In the days of the lockdown, the hospitality sector in the city of Bengaluru has estimated a loss of Rs. 1,431 crores. A new prediction tells that up to 33 percent of the Bengaluru workforce in the hospitality sector may lose jobs.
As per the statistics, about 24,500 registered hospitality units that comprise of hotels and restaurants employ 4.5 lakh people in the city. As per the Bruhat Bengaluru Hotels Association, the jobs of about 1.5 lakh people are at risk due to the tough recovery phase post the lockdown. The association has taken the problem to the state government and brought the attention of Chief Minister BS Yediyurappa who has promised to discuss this issue with the center.
The hardest-hit sector due to the novel coronavirus pandemic is the tourism and the hospitality sector. Even though many countries have reopened the economy, it is still unclear how the demand rises amidst the new norms of social distancing. The BBHA President PC Rao spoke to the Times of India and said,
“At least 1.5 lakh of the 4.5 lakh people will lose their jobs because even if we begin operations by May 18 – the government is yet to set the date – we will need at least 100-120 days for some kind of normalcy to return. So far, we have been losing at least Rs. 25 crore per day, including the financial hit taken by the catering business, and I am only talking about estimates based on the annual GST collection.”
30 percent layoffs certain
If the crisis wouldn’t have stuck the city, the sector would have posted a turnover of Rs. 1,431 crore including 81 crores from the big caterers in the city. A major hotelier and caterer in the city, Vasudev Adiga said that his firm alone supplied 5000 plates a day for many companies that cost Rs. 85-100 per plate.
The Chief Minister met the Karnataka Pradesh Hotel and restaurant association to acknowledge their problems and challenges. The demands the association placed before the government are – the government should pay staff salaries for three months and give exemption on property tax for the year by at least 50 percent, the professional tax of Rs. 2,000 should be waived off for six months, and the banks must defer interest on payment on loans by six months. GK Shetty, the board of director for the service sector in the Federation of Karnataka Chambers of Commerce and Industry, said,
“About 30 percent layoffs will happen because the losses have been huge and business won’t pick up immediately after the lockdown. Darshinis may see up to 40 percent of their business return in a week of reopening, hotels with service 30 percent, and those with rooms only 10 percent. It will take a few months before we get back on track and until then, it will be difficult.”
Source: The Times of India
