Hotels in Mumbai struggle to survive post Covid lockdown due to low occupancy – Hindustan Times

Mumbai

Six months after hotels in Mumbai were allowed to reopen, most of them are still struggling to stay afloat as they are running at approximately 40% occupancy. The reason — negligible international tourists, meagre inter-state travellers as well as lack of corporate clients.

This is according to the figures released by HVS-Anarock, a hospitality consulting firm, which pointed out that the current occupancy is from leisure travel and local businessmen. “There are hardly any international tourists. Currently, the occupants consist of tourists on short vacations within motorable distances and within short flight distances from their home town,” said Mandeep Lamba, president (South Asia), HVS-Anarock.

According to experts, a hotel needs to have at least 50% occupancy to sustain itself.

After being shut for more than four months, the state government allowed hotels to reopen from July 8, 2020, under various conditions.

The Hotel and Restaurant Association of Western India (HRAWI), an apex body of hoteliers, said that hotels are running into huge losses due to lack of occupancy. “Many hotels have cut their tariffs to one third to woo consumers. In addition, many have not even opened their establishments as the losses are too heavy to bear,” said Dilip Datwani, spokesperson, HRAWI. “Since even outstation trains are not travelling at full capacity, we have lost those patrons also,” he added.

Radisson Blu Mumbai International Airport Hotel has currently opened 96 rooms for their patrons. “We see full booking during the weekends but the response during weekdays is not very encouraging,” said Pankaj Saxena, general manager, Radisson Blu Mumbai International Airport Hotel.

Kamlesh Barot, who manages Empresa Hotel at Andheri, listed a variety of things for the low occupancy. “Though the Central government has asked for easing restrictions at the airport, the situation is very chaotic. Tourists from other states are afraid they will be tested and forced to quarantine, thus spoiling their vacations,” said Barot. “The corporate sector, which offers some of the biggest clientele, is working at meagre capacity and most businesses are holding online meetings. This has hurt the hotels,” he added.

Mumbai hotels are now attempting to woo local guests with staycations and are offering slashed tariffs, food festivals and customised menus for the same.

Lamba of HVS-Anarock pointed out that despite poor business, the situation in India is better than in other countries. “There are hardly any hotel occupancies in other countries as they were not able to control the spread of Covid-19 as we did. Besides, things will improve as the vaccine rolls out,” said Lamba.