The Hotel & Restaurant Association of Odisha (HRAO) have submitted a Memorandum to the State Government of Odisha for the revival and readiness support to the travel and hotel industry facing huge financial crises due to the outbreak of COVID 19. The Coronavirus spread has created a huge loss to the tourism and hospitality sector across
the globe.
The Union Health Ministry has suspended all existing visas – except diplomatic, official, UN/International organisations, employment and project visas, from March 13th till April 15th, 2020. The World Health Organisation (WHO) has already declared the novel Coronavirus a pandemic, meaning a disease that has spread worldwide and affected huge number of people. In a series of tweets, the WHO said it was deeply concerned both by the alarming levels of spread and severity (of the virus), and by the alarming levels of inaction.
While admiring the efforts taken by the State Government, J K Mohanty, Chairman – Hotel & Restaurant Association of Odisha & IATO Eastern Region said: “We highly appreciate and admire the concrete positive steps taken by our State Government so far at the right time in preventing and restricting the spread of this pandemic situation. On behalf of HRAO we pledge our full support at this time of crisis in every way to the Government and people of Odisha.”
“The travel trade and hotel industry of Odisha is also going to bear a huge financial burden as many inbound tourists are cancelling their bookings, large conferences, banquet bookings, marriage bookings have already been cancelled in most of the hotels,” he added.
As mentioned in the Memorandum, all hotels are spending extra money and man power to maintain the hygiene levels of the hotel. Sanitising the hotel and cleaning every inch of the hotel to fight corona virus is our priority and mission.
“This is the right time for the state Government and the business community to act together so that positivity is there and everyone is ready to fight the situation and plan for a better business environment in future. We expect our Government will have a positive approach and will help us in this crisis situation,” says HRAO President Mohanty.
Points mentioned in the Memorandum are as below:
Deferment of Bank Loans: We’ll like to highlight the fact that most of the hotel owners have taken loans from the bank and in current situation it seems difficult for us to pay interest and bank EMIs. Banks should be advised by the state Government to consider the situation and cooperate with us and defer the EMIs and interest till the time situation becomes normal. Also CIBIL should not be spoiled / affected in the current business environment.
Waiver of SGST by the State Government: SGST should be waived off till the time the situation becomes normal. It will show signs of positivity from the Government side to support tourism and hospitality industry. The State Government should also try and convince the Central Government for a similar step.
Waiver of Fees: Waiver of fees for any upcoming licenses/permits renewal (such as BMC Holding Tax, BAR Licence Fee / Ground Water Fee, Electricity Fee etc) for the hospitality and travel industry across the state till the time revival happens.
GST: A complete GST Tax Holiday for the Tourism, Travel & Hospitality Industry for the next twelve months till the time recovery happens.
Sanction of Funds: Immediate sanction of funds, and / or to reimburse PF, ESIC, Professional Tax, salaries of employees in the Tourism, Travel & Hospitality industry till the time revival happens.
