FHRAI Pleads To The PM For Urgent Intervention, Requests For Sector Specific Special Relief Package

FHRAI Pleads To The PM For Urgent Intervention, Requests For Sector Specific Special Relief Package

India’s apex hospitality Association and the voice of the hospitality industry - Federation of Hotel & Restaurant Associations of India (FHRAI) has submitted a representation to the Hon’ble Prime Minister – Shri Narendra Modi requesting urgent attention towards the deteriorating situation of the hospitality and tourism sector. Flagged as the ‘Most Distressed Sector due to COVID-19’ in the country, the Association has pleaded the PM to immediately provision a sector specific special relief package to enable the sector in its fight for survival. With 30 per cent hotels and restaurants across the country permanently shut over the last two waves of the pandemic, the remaining operational establishments continue to run in losses even today. The hospitality industry has reported losses of a whopping sum of Rs.1.40 lakh crore with around 50 million jobs lost since the beginning of the pandemic.

“The third wave of COVID has ripped apart the hospitality industry. The recent restrictions came right in the middle of Christmas and New Year festivities and preceded the marriage season. The revenue loss incurred due to the cancellations of celebrations and bookings to the hospitality industry is conservatively estimated at Rs.200 crores. Half of the hospitality sector was on the ventilator caused by the ripple effect of the lockdowns and restrictions during the first and second COVID waves. The sector somehow tried to tide over the crisis by availing the credit facility provided by the Government and infusing own capital. But then, all of a sudden, the third wave came as a debilitating blow. FHRAI has knocked on the doors of all the concerned Ministries for bringing them up to speed on the existential crisis faced by sector. At present, the entire hospitality industry is hanging on by a thread and only a special relief package can reinvigorate the industry. We plead to the Hon’ble PM to offer a sector-specific special relief package for the survival of the Tourism and Hospitality sector,” says Mr Gurbaxish Singh Kohli, Vice President, FHRAI.

The FHRAI has stated that the successive waves of the pandemic and disruptions caused by it have created a volatile economic environment in the sector. Being a highly capital-intensive industry, hospitality has to manage a lot of overhead expenses even while it is not functioning.

“After the second wave had subsided and restrictions partially withdrawn, in the beginning of the third quarter of FY 2021-22, hotel and restaurant businesses saw a marginal rise in occupancies and footfalls. By the middle of December 2021, occupancies in resorts and holiday destinations had reached 60 to 70 per cent, while in the city and corporate hotels it touched approximately 25 to 30 per cent. Likewise, restaurants had just started to return to normalcy as corporate offices and businesses had opened up. Although this was much lower than the pre-COVID levels, the signs were encouraging. But, things started changing for the worse by the end of December and since then there has been a drastic plummeting of rates and occupancies in hotels and footfalls in restaurants. City hotels are back to 10 to 15 per cent occupancy accompanied by low room rental rates and restaurants are deserted. Resorts and holiday destination hotels that were otherwise doing well have drastically fallen below 40 per cent,” adds Mr Kohli.

FHRAI has stated that the present restrictions imposed are almost equivalent to a lockdown. Business in hotels and restaurants is almost nil across all major locations in the country. The Association has pointed out that such restrictions compound to the existing crisis causing extensive damages to the sector. It has estimated nothing less than five years for the industry to return to the pre-pandemic levels.

“It is imperative for the hospitality industry to have an environment conducive for businesses to sustain. Frequent lockdowns and restrictions coupled with travel restrictions are anti-business especially, for the hospitality and tourism sectors. Every time the situation eases a bit and the industry receives a glimmer of hope a new hurdle presents itself. The cyclical ‘stop-start-stop’ arrangement hasn’t allowed the industry to do anything. Hotels and restaurants are in a state of suspended animation since 2020. The current situation also has a cascading impact on the employment in the sector. Apart from another round of lay-offs and pay cuts, the situation will pose another serious threat before the industry in the form of unavailability of trained manpower to work in the sector. The volatility in the sector and continued disruptions has dissuaded people to continue working in the sector and large numbers have moved to other sectors for viable employment opportunities. With another tourist and business season washed off, the sector has nothing to hope for now. It is staring at a dark future in the midst of increasing debt burden, obligations and statutory liabilities with no means to meet them. Under the present circumstances, without adequate support from the Government, many more hospitality establishments in the country would be compelled to shut shop,” concludes Mr Kohli.

