Union Budget: No relief for hospitality and tourism
The hospitality segment has been among the worst hit sectors due to Covid and the occupancy rate with the hotels has fallen to around 25 per cent compared to the pre-covid times.
Hyderabad: Members of the hospitality and allied sectors like the travel and tourism said they were disappointed with Budget as it did not announce any concrete measures that will boost the confidence of people to resume travel.
The hospitality segment has been among the worst hit sectors due to Covid and the occupancy rate with the hotels has fallen to around 25 per cent compared to the pre-covid times.
Also, the upkeep and maintenance in accordance with the Covid protocols has increased the expenses of the properties. Also, other recurring costs have gone up for the hotels.
“The hospitality segment is worst hit. It will take a lot of time to recover to the pre-Covid levels. With no support forthcoming from the Government, the journey will be tough,” said DV Manohar, Chairman and Managing Director, Shri Shakti Resorts and Hotels.
There is no relief nor any announcements that will prop up the hospitality industry, he said.
Vijay Mohan Raj, Managing Director of Sameera Travels and Tours, said the virus has dealt a solid blow to the sector. First there were many cancellations and later the air services were suspended. However, the confidence of people to travel is not at the same levels as many are continuing to avoid travel except.
“We were expecting some GST relief in the Budget. We are disappointed that there is no measure announced for the travel and hospitality sectors,” he said.
The impact of Covid is felt by as many as 36 segments that are associated with travel industry.
They include agents, hospitality, restaurants, guides, car rentals, event managements, meetings, destination wedding managers and so many others, he said adding that one out of the every five jobs created in the world is from one of these 36 segments. “You can imagine the huge impact travel and tourism has on employment. Huge number of jobs have been lost,” he said.
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