A difficult phase

J.K. Mohanty, CMD, Swosti Group says that there is a need for the government to incentivise the hotel industry in Odisha so that it is on a par with other states. Also, changes in policies would help the industry to survive.

J.K Mohanty, CMD, Swosti Group, has said that they have been in touch with the government at all levels to represent the plight of the hospitality sector. “On behalf of hotel industry and tourism sector, we are continuously interacting/following-up with both Central as well as state governments, highlighting various issues that are being faced by the hotel industry during this COVID pandemic. Although both the governments are extending some relaxations in terms of EMI payments to the banks, bar license fees, etc., we are hopeful that the government would declare a good relief package for the hotel industry for its survival,” he informs.

When asked about the demands they have raised, he shares, “Our demands to both the governments are deferment of bank loans and interest free loan; appealing for restructuring of loan having outstanding more than ` 25 crores; waiver of BMC holding tax; waiver of bar licence fee; exemption of ground water fee; waiver of minimum demand load of electricity and payment of electricity bill on actual demand load; financial assistance for payment of salary / wages, ESIC etc.; special relief package for the travel & hotel industry for revival etc.”

Talking about the impact on his own business, Mohanty shared that like every hotel in the country, Swosti Group, is going through a very bad phase with zero occupancy and zero income since end of March 2020. “All our hotels and resorts have been closed. During this period the hotel industry is facing serious problems in paying salary/wages, ESIC, paying bank loan, interest, overdrafts, holding tax / bar licence fee / electricity fee, ground water fee etc.,” he says.

Mohanty believes that the hotel and tourism industry will take a long time to come back to its normal levels.

“For hospitality sector, the business will start at least 12 months after lifting of the lockdown period declared by the Government of India because people will be scared to travel by air and rail. They will think twice before attending meetings, conferences, weddings, social functions etc., as social distancing would become a standard practice. The hotel industry, which is dependent on transport, air & rail travel, is bound to take a beating for the next 12 to 18 months,” he adds.

He claims that the most important factor for hotel industry during this pandemic is to maintain the hygiene standards of their property. “I am sure that domestic tourism will be driving recovery for the tourism sector. Although domestic tourism flows have also been heavily affected by restrictions, they are expected to recover more quickly once the lockdown is lifted. The focus must be on the vast potential of domestic tourism & a vigorous marketing plan is required,” he points out.

For hospitality sector, the business will start at least 12 months

after lifting of the lockdown period”