The South India Hotels and Restaurants Association (SIHRA) has urged the State government to take steps in support of hotels and ensure that their liquor licences are renewed. The Supreme Court had recently clarified that the ban on sale of liquor on National and State Highways will not apply to municipal areas, which is a huge relief for the hotel and tourism industry after a wait of five months.
In a press release, the Association said that while several States including Karnataka, Kerala and West Bengal have taken proactive steps and instructed their Excise Officers to follow the apex court’s directions and renew licences of all establishments in municipal areas located on National and State Highways, Tamil Nadu is yet to take steps to implement the order.
“The Commissioner of Prohibition and Excise is helpless as he is yet to receive confirmation from the Advocate General of Tamil Nadu that liquor licences inside Municipal areas can be renewed,” the release said.
Around 70% of the hotels (512 out of 732 hotels) in the State have lost their liquor licence. The Association said that hotels have suffered a loss of 30% and more in revenues with their profits washed away completely.
“As it is Tamil Nadu is attracting very little investment due to the political turmoil. Hotels in the State have one of the lowest levels of occupancy and average room rates in the country. This political inaction to remove the liquor ban even after the SC order is only adding to the woes of the tourism and hotel industry,” the release said.
