Hoteliers of Odisha have sought a slew of relief measures including waiver of taxes from the State Government to tide over their crisis in the wake of the nationwide lockdown.
Hotel and Restaurant Association of Odisha (HRAO) chairman JK Mohanty said the Reserve Bank of India’s (RBI) announcement for a three-month moratorium on loan repayments is “not at all adequate” for the State’s hospitality sector,
He said the hoteliers have submitted a memorandum to the State Government seeking a number of measures for survival of the hospitality and travel sectors. Tourism Secretary Vishal Dev has also held a teleconference with hoteliers.
“Our industry needs moratorium on repayments of all working capital loans and overdrafts for at least one year,” he said, adding, “There should be collateral and interest-free loans up to five years for SMEs in the tourism sector which will help them sustain and rebuild.”
The State Finance Department is expected to write to all banks for extending relief urgently to the sector. The hoteliers have also urged the Government to waive State GST until the situation becomes normal. “We want a complete GST holiday for the tourism, travel and hospitality industry for the next twelve months,” Mohanty said.
There should also be waiver of fees for licences or renewals for the hospitality and travel industry for the time being, he said.
The HRAO’s petition also said the Urban Development Department should provide a 50% discount in payment of all statutory fees for getting approval of the tourism projects from the planning authorities. The taxes, which have been collected or yet to be levied during the COVID-19 period, bar licence, groundwater and electricity fees should be waived for three months, it said.
The HRAO said the bills for salary payments to staffs account for 25%-30% of the revenue of a hotel while the Government has “requested” to hoteliers to ensure that there should be “no salary cut or no retrenchment”.
Under such circumstances, the HRAO urged the Government to consider extending interest-free financial assistance to the stakeholders for payment of salary, wages and ESIC from the Odisha Labour Welfare Fund for at least six months.
The hoteliers also demanded a comprehensive marketing plan for revival of the sector. There should be short- and long-term plans with a thrust on domestic travellers and Indian corporates with proper guidelines and various incentives for meetings, conferences and exhibitions, the HRAO said.
Besides, Mohanty said the Government should declare a tourism policy with incentives to boost the State’s infrastructure.