Hotel Association of India (HAI) vice president K.B. Kachru has said that if immediate measures are not taken to support the sector, around 3.5-4 crore employees in India’s hospitality sector may lose their jobs.
Hotels across India remain shut from March 25 due to nationwide lockdown imposed to contained COVID-19.
Kachru said that as the industry is not earning at all right now, a deferment of statutory liabilities including EMIs for around 12 months is the need of the hour.
He also said that the sector may witness a revenue fall of around Rs 5 lakh crore in the financial year 2020-21.
“It couldn’t be worse, this particular vertical which creates almost 9 per cent employment of the country and accounts for over 9 per cent of the GDP. We are basically at zero at the moment. So we have been badly affected,” he said.
“Nobody imagined this, it’s an unprecedented thing. In India there are almost three and a half to four crore jobs at stake. We are expecting close to Rs 5 lakh crore in revenue loss in this fiscal,” Kachru added.
He stressed that the industry is not seeking a waiver of any liabilities or dues, it just wants them to be deferred till the time the cash flow in the industry improves.
In a letter to Prime Minister Narendra Modi, the industry body has outlined the impact of the coronavirus crisis and the possible aftermath and has sought relief for the sector.
It has also urged the government to subsidise employment for three months by government contribution per employee of 50 per cent of the salary.