Members of clubs across the State and visitors to hotel bars have been disappointed this weekend, as the Supreme Court order on prohibiting the sale of alcohol on highways and in their vicinity took effect.
Around 300 clubs in Tamil Nadu have stopped vending liquor following the apex court order. “These places have seen a dip of 60 - 70% in business. Many customers are also mulling if they should shift their membership elsewhere. If the same situation continues for sometime, we will lose business in a big way,” said Benze Saravanan, founder, Tamil Nadu Bar and Club Owners Association.
Clubs charge anywhere from ₹1 lakh to ₹10 lakh as lifetime membership fees and the facilities that high-end clubs offer include restaurant, indoor games, swimming pools, gymnasiums, and even theatres where some can seat 100 persons at a time.
Many customers join clubs where their friends are already members. “People come here for parties or conferences and stay in our rooms. But the availability of alcohol is the main attraction for many,” he added.
A member from one of the older clubs in T. Nagar, which has not been affected by the ban, said the club office-bearers were considering a revision of the membership fee after they had received numerous requests from persons who wanted to join.
“The clubs in the city have not been affected by the ban. Thyagarayanagar Social Club, Gandhinagar Club, Tamil Nadu Cricket Association and Madras Boat Club had crowds that were more than usual this weekend. These clubs, which can serve alcohol, are sure to see a surge in patronage and memberships,” he said. He added that his club, which was charging around ₹2 lakh as membership fee, was sure to see an increase in the number of customers over the next few weeks.
Popular clubs affected
Established and popular clubs such as the Madras Gymkhana Club and the Cosmpolitan Club have been affected by the ban.
A member of the Cosmopolitan Club in Chennai said that they had received a message late on Saturday evening stating that in view of the Supreme Court orders and under instructions from the government of Tamil Nadu, the main club bar will remain closed until further orders.
In Coimbatore, office-bearers of the Coimbatore District Boarding and Lodging Owners Association on Monday, represented to the Minister for Excise and Prohibition Commission, explaining the setbacks caused to small hotels with bars.
Speaking to The Hindu, president of the Association T. Senthilkumar and secretary V. Sivakumar said that the ban had resulted in as many as 40-odd hotels and three clubs in Coimbatore losing business.
“The permit is issued with a licensing condition that we shall serve liquor to guests staying with us. With the ban resulting in the closure of bars, people are moving to hotels which are away from highways. The setback in business has already resulted in a steep fall in remittance of sales tax, service tax, VAT and luxury tax. Hence, they appealed to the State government to effectively represent the issue before the Supreme Court to get an exemption at least for hotels which have bars.
With three National Highway roads passing through the city, several hotels in Coimbatore have closed down the bars.
“My revenue will drop by 30%,” said the general manager of a star hotel located on Avinashi Road in Coimbatore. These hotels cannot serve liquor to their guests too. “We are explaining to the guests,” the GM said.
In the Star-rated or large hotel category, except a few, almost all are hit. “We have no option but to close down. We have represented to our association and it will take up the issue,” the GM added.
In Madurai, G. Vasudevan, director, Fortune Pandian Hotel, said that a lot of local guests used the bars at nights. “Many have returned disappointed after finding the bars closed. These people are going to drink either at some other place or in their cars.”
He also pointed out that hotels had made huge investment for the infrastructure of bars, inventories and licenses which would go waste. Bars contributed around 15 per cent of the revenue to the hotel industry and the new rule will badly hit the hospitality industry, he said.