FHRAI joins hands in Siliguri hotel owner’s case against OYO in Supreme Court

This will enable the federation to represent many other aggrieved budget hotel owners with their cases

The Federation of Hotel & Restaurant Associations of India (FHRAI) has been allowed to join the party in the appeal of the Siliguri Hotelier, Mona Agrawalla’s in the apex court against OYO, the budget hotel aggregator. This will help the federation to represent the cause of many aggrieved budget hotel owners in the case.

According to a press statement issued by the federation, based on the civil appeal filed by FHRAI under Section 62 of the IBC, challenging the final order dated July 07, 2021 passed by the NCLAT, the Supreme Court has allowed its plea to be tagged along with the appeal of Mona Agrawalla of Dabriwal Enterprises of Siliguri against OYO. The case will come up for hearing next on December 15, 2021.

This development comes after the NCLAT vide its July 7 order had allowed the withdrawal of application filed by an operational creditor, Rakesh Yadav on his reaching a settlement with OYO. The federation in its plea to the SC had stated the withdrawal application was accepted by the NCLAT without taking into account the 110 other operational creditors with dues of over INR 225 crore.

“The latest development has offered several hoteliers especially, those operating in the budget and mid-market segment a ray of hope of recovering the dues owed by OYO. Aggrieved by the NCLAT’s impugned order, several members approached FHRAI to file a civil appeal against the order and to also be impleaded in the appeal matter of Agrawalla. Many hoteliers including our members are facing hardships due to COVID19 and have scarce resources to file individual and costly litigations in the SC on their own. These hoteliers just can’t leave their businesses to go to Delhi especially, during pandemics and hence FHRAI filed a civil appeal challenging the judgment passed by the NCLAT. The SC has allowed our association to be tagged along with the Siliguri-based hotelier’s appeal. This is a big breakthrough,” says Gurbaxish Singh Kohli, vice-president, FHRAI.

The FHRAI was also an intervenor in the NCLAT and represented around 50 members with claims of approx. INR 100 crores..

NEWS | FHRAI appeals PM Modi to provide immediate relief to the industry from the abnormal increase in the cost of LPG

India’s apex Hospitality Association - Federation of Hotel & Restaurant Associations of India (FHRAI) has submitted a representation requesting the Hon’ble Prime Minister – Shri Narendra Modi to provide immediate relief to the Hospitality industry from the abnormal increase in the cost of Liquid Petroleum Gas (LPG). The Association has requested that the tax rate charged on LPG supplied to standalone restaurants be reduced from the current 18 per cent to 5 per cent. It has stated that since standalone restaurants are not allowed to claim ITC, this move will help reduce the cost burden on restaurants.

The latest price hike is the second highest increase in LPG since January 1, 2014, when the 19-kg cylinder became costlier by Rs.353.50 (in Delhi). Restaurants, especially standalone, do not have any more headroom left to absorb such a steep increase in input costs. FHRAI has stated that LPG being one of the most essential commodities in the restaurant industry, the steep price increase will sound the death knell for hundreds of small restaurants from all parts of the country.

