OPINION

Hospitality - the come back

When will the hotel industry return to normal? An expert gives his insight

MADAN PRASAD BEZBARUAH SECRETARY GENERAL, HOTEL ASSOCIATION OF INDIA

76 76 Hospitality industry is one of the rst and worst hit sectors by the catastrophic pandemic. e challenges of the global health crisis have dealt a crippling blow to the travel and tourism industry leading to the decimation of a substantial part of the hospitality business. Since August 2020, the hospitality sector has been struggling to nd its ground for recovery and started to show signs of improvement though in a staggered manner. However, much to the woes of the industry, it took another hit in February 2021 when the second wave hit the country, bringing the sector to its knees. Hotels are still reeling under the devastation of the second wave with little to no hope of a better future on the back of predictions of a third wave. In the meantime, the decrease in number of cases and improvement of economic activities has spurred optimism for the beleaguered hospitality industry which is limping back to normalcy on the back of domestic leisure and business travel during the last few weeks. Many states still continue to enforce di erent restrictions on travel activities which has made the recovery of the sector a long-drawn process. As hotel and tourism operations strive for survival, industry has greatly welcomed the support o ered by the government. States like Maharashtra and Karnataka have accorded industry status to the hotel sector. is will enable better rates for electricity and property tax. Punjab, Telangana, Rajasthan and some states have also come out with some relief measures. e announcements like ECLGS scheme, liquidity support by RBI and relief measures by the nance ministry, are some of the major steps that have bought a breather and hope for the sector. While these measures hold great signi cance, many SMEs consider the relief by the government as only a drop in the ocean. Hospitality and tourism associations have also reached out to the central and state governments highlighting the pain-points of the industry and the necessary policies that may help the sector survive and revive over the coming years.

ROAD TO RECOVERY

Liquidity support from the government will lay the foundation for the survival of the sector. Furthermore, the quotient of adaptability is crucial as the sector is witnessing some dynamic shi s in traveller behaviours and preferences. “Consumer con dence” will be the focus for the industry in the coming days. Innovation in payment methods, seamless check-in and check-out facilities and overall hygiene of properties are going to be the underlying aspects for

occupancies. erefore, hotels will have to continuously look for newer ways to enhance their services and minimise risks throughout the travel journey of their guests. As lockdowns are removed a er the ebbing of the second wave, people are now looking at leisure The hospitality sector travel for unwinding and fervently hopes that the overcoming the boredom traveller’s con dence of long indoor stays. ere will bounce back is a lot of movement seen towards local and drivable with the rolling out of destinations. Although vaccinations leisure travel has led to high bookings in hotels, business travel is yet to see the light of the day due to prevailing work from home norms and precautions in the context of fear of a third wave. Many hotels are betting on domestic travel and the wedding season for survival, but it may not be su cient in the long term. e hospitality sector fervently hopes that the traveller’s con dence will bounce back with the rolling out of vaccinations. It is evident from the experience gained over the last year that the sector is likely to see noticeable changes by the 2022–2024 only. From all accounts it is realistic to assume that the hospitality sector will take another couple of years to have a sense of complete recovery and growth or to get back to pre2019 levels. BTI