Budget 2021: How can govt help restaurants, hotel industry?
Budget 2021: Even after lockdown restrictions were lifted, restaurants managed operations with curbs in place comprising early closures and checks on serving alcohol
- Feb 1, 2021,
- Updated Feb 1, 2021 4:57 AM IST
The hotel industry, considered to be a sunrise sector, contributes around 7 per cent to the country's GDP and has been on a growth path before the COVID-19 pandemic struck and robbed the industry of its sheen. The sector is one of the most affected ones due to the havoc wreaked by the COVID-19 pandemic and subsequent lockdowns. According to data by industry body NRAI (National Restaurant Association of India), more than 30 per cent of bars and eateries in India have closed operations permanently because of the coronavirus-induced lockdown. The sector employed over seven million people before the COVID-19 pandemic outbreak.
Even after lockdown restrictions were lifted, restaurants managed operations with curbs in place comprising early closures and checks on serving alcohol.
This makes it all the more important for the government to announce some positive measures for the industry in Union Budget 2021.
Although hotels and fine dining restaurants have taken several measures, such as rejigging their menus - increasing digitisation in terms of menus, more take-aways, and deliveries, etc. - and coming up with contactless offerings, the sector needs handholding by the government to overcome its worst downturn in 2020.
The most important issue the Centre will need to focus on is the job loss in the hotel industry. Since the services industry is one of the largest employment generators in the country, the government needs to address this pressing issue in the Budget 2021.
The industry expects Finance Minister Nirmala Sitharaman to announce a stimulus package to help it bounce back to pre-COVID levels, besides rationalising GST and permitting restaurants to take input on their purchases, which is fundamental for the sector to thrive.
The Federation of Hotel & Restaurant Associations of India (FHRAI), as part of its suggestions for the Budget 2021 with FM Sitharaman, has sought a Minimum Alternate Tax (MAT) waiver for three years owing to the loss of business suffered by the sector due to coronavirus outbreak. This, the FRAI said, will help in lowering the tax burden and provide some relief to the beleaguered sector.
Although the industry has been finding its feet again by straddling the line between assuring guests' safety and the amiable hospitable ambience, the government too needs to step up with more business-friendly measures.
One of them being extending business hours so that restaurant owners can recover losses incurred during intermittent shutdowns, and revive confidence in the hotel industry as a whole.
The hotel industry, considered to be a sunrise sector, contributes around 7 per cent to the country's GDP and has been on a growth path before the COVID-19 pandemic struck and robbed the industry of its sheen. The sector is one of the most affected ones due to the havoc wreaked by the COVID-19 pandemic and subsequent lockdowns. According to data by industry body NRAI (National Restaurant Association of India), more than 30 per cent of bars and eateries in India have closed operations permanently because of the coronavirus-induced lockdown. The sector employed over seven million people before the COVID-19 pandemic outbreak.
Even after lockdown restrictions were lifted, restaurants managed operations with curbs in place comprising early closures and checks on serving alcohol.
This makes it all the more important for the government to announce some positive measures for the industry in Union Budget 2021.
Although hotels and fine dining restaurants have taken several measures, such as rejigging their menus - increasing digitisation in terms of menus, more take-aways, and deliveries, etc. - and coming up with contactless offerings, the sector needs handholding by the government to overcome its worst downturn in 2020.
The most important issue the Centre will need to focus on is the job loss in the hotel industry. Since the services industry is one of the largest employment generators in the country, the government needs to address this pressing issue in the Budget 2021.
The industry expects Finance Minister Nirmala Sitharaman to announce a stimulus package to help it bounce back to pre-COVID levels, besides rationalising GST and permitting restaurants to take input on their purchases, which is fundamental for the sector to thrive.
The Federation of Hotel & Restaurant Associations of India (FHRAI), as part of its suggestions for the Budget 2021 with FM Sitharaman, has sought a Minimum Alternate Tax (MAT) waiver for three years owing to the loss of business suffered by the sector due to coronavirus outbreak. This, the FRAI said, will help in lowering the tax burden and provide some relief to the beleaguered sector.
Although the industry has been finding its feet again by straddling the line between assuring guests' safety and the amiable hospitable ambience, the government too needs to step up with more business-friendly measures.
One of them being extending business hours so that restaurant owners can recover losses incurred during intermittent shutdowns, and revive confidence in the hotel industry as a whole.