“The unprecedented increase in the cost of diesel has drastically raised the logistic tariff which in turn has led to an abnormal hike in the prices of grains, pulses, edible oil and other essentials raw materials. There has been an exponential increase in the cost of raw materials used in restaurants since the lockdown period. This cost escalation of roughly over 30 per cent is severely affecting restaurants that are trying to resume operations and stay afloat after a turbulent twenty months of lockdown and closures. Add to this, the steep hike in the LPG cylinders. Under these challenging circumstances, the sector is constrained to increase the cost of food items on the menu which will directly affect the working lower and middle class population that have to eat out. We request the Government to reduce the tax rate on LPG at least for standalone restaurants from the present 18 per cent to 5 per cent. Since standalone restaurants cannot claim ITC, this move will help reduce the cost burden on the restaurants which in turn will ensure that it does not burn a hole in the consumer’s pockets,” says  Gurbaxish Singh Kohli, Vice President, FHRAI.

Amongst all the sectors, the hospitality sector in the country has taken the biggest hit due to the pandemic. Business came to a complete standstill after the lockdown came into effect. Since then, 30 per cent of hotels and restaurants in the country have shut down permanently due to financial losses. Close to 20 per cent of hotels and restaurants still haven’t opened fully and the remaining 50 per cent are running in losses with revenues below 50 per cent of the pre-COVID19 levels.

“The debilitating impact of the pandemic has dealt a colossal economic blow to businesses along with millions of job losses in the hospitality sector. The ripple effects of the two successive waves of the pandemic have destroyed the entire hospitality eco-system in the country and even today, when all other sectors in the country are being allowed to function normally, the hospitality sector faces several restrictions in operations. This situation has become more severe due to the steep hike in the LPG cylinders, making hospitality a most unviable business in the country. We, therefore, request the Government for its support on this very serious issue impacting millions in the foodservice industry in the country,” concludes Kohli.

NEWS | FHRAI announces scholarships for BSc in Hotel and Hospitality Administration

As a special case, the scholarship will be provided to the children of hospitality.

The Federation of Hotel & Restaurant Associations of India (FHRAI) in association with its regional associations has announced the launch of a scholarship program for students interested in pursuing a three-year BSc in Hospitality and Hotel Administration from the FHRAI Institute of Hospitality Management (FHRAI-IHM), Greater Noida.

FHRAI-IHM is the first and only private institution run by an Industry Association to be affiliated with the National Council for Hotel Management & Catering Technology (NCHMCT), an autonomous body under the ministry of tourism, Government of India.

Children of employees of member establishments of FHRAI and its regional associations will be offered 50 percent waiver in the admission, enrolment, tuition and examination fees and 20 percent waiver will be offered to children from the families of hospitality patrons or employees. As a special case, the scholarship will also be provided to the children of hospitality sector employees of member establishments who lost jobs during the pandemic, based on a certification by the member establishment and the regional associations.

The admissions will be based on the merit of Class XII results, availability of seats, and approval of the affiliating organization - NCHMCT, Noida. Registration is open for direct admission at https://www.fhrai-ihm.com/.

“India’s tourism and hospitality sector has the potential to become the growth engine of our economy by accelerating demand and supply in the market along with generating employment in millions. At the moment, the entire sector is reeling under the impact of the pandemic and we are witnessing its cascading effects on the field of hospitality education as well. Under the present environment, all stakeholders should join hands to ensure that the growth prospects of the hospitality industry do not get hamstrung due to current challenges. With the launch of the scholarship scheme, FHRAI and its regional Associations will take the lead to promote hospitality education in the country to pick up from where we left off prior to the pandemic,” says Gurbaxish Singh Kohli, vice-president, FHRAI.

“The scholarship scheme can be availed by children of employees working in the member establishments of FHRAI and its regional associations who fulfill the age and eligibility criteria for admission as per NCHMCT norms. Associations will shortlist the eligible candidates from their region and recommend them for enrolment in FHRAI – IHM under the scholarship program. It is our endeavour to create a qualified and committed workforce for the sector and we would like a maximum number of students to avail of this scholarship opportunity,” says Surendra Kumar Jaiswal, vice-president, FHRAI.

