COVID-19 impact: Indoor Amusement Centres seek govt help as losses climb to Rs 1,000cr

Indoor Amusement Centres (IACs) that have been shut for over five months due to the coronavirus-led lockdown are seeking help from the government to reopen.

Shopping Centres Association India (SCAI), the association of mall owners in India and the Indian Association of Amusement Parks and Industries (IAAPI), the apex body representing the interests of Amusement Parks, Theme Parks, Water Parks and Indoor Amusement Centre in India, have written a letter to Home minister Amit Shah, highlighting the losses indoor amusement parks are incurring and the job losses in the sector.

The industry has incurred losses to the tune of Rs 1,100 crore so far, which is likely to increase to Rs 2,000 crore by end of this year.

"The lockdown has not only caused significant financial and job losses, with continued lockdown even the sustenance of IAC has become suspect," said SCAI and IAAPI in their letter.

These centres employs over 80,000 people, of which close to 35 to 40 percent have already returned to their hometowns due to the growing financial stress and zero revenues. The livelihoods of more than two million are dependent on the sector, the associations said in the letter.

According to SCAI and IAAPI, unlike shopping or market complexes, visitors to IAC are paid patrons. "Hence, not only are the chances of overcrowding negligible, we can control the traffic as per the SOPs (Standard Operating Procedures) and ensure social distancing too," they said.

Tarun Rangwani, Business Head, Funcity, pointed out that in the last six months, Fun City has lost close to Rs 80 crore. Their expansion plans have also derailed. We were looking forward to expand to more cities this year, covering even tier 2 locations. Unfortunately, the plans for expansion is on hold currently, given the situation, we don’t see any new outlets opening till the next financial year, except for a couple of stores whose work started way back in January 2020," said Rangwani.

Another player in the indoor amusement centre space pointed out the help the industry requires.

"We have requested the government for a one year GST waiver along with wage support and waivers of import duties. This will assist in retaining employees and retaining the growth trajectory," said Abbas Jabalpurwala, CEO, Timezone India.