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Delhi Hotels May Go Bankrupt If Not Reopened

Around 3,000 budget hotel and guest houses in Delhi had to lay off more than 75% of their employees due to the COVID-19 pandemic, Travelbizmoniter learned. They are undergoing bankruptcy with unpaid bills in lakhs, according to umbrella groups representing them.

The Delhi government did not reopen its hotels due to rising COVID-19 cases

The president of Delhi Hotel and Restaurant Owners Association, Sandeep Khandelwal, claims he himself was being unable to pay his house rent, which shows how severe the situation is. Even though hotels across the country were allowed to reopen for customers from June 8, the Delhi government did not do so, due to a large number of Covid-19 cases in that month.

The Arvind Kejriwal government has allowed hotels to resume “normal functioning” following a significant improvement in the COVID-19 situation in Delhi. However, L-G Anil Baijal disapproved of the decision the next day, saying the situation continues to be “fragile”. “Over four lakh people depend on hotels, guest houses, and restaurants for their livelihood directly or indirectly. Most of the employees have returned to their villages. A few stayed to look after the premises, but are not being paid their full salaries,” he said. 

Khandelwal claimed that hotel and guest house owners are being “forced” to pay heavy water and power bills, even though there has been “zero business” in the last four months. “We demand that the government give us rebate on bills. Many establishments are on the verge of bankruptcy. If they cannot provide any relief, at least renew our fire and police licenses and allow us to operate,” he urged, saying how Around 50 families depend on the hotel directly or indirectly.

Also Read: AHLA Study Shows Severe COVID-19 Impact On Hotel Industry

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