Earlier this week, Maharashtra’s Chief Minister Uddhav Thackeray said he doesn’t want to impose a lockdown in the state but “helplessness is also something”. He made this remark as the state has been reporting over 8,000 daily COVID-19 cases for the last few days.
Since January 2021, Maharashtra crossed the 6,000-mark after a lull of three months. Thackeray said that he would be compelled to announce a lockdown, if the growth of COVID-19 cases was not reduced within two weeks; especially in light of daily cases crossing the 8,000-mark last week.
This news has expectedly disheartened the state’s hospitality segment. According to Sherry Bhatia, President of the Hotel and Restaurant Association of Western India (HRAWI), there are around 210,000 restaurants in Maharashtra. Of this approximately 30% continue to remain shut due to debts and financial losses they accrued as a result of the pandemic induced lockdowns.
“Small changes in business and operations have big repercussions on revenues. So, we not only appeal to the Government against a lockdown. We also hope for relaxation in the operation timings till 1 am across the state,” he added.
It is well-known that the hospitality industry, which is undergoing the most trying periods in recent times, is attempting to recover from last year’s losses. With news about a spike in COVID-19 cases, restaurants already in the state have witnessed around 30% drop in the customer footfalls. Pradeep Shetty, Senior VP of HRAWI tells Vinita Bhatia why another lockdown or further restrictions in timings will sound a death knell for the industry.
How has the hospitality sector performed over the past couple of months after the lockdown was eased?
Initially, there was a spurt in demand or footfalls, but it soon fizzled out. Restaurants are currently operating at 50% capacity.
Also, across the State, the timing for taking the last order is staggered. While it is 1AM in Mumbai, in certain cities it varies from 9PM to 11PM. In some districts, it is also 5 PM!
Moreover, the timing restrictions are changed almost every month. For hotels and restaurants, this uncertainty causes loss of opportunity.
What percentage of hotels had to cease operations during the pandemic?
Business for most F&B establishments is still around 35%-40% of pre-pandemic levels in the state. Almost 30% restaurants have not re-opened for business. A significant number of these will most probably shut permanently, if they don’t re-open by the March-end.
In light of the rising COVID cases, isn’t an imminent lockdown necessary to protect public health?
Safety of citizens should be the state’s biggest priority. However, hotels and restaurants are not responsible for the rising COVID-19 cases.
Guest safety is our foremost priority, too. One must understand that unlike malls, shopping centers, grocery shops, public transport or even airports, hotels and restaurants are organised spaces. It has tables and chairs, which by default take care of the mandated distancing norms.
Entry and exit points are manned at all times and staff is constantly on its toes inside the premises. Since it is safe to operate with these SOPs, the restriction on timings is avoidable since it can only have an adverse impact on businesses.
Besides extension of operating timings, how can the State help the hospitality sector currently?
The Maharashtra Government has been very receptive of our demands. It recently agreed to our long standing demand for according industry status to the hospitality sector. So, we are sure that it will also extend the operation timings and allow us to operate at full capacity, soon.
We are also thankful to the Government for waiving off the excise license fee on pro-rata basis along with the roll-back of the 15% annual fee increase for 2020. However, in view of the industry’s distressed situation, we have requested the Government to allow license holders to pay the Excise license fees in four installments in the year 2021-2022.
Several cases of overcrowding in restaurants have come to light recently, be it Irish House or U-Turn in Mumbai or smaller hotels in the rest of the state.How will HRAWI ensure that its members adhere to the social distancing, safety and hygiene measures outlined by the administration to control the spread of COVID-19?
I would like to reiterate that hotels and restaurants are organised spaces with tables and chairs that by default take care of the mandated distancing norms. HRAWI has ensured that its members are notified and kept abreast of all Government mandates and SOP guidelines.
Also, corrective action should be taken against those violating regulations rather than penalising the entire industry for it. As a voice of the industry, HRAWI once again appeals to all its members to be doubly cautious and follow all guidelines and SOPs issued by the Health Ministry.
Many smaller hotels and restaurants are casual about checking temperatures or mandated distancing norms. How will HRAWI make them realise that this is necessary for the greater good and their own long-term business interests?
The hospitality industry, especially hotels, were amongst the first to get acquainted with safety protocols. Several hotels in the cities were requisitioned by the State in the initial months of the lockdown to quarantine passengers.
Also, hotels accommodated doctors and other health workers during the pandemic. Their staff is, therefore, familiar and aware of the need to follow the SOPs. HRAWI has ensured that each of our members in the State or even across other states in the Western region are informed on the need to follow these SOPs.
