Professional Documents
Culture Documents
Newspaper Article Analysis
Newspaper Article Analysis
Newspaper Article Analysis
ANUSHKA
THILAK
MARKET OVERVIEW OF HOSPITALITY INDUSTRY
Attracting millenials by offering price-sensitive stay
Healthy growth and contributes 6.8% of the GDP (
https://www.ibef.org/ )
Competitive landscape: Industry covered mainly by international
players and leading domestic players in hotel.
Major players : Park hotel, ITC hotels, Lemon Tress hotels etc
Rising number of international tourists are driving the market
Received 10 million foreign tourists in 2017 (https://
www.mordorintelligence.com/industry-reports/hospitality-industr
y-in-india
)
COVID 19 : HOSPITALITY IDUSTRY SEEKS PM’S
HELP
(https://economictimes.indiatimes.com/ )
Letter by the FAITH ( Federation of Associations in Indian
Tourism and Hospitality) to Narendra Modi
Reasons:
- Running short of working capital due to declining revenue
- Responsibility of payment off staff’s salaries, EMI payments,
advance tax, PF, excise duty etc.
FAITH requested for a complete GST tax holidays
"With almost nil revenues there is hardly going to be any GST collection," the
letter stated.
FAITH – looking at bankruptcies, closure of businesses, mass unemployment
"It is believed that around 70% out of a total estimated workforce of 5.5 crore
(direct and indirect) could get unemployed (3.8 crore).This effect of job losses
and layoffs has already begun throughout the country," the letter stated.
Requested for 12 months moratorium(temporary suspension of
an activity or law ) on EMI’s
12 months support fund from MNREGA to support basic
salaries of employees
Deferment of all statutory dues for 12 months
- central govt – advance tax, custom duties
- state govt - excise fees, levies, taxes, power
COLD BLOODED MURDER
(https://hospitality.economictimes.indiatimes.com/ )
- Zia Sheikh
CEO & CMD
(Svenska Design Hotel)
This article talks about how Tourism and Hospitality Industry was first
triggered by Covid-19 but later, a large series of unprecedented
decisions are blamed for its deterioration
With the help of this article, we will try to dig a little deeper about “sin”
industry, as it is widely projected by the ones in power.
Force Majeure – “Act of God” :::: cause for the bloodbath.
Covid 19 – initial trigger for Hospitality industry
Larger blame lies in series of decisions
Hospitality and tourism industry contributes 7.5% to the GDP
(http://www.businessworld.in/ )
Negative connotations about the industry
Businesses were severely impacted during the initial phase of
lockdown
Work From Home – became a trend
WFH is not even an option for hospitality sector
Huge cost associated with the business and no revenue
Minimum support given to the industry
Generic measures like moratorium (temporary suspension of an
activity or law ) – gas and damb squib ( situation which is much
more less impressive than expected )
Banks and NBFC’s ( Non Banking Financial Company) were
reluctant to offer the aforementioned
Schemes were made unnecessarily complicated
Example:
- Rs 3 lacs crore MSME package – could only approach their
existing lenders
- Rather than creating a free-market environment, Banks and
NBFC’s extended monopoly
- MSME’s were left to the whims and fancies ( mercies) of their
existing moneylenders
Dictats were issued for full payment of payment
Tax inspectors were let loose demanding everything from the
property taxes to liquor license fees
Was it Covid-19 that destroyed thousands of businesses?
Post-mortem says that the pandemic alone wouldn’t have been
lethal
Operations:
1. Health and safety : hygiene and sanitation issues
2. Hotels should plan soft opening
3. Wear surgical gloves and masks
4. Self service should be encouraged
5. Keep communicating with loyal guests
FINANCE:
1. FAITH (Federation of Associations in Indian and Tourism
Industry) has already made an appeal to the PM for certain
concessions (Economic Times ) such as ;
- Payment support of employees salaries
- 12 months moratorium on EMI’s, advance tax, PF, GST, custom
duties, etc.
- Interest free loans
2. Hotels may like to extend their payment cycles with vendors.
TECHNOLOGY:
The Covid-19 has hastened the need to use technology to allow least
contact with humans.
- Self check-in codes
- Digital payments of bills
- Self-monitoring gadgets for fever
ARTICLE PRESENTATION OF
BW HOTELIER
AUTHOR : SAAGAR PANCHAL
ARTICLE OVERVIEW
The hospitality industry in India contributes to approximately 10 per
cent of the GDP. Prior to the global pandemic beat, the industry was
one of the key portions driving the growth services sector in the
Indian economy. While the coronavirus crisis and the resultant
global lockdown carried things to a halt for a while, the hospitality
industry is assessing the situation and reinventing themselves to
effectively revive the sector in the ‘new normal’ post crisis world.
As the effects of COVID-19 spread across the entire world, the primary
focus for governments and businesses is the safety of their people.
The impact is huge, and not yet predictable, on both revenue and
supply chains. Decisions being taken to shut down hotels,
restaurants, theme parks, cinemas, not to mention the entire
disruptive effect of the travel ecosystem, all have a significant
impact on worldwide tourism. As a team, Operators and Investors
are trying to mitigate the cash and working capital issues, and stay
in close contact with their stakeholders.
OPERATIONAL IMPACT AND MITIGATION
• Have an extended cash flow forecast for the next six months. Be
realistic and have Base and Downside scenarios to understand critical
cash points and any breaches of lending covenants.
• There may be alternative lenders that can move quickly to provide short
term funding. However, these may have a higher interest charge and fee
structure.
• Minimize all discretionary operational and capital expenditure.
Reconsider or postpone maintenance and other capital expenditure
where possible to conserve cash.
• Put in place an advanced revenue management system and pricing
models to respond to market developments quickly.
WHAT SHOULD YOU BE FOCUSED ON, AND
WHAT SHOULD YOU BE DOING…