‘40% of hotels, restaurants in UP may wind up by year end’

According to an estimate of the UPHRA, since the nationwide lockdown began, the hotel and restaurant sector in Uttar Pradesh alone is losing around Rs 350 crore to Rs 500 crore revenue respectively per month.

The nationwide lockdown to check spread of Covid-19 pandemic has hit hotel industry across the country, including Uttar Pradesh, the most.

The hotel and restaurant industry employ directly and indirectly 50 lakh to 60 lakh people in Uttar Pradesh alone. (Representative image/ Shutterstock)

So much so that around 40 percent restaurants and hotels in UP are likely to wind up business by the year end, say experts of hospitality business.

Recommendations of UPHRA

Exercise duties, water and electricity bills should be waived for the next three months.

Religious and heritage tourism can be promoted through online platforms in Uttar Pradesh

It may take 18 months for international tourism to revive

6-12 months of time expected for UP tourism and hospitality sector to revive

Government must release an immediate fund which will support 50 percent salary to staff of hotels and restaurants.

GST holiday for all travel professionals and deferment payment of EPF

Package required in comparison to other states for the survival of UP hospitality industry

Uttar Pradesh Hotel and Restaurant Association (UPHRA) has around 5500 members, including small, big restaurants, five and seven star hotels.

The hotel and restaurant industry employ directly and indirectly 50 lakh to 60 lakh people in Uttar Pradesh alone.

“According to an estimate of the UPHRA, since the nationwide lockdown began, the hotel and restaurant sector in Uttar Pradesh alone is losing around Rs 350 crore to Rs 500 crore revenue respectively per month,” said Garish Oberoi, general secretary, UPHRA.

Facts in figures

Hotels, restaurants only in religious tourism cities like Ayodhya will be able to survive

Around 50 lakh to 60 lakh are directly or indirectly associated with hotel and restaurant industry in UP alone

Around Rs 350 crore per month revenue loss to hotel and restaurant sector in UP

“Hotels and restaurants fall in leisure category. In times of crisis like Covid-19 pandemic, they do not even figure last in the priority list,” added Oberoi.

Hotels are labour intensive and they have lot of fixed costs like wages, minimum electricity bill and maintenance cost besides repayment of loans of banks.

The UPHRA has requested the Yogi government to put a moratorium on loan instalments for a year.