Kerala hotels association to close operations on rising input costs

The Kerala Hotels and Restaurants Association (KHRA), having a membership of 10,000 operators, has decided to shut operations after Onam.

The decision comes in the light of a recent hike in prices of essential items like vegetables and meat. G Sudheesh Kumar, president and Jose Mohan, secretary of the association, said around 1,000 hotels had already been shut and a similar number would close soon.

There is a unanimous opinion from the members of association that the, closure should be affected only after Onam, keeping in mind the public interests.

An executive committee meeting of the association held here urged the leadership at the Centre and the state to adopt immediate measures to regulate the prices of essential commodities. The association leaders have decided to meet the chief minister and other ministers in a couple of days and submit a memorandum, detailing the tough situation.  

They said the working cost had increased 100 -300 per cent during the last six-month period, yet the prices of food items could not be increased due to the public backlash. Added to this, the government had recently increased the base price of chicken from Rs 70 per kg to Rs 95, for enhancing the tax revenue.

In the open market chicken costs Rs 110-120 per kg, whereas beef costs Rs 180-200. Prices of fish have also increased manifold during the last 5-6 months. It is very hard to serve non-vegetarian items as the recent hike in prices is quite high, say association members. "There is no way of survival before us," said Azees, secretary, Ernakulam district unit of the association.

He told Business Standard that prices of items, including chicken, onion, ginger, green chilli, had increased 100-200 per cent in recent weeks making it tough to move on with the business.

Besides, there is a 50 per cent rise in labour cost during the last one year coupled with a supply shortage.The minimum wage is Rs 10,000 per month and labourers should be provided with food, accommodation and medical aid.

Even at this rate the supply of workers is very limited and most of the hotels are roping in workers from West Bengal, Assam and Bihar. Increase in building rent, price of LPG and electricity charges add to the woes of hoteliers. Azees said after Onam season, the association will take a decision on the exact date of closure.