FHRAI writes to FM, wants guarantee that On-Tap Liquidity Scheme will work

FHRAI also proposed a longer repayment tenor and a redressal forum to address grievances of non-cooperation by banks and NBFCs of the scheme.

While the stimulus schemes announced by the government for the hospitality sector have been welcomed by everyone, there continue to be serious doubts about how well they work and how much they can actually help hospitality dig its way out of the current situation it is faced with—especially those who are not always able to borrow, like the larger more buoyant hospitality companies.

The FHRAI has appealed to the Union Finance Minister to consider making a few changes to make the On-Tap Liquidity Scheme “more impactful and effective” for the hospitality sector.

The hospitality body has requested an extension on the tenor of the scheme from the proposed 3 years to a more generous 5 to 10 years. Taking into consideration the lack of cash flow in the hospitality sector due to lockdowns and the reluctance on the part of the financial institutions to extend additional loans to hotel businesses, the federation wants the central government to give a 100 percent guarantee for such loans. Additionally, FHRAI also proposes a redressal forum to look into issues relating to the non-implementation of the schemes by banks.

“We are thankful to the Ministry of Finance for provisioning a separate liquidity window of INR 15,000 crore for the hospitality and tourism industry. However, the two successive waves of the pandemic and subsequent lockdowns have caused colossal damage and it would take nothing less than 5 years for the sector to return to normalcy. So, for reviving the sector, we request the Finance Ministry to extend the tenor of the scheme from 3 years to 5 to 10 years. Also, we strongly feel that the recently announced scheme would not be able to achieve the desired outcome without the Government’s backing of a 100 percent guarantee to banks and NBFCs,” said Gurbaxish Singh Kohli, Vice President, FHRAI.

“The hospitality industry has no business and many hotels and restaurants are already struggling under debt burden therefore banks and financial institutions are shying away from lending to such businesses as they are unwilling to take risks. Many relief measures of the Government have failed due to this unwillingness. 100 percent guarantee from the Government is the only tool by which such measures can be made effective. This is a very crucial stage for the hospitality industry and hence we request the Ministry to revisit some of the critical provisions in the schemes and make their implementation effective,” Kohli added.

Source

NCLAT Stalls Withdrawal Of Oyo’s insolvency; Allows FHRAI To Intervene On Behalf Of Hotels

In the latest hearing of the Oyo Insolvency case before the National Company Law Appellate Tribunal (NCLAT), the Tribunal has allowed the intervention of the Federation of Hotel & Restaurant Associations of India’s (FHRAI) on behalf of hotels. The FHRAI has intervened on behalf of its member hotels that are operational creditors who are suffering hugely on account of non-payment of debt by Oyo. FHRAI members have filed claims before the IRP of around Rs.93 crores and the Association expects more hotels to submit their claims before the next hearing on June 21, 2021. 

FHRAI's Senior Counsel Kishnendu Datta represents FHRAI and Rs.93 crores of claimants that are FHRAI’s member hotels. There is close to Rs.200 crores worth of claims by claimants overall in the Oyo insolvency case with the NCLAT. Hotels have stated that Oyo entered into various kinds of agreements ranging from leave and license agreements to Management Services Agreement with minimum return assurances but Oyo eventually breached the terms of the agreements.

“There is an insolvency case against Oyo which is going on. Over the last couple of years, a lot of our members have reported to us about money owed to them and Oyo refusing to pay them. The FHRAI has pleaded to contest the case on behalf of its hotel members and the Hon’ble Tribunal has allowed it. We are representing many distressed hoteliers who individually do not have the capacity to take on Oyo single-handedly. We are glad that the Hon’ble Tribunal has allowed our intervening in the matter,” says Mr Pradeep Shetty, Jt. Honorary Secretary, FHRAI.

In its application to the Tribunal, the FHRAI has pointed out that a number of matters by several hoteliers are pending before various Courts against Oyo. Oyo has closed a majority of its operations and offices across India to further cheat member hotels and other similarly placed companies.

