A Study On Impact Of 'Covid-19' On Hospitality Industry In Mumbai

Authors

  • Mr. P. Manikandan ,Mr. R. Abilash ,Dr. T. Milton

Abstract

The hospitality industry in India is declined very sharply in the earlier quarters in 2020 as the outbreak of covid-19 which has larger impact on different areas of hospitality sector. Because of partial stoppage of traveling and containment actions, there is a drastic decline in tourists and business traveling activities. The results indicate that the owners of hospitality firms are agreed with hospitality industry is having poor business activities, unable to pay salaries to employees, generating low liquidity, unable to repay loans and other dues, engaging minimum quantum of employees, not getting sufficient financial support, not receiving future contracts and losing their regular revenues. Significant difference is there amid impact of covid-19 on hospitality industry and profile of hospitality firms. Impact of covid-19 on hospitality industry is negatively, significantly and highly related with performance of hospitality firms. Hence, covid-19 situation is severely affecting operation and progress of hospitality firms in particular and industry in general and they are in need of adequate financial support from banking sectors and government immediately. Hospitality firms must renegotiate payments and dues with their business partners for forthcoming six to nine months and they should pay at least half of salaries to employees till comeback of normalcy. Furthermore, hospitality industry must minimize their operational expenditures and they should postpone capital expenditures. Hospitality firms must create and adopt efficient revenue generation and management models for pricing their services and products in order to respond changes occurring in the market quickly. In addition, government should extent financial relief measures and give tax exemption for one year for hospitality firms.

Published

2020-11-01

Issue

Section

Articles