Tag Archives: FHRAI

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.”

Federation of Hotel & Restaurant Association of India (FHRAI) has requested their members to refund 100% deposit on bookings made by travel agents. Gurbaxish Singh Kohli, Vice President, FHRAI, and President of HRAWI, has said, “We have advised all our hotel members to give 100 per cent refunds to the travel agents through whom the bookings have come. Some of them may have not done so. But they are definitely deferring the dates. We have advised them not to do this because at the time of crisis to gain the confidence of the guest, one must offer immediate and 100 per cent refund whenever asked for. Of course, deferment of dates is already there. We request the travel agents to try and influence the airlines – certain airlines have not been kind enough to refund. They are only offering a change of date. Unfortunately, that is not how it will work specially at a time like this. We are a service industry and customers are of prime importance.”

Gurbaxish Singh Kohli, Vice President, Federation of Hotel & Restaurant Associations of India (FHRAI) and President of HRAWI, has said that the association’s hospitality institute has launched new courses that were to start from March 2020. He says, “We have an institute called FIHM, which is short for FHRAI IHM in Greater Noida and keeping the demand for shorter courses in mind and so many new trends emerging, we have introduced short-term courses on FOSTAC and FSSAI that involve skill development. This is also something that the government is pushing. We have these courses ready and they were due to start immediately but now we have kept it on hold because of the unfortunate coronavirus situation. We will start them as soon as it comes under control. Apart from short-term courses, we also have the regular courses but we have stressed in these short courses as that’s the need of the hour. There will be guest lecturers and visiting facility for this as well.”

Voicing his opinion of the Union Budget, Gurbaxish Singh Kohli, Interim President, FHRAI, said, “The industry expectations were high but the Union Budget has neglected us completely and we are disappointed yet again. While the Govt. wants to give impetus to hospitality and tourism and our. PM has envisioned big things for the sector, there is no mention except for the 17 tourist-friendly spots which we welcome. We were expecting reforms in rate slabs of GST, Input Tax Credit and a definitive step to boost the domestic and inbound traffic. Hospitality plays a vital role in the growth of the economy therefore this sector cannot be ignored. It is one of the biggest contributors to GDP, taxes, Foreign Exchange and most importantly in generating employment. The success of Incredible India lies in managing its hospitality and tourism right and requires policy support.”