“Oyo operates its business under a maze of more than a dozen subsidiary entities. These entities enter into agreements with hotels and the FHRAI has data of hundreds of such hotels that have reported payment defaults and other unethical business practices by Oyo through these entities. The development so far in the case has given a sense of relief to several hotels across the country who felt short-changed by Oyo and the movement of consolidation of all victims of the hotel room aggregator is now gaining steam,” concludes Mr. Shetty.

About Federation of Hotel & Restaurant Associations of India (FHRAI):

The Federation of Hotel & Restaurant Associations of India (FHRAI) is the apex body of the Indian Hospitality industry. Founded in 1955, the association has diligently built on its rich legacy and is today privileged to serve as the leading voice of hotel and restaurant industry and plays a seminal role in supporting the growth trajectory of India's hospitality and tourism sector. FHRAI provides a vibrant interface between the industry, government, regulatory bodies, academia, international organizations, civil society and the media.

NEWS | FHRAI submits presentation for industry revival to Tourism & MSME Minister

Tourism Ministry acknowledged the industry’s concerns and assured that necessary help will be extended to support the hospitality industry.

Senior delegates of the Federation of Hotel & Restaurant Associations of India (FHRAI) met the Hon’ble Tourism Minister Prahlad Singh Patel and Minister of MSME Nitin Gadkari to discuss the deteriorating state of the Hospitality and Tourism industry and to recommend immediate fiscal measures to save it from imminent collapse. The Association submitted representations suggesting key policy changes for the revival of the sector.

The Association representatives also met and submitted the representation to Arvind Singh, Secretary, Ministry of Tourism, and Rakesh Kumar Verma, Jt. Secretary, Ministry of Tourism. The Association recently also held a virtual meeting with the Principal Economic Advisor, Ministry of Finance Sanjeev Sanyal with recommendations specific to the Hospitality sector.

The Tourism Ministry acknowledged the industry’s concerns and assured that necessary help will be extended to support the hospitality industry. It has also reassured that the sector’s issues and recommendations offered by the FHRAI delegates will be raised with the Prime Minister and the Finance Ministry. The Tourism Ministry is closely following up with the Ministry of Finance on the SEIS scheme and other concerns will be addressed on a one-on-one basis with the respective Ministries. The MSME Minister too has expressed that they are aware of the hardships the industry is going through and that will look into the industry’s concerns favorably with regards to the ECLGS scheme and the RBI’s Resolution Framework. Mr. Sanyal too has expressed that they will consider the industry’s demands favorably and at the earliest.

The Association has thanked Prahlad Patel, Nitin Gadkari, Sanyal, Singh, and Verma for their valuable time and for understanding the industry’s concerns.

“The pandemic has devastated the hospitality sector, businesses are steadily closing and NPAs are rising. In our meeting with the Ministers, we recommended a well-made sector specific stimulus package that addresses the most critical aspects of reducing financial loss, mobilizing loans and retention of employment. The recommendations include complete waiver of interest on loans beginning March 2020 till business normalcy resumes, announcement of special measures for the industry and the interest burden of loans borne by the Government for a fixed period, monthly basic salaries paid directly to tourism, travel and hospitality employees who have lost their jobs due to the pandemic, provision of a moratorium of 3 years on the principal loan amount, working capital support at interest on fixed deposit rate plus 2 percent or MCLR rate, the urgent release of SEIS pending payments, removal of secondary condition in EPCG and introduction of a long term financing scheme for at least 10 years back with a guarantee from Central Government to Banks and NBFCs,” says Gurbaxish Singh Kohli, Vice President, FHRAI.

The industry’s total revenue in FY 2019-20 stood at Rs.1.82 lakh Cr and as per our estimates, in FY 2020-21, approximately 75 per cent of the industry's revenues got wiped off. That is more than Rs.1.30 lakh Cr revenue hit for the Indian economy. The total loan outstanding to the hospitality industry is over Rs.60,000 Cr today.

