Hotels taken over by BMC to fight COVID-19 seek more compensation

BMC chief Iqbal Chahal visited Nair Hospital on Saturday morning, and had discussions with the hospital staff, as well as patients

The Hotel and Restaurant Association (Western India) has written a letter to Municipal Commissioner Iqbal Chahal, stating that the compensation offered to hotels and lodgings requisitioned/taken over by BMC invoking the Disaster Management Act are unviable and have requested for enhancement of the same. The body has also suggested that the current rates given by the MCGM will not be able to cover even operating expenses and, thus, the body has proposed better rates.

It may be noted that the body is 70 years old. In the letter written to the commissioner, the body has stated that the pandemic has especially severely impacted the hospitality industry. "Due to complete closure, there are zero revenues, however, other expenses such as property tax, electricity, rentals, salary bills, statutory payments are still being incurred. Operating expenses are expected to rise to ensure hygiene and safety measures. With social distancing, guest capacities will be reduced, but not the infrastructure and real estate deployed. We anticipate that post-COVID, more than 35-40 per cent of this industry will face a serious existential crises unless a stimulus package is made available that could save the industry," the letter reads.

The body has also claimed that its member hotels have been requisitioned forcibly by the MCGM. The hotels are also being used to house MCGM staff as they cannot travel back and forth from work.

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