The sector fears further closure in a possible third wave. (Image for representation only: Reuters)
Businesses had begun efforts to bring back the workforce. He had also taken a loan to resume operations.
- PTI
- Last Update:Jan 09, 2022, 10:44 IST
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A surge of Omicron cases is bad news, after a disastrous second wave that decimated the hospitality industry. The Federation of Hotel and Restaurant Associations of India (FHRAI) said on January 6 that the partial lockdown has forced customers to cancel hotel bookings.
The lack of government support has only added to the negative phase. Moneycontrol reported that the sector fears further closure due to a possible third wave.
Rating agency ICRA has said in a report that the virus will curb demand in the industry during the fourth quarter of this fiscal.
“There were a lot of celebrations, a lot of events that were planned (around the New Year). Now is the season of weddings. Meetings and weddings were cancelled. FHRAI Joint Honorary Secretary Pradeep Shetty told PTI that the industry has suffered a loss of around Rs 200 crore due to the cancellations from New Year and Christmas till now.
Shetty said businesses have begun efforts to bring back the workforce. He had also taken a loan to resume operations. “There is a lot of worry, fear and worry about what one will do as a lot of capital has been invested after two consecutive lockdowns to try and restart operations,” Shetty said.
“Until the government and the finance ministry come out with another relief package or some kind of measures, the shutdown will happen and the non-performing assets will rise,” Shetty said.
The publication said its research results showed how hoteliers disclosed that 30-50 percent of their customers had sought to cancel or reschedule their bookings for January.
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