“Since April 2021 the revenue hasn’t even crossed 8-10 percent. Our right to conduct business was taken away but the right to recover loans and charge interest by our lenders is being allowed. The Hospitality industry is under tremendous cash flow pressure to meet its operating expenses including payment of salaries and wages, repayment obligation to banks and financial institutions, and funding its capital expenditure plans. We request timely payment of cash flows under the SEIS scheme and refund of income tax payment that is due to the Hospitality sector. This will make a big difference to the ability of hotels to pay the workforce employed in the sector, meet the operational expenses and mange loan repayment obligations,” says Pradeep Shetty, Jt. Hon. Secretary, FHRAI.

The Association has suggested waiver or relaxation under the EPCG scheme. With regards to the average Foreign Exchanges Earnings (FEE), it has stated that the industry does not have any FEE to redeem the license as there has been no foreign travel in this pandemic. Even prior to the pandemic, the arrivals and spending of foreigners was dismal and the EPCG conditions were impossible to adhere to and hence the condition should be completely waived off and the conditions be deemed as adhered to and fulfilled. It has also suggested that foreign tourists visiting India, and staying and spending in hotels should be deemed as foreign exchange earned by hotels for the purpose of redemption of EPCG license. The Association has also requested waivers or reliefs to Greenfield Hotel Projects and expansion of existing hotels during the pandemic by releasing the Bank Guarantees and corresponding FDRs and IGST.

Due to financial losses, 40 percent of hotels and restaurants in the country have shut down permanently and about 20 percent haven’t opened fully since the first lockdown. The remaining 40 percent continue to run in losses. The financial institutions have marked the industry on the negative list.

“The industry is grappling with indescribable financial issues. It is imperative to make some additional provision of funds under the ECLGS and align the tenure and moratorium facilities of ECLGS 1.0 and 2.0 in line with ECLGS 3.0 to support the survival efforts of the sector. We have requested provisioning a special window for restructuring for the sector without any cap on loan exposure. We have also asked for the setting up of a redressal forum by the Government or the RBI to address issues faced by the Hospitality industry in availing loans for restructuring. Being the worst hit amongst other industries, the Association has suggested several steps in aiding the revival of the sector which will be crucial in the long-term health of both the sector and the country’s economy,” concludes D V S Somaraju, Treasurer, FHRAI.

Covid NEWS | FHRAI requests GST Rationalization for hospitality industry

The association has suggested of the upcoming meeting of the GST Council to the Finance Minister.

Federation of Hotel & Restaurant Associations of India (FHRAI) suggested consideration of the upcoming meeting of the GST Council to the Finance Minister.

The hospitality sector in the country is engulfed in massive losses and mounting debts due to the Covid pandemic and is undergoing a very gloomy economic situation with no respite to be seen in the near future. Being the first sector affected by Covid -19 and the last to revive, the hospitality sector in the country is waging a battle for its existence today.

The first wave of the pandemic and the unprecedented second wave with very strong ripple effects have destroyed the entire hospitality eco -system in the country which would take many years to recover. Therefore, at this time of deep crisis, some affirmative action from the Government of India can only save this sector from crumbling down. We are sure that a favourable consideration of the following policy measures can go a long way in reviving the tourism sector in the country.

The association has laid down 10 suggestions for consideration.

• Suggestion 1

• Enhance the threshold limit of hotel room tariff for charging GST @ 18 % to INR 9500/- from INR 7500/-

• Justification

• Raising of the threshold limit will bring parity of rates between the Rupee and Dollar. While the threshold was fixed at INR 7500/- the exchange rate of Dollar per Rupee stood at 64, but the same reached at INR 73 per dollar today.

