HRAO urges FM for assistance to tourism, hospitality sector

Bhubaneswar: Hotel and restaurants association of Odisha has urged Union Finance Minister Nirmala Sitharaman for assistance to tourism and hospitality sector. In a letter, J K Mohanty, MHCIMA Chairman, Hotel & Restaurant Association of Odisha, has also urged Sitharaman to declare an economic trade and industrial revival package for COVID-19. The letter urged her to look at the global melt down of the economy, tourism in India which employs more than 4.2 crore jobs (8.1% of total employment in the country). This will be the worst hit due to coronavirus outbreak, it said. Mohanty in his letter said the countries like USA, UK, Singapore, New Zealand and Australia have given excellent revival packages for their economies. The hotel and restaurants association of Odisha said as the total country was under a lockdown period, the earning of tourism and hospitality sector is almost zero. Therefore, they request that the banks which are flushed with funds should share a part of the burden by exempting interest for six months. The letter further said industries, MSME sector, the banks should also share a part burden and charge 50% interest on term loan and working capital limits for a period of twelve months. The banks should not declare any account as NPA nor put the accounts under CIBIL, the letter added. On the ministry’s advise that all employers of Public / Private Establishments shall not to terminate their employees from job or reduce their wages, the letter said they appreciate this initiative. But, if there is no business, there is no earnings hence and we sincerely request the Ministry of Finance to reimburse salary / wages of employees at least for three months from EPF. The letter has requested the Finance Minister to consider a one year tax holiday for the hotel industry and waiver of property and municipality tax for six months. It also requested deferment of utility bills and waiver of electricity dues for a period of one year, license fee holiday for Excise and all other licenses applicable to the hotel industry for a period of one year. The HRAO has also written to Susant Singh, Minister- Labour & Employees State Insurance, Govt of Odisha requesting him for financial assistance to the Tourism and Hospitality sector of Odisha.