The crisis brought about by COVID-19 is unpredictable and unprecedented. The virus, like a flame-spewing dragon, is taking into its fold newer areas, causing deeper worry over its longevity.
Among others, the aviation, hospitality and tourism sectors are the hardest hit and their interdependence is proving to be an additional bane in this hour of crisis. At this point, hoteliers don’t see much hope for revival of the hospitality industry with no definite vision of recovery in the immediate months.
"The prognosis of resuscitation does not look promising considering we have no clue when the restrictions on travel will end. It is unlikely that people will have the kind of disposable income to travel even after the crisis, besides persistence of the fear of infection," says Parvathaneni Ravi Kumar, president of the Vijayawada Hotel Owners’ Association.
Double whammy
The hotel industry reeled under the impact of economic slowdown and hoteliers hoped for a revival in the tourism season but COVID-19 has dashed their hopes.
Former president of the association, Ilapuram Raja calls it the worst ever crisis for the hotel industry.
At the epicentre of the ongoing crisis, hoteliers are trying to wade through this difficult phase.
Hotels are very capital-intensive and labour-intensive businesses with high fixed costs such as wage bills, government taxes and minimum load charge, explains Muthavarapu Murali Krishna, CMD of a city hotel. "As long as there is no connectivity (road and air), there is no hope of any business," he says, explaining how he has been pumping money on maintenance of his properties so they remain functional.
"There were times when business dipped to a very low level but I don’t remember a crisis of this magnitude at least in the last 50 years," he says.
Domestic travel
Given how the pandemic has created physical and economic duress, the first thought on travellers’ mind will be proximity and low-cost safe travel. "Even post lockdown, domestic travel will be the future for the hospitality industry," says Velagapudi Raghava Chowdary, proprietor of a hotel. "Grade-IV labour is a serious issue. At this point, I have no clue if my workers will return and, even if they do, whether it is safe to take them in again," says Mr. Chowdary, whose hotel is closed to public but has tied up for takeaway services.
Assistance
The three months moratorium on loans, extended by another three months, is not sufficient, feel most of the hotel owners and want a second extension for another year. With no support forthcoming from the government, they are left to fend for themselves, they rue, reminding that when liquidity was a problem, they were expected not to lay off staff or cut salaries.
In the last one and half years, the city has seen proliferation of close to 60 small and big hotels. "Don’t be surprised if you do not see half of them re-appear post lockdown," says Mr. Chowdary.
