Budget 2021 for Hospitality Sector: Union Budget 2021 expectations from restaurants, hotels and hospitality stakeholders! Worldwide, the COVID-19 pandemic has severely impacted several sectors. Now, with Budget 2021 coming up next year in the month of February, there is considerable hope that some positive measures will be announced for the hospitality segment.
Notably, the hospitality segment has been most severely hit, particularly in India once the lockdown restrictions were announced and became mandatory. Never has it been more urgent for hotels and fine dining restaurants to rejig their menus, come up with contactless offerings to reassure their guests and opt for tech innovations to enable the same.
Hotels and fine dining restaurants have witnessed an uptick in queries for bookings especially in leisure destinations such as Goa. The wedding season has also helped lift the sagging hospitality segment considerably.
Expectation from Budget 2021: From hotels to restaurants
With safety being a paramount concern for guests and travellers, hotels are now constantly coming up with tempting deals and discounts as well, even remembering generously to provide tempting staycation and workcation packages.
“There is an entire week of celebrations from Christmas Eve in December till New Year, when bars and restaurants see good business. After months of lockdown amidst restrictions, the industry has been finding its feet. We are always appreciative and supportive of the measures taken so far by the State Government and conveyed to our members to follow all SOPs strictly. Except for the few who are flouting these rules, we request that the authorities should not go ahead and impose night curfew & other measures that impact the business of restaurants as well as bar owners,” Shivanand Shetty, President of AHAR, Indian Hotel and Restaurant Association expressed Mumbai’s hotel and restaurant industry’s concerns with The Financial Express Online.
Budget 2021 expectations for hotels: What’s on their wishlist?
Then what can Budget 2021 do to address these concerns from India’s hospitality segment? What specific measures can help the hospitality segment?
According to Kabur Suri, Co-Founder & Director, Azure Hospitality, “The hospitality industry is one of the many industries that has been hit badly by the ongoing coronavirus pandemic. With the 2021 budget, our hope is that the government will rationalize GST and allow restaurants to take input on their purchases.”
While hotels are already pivoting and exploring new ways to offer their spaces and services to generate revenue, this trend is expected to continue in 2021 as well.
Highlighting the need for stepping up with more business-friendly steps from the government, Shivanand Shetty told The Financial Express Online, “We request business hours to be extended so that restaurant owners can not only bounce back but also exercise better control in managing the crowd.”
Consumer demand and preferences are dynamic and technology-based services make competition fiercer in the hospitality segment.
Pointing out how the hospitality industry functions differently amidst licensing and other compliances, Kabir Suri, Azure Hospitality expressed hope that the government would consider the hospitality industry as it is also one of India’s largest employment generating sectors.
In the context of Budget 2021, helping hotels and restaurants to optimize their offerings and boost their revenue, making sure that hotels are getting the best opportunities amidst restrictions is now key for reviving the confidence of stakeholders functioning in the hospitality segment.
