COVID-19: After ban on New year events, Mumbai's hotel industry fears losing 20 percent of annual business

COVID-19: After ban on New year events, Mumbai's hotel industry fears losing 20 percent of annual business

FPJ Web DeskUpdated: Saturday, January 01, 2022, 11:44 AM IST
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Representative Image | PTI

The cancellation of New year events amid surging COVID-19 cases has dealt a hard blow to the finances of the hotel industry.

According to a report from The Indian Express, hotel associations have claimed that they might incur losses of about 20 percent of annual business this year, due to the cancellations.

Pradeep Shetty, senior vice-president of Hotel and Restaurant Association of Western India (HRAWI) told the Indian Express said that Christmas and New Year’s Eve celebrations account for nearly 20 per cent of the industry’s annual business.

He further said that operating at only 50 per cent capacity adds to the losses. "We’re losing approximately Rs 200 to Rs 250 crore,” he said.

A hotelier from Andheri West said that the last seven days of the year are very crucial, as many events are organised ahead of the year's end. He added that the government should have allowed events with restrictions rather than a complete ban.

The order restricting the New Year celebrations came into effect at midnight on Thursday. As per the order, the police have prohibited all types of festivities at restaurants, bars, hotels pubs, clubs and resorts.

The Mumbai Municipal Corporation had earlier issued a similar order prohibiting celebration, programme, function or gathering in any closed or open space.

Among other places, this order will apply to restaurants, hotels, banquet halls, bars, pubs, orchestras, resorts, clubs. rooftops etc. However, there will be no restrictions on travel and public transport will ply as per current guidelines.

Those found violating the order will be booked under Section 188 (disobeying the order of public servant) of the Indian Penal Code, in addition to penal provisions under the Epidemic Diseases Act and the National Disaster Management Act, said police.

Meanwhile, Mumbai on Friday sees a surge in COVID-19 cases for the fourth consecutive day. The covid-19 cases in the state increased by 50 per cent from 5,368 to 8,067 in the last 24 hours, pushing its tally to 66,78,821. Meanwhile, eight people succumbed to the deadly SARS-CoV-2 virus on Friday, increasing the death toll to 1,41,526 till now.

Mumbai also witnessed the sudden spike in the daily covid-19 cases on Friday, with 5,631 corona cases and one deaths being reported in the last 24 hours, taking the total count to 7,85,110, with 16,376 fatalities till now. Of the total cases reported on Friday, only 497 patients were hospitalised.

Meanwhile only four Omicron cases have been reported in Maharashtra, however none of the cases are from Mumbai.

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