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Struggling to stay afloat amid lockdown, Amritsar’s hoteliers mulling to quit biz
Of these, at least two dozen hotels are already up for sale and around 50 other hotel owners are planning to follow suit, as per the hoteliers’ association.
With occupancy almost down to zero amid the pandemic-induced lockdown and the recurring expenses weighing heavy on the pocket, several hoteliers in Amritsar are mulling to quit the business.
Home to several tourist attractions such as Golden Temple, Partition Museum, Town Hall, Sadda Pind, War Memorial, Jallianwala Bagh, Attari-Wagah border, Durgiana Temple, Heritage Street, Ram Tirath Temple, Gobindgarh Fort and Pul Kanjri, Amritsar is considered to be the hub of tourism in Punjab and has around 700 hotels.
Of these, at least two dozen hotels are already up for sale and around 50 other hotel owners are planning to follow suit, as per the hoteliers’ association. Most of these hotels have already laid off several staff members and are working at 30 to 50% strength. But with no income, they are struggling to meet regular expenses, such as electricity and rent.
Surinder Singh, president of Federation of Hotel and Guest Houses Association, Amritsar, says, “At least 50 to 60 hoteliers in the city are eager to leave the trade. Nearly two dozen have already put up their hotels for sale, but no one wants to buy a sinking ship. These hoteliers are reeling under debt from banks and taxes imposed by the government. If the lockdown continues for some more time, we fear that many hoteliers may commit suicide like the farmers. Our association, at the national level, is planning to approach the Supreme Court demanding relaxations.”
AP Singh Chatha, president of the Amritsar Hotel and Restaurant Association (Ahara), said, “Four five-star hotels of our association have already shut their operations. Many members are under depression as there is zero occupancy in their hotels. Unable to pay taxes, they are being harassed by government officials. Heavy penalties are being imposed for late payment. Many who had taken hotels on lease have also left the business. Most of the hotels are running with 25 to 50% staff strength and their salaries have also been decreased to 50%.”
A hotelier, wishing to be anonymous, said, “With no customers, I am unable to pay the installments of my bank loan and the interest is piling up. We are receiving electricity bills and constant tax filing reminders but how do we pay when we have no income?”
Hotelier Jatinder Singh alias Moti Bhatia demanded that the government waives off all taxes since March 2020. “We should also be exempted from paying electricity bills. Otherwise the industry will not be able to revive even after the next ten years,” he said.
Amritsar district tourism officer (DTO) Gursharan Singh said, “We are in constant touch with the hoteliers and hope that the situation improves in the coming days. The state government is also concerned about the grievances of the hoteliers.”
