DOUBLE WHAMMY FOR THEATRE OWNERS
Whenever they reopen for business, cinema hall owners foresee some major expenditure to prepare theatres for the Covid-19 era
For close to four months, theatre owners have not earned a single penny, owing to the lockdown. And now, as the film exhibition sector waits for the government’s green signal to reopen theatres, they are seemingly staring at an “unnecessary expenditure” — restoration and refurbishment of cinemas.
According to insiders, as theatres have been shut for around 120 days, a “sizeable chunk of money” will be required to get the “properties in up-andrunning condition” before their doors are opened again. Right from the projectors, screen and seats to speakers, carpeting and even food stalls, everything would need an overhaul, and that would cost anything between ₹50 lakh and ₹2 crore, depending on the size and number of screens. “At the end of the day, it’s part of the business. And we are going through a pandemic, so there will be tough days for almost everyone,” says trade analyst Taran Adarsh. According to industry insiders’ estimates, a theatre’s budget for maintenance purposes in the Covid-19 world is likely to go up by as much as 35-40%.
For exhibitor-distributor Akshaye Rathi, “restoration expenses” are the last thing that “the exhibition sector could have wished for”. “Since everyone — including vendors — has faced a major financial setback for the last four months, they are also charging a premium for the refurbishment jobs to offset their losses,” he says. Manoj Desai, executive director of the G7 multiplex and Maratha Mandir, Mumbai, concurs, saying, “Although I have kept my property maintained all along, in general, it’s definitely an unnecessary burden for the cinema owners.”
That’s not all. Once theatres reopen, it will come with guidelines and SOPs by the government — such as social distancing measures, sanitisation processes, disposable cutlery, etc. — which will surely cost a lot. But experts call it “totally unavoidable since people’s health is concerned”. “I am sure following all the SOPs provided by the authorities will be an extra expense. But I think we all, including the exhibitors, will have to get used to the post-Covid-19 world, and the new way of functioning,” says Adarsh.
To this, Rathi adds, “Buying the sanitisation equipment, training staff, etc. is going to add to the cost.”
But, theatre owners are hopeful that the government will lend a helping hand. “With no earnings for the past four months and so many expenses in the offing, I think the government should let go of GST and/or entertainment tax for some time (after the reopening of theatres). That would give some relief,” says Desai.
Rathi is “confident” about some assistance coming through. “Considering how the cinema business has been hit, and the employment we generate, we hope the government would help us in the economic as well as policy context,” he adds.