Government Support For Hotel, Restaurant & Hospitality Workers Jobloss Due to Covid -19

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The Coronavirus is a challenge and a tragedy in equal measure for this country, and we know how real the threat is to societies most vulnerable. All of us in hospitality wish to play our part in protecting those who need it and assisting in anyway possible to see the country through these dark times. 

According to The World Travel and Tourism Council (WTTC), tourism generated $240 bn or 9.2% of India’s GDP in 2018 and supported 42.67 mn jobs which is 8.1% of its total employment.

That said the Indian governments total lack of responsibility for the hospitality industry is unacceptable. The hospitality industry is the third largest industry in India in terms of earning through foreign exchange with many jobs at stake now. In supporting the govt orders most of the hotels, restaurants and allied hospitality industries minimize or closed their operations due to which many hospitality professionals jobs at risk. Many companies started laying off their employees to minimize their losses and to sustain.

Hospitality industry workers & owners been neglected for any aid by government during the announcement for 20 lakh crore package.

Even government not supporting constant talks by FAITH and other association under hospitality industry to aid the workers and sustain the industry. We are 240 billion crore industry and 18% growth last year plus we are the backbone for any industry to develop in India. Inspite of this Government not ready to support this Industry

The Federation of Associations in Indian Tourism & Hospitality (FAITH), the policy federation of all the national associations representing the tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI), says the Indian tourism industry has gone into a state of disbelief and shock.

The industry was looking forward to a set of survival measures from the Rs 20-lakh crore package announced over a week which, however, were not addressed.

Tourism, Travel and Hospitality have an almost 10 per cent impact on GDP, both directly and indirectly. It has already seen over one-quarter of accumulated losses, which began from February.

FAITH noted that no cash inflow is expected for many quarters over FY 20-21, as the key segments of the tourism economy will be down. International in-bound tourists, in-bound and VFR (visiting friends and relatives), and outbound travel will remain mostly non-performing due to international flight restrictions and the tragic impact in most key tourism markets of India.

 
It further revealed that domestic and corporate travel in the country may ease up post lock-down, but will be highly restricted due to the fear of travel among elders and children, the new social distancing norms, corporate travel freeze and the closure of the holiday season. This will impact all leisure, adventure, heritage, spiritual, cruise, and niche tourism segments.

The meetings, incentives, exhibitions and events segments will be impacted due to size restrictions, the association stated.

FAITH said it had proposed a dedicated interest and collateral-free long-term fund for paying salaries. This included operating costs and a minimum of 12 months of complete waiver of fixed central and state statutory and banking liabilities, without any penal or compounding interest. However, the proposal was not acknowledged.

FAITH & its 10 member associations (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) were in constant dialogue with the Centre over the past 10 weeks. The PMO and ministries of finance, commerce, aviation, and tourism, RBI, and all 28 Chief Ministers, Niti Aayog and the Empowered Group 6.

Indian tourism, travel and hospitality are said to impact 10-12 per cent of India’s employment, which is believed to cover almost 5 crore direct and indirect jobs.

The industry has gone numb from a lack of any umbrella direction from the Government and without any fiscal and monetary support.

With no cash inflows, the industry is looking at large-scale bankruptcies and business closures, which will lead to job losses across cities, towns, and the hinterland.

We are asking for a review of-

A clear support - financial and practical - laid out by the government for both staff and business owners alike 
A decision from the government - because if we take the decision to close any form of insurance is no longer an option
Transparency on timeline so businesses can prepare logistically and rationally for times ahead 
Thank you to each and every person for their support, stay safe. 

V. Krishna Kumar, Hospitality Professional, India