The hospitality, food and beverage and tourism industries as well as sub-sectors have sought government intervention and made a representation to the Prime Minister of India to offer support to the sector to withstand the challenges posed by the current Covid –19 crises.
Rakesh Kumar, chairman, India Exposition Mart Ltd, said, “Hospitality industry supports the travel, tourism, and food and beverage industry and contributes Rs 5 lakh crore in the Indian economy engaging a sizeable number of people from MSME sector. The hospitality, food and beverage and tourism industry has been severely hit and is witnessing a massive distress due to the lockdown.”
He further stated that the hospitality industry had submitted a detailed representation to the Prime Minister of India which included the following points -
6 per cent interest subvention to the entire hospitality sub-sector.
Moratorium of EMI payments for loans and working capital from financial institutions (both banking and non-banking).
Deferment of all statutory dues such as advance tax payments, PF, ESIC, Customs duties at the Central government level or at any state government level, the excise fees, taxes, bank guarantees and security deposits and deferment of all renewals, across the sub-sectors supporting tourism, travel, hospitality and food and beverage industries.
Waiving of electricity and water charges for the next six months or charged on the basis of actual consumption (not as per load).
Wages compensation for the employees.
Speedy GST refund.
Auto-renewal of 70 plus licences which a hotel must acquire/renew for 2 years at no cost.
Amendment in clauses relating to EPCG.
Waiver of bar licence fee and reduction in excise duty linked to consumption.
Offering a one-time, mobilisation fund/advance to manufacturing organisations from sub-sectors of hospitality that could re-tool and start producing to meet the demands of the healthcare sector for Covid-19.
Hari Dadoo, president, India International Hospitality Expo, said, “We have requested authorities to consider 50 per cent wage compensation for the employees in the sector and also the limit of ESIC/PF compensation for employees earning Rs 15,000 per month to be enhanced to Rs 30,000 per month and these facilities should be available for both industrial units and commercial establishments.”
Anil Malhotra, president, Hotel and Restaurant Equipment Manufacturers of India (HOTREMAI ), said, “The sector is witnessing a huge cash crunch and speedy refund of the pending GST will be of great help to everyone, he further said, that CGST/SGST to be released immediately and in-case of an error, an ad-hoc payment of 75 per cent may be released. The entire GST should be at the rational rate of 3 per cent for the entire hospitality sector should be declared.”
Amarjit Singh Ahuja, founder and president, Purchasing Professional Forum of India (PPFI) said, “In this period of the lockdown it is important that the government reduces excise duties and waives-off the burden of renewing 70-plus licences that the hotels have to procure/renew every year, for the next two years.”
Rajat Pandhi, president, Association of Resource Companies for the Hospitality Industry of India (ARCHII), said, “Due to loss in revenues, almost all businesses from our sectors (and allied sectors) are drying up their working capital and with the onus of salaries, EMIs, advance tax, PF, ESIC, GST, excise and licences, this industry needs immediate support from the Government of India to protect this employment generating sector.”
Sanjay Khullar, vice-chairman, Seasons Group, said, “Due to loss in revenues almost all business from our sector (catering and hotels) has impacted.”