Covid 2.0 derails hospitality industry recovery

The second wave of the coronavirus pandemic has derailed the recovery of the hospitality industry, which is now expected to return to pre-Covid levels only in 2023-24, according to ratings agency ICRA.

Since mid-April, the industry has been affected by the pandemic-related lockdowns/restrictions on mobility by various States and increased wariness to travel due to fear of infection contagion, ICRA said in statement. Consequently, recovery to pre-Covid levels has now been pushed back by six-eight months from previous estimates. The revenue recovery to pre-Covid levels is currently expected by FY2024, it added. The industry was impacted in the first quarter of the ongoing fiscal after two quarters of sequential recovery witnessed in the third and fourth quarter of the previous fiscal, it added. Commenting on the scenario, ICRA Sector Head and Assistant Vice President Vinutaa S said the intensity of 'Covid 2.0' has been far steeper than the first and it has put a temporary brake on the industry's recovery path. "We expect a significant scale back in FY2022 pan-India RevPAR (Revenue per available room) estimates to Rs 1,300-Rs 1,500, from an earlier estimated RevPAR of about Rs 2,500. FY2022 RevPAR is likely to be at a 60-65 per cent discount to pre-Covid levels," Vinutaa added.