Hit by lockdown, Odisha hoteliers seek govt help
The Reserve Bank of India's announcement for three-month moratorium on loan repayments in the wake of thecoronavirus outbreak is "not at all adequate" for thehospitality sector in the state, Hotel and RestaurantAssociation of Odisha chairman J K Mohanty said.
"Hoteliers have submitted a memorandum to the stategovernment seeking a number of measures for the survival ofthe hospitality and travel sectors, which are severely hit bythe lockdown.
"State tourism secretary Vishal Dev has also held ateleconference with us," Mohanty told .
The hotel industry needs moratorium on repayments ofall working capital loans and overdrafts for at least oneyear, he said.
"There should be collateral and interest free loans upto 5 years for SMEs in tourism sector which will help themsustain and rebuild," Mohanty said, adding that the statefinance department was expected to write to all the banks forextending the relief urgently to the sector.
The hoteliers have also urged the government to waivestate GST until the situation becomes normal.
"We want a complete GST holiday for the tourism,travel and hospitality industry for the next twelve months,"he said.
There should also be waiver of fees for licences orrenewals for the hospitality and travel industry in the statefor the time being, Mohanty said.
The hoteliers, in their petition, also said the urbandevelopment department should provide 50 per cent discount inpayment of all statutory fees for getting approval of thetourism projects from the planning authorities.
"The taxes, which have been collected or yet to belevied during the COVID 19 period, bar licence, ground waterand electricity fees should be waived for three months, " hesaid.
The industry body said the wage bills for salarypayments to staff account for 25-30 per cent of the revenue ofa hotel, and the government has made a "request" to allhoteliers to ensure that there should be "no salary cut orno retrenchment".
"Under such circumstances, the HRAO urged thegovernment to consider extending interest-free financialassistance to the stakeholders for payment of salary, wages,and ESIC from the Odisha Labour Welfare Fund for at least sixmonths," Mohanty said.
The hoteliers also demanded a comprehensive marketingplan for revival of the sector.
"There should be a short and long term plans with athrust on domestic travellers and Indian corporate with properguidelines and various incentives for meetings, conferencesand exhibitions," Mohanty said.
This apart, the government should declare a tourismpolicy with incentives to boost infrastructure of the state,he added. SKNBDC BDC