OPINION
Hospitality - the come back When will the hotel industry return to normal? An expert gives his insight
MADAN PRASAD BEZBARUAH S E C R E TA R Y G E N E R A L , H O T E L A S S O C I AT I O N O F I N D I A
76
H
ospitality industry is one of the first and worst hit sectors by the catastrophic pandemic. The challenges of the global health crisis have dealt a crippling blow to the travel and tourism industry leading to the decimation of a substantial part of the hospitality business. Since August 2020, the hospitality sector has been struggling to find its ground for recovery and started to show signs of improvement though in a staggered manner. However, much to the woes of the industry, it took another hit in February 2021 when the second wave hit the country, bringing the sector to its knees. Hotels are still reeling under the devastation of the second wave with little to no hope of a better future on the back of predictions of a third wave. In the meantime, the decrease in number of cases and improvement of economic activities has spurred optimism for the beleaguered hospitality industry which is limping back to normalcy on the back of domestic leisure and business travel during the last few weeks. Many states still continue to enforce different restrictions on travel activities which has made the recovery of the sector a long-drawn process. As hotel and tourism operations strive for survival, industry has greatly welcomed the support offered by the government. States like Maharashtra and Karnataka have accorded industry status to the hotel sector. This will enable better rates for electricity and property tax. Punjab, Telangana, Rajasthan and some
AUGUST 2021
states have also come out with some occupancies. Therefore, hotels will have to relief measures. continuously look for newer ways to enhance The announcements like ECLGS scheme, their services and minimise risks throughout liquidity support by RBI and relief measures the travel journey of their guests. by the finance ministry, are some of the major As lockdowns are removed after the ebbing steps that have bought of the second wave, people a breather and hope for are now looking at leisure The hospitality sector the sector. While these travel for unwinding and measures hold great overcoming the boredom fervently hopes that the significance, many SMEs of long indoor stays. There traveller’s confidence consider the relief by the is a lot of movement seen will bounce back government as only a drop towards local and drivable with the rolling out of in the ocean. Hospitality destinations. Although and tourism associations leisure travel has led to high vaccinations have also reached out bookings in hotels, business to the central and state travel is yet to see the light governments highlighting of the day due to prevailing the pain-points of the industry and the work from home norms and necessary policies that may help the precautions in the context sector survive and revive over of fear of a third wave. Many the coming years. hotels are betting on domestic travel and the wedding season for ROAD TO RECOVERY survival, but it may not be sufficient Liquidity support from in the long term. the government will lay the The hospitality sector fervently hopes foundation for the survival that the traveller’s confidence will bounce of the sector. Furthermore, the quotient back with the rolling out of vaccinations. It of adaptability is crucial as the sector is is evident from the experience gained over witnessing some dynamic shifts in traveller the last year that the sector is likely to see behaviours and preferences. “Consumer noticeable changes by the 2022–2024 only. confidence” will be the focus for the industry From all accounts it is realistic to assume that in the coming days. Innovation in payment the hospitality sector will take another methods, seamless check-in and check-out couple of years to have a sense of complete facilities and overall hygiene of properties recovery and growth or to get back to preare going to be the underlying aspects for 2019 levels. BTI business traveller india
