Hotels Industry in Chandigarh is on the edge of collapse

Hotels in chandigarh are facing downfall in their businesses. The hotels are at the edge of collapse.

The UT Administration has been forced to reintroduce strict restrictions due to an increase in coronavirus cases, which has harmed the hospitality industry in Chandigarh.

“The Chandigarh hospitality industry has practically collapsed, resulting in massive job losses and financial losses. The majority of the city’s food and beverage outlets are temporarily closed, and if no relief package is extended, they may be forced to close permanently,” said Ankit Gupta, president of the Chandigarh Hospitality Association and joint secretary of the Hotel and Restaurant Association of Northern India.

They had also written to UT Administrator VP Singh Badnore, according to Gupta, demanding some kind of relief package for the industry.

Problems of the hotel industry

Waiver of ground rent and property tax for the fiscal year 2021-22, deferral of electricity charges along with a request for an industrial tariff, exemption of VAT and assessment fee, tourism survival package, and establishment of a Covid relief fund (through ESI) for salary payment were among their demands in the relief package.

The UT Administration has been agreeing to enforce a corona curfew. In the city from 5 a.m. on May 4 to break the chain of Covid transmission due to a sudden increase in Covid-19 cases in the city there has been a curfew.

After consulting with medical experts, Badnore agreed on May 17 to extend the corona curfew. This has been for another week, from 5 a.m. on May 18 to 5 a.m. on May 25. It is to ensure that a steady decrease in the number of Covid-19 cases.

“The hospitality industry is on the verge of collapse,” Manmohan Singh, president of the Chandigarh Hotels Association, said, “and far more than the promoters, it will be our workmen who will face complete joblessness and lack of capital because the service industry does not only consist of promoters but largely of workmen.” The percentage of workers in the service sector is the highest for business performance.”


He mentioned that they recognize the importance of life over livelihood. However, there needs to be a middle ground for coexistence for the hotel industry.

Another hotelier suggests that instead of enforcing a corona curfew, the administration should concentrate on vaccination, as it would be a death knell for their company.

He added that they would be unable to bear the loss of the second wave of the Covid-19 pandemic. Because they had yet to recover from the previous lockdown.

Meanwhile, the Administrator has been requesting the Deputy Commissioner to meet with members. These are the members of various merchants, business groups, and hotel industry associations. It is to elicit their opinions and feedback on possible relief for them as a result of the shutdown’s losses.

  • Land rent and property tax exemptions for the fiscal year 2021-22
  • Deferral of power charges, as well as a proposal for a commercial tariff
  • VAT and assessment tax exemption
  • Equipment for tourism survival
  • The establishment of a Covid relief fund (via ESI) for the payment of salaries.

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