Raj Chopra, who owns the Jehovah’s Witnesses Marriott Mussoorie Walnut Grove Resort & Spa has been inundated with cancellations due to rising Covid cases – including for two large weddings.
Chopra building two others Hotels combined with Marriott International in Goa expects a “very challenging” February.
“We know there will be no business,” he said. “We are preparing to keep our employees and will try to ensure that they do not leave their jobs. We hope that this increase will curve by the end of February and that business will pick up again by mid-March. ”
Spurred on by the travel congestion after the second wave, the hospitality industry is expecting a severe blow from the rising third wave, at least in the short term.
Hiccups in recovery
Some industry executives are hoping the surge in infections will be short-lived, while others are looking for a helping hand from the government.
“Due to increasing cases across the country, weddings, social events and even major events like Vibrant Gujarat are being postponed, slowing the industry’s recovery,” said Mandeep Lamba, President, South Asia, at hotel consultancy HVS Anarock.
As in the previous two waves, hotels in some cities will act as quarantine facilities, which will help sustain occupancy but only have a short-term impact on average prices, he said.
“Given the repeated shocks the sector is suffering, it will need government support to cope with the damage it has caused. It is imperative that the government seek to expand loan guarantees and also respond positively to the needs of the sector, which have been repeatedly raised by various industry bodies, ”Lamba said.
Lemon Tree Hotels deputy general manager Rattan Keswani said January will be a “difficult” month. “Maybe by the third week of February, when things wear off, we’ll be in better shape,” he said. “Collection is extremely slow at the moment. Quarantine regulations are constantly changing. ”
“We have already offered our quarantine services and some hospitals have also contacted us. Our Red Fox Hotel in Aerocity Delhi was taken over for the same purpose in the middle of last week and is connected to the LNJP Hospital for customers coming from the airport. ”
Change policies
Some hotel managers said the new guidelines, requiring a seven-day quarantine for all international comers from Jan. 11, had created some confusion. “Since the authorities are pretty strict about these rules, we even advise passengers who arrive before 11am.
The impact of rising Covid-19 cases on bookings is reflected in postponed stays and cancellations, said Nikhil Sharma, Eurasia regional director, Wyndham Hotels and Resorts. “We anticipate changes to bookings as travelers adjust their plans to meet new guidelines. But we remain agile and ready to welcome them when the time is right and travel restrictions allow, ”he said.
New demand fell 50% from January 8th to 9th, compared to the weekend of January 1st and 2nd, said Vibhas Prasad, director of Leisure Hotels Group.
Leisure Hotels operates Aloha on the Ganges in Rishikesh, Sun n Snow Inn in Kausani and Riverview Retreat in Corbett, as well as hotels in Dharamshala, Goa and Nainital. The group’s average room occupancy was around 65% in the third quarter, 7 to 8% higher than in the same period in 2020.
Government support
ET reported on January 1 that despite the Omicron Fear and the new wave of Covid cases, Indians are making their way in large numbers to greet the New Year from hotels and host families that range from luxury to budget categories in most vacation destinations.
The Covid wave will harm the hospitality industry, said Pradeep Shetty, senior vice president, Hotel and Restaurant Association of Western India, after Maharashtra said restaurants should close at 10 p.m.
“The industry has suffered massive losses, with many hotels and restaurants facing closure and bankruptcy,” he said. “Over 35% of the hotels and restaurants have closed in the past two years. We ask the state government to allow us to operate at least until 11 p.m. Much effort has been made to bring the workers back. The repayment of loans taken out to resume operations after the lockdowns is another important area of concern. ”
The state should introduce a direct salary transfer system for hospitality workers in addition to waiving statutory fees, taxes and utility bills, Shetty said. He also called for a loan extension program or moratorium to protect owners and operators from third wave loan defaults.
