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Indian Hotel Industry takes over Rs 1.30 lakh CR revenue hit in FY21.

Community - HC by Community - HC
May 24, 2021
in Hotel Management, News
Reading Time: 3 mins read
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NEWS – Happenings of Hospitality

The Hotel Industry of India has taken a hit of over INR 1.30 lakh crore in revenue for the fiscal year 2020-21 due to the impact of the Covid-19 pandemic.

The Federation of Hotel & Restaurant Associations of India (FHRAI) said on Previous Sunday.

The reputed industry body said it has submitted representation to the Prime Minister and a few other union ministers urging immediate support from the government to save the hospitality sector from imminent collapse and has requested for several fiscal measures for this.

“The Indian hotel industry’s total revenue in FY2019-20 stood at Rs. 1.82 lakh crore.

As per our estimates, in FY2020-21, approximately 75 per cent of the industry’s revenues got wiped off. That is more than Rs 1.30 lakh crore revenue hit,” the FHRAI said in a statement.

The businesses are steadily closing and non-performing assets (NPAs) are rising, it added.

Since March 2020, the industry has been struggling to manage its statutory and capital expenditure obligations.

Repayment of loans with interest is not just difficult but impossible under a more severe economic environment due to the present surge, FHRAI Vice President Mr. Gurbaxish Singh Kohli said specifically.

Being an employment-intensive sector, a concrete policy is required to support the hospitality industry, he added. As The Indian hotel industry takes over Rs. 1.30 lakh CR revenue hit in FY21, seeks immediate government support.


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