Struggling hospitality industry seeks waiver of legal charges

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Representatives of hotels and restaurants as well as traders have written to the Delhi government asking for help for their sector given the COVID-19 restrictions imposed on them.

While hotels and restaurants have asked for a waiver of legal charges, traders have asked that they be allowed to resume normal operating hours as the number of daily cases has shown a downward trend.

They asked for a waiver of legal charges.

Landlords said the current restrictions are akin to a lockdown and business is down by 10% across all major sites. They said the situation will multiply the extensive damage the sector has faced due to previous shutdowns. It will take no less than five years for the industry to return to pre-pandemic levels, they said.

Stop-start-stop system

“Frequent closures and restrictions coupled with travel restrictions have put the industry in the worst phase. Every time the situation improves a bit, there seems to be hope of getting the business back on track. But, the stop-start-stop arrangement has not allowed the hospitality industry to have continuous operation,” said GS Kohli, Vice Chairman of the Federation of Hotels and Restaurants of India (FHRAI) in a statement. letter to Chief Minister Arvind Kejriwal. .

He applied to the CM for a waiver of statutory payments such as property tax, water charges, electricity charges and excise license fees from hospitality establishments for a minimum period of one year in order to ‘help capital-intensive industry, manage a lot of overhead expenses even when not working.

Layoffs and pay cuts

Mr Kohli said significant capital has been invested by the industry to reopen and restart operations, but it is now eyeing another round of layoffs and pay cuts that will leave the industry without a workforce qualified to work in the sector, as many of them have moved to other sectors due to lack of job security.

Meanwhile, shopkeepers have demanded the removal of the even-odd store opening system as well as the weekend curfew as the number of COVID-19 declines in the city. In a representation to Lieutenant Governor Anil Baijal and Mr Kejriwal, the New Delhi Traders Association (NDTA) said that although shops are allowed to open on alternate days, their expenses amount to the entire month , which does not help their already struggling business.

NDTA’s Atul Bhargava said crowd management is the key to ensuring safety during the pandemic and not shutting down commerce. “Let’s work to survive and support many families who depend on our stores and restaurants,” he said.

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