"Almost all tourism verticals have been severely impacted by the crisis. However, it is the hospitality industry that has been hit the most. Our members have reported cancellations reaching a critical stage of 90 per cent," FHRAI Vice-President Gurbaxish Singh Kohli said in a statement here.
Kohli also said that forward bookings, which may have helped buffer the impact, are also negligible because of the uncertainty in containing the disease spread globally.
He said, the meetings, incentives, conferences and events (MICE), wedding tourism, and other kinds of celebrations have been negatively impacted.
"Hotels and restaurants are facing a catastrophic situation with revenues plunging drastically," he added.
The hospitality industry is highly labour-intensive and is the biggest employment generator of both direct and indirect jobs. It is also one of the few industries that is capital-intensive requiring a big chunk of it reserved as working capital.
"The industry employs the largest workforce and hoteliers have a responsibility towards taking care of their employees. This includes ensuring that they are paid on time as well as their well-being, especially now in the face of the pandemic," FHRAI Joint Honorary Secretary Pradeep Shetty said.
In addition to this, the working capital is draining rapidly, which is hit by almost 90 per cent for both larger establishments and budget hotels and restaurants, he said.
"Paying taxes including advance tax and GST is now straining the liquidity and is making it extremely difficult to manage day to day operations," he added.
Under such circumstances adhering to timely payment of equate-monthly instalments (EMIs) or the repayment of loans is an onerous task and to survive, the industry has urged the government to intervene and offer the sector a stimulus.
"Our goal is to extend support to the government and the hospitality industry in leveraging tourism's intrinsic potential and act as a catalyst for inclusive, equitable and sustainable economic growth for both public and private sectors," Kohli added. SM HRS