The domestic hospitality industry, which has been severely affected by the COVID -19 related disruptions, is likely to witness a decline of over 65 percent in 2020-21, according to a report. However, there might be a recovery in demand in the latter part of the financial year 2021-22 as vaccine rollouts gain traction, it said.
However, a sharp demand recovery is possible in the latter part of the financial year 2021-22, as vaccine rollouts gain traction.
Much though will be contingent upon the spread of the pandemic and success of vaccination efforts, the report said.
The situation is still evolving, with numerous headwinds as seen with the restart of crowd control and lockdowns, increasing India's COVID cases and globally over the last few weeks, the report added.
The domestic hospitality industry has been one of the worst-hit sectors, severely affected by the COVID-19 pandemic and subsequent lockdowns, which restricted mobility and hotel occupancies in all the major markets, the ICRA report stated.
Hotels have enforced sharp cost control in the financial year 2021, including a 39 percent reduction in employees' costs during H1 financial year 21, letting go of contract employees, enforced pay cuts, and mandatory leave encashments.
News Courtesy: MC