Odisha hotel industry seeks bailout package from Centre's economic package

HARO has urged both the Centre and the state government to enable hotels to collect GST and use the same as working capital for next six months.
For representational purposes. (Photo | Pexels)
For representational purposes. (Photo | Pexels)

BHUBANESWAR: Resentment is brewing among the hoteliers, tour operators and holiday planners as no special economic package has been announced by the Centre for the tourism sector yet.

Pointing out that the tourism industry has been the worst hit and will remain affected even for about six months after the lockdown is declared open, co-chairman of FICCI National Tourism Council JK Mohanty said Union Finance Minister Nirmala Sitharaman seems to have ignored the travel, tourism and hospitality sector from her bailout packages.

“People will not travel due to scare of the infectious disease and hotel rooms will remain empty. The hotel industry is highly capital intensive. Empty rooms means huge business loss for which hoteliers will face a herculean task for the repayment of EMIs to the banks and financial institutions, payment of salary to staff and other statutory dues,” he said.

The hoteliers’ associations in the State have demanded the Centre a minimum of one-year moratorium on all working capital, principal, interest payments, loans and overdrafts besides soft loan at concessional rate of interest upto four years which they believe will help them sustain and revive. The Hotel and Restaurant Association of Odisha (HRAO) has urged both the Centre and the State Government to enable hotels to collect GST and use the same as working capital for next six months.

In a memorandum sent to Prime Minister Narendra Modi, the HRAO has appealed to relook at the tourism sector for its survival as it engages more than five crore people and has potential of doubling the employment.

“The PM had once told if every Indian visits 15 domestic tourist destinations, there would be huge demand for hotels and other services in the country. The hospitality and tourism sector had always looked upon the Government and was expecting the financial support from the announcements made by the Finance Minister,” Mohanty maintained.

Related Stories

No stories found.

The New Indian Express