The numbers are stark. Last year there were around 4000 registered businesses in the
hospitality industry. When the industry first reopened around 1400 businesses
decided to reopen. That was approximately thirty five percent of businesses.
That was 2020 and this is 2021 and the businesses have been shut again for
almost a year. Nothing has been incoming into the coffers of the industry but
the outgoings are aplenty. The salaries of staff, the outgoings to the excise
department for starters, the tourism licenses, the electricity bills that were
sent monthly, then the statutory dues to the panchayats and municipalities like
the garbage tax which was doubled.
Hoteliers who were
willing to talk bemoaned the state of affairs. Jack Sukija hotelier was
forthright when he said the industry had not received any relief for two years.
He said last year they had five months of business and this year absolutely
nothing. Jack said the TTAG had met with the CM and submitted a letter
requesting help for the industry and citing the reasons why help was required.
Speaking specifically about the increase in the garbage tax which was doubled
he said the authorities admitted it was an error and would be rectified by the
first week of July. Jack said he had twenty room nights which worked out to one
night every four days. Most of the business had come from locals who checked in
the supply of electricity was disrupted by the cyclone. It was, he said a
trickle which did not amount to much. The state of the business was so bad he
expected the business landscape to be altered if this continued any longer. He
said “We are just paying out and nothing is coming in. One can expect more
businesses to shut down. This outflow of cash cannot be handled by anyone.”
TTAG member Aakash
Madgavnkar when asked about what relief had been granted as per the meeting
with the CM said that no relief had been granted as yet and the industry was
eagerly waiting for some help.
Savio Messias, the
former President of the TTAG and hotelier said small hotels were facing serious
problems. He said the outflows were way too high even when they were shut. He
said “Many are being financed through loans and that has to be paid. It is next
to impossible for them to have paid their installments for the last two years.
They would be facing serious financial problems. If this continues many hotels
and restaurants will close down. Small hotels are given on lease to people from
outside Goa; most of these people have quit their lease. Many hotels depended
on charters and not on the domestic tourist. These hotels have not had any
business for two years don’t expect much this season”. He said Russia had been hit
by the new variant and it was not looking good. He added that since most of the
Goan families who owned these hotels in the north did not have any marketing
plan. Many of them would have to invest in the property but how many could,
given all the outgoings every month. The industry he said would be decimated
unless some government help was not forthcoming.
The letter to the CM, a copy of which is with the Café requests
him for a 100% waiver of excise fees for all businesses with Tourism licences –
considering last year 2020-21 everyone paid full excise fees & majority did
not operate for almost 7 months. Now with the additional 2 months of 2021-22 of
business being shut & perhaps continuing being shut for the next couple of
months, it will be almost 1 year of NO business. They also requested that no
late penalty fees for units paying now & no interest on late fees and
organizations that have already paid full license fee for 2021-22 should be
given credit for the next financial year (2022-23) for the same.
The TTAG requested a postponement in the increase in the tourism
licence fees for 2 years, that is up to 2023-24. Importantly it asked for a 50%
waiver of tourism fees for all businesses with Tourism licences – considering
last year 2020-21 everyone paid full fees & majority did not operate for
almost 4 months. In addition, organizations that had already paid full license
fees for 2021-22 should be given credit for the next financial year (2022-23)
for the same.
On the thorny subject of electricity bills, they requested a
reduction of tariffs from April 2021 till September, 2021. All businesses with
Tourism licences should make their monthly payment on actual power consumed at
old tariffs. In addition it also requested that all businesses with Tourism
licenses should get a 50% reduction in fees (house tax, garbage charges etc) in
municipality, corporation & panchayat licence fees for 2021-22. In
addition, organizations that have already paid full license fees for 2021-22
should be given credit for the next financial year (2022-23) for the same.
Another request was for interest subvention to all stakeholders of the tourism
industry with a loan interest subsidy of at least 2% for at least 6 months,
from April 2021 to September 2021 on existing loans capped at 25 lakhs.
Interest subvention should be paid to the banks by the government. These were
some of the main demands.
The government has to provide some assistance because it is also
a matter of tens of thousands of jobs and also a matter of revenue for the government
once the industry opens. Saurabh khanna GM Park Hotels felt it was important
the government consider giving some leeway. He said “There is no business, we
are not shut but no one is coming. The Central government has given some relief
and it would be nice if the state government does it too. Karnataka and Gujarat
have given a rebate. Look at what the others are doing and follow it. Health is
paramount but so is livelihood. So many people are without jobs. I feel the
government should look at restarting tourism. Hotels in Himachal Pradesh are
full. Lonavala and Khandala are packed with tourists. If people are injected
there should not be a problem. Most of the hotel staff here are vaccinated. We
cannot wait for another two or three months. We should open now.”
