Tirupati: Hotel industry in doldrums

Tirupati: Hotel industry in doldrums
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Hotel industry in doldrums in Tirupati
Highlights

  • Loses turnover worth crores of rupees and thousands of workers go jobless Hoteliers seek one year moratorium on interest payment on loans and one year loan waiver Seek abolition of fixed electricity tariff
  • Say that it takes more than two years for the revival of hotel industry In addition, hoteliers need to pay an advance of Rs 50,000 to Rs 2 lakh to cooking masters to keep them with the hotels There are 400 hotels in the pilgrim city of Tirupati
  • During normal period, More than 50,000 pilgrims visit Tirupati everyday

Tirupati: The cascading effect of lockdown on the hotel industry was heavy with the volume of loss running into crores of rupees and thousands of workers have gone jobless. Even more worrying factor for the industry was that they fear this imbroglio may take at least two years for the sector to revive completely to reach the previous levels.

In the pilgrim city Tirupati alone, there are more than 400 hotels of all categories in which not less than 10,000 are employed. As the city attracts more than 50,000 pilgrims every day, hotel industry has been flourishing. In addition to the private rooms, hundreds of rooms are being provided by the TTD in its facilities.

According to a hotelier, about one lakh people visit restaurants in the city every day during the normal days of which a minimum of 30 per cent would be locals. Even if each person spends Rs 50 for their breakfast leaving lunch and dinners aside, the figures will tell the entire picture on how the lockdown has affected the turnovers of hotel industry.

"Even after the lockdown restrictions go away, the visitors may travel only when it is inevitable due to various fears," he said. The vice-president of State Hotels Association K V Chowdary has said that the hoteliers were finding it difficult to pay the interests on the loans. Even the moratorium of three months was given it will be a burden as they need to pay at once after that period even if they resume their business.

He said that on behalf of Chamber of Commerce they had represented to the government for interim relief to pay EMIs and taxes. They sought for one year moratorium and one year interest waiver so that the industry can try to revive.

"In addition to this, there are fixed electrical charges which need to pay even if we use them or not. Since we had downed the shutters, we are asking for abolition of fixed electrical charges," he said. Not only hoteliers who lost all their business but the government also lost huge amount of taxes. Many hoteliers give advances ranging from Rs 50,000 to 2 lakh to cooking masters to keep them with the hotels.

These are additional burdens on hotel managements, he explained. The hotel workers are also experiencing miseries. Though, there may not be a much problem for food as TTD has been supplying it, but for other needs they have been looking for helping hands.

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