Fresh COVID-19 wave, accompanying curbs could affect hospitality sector's recovery | Economic Times

NEW DELHI: Rising Covid-19 cases across the country and the ensuing travel restrictions threaten to paralyse the travel and hospitality sector and could make recovery extremely difficult, according to industry bodies, hoteliers and online travel agencies (OTAs).The surge in infections in markets such as Delhi, Mumbai, Goa, Himachal Pradesh, Rajasthan and Gujarat, and travel curbs and curfews come at a time when demand for leisure travel had just begun picking up after months of disruption due to the pandemic. According to hotel industry tracker STR, occupancies had crossed the 75% mark in Goa for the Diwali weekend.“Udaipur, too, was another such market where hotel occupancy crossed the 75% circuit for the festive weekend. Domestic leisure, staycations and wedding MICE have been the factors behind this demand. With the new restrictions coming in place in many states across India, it remains to be seen whether the growth momentum will continue,” said Vidhi Godiawala, business development manager for central and South Asia at STR. “Hotel performance is correlated to each country’s reaction to the virus."79400033On Monday, the Maharashtra government said air and rail travellers from Gujarat, Delhi/NCR Goa and Rajasthan will need an RT-PCR negative report to be able to enter the state.The Rajasthan government has imposed curfew from 8pm to 6am in Jaipur, Jodhpur, Udaipur, Ajmer and Bikaner. In markets such as Jaipur and Udaipur, hotels had been booked out for weddings and leisure travel before the curbs were announced.Himachal Pradesh has also enforced night curfew in Covid-affected Shimla, Mandi, Kullu and Kangra districts.Gujarat has also imposed night curfew in Ahmedabad, Vadodara, Surat and Rajkot.The Uttar Pradesh government said it is planning random testing for Covid-19 for travellers from Delhi on all state borders starting Wednesday.The Federation of Hotel & Restaurant Associations of India (FHRAI) said reopening for business had brought the industry minor relief, but it could be short lived as the threat of Covid-19 looms large.As per FHRAI, many hotels and restaurants reopened to customers after the lockdown was lifted, but quite a few did not and presumably; these may not reopen at all. FHRAI estimates nearly 25% of businesses will permanently shut down before the end of the current financial year.“This spells bad news for the hospitality sector as travel restrictions will dent the sentiments,” said Pradeep Shetty, joint secretary, FHRAI.