Covid NEWS | HAI appeals to PM to extend help for the hospitality sector
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HAI, in its appeal, highlighted that more than 40% of hotels have shut or are on the brink of closure and 70% of overall jobs are now in danger directly or indirectly.
Hotel Association of India (HAI) has appealed to Prime Minister Narendra Modi for immediate intervention to provide relief to the hospitality industry in five key areas.
The key areas are one-time settlement of loans and extension of loan moratoriums till September 2021, waiver of all statutory liabilities at Centre, state, and municipal levels for the pandemic period, stimulus package subsidising of salaries of hotel employees, and to bring hospitality to the concurrent list of the Constitution.
HAI, in its appeal, highlighted that more than 40% of hotels have shut or are on the brink of closure and 70% of overall jobs are now in danger directly or indirectly.
In its representation to PM, HAI has strongly urged the government to consider the one-time settlement of loans and extension of loan moratoriums till September 2021, pointing out that the increasing loan burden at a time of almost non-existent income may serve only to increase the NPAs of banks and moratorium will provide a breathing space to the already crippling industry.
HAI, therefore, has requested the PM to offer a stimulus package-subsidizing of salaries of hotel employees by 50% from April 2021-March 2022 as is being done by many countries as a part of their economic recovery programmes.
While lauding the government’s effort to promote domestic tourism the industry body also stressed the fact that expansion of domestic tourism will require the creation of suitable accommodation to meet the incremental demand.
The Indian hospitality sector has a critical role to play in the post-pandemic economic revival and has been announced as the fourth pillar of the Indian economy. HAI urged for the PM's bold intervention and directions for implementation of the suggestions to save the Industry jobs and the lives and livelihoods of the citizens employed in hotels and to enable the industry to get on its feet so that it can make its contribution to the national economy added HAI.
