Tag Archives: FHRAI

In today’s FHRAI webinar with Sanjeev Sanyal, Principal Economic Adviser, Ministry of Finance, Government of India suggested FHRAI to put forth their general problems along with other Associations like CII and FICCI. The main problem that Association addressed pertains to restructuring of loans and extending the moratorium period. They also said that onetime restructuring which was allowed till March 31 is not taken very seriously. Sanyal said that the restructuring guidelines addressed in KV Kamanth Committee will not be considered in a normal account, banks may not be taking the guidelines seriously but RBI is. Plus, he suggested that it is important to focus on the schemes that are already existing in the framework and push it forward. Association also requested that moratorium should continue until the situation is better and banks could get a solution. They also mentioned that Amitabh Kant is making some progress in deal with Saudi Arabia for a new credit line. To which Sanyal said that funds is not a problem, economy is doing good, there is liquidity in the market, the task is how to leverage it.

The state has issued a directive that allows all hotels and lodges to operate at 100 per cent capacity from September 2, 2020. Separate SOPs will be issued for necessary precautions to be taken while operating these establishments. Gurbaxish Singh Kohli, President, Hotel & Restaurant Association of Western India, says, “We are happy that the government has allowed 100 per cent capacity utilisation for hotels in the state. Meanwhile, since restaurants are not included in the current negative list, it is understood that restaurants are also allowed to re-open like those that have re-opened in the rest of the country. We have sought clarification on this from the government. Also, we had hoped that it would relax the limit of 50 people at social gatherings, especially for weddings. We had requested that this be based on the size of the venue.”

FHRAI has requested Minister of Finance and the RBI for an extension of moratorium for an additional 3 months, adding that 90% of the hospitality sector could be declared as NPAs post August 31. In another move, it has requested Ministry of Home Affairs for relaxing of quarantine norms for domestic travellers as well as permission to open bars and banquet halls, among others.

The Federation of Hotel & Restaurant Associations of India (FHRAI) has made written representations to the Hon. Minister of Finance Nirmala Sitharaman, the Hon. Minister of State for Finance Anurag Singh Thakur and to the Governor of Reserve Bank of India (RBI) Shaktikanta Das, I.A.S. requesting for an extension of moratorium for additional three months. The hotel industry has made no progress in terms of bookings even after several states unlocked and where hotels resumed operations. The industry has registered average occupancy levels at 10 to 20 per cent. With rental and salary bills, statutory payments and other establishment costs, hotels are finding it unviable to carry on running businesses. FHRAI has informed the Ministry that an extension of moratorium at this time could help hotels restructure existing loans since the process of restructuring is time consuming. Gurbaxish Singh Kohli, Vice President of FHRAI and President of Hotel and Restaurant Association of Western India (HRAWI), says, “For more than four months, hotels and restaurants have remained shut and have earned no revenue throughout the lockdown. There is no improvement in forward bookings and wherever hotels and restaurants have opened, the footfalls are negligible. In addition to the monthly outgoings and the statutory levies, we now have to spend more on employing hygiene and safety measures to follow the SOPs and guidelines issued by the Central and State governments. On account of all this, the debt restructuring plan announced by the RBI for the stressed MSMEs is not going to help the sector. Therefore we have urged that the moratorium be extended by a further three months.”

FHRAI has launched the ‘Work For Our Staff’ campaign for its members to support around 4500 hospitality professionals in more than a dozen cities. With direct 100% compensation being provided to staff by business partner Eureka Forbes, FHRAI and regional member establishments will be able to help staff survive this crisis and give them an opportunity to earn and return to work once this enforced and sustained lockdown is over. Nomination will be accepted on a first come, first serve basis.

Piyush Goyal, Minister of Commerce & Industry and Railways, Government of India, said that his department is willing to look at single-window clearances for the hotel industry. He was addressing the hotelier and restaurant community across India via a live webinar conducted by the Federation of Hotel & Restaurant Associations of India (FHRAI). “Yes, we will look at single-window clearances for licenses and simple online approvals. This can also take care of bureaucracy and corruption,” he said. The minister also responded well to the request for curbing illegal, unlicensed accommodation units in the country, especially those that are listed on OTAs. He said, “We will get this legally examined. There must be an element of registration or licensing that should be brought in for record-keeping purposes. Otherwise there is a risk of health and security. We must examine the legal implications.” The FHRAI team will now draw up specific and substantial ideas and revert to the minister.

Nitin Gadkari, Minister of Road Transport & Highways (RT&H) and Micro Small and Medium Enterprises (MSME), has said that the cabinet is working on introducing ropeway, cable car and funicular railway at many areas in place of roads to lead way for hotels and restaurants. “In our country service sector includes hotels/restaurants which has a very big role and contribution in it. We are opening around 2000 roadside amenities, and restaurants have great potential for growth in these upcoming green highway projects. Along with this, wherever we are developing tourism, we would be needing more hotels, restaurants, taxis and entertainment. As the highway projects are going in full swing, people will be travelling in large amount by road as they now have appropriate conveyance so they will be looking forward to resorts and restaurants which are hygienic and safe, which will give boost to the industry. It will also uplift the regional food and culture of the area which will be served to them by the respective hotels and restaurants,” he was speaking at a FHRAI webinar.

Gurbaxish Singh Kohli, Vice President, FHRAI and President, Hotel and Restaurant Association of Western India (HRAWI), voices his members’ opinions and says that hotels and restaurants are the unsung COVID-19 warriors for serving the country by offering their rooms and their kitchens. “Unfortunately, we are not being recognized. Hotels are being used by all states for housing the health workers. For almost two months now, hotels are being used for the purpose without any compensation or payment. Also, the compensation marked for this requisition is next to nothing. It tantamounts to further burdening a sector which is already on the verge of extinction. None of the hotels have been paid for the occupation since more than two months and although we have approached the authorities several times verbally and expressed to fix a reasonable compensation and make payment immediately, there is no revert from them till date.”

While certain states like Rajasthan have been allowed to open their hotels and restaurants, those in Mumbai and certain parts of Maharashtra have still not been permitted to open for guests. Commenting on this is Gurbaxish Singh Kohli, President, Hotel & Restaurant Association of Western India (HRAWI) and Vice President of Federation of the Hotels & Restaurants Associations of India (FHRAI), said, “Hotels and restaurants have been ready to serve customers for quite some time and are fully prepared. But there needs to be proper coordination between the Centre and the state governments. As of today, in Mumbai and certain parts of Maharashtra still, hotels and restaurants are not yet allowed to re-open which is strange as it is further pushing this failing industry into oblivion. Putting deadlines of shutting after 9pm and not allowing liquor to be sold are some of the other impediments which will not allow many restaurants to open even after lockdown on them is lifted.” He added that all HRAWI and FHRAI members are fully equipped in ensuring the safety of customers as well as staff and have been updated about the best practices in addition to the MHA guidelines for ensuring guest safety.

According to Gurbaxish Singh Kohli, Vice President, FHRAI, the industry has witnessed a decline in revenues to the extent of 60-70 per cent as compared to the previous year’s figures. He says, “In stocks alone, the industry stocks have taken a beating of over 51 per cent. While retaining jobs of workers seems like a noble thing to do, job losses are inevitable. Almost 50 to 60 per cent of the total jobs are in danger if the sector is not revived.”