The hotel industry in Mysuru and Kodagu, which banks on tourism for its revenue, is in dire straits with zero footfall since the lockdown due to COVID-19 pandemic. With the peak tourism season having passed, the sector is gripped by deep financial crisis.
Many cash-strapped hotels are planning to wind up business run in rented buildings, unable to pay high rentals, staff salaries, and power bills.
In Mysuru city, over 120 hotels are run in rented properties. A prominent ‘star-rated’ hotel in Mysuru became the first casualty recently as it closed its operations. Many may follow suit, industry insiders opine.
“A small percent of hotels are run in own buildings here. If the rent for April and May is not waived, many will be forced to shut shop. There is no point running hotels when there are no tourists. Also, running hotels post-COVID-19 seems exceedingly unviable since business is not assured for the next six months at least,” said C. Narayana Gowda, president of Mysuru Hotel Owners’ Association.
He told The Hindu that hoteliers were keeping their fingers crossed and hoping that the government would permit them to resume business from June 1. “Hoteliers are uncertain of bookings but are looking at 25% business in restaurants. The next one-and-a-half years will to be tough,” he felt.
Mysuru city alone has 9,500 rooms that are vacant. Restaurants are offering parcel services and urging the government to permit them to operate full scale.
The situation in Kodagu hotel industry is worse than Mysuru. The district has been hit by crisis for the third successive year. After floods and landslips, it’s COVID-19 this year. Many hotels in Kodagu are up for sale but are finding no takers.
Families banking on tourism revenue for their livelihood are in debt. As many as 5,500 hotel rooms and 25,000-30,000 rooms in homestays remain unoccupied.
“Many hoteliers are not keen to run operations at least for the next year. About 50-60% hotels in Kodagu are run in rented properties by people from Kerala and many are planning to suspend business. For us, 2020 is over and we are looking at 2021,” said B.R. Nagendra Prasad, Kodagu Hotels, Resorts and Restaurants’ Association. “aiver of rent, fixed power bills and cut in property tax has been sought. The rental fee runs into lakhs of rupees. If at least two months’ rent is waived, the industry can survive,” he said.
Kodagu is known for homestays and about 40-50% operate in rented properties. People from Kerala, Telangana and Bengaluru also run them. “A prominent resort near Kushalnagar needs about ₹30 lakh a month to sustain its property. Premium properties are also facing the heat. Business will never be like before,” a hotelier argued.
Industry insiders said: “If restaurants are asked to close at 7 p.m. for some more months, it is pointless to be in the food business.”