E-Paper
Pandemic-hit HP tourism industry seeks govt help to emerge from crisis
Deprived of business during the peak season due to the lockdown, the pandemic-hit hospitality sector of Himachal Pradesh has sought help from the government to emerge from the impact of the Covid-19 crisis
Deprived of business during the peak season due to the lockdown, the pandemic-hit hospitality sector of Himachal Pradesh has sought help from the government to emerge from the impact of the Covid-19 crisis.
Tourism economy in Himachal amounts to ₹17,000 crore and contributes to 9% of the state’s gross domestic product (GDP). According to conservative estimates, the hospitality industry has borne over ₹1,500 crore losses since the lockdown was imposed in state while more than two lakh persons employed in the hotel industry have gone jobless.
After the lockdown was imposed last year, the tourism sector was hopeful of making up for the losses this summer. The peak tour season for Himachal starts in April and end in June but the surge in second wave of Covid forced the government to impose state-wide lockdown.
“The three-month summer tourist season plays a big role in sustainability of the hotel industry. The tourism industry lost complete summer season last year due to the pandemic and this year also, they lost almost 75% of the major tourist season,” says Himachal Pradesh Tourist Stakeholders Association president MK Seth, adding, “Our working capital has completely exhausted. Tourism in Himachal has come to a grinding halt since March 2021.”
Hoteliers are worried about repaying monthly instalments of the loans. The Reserve Bank of India has brought the scheme of restructuring of loans with a condition that loan account should be standard as on March 31, 2021.
The tourism industry remained closed for almost eight months last year due to the nationwide lockdown. This year again just before the tourist season, the second wave of Covid has compelled the hoteliers to keep their units closed due to no occupancy.
The RBI has brought Emergency Credit Line Guarantee Scheme 3.0 to provide relief to the tourism, hospitality and travel sector but majority of tourism stakeholders could not take the benefit of the scheme due to its stringent conditions.
The biggest hurdle in the scheme is the cut-off date of outstanding balance of loan taken as on February 29, 2020 that also with a condition that the account should not have default of more than 60 days as on February 2020.
Majority of the tourism units were compelled to take fresh loans past year to meet their running expanses of the units because there was no help extended to the industry by the government since last year.
The tourism sector has asked the government to make amendments by extending cut-off date to March 31, 2021 and to relax the condition of number of days of default of the EMI.
The state working capital interest subvention scheme is still awaited. Further, the hoteliers have asked the government to ease out restrictions for tourists.
