Odisha hoteliers seek govt help in overcoming crisis due to coronavirus outbreak

Hoteliers in Odisha on Wednesday sought the state government's help in overcoming the financial crisis faced by them in the wake of the novel coronavirus outbreak.

The Hotel and Restaurant Association of Odisha (HRAO), a body of private hotels, has sent a memorandum to Chief Minister Naveen Patnaik over the issue. "We appreciate the steps taken by the state government to prevent the spread of COVID-19. The HRAO pledges full support to the government.

"But the travel, trade and hotel industry of Odisha is going to bear a huge financial burden as many inbound tourists are cancelling their bookings," HRAO chairman J K Mohanty said.

He said bookings for conferences, banquets and marriages have been cancelled in most of the hotels. "We have taken loans from banks. In the current situation, it seems difficult for us to pay interests and EMIs. The state government should advise the banks to cooperate with us and defer payment of EMIs and interests till the situation normalises," the memorandum said.

The HRAO also requested the government to waive State GST till normalcy is restored. "The state government should also try and convince the Centre for a similar step. There should be complete GST holiday for the tourism, travel and hospitality industry for the next 12 months," the association demanded.

The HRAO also sought fee-waivers for the upcoming renewal of licenses and permits (such as BMC Holding Tax, Ground Water Fee, Electricity Fee) for the hospitality and travel industry till normalcy is restored. There should be an immediate sanction of funds to reimburse PF, ESIC, professional tax and salaries of employees in the industry, HRAO added.