operations. Presently there is considerable fear and anxiety in the sector. The effects of the new Covid wave will debilitate the hospitality industry,” HRAWI said on Sunday.

The sector, as pointed out by the apex body, has put in a lot of effort to bring back workers. It is already finding it tough to repay loans taken to restart operations after the lockdowns.

According to HRAWI, “The State Govt. will have to support us this time around if a disaster is to be averted.  It should immediately come out with a direct salary transfer scheme for hospitality employees in addition to waiving off all statutory fees, taxes and utility bills.”  

It has also asked the Government to come up with a credit extension scheme or some kind of moratorium to protect the owners and operators from credit defaults owing to the third wave.

“The situation is deeply distressing, to say the least. While we stand behind the state Govt and support the fight against Covid without reservations, the hospitality industry will not be able to fend the challenge off on its own,” said Pradeep Shetty, senior vice president, HRAWI.

The hotels and restaurants, he pointed out, have been operating under various restrictions,  be it in terms of timing or capacity, since the pandemic started in March 2020 or the lockdown and restriction induced losses. They peg the losses to the tune of 80 per cent. The industry has suffered massive losses with many hotels and restaurants facing closure and bankruptcy, he said.

Over 35 per cent of the hotels and restaurants have closed down in the last two years. Such restrictions have a long-term impact on trade, industry and their effect on the economy will be harmful.

“This wave has rendered us locked in even without a literal lockdown as the hotels and restaurants are deserted. The Government will have to step in and lend us a supporting hand this time around. The industry will be permanently debilitated if urgent relief measures are not forthcoming,” said Shetty.