Effect of Pandemic on Hospitality
15 Feb 2021
The hospitality industry in India was set to grow at 16.1% and reach up to ₹2,796 thousand crores in 2022 but with the onset of a pandemic, the contribution through this industry shrunk by 65% for the financial year 2021. The anticipation is such that it may require 2-3 years I.e., up till 2023 to reach the growth of pre-covid levels. Contrary to the present situation, this industry is known to have generated 12.75% employment in the country for the year 2018-19.
The effect it had upon the workers and employers associated with this industry -
According to Times Of India, there have been over 80% job losses of people working for the hotel industry while the remaining ones are working on 50% pay cut inclusive of people at the executive level with the likes of general managers, senior executives. Situations of pay cuts, leave without pay have been more prevalent for foreign brand hotels as compared to domestic chains.
While some hotel chains with a good brand name have already started pulling some out of the box tricks of their own, anything that will help keep the customers attracted and business going.
In special regard to the situation when so many people are still apprehensive of eating out, lodging and renting out rooms and risking their safety. New Delhi’s five star Taj Palace Hotel has offered rooms to be booked for just at Rs 4,000. Luxury hotels like Shangri- la and JW Marriott offering similar competition by allowing booking at roughly Rs 5,000.
In some states of the US like that of Tampa, Florida hotel chains like Hilton, Marriott offer their best-assured cleaning services, even with best offers with discounts extended till early 2021. A day’s offer to just book a room for 7-8 hours where one can come and work from the hotel room added with the best services of a gym, swimming pool, a restaurant which is normally available for customers with an extended stay.
Hotel owners have also come to accept that more than huge luxury hotels people are opting more towards renting out an entire house or small domestic inns which normally would attract fewer people. Added with the fact that more people are travelling domestically and that the focus isn’t upon attracting many foreign tourists till situations become workable.
Steps required from the Government and reforms required within the industries’ management-
The Government is requested to help waive off the interest of loans taken by hotels from March till September 2020.
Providence of more soft loans with low interest to be offered to the hotels through the Government.
Instead of entirely reaching out to demands of customers, the hotels should also focus upon limiting the crowd as much it's possible like opening up certain rooms on limited floors. With moments of understanding how the country needs its revival of GDP and in the hospitality industry too, it requires that “Vocal For Local” becomes the main target to be achieved.
To understand how employment should be generated from amongst the countrymen and the local population.