• Suggestion 2

• Enhance the threshold limit for zero GST for hotel rooms from INR 1000/- presently to INR 2000/- per room per day

• Justification

• This move will boost the lower budget segment, which in turn will encourage more domestic travellers to venture out and thereby promote the tourism sector in a big way. Under the present situation where the foreign travel is restricted, promotion of domestic tourism is the need of the hour.

• Suggestion 3

• Treat all F&B revenue in a hotel & standalone restaurant as bundled services to be charged GST on the following manner:

• a) 5 % composite scheme for units that are not availing ITC

• b) 12% GST for units that are availing ITC.

• Justification

• Simplification of GST rules will lead to greater compliance especially from small units. A mechanism should be in pace to enable the establishments to avail input of GST paid on rent and other GST cost. This will make the businesses more viable.

• Suggestion 4

• Allow valid GST hotel bills of any state other than the home state of the Individual assessee paid for by digital mode exempt under section 80C for an additional amount of INR 50,000/-.

• Justification

• The potential additional tax saving of INR 50,000/- will encourage citizens to travel within India. This will give impetus to hotels as well as ancillary industries.

• Suggestion 5

• To allow IGST billing to the hotels for corporate bookings & MICE.

• Justification

• This will enable the companies to avail GST input credit which will incentives them to spend their annual budgets in Indian cities other than holiday destinations of South East Asia.

• Suggestion 6

• Reduction of GST for LPG used in hotels

• Justification

• Reduction of GST from 18% presently to 5% for LPG cylinders consumed in hotels at par with domestic cylinders, can bring down the operational cost of the hotels which could be further percolated down to the customers.

• Suggestion 7

• Remove GST for rent payments

• Justification

• GST for rent payments to be removed for those who are not eligible to claim input tax credit.

• Suggestion 8

• Refund of unutilized GST credit lying with state governments

• Justification

• Hospitality establishments must be allowed to get refund of unutilised GST credit lying with state governments which will enable them to get much needed liquidity.

• Suggestion 9

• Include a new provision in law for immediate refund of GST paid by new hotel projects and existing expansions

• Justification

• Thiss will reduce the dependence on debt-financing and bank loans as well as enable hotels that are under construction or whose construction has been stalled because of lack of funding or cash flow to complete their projects which otherwise would have become NPAs. This is also important due to the fact that the Covid pandemic has caused delay of more than a year in completion of existing projects.

• Suggestion 10

• GST to be charged on the receipt of payments only and not on advances

• Justification To comply with the law of paying GST on advances received against the events planned in future has become a big trouble for the industry due to sudden cancellation of bookings on account of the surge in infections and Covid related restrictions. The establishments who are already under huge distress have to undergo another set of burdensome procedures to receive the refund.

Source

FHRAI has appointed Dr Himanshu Talwar as an Additional Director of FIHM

A philanthropist and man of multipotentialities, Dr. Himanshu Talwar, has achieved various heights throughout his career and has been diligent in counselling budding achievers, entrepreneurs, start-ups and students. He has continuously relearned and reskilled himself throughout his working life. Having acquired his Masters’ in Business Administration (MBA), he further enhanced his skills by studying Philosophy, Law and, attended Executive Management Programme (s) at Said Business School (SBS), University of Oxford, Indian Institute of Management (IIM), Calcutta and Indian Institute of Management (IIM), Bangalore. He holds a Doctorate and D. Litt (H.C.) in Business Management.

Along with various degrees on his credit, he has dedicated himself to work for social causes and has been given the ‘Indian Achievers' Award 2020 for Social Service by the Indian Achievers Forum. Recipient of 11 national-level awards, Dr. Talwar has been working for international organizations and supporting Not-for-profits for more than a decade and made significant contributions in the field of transforming people’s life as a life coach, skill development, legal, advisory, consultancy, and professional education.

