Hospitality sector records INR 8000 crore loss by the pandemic
Hospitality sector records INR 8000 crore loss by the pandemic
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The pandemic sealed the international borders, the hospitality sector has taken a major hit during the pandemic. The hotels are still vacant and stay occupancy levels across the Tamil Nadu State is barely 10 per cent. In Chennai city, it is a little better with 35 per cent. The Tamil Nadu Hospitality sector is staring at a loss close to Rs 8,000 by year-end, said Tamil Nadu Hotel Association President  M Venkadasubbu.

Even though some people are travelling within the country, the fear of Covid is keeping most of them away from hotels. Due to this, hotels offer nearly 50% discount. Only solace are the weddings, but it also comes with restrictions. “Only 100 persons are allowed to attend the functions,” says Venkadasubbu. Restaurants tables are almost empty on most day, says Natarajan,  CEO, GRT Hotels and Resorts and secretary of South India Hotels and Restaurants Association (SIHRA). 

"The government should reduce the GST to eight per cent for hotels,” says Natarajan and suggested the London model by giving incentives. “In hotels in United Kingdon, the government pays up 50 per cent of the expenses incurred by customer. In Thailand it is 40 per cent,” says Venkadasubbu. Natarajan claims life is worse for tour operators and agents and some have taken to selling vegetables to survive.

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