Karnataka hospitality industry stares at Rs 500 crore loss due to New Year celebration curbs

The hospitality industry in the state stares at a whopping loss of around to Rs 500 crore between December 31 and January 1 due to the Covid restrictions imposed by the government.

Starting December 28, night curfew will be in place from 10 pm to 5 am for 10 days in the state. During this period, hotels, pubs and restaurants will be permitted to operate at 50 per cent capacity.

With more than 60 star hotels and hundreds of clubs, restaurants and resorts, Bengaluru stands to bear more losses than other districts.

“Most resorts and hotels in and around the city are all fully booked. Now, the government has come up with these rules. We had requested the authorities to issue the guidelines at least three weeks in advance, but we got them too late. No representative from the industry was consulted before formulating these guidelines. We are unhappy with the notification and we hope the government will reconsider,” P C Rao, president, Bruhat Bengaluru Hoteliers’ Association, said.

Also Read | Night curfew in Karnataka for 10 days from December 28

The hoteliers continue to ask why the industry is being targeted when movie theatres, malls and public transportation are all allowed to function with 100 per cent occupancy.

“This is just an eyewash to show that the government is taking some action. We do not know how this will be of any help,” most of them said.

“We usually close our restaurant around 10.45 pm. But this 50 per cent occupancy rule will impact us more. We have just started to recover our losses. This will hit the business again. If people are allowed to sit next to each other for hours in theatres and public transport, why not in restaurants for 30 mins?” Deepak D N of Hotel Aditya in Mahalakshmipuram sought to know.

The hoteliers also added that if the establishment should be shut by 10 pm, then they should take their orders as early as 9 pm, which is not convenient for the
working class.

“Many officegoers, taxi and autorickshaw drivers come to dinner only after 9.30 and 10 pm. What are they supposed to do?” asked Krishna Raj of Nisarga Hotel on Nrupathunga Road.

With the government guidelines making RT PCR tests mandatory for the hotel employees, the owners are concerned about the costs of these tests.

“We need to spend around 20,000 to get 50 workers tested. Our workers are already vaccinated as per the government rules. Now, how to bear this additional burden on top of taking a hit to the business”, the owners said.

Bars to lose more

While the restobars have accepted table bookings, the bars have stocked up liquor for the New Year parties. Excise transactions worth Rs 120 crore happen during this time, according to industry sources.

“Most liquor sales happen between 10 pm and 11 pm only. At restobars, only 50 per cent seating is allowed. The curfew impacts the (liquor) business from all directions”, said Karunakar Hegde, secretary, Bengaluru Bar and Restaurant Association.

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