Source

FHRAI urges GOI to promote domestic tourism through Dekho Apna Desh Pledge campaign

The Federation of Hotel and Restaurant Associations of India (FHRAI) has appealed to the Government of India to aggressively promote domestic tourism in the New Year. The apex Hospitality Association has pressed on the need to encourage local tourism under the Ministry of Tourism’s Dekho Apna Desh Pledge campaign while the country remains closed to international tourists. India’s Tourism and Hospitality sectors have incurred the largest collateral damage of the COVID19 pandemic and every small or big step to revive the sector will be crucial in the long-term health of both the sector and the country’s economy. The FHRAI has recommended incentivizing domestic tourism by offering tax exemption under 80C of up to INR 50000/- to Indians which will encourage them to travel.

“The Hon’ble PM has always spoken about how important Indian Tourism is to the country. We believe that with the right kind of messaging and support from the Government, India’s domestic tourism could flourish. Make in India or Vocal for Local initiatives are on the same line as Dekho Apna Desh and there couldn’t be a more opportune time to push the throttle on promoting domestic tourism. The Government could allow valid GST hotel bills of any State other than the home State of the Individual assessee exempt under section 80C for an additional amount of INR 50,000/-. The potential additional tax saving will encourage citizens to travel within India and will give impetus to hotels as well as ancillary industries,” says, Gurbaxish Singh Kohli, Vice President, FHRAI.

The hospitality and Tourism sector accounts roughly for 10 percent of India’s GDP and employs nearly 9 per cent of India’s working population. With zero foreign exchange earnings and less than 25 per cent of pre-pandemic revenues, the sector is facing an existential crisis. The total loan outstanding to the Hospitality industry is approximately INR 55,000 Cr and the value at risk for the hospitality and tourism sector is at approximately INR 10 lakh Cr. If favourable initiatives and policies are not drawn for survival of the Hospitality sector then at least 40 to 50 per cent restaurants and 30 to 40 per cent hotels in the country will shut down, resulting into millions of job losses.

Source

Maharashtra allows hotels to resume operations at 33% capacity from July 8, smaller hotels likely to stay shut

The Maharashtra government, through an order allowed hotels and other accommodation providers to resume operations with restricted entry and at 33% capacity outside containment areas from July 8, but industry insiders said smaller, boutique hotels in the state are likely to stay shut given the limited number of rooms, new standard operating procedures (SOPs), and costs of doing business.

The order allows restaurants in hotels to operate for resident guests with social distancing norms

For More Information Click Below:

economictimes.indiatimes.com/news/politics-and-nation/maharashtra-hotels-outside-containment-zones-can-operate-from-july-8/articleshow/76814682.cms?from=mdr

Hospitality sector alarmed by orders from state authorities, not getting paid for services rendered

Key Take Away

The hospitality industry has raised concerns about 'high-handed' state government orders to requisition hotels as quarantine or treatment centers, and hoteliers not being compensated for the services offered through the lockdown.
On May 29, the Delhi government requisitioned five hotels through an order to convert them into extended Covid-19 hospitals, a move that took hoteliers by surprise.

The court directed the government to appoint an expert committee to examine the issue and to deal with the petitioner's representation. The matter stands adjourned to June 9.

The head of a hotel chain said his entire hotel has been taken over by state authorities in Madhya Pradesh and he had not been paid.

For More Information click below:

economictimes.indiatimes.com/industry/services/hotels-/-restaurants/hotels-as-quarantine-facilities-for-coronavirus-patients-hospitality-sector-alarmed-by-state-orders/articleshow/76202953.cms

Lockdown 4.0: FHRAI appeals for relaxation for the hospitality sector

Key Talk Away

The Federation of Hotel & Restaurant Associations of India (FHRAI) has appealed to the government for relaxation for the hospitality sector at least in the Green and Orange Zones. 

Hotels and restaurants in Green zones be allowed to operate to 100% and in Orange zones to 50% capacities.

For more information:

https://hospitality.economictimes.indiatimes.com/news/hotels/lockdown-4-0-fhrai-appeals-for-relaxation-for-the-hospitality-sector/75783070