Year-ender 2020: Hotels were the first to be hit by the COVID-19 pandemic
As per estimates, the hotel industry has suffered a revenue loss of Rs 90,000 crore due to the COVID-19 pandemic.
December 31, 2020 / 07:29 PM IST
Occupancy levels across all hotels in 2020 dipped to the lowest ever, thanks to the COVID-19 pandemic. April and May saw less than 10 percent of rooms, on an average, being occupied by guests and most of these were medical workers or guests who were stuck in the hotel due to the lockdown.
Following the various phases of unlock and travel guidelines announced by the government there has been a steady pick up in business for hoteliers. As per estimates, the hotel industry has suffered a revenue loss of Rs 90,000 crore due to the pandemic. Many hotels are on the verge of shutting business, claim hoteliers and market watchers.
*While Indian travellers make up for a majority of guests at hotels, foreign travellers do generate a significant chunk of revenues. There is no outlook on the revival of foreign tourist arrivals in India.
*Besides leisure tourism, the sector depends heavily on corporate travel and corporate events for revenues. With virtual meetings and virtual events becoming a norm, hoteliers are finding it difficult to attract the corporate sector.
*Hoteliers are demanding that the sector be awarded the infrastructure status. So far the Maharashtra government has agreed to bring hotels under the infrastructure sector.