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Sub:- FHRAI's Meeting with the Hon'ble Minister of State (IC) for Tourism

Dear Member,

Greetings from FHRAI!

FHRAI attended a virtual meeting convened by Shri Prahlad Singh Patel, Hon’ble Minister of State (IC) for Tourism, Government of India with the Hospitality and Wellness Sector stakeholders on 11th August 2020. The meeting was held with an objective to collect the inputs and suggestions for the revival of the tourism and hospitality sector, being the most affected due to the global pandemic, in the country.

Representing FHRAI, Mr Gurbaxish Singh Kohli, Vice President, FHRAI and President, HRAWI and Mr. Surendra Kumar Jaiswal, Vice President, FHRAI and President, HRANI highlighted the following pertinent issues of the hospitality sector, first of all for the cognizance of the Tourism Ministry and thereafter to be taken up with other relevant Ministries.

FHRAI strongly recommended that Bank EMIs and Interest rates should be deferred for a period of 12 months or existing moratorium should be extended through a notification correspondingly for additional 6 months. In order to give some relief to the highly distressed sector, FHRAI advocated for Reduction of Bank Interest Rate by almost 200 basis points with immediate full transmission for working capital and issue necessary directions to effectively implement the measures announced by RBI retrospectively as well as prospectively. The Federation also requested to the Government to announce soft loans to all hospitality establishments, hotels and restaurants, to restart the operations post lockdown.

Implementation of uniform guidelines at both Central and State level with regard to the quarantine rules for domestic travellers was another important item that featured in the wish list presented by the Federation to the Government along with a request for opening of Bars for certain sectors within the F&B industry as well as to  easing of get together restrictions by relaxing  it to make it more than 50 pax and commensurate to the size of the venue.

FHRAI also highlighted  that since  long haul travel will not take off for a while, domestic travel should be targeted i.e.:  22 million outbound tourists could somehow be convinced to travel within our country and for that measures to  incentivise MICE and certain income tax benefits for domestic travel to the tune of 1.5 lacs to  be announced by the Government. Also that the Govt of India has a large promotional budget which is used to promote India abroad and as the foreign travel may be a bit farfetched at this moment, a part of that budget could  be used to promote India within India i.e. domestic promotion, not only to be left to individual states but also by the centre, for a few months.

Since electricity / Power bills are one of the major expenses for the Hospitality Industry, and comes under the jurisdiction of the respective State Governments,  the Federation requested the Hon’ble Minister to write to the States to provide the following reliefs in this area such as: Demand Charges for the Lockdown period should be totally waived off ; Load Factor Incentives should be calculated excluding the Lockdown days period ; Energy Charges should be charged on the basis of actual consumption units ; and No fixed charges to be charged for the period during the pandemic.

FHRAI and Regional leadership also requested to the Government to provide some relief to the sector by way of relaxation in statutory compliances such as deferment of the professional tax, postponement of the licences fees, fine and penal interest payable if any.   

Mr. Pradeep Shetty, Jt. Hony. Secretary, FHRAI and Vice President, HRAWI was also part of the discussions.

FHRAI sought the wholehearted support and facilitation of the Ministry of Tourism for the survival of the hospitality sector in the country.

With kind regards,

Gurbaxish Singh Kohli
Vice President
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The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com