The world is slowly coming to terms with the COVID-19 outbreak. With the globalized world going into partial or complete shutdown, economists expect the global economy to shrink in the first quarter of 2020, a first since the 2008 financial crisis. With the number of cases rising sharply daily, even if the pandemic is contained soon, the dominoes effect will be felt across the world well into the year, pushing all major economies into a possible recession.
The Indian hospitality industry has suffered a major blow as demand has declined to an all-time low. industry executives opine that low occupancies in hotels are unlikely to improve much until September. However, the hoteliers are in no way shirking from their moral responsibility and have gladly opened their properties quarantine those who have returned from abroad or to the medical fraternity.
According to research firm Icra, hotels tend to have elevated operating and financial leverage, making them highly susceptible to any reduction in revenues. Allied income sources from MICE (meetings, incentives, conferences and exhibitions), food and beverage have been significantly curtailed or entirely shut down. Several hotels are pruning all costs, fixed and variable, letting go of contract employees, curtailing power and fuel costs, deferring payments for leases and maintenance contracts. Icra, which has downgraded the sector’s outlook to negative, anticipates the stock of stressed hotel assets to rise.
To say it is going to be a rough year for the hotel management industry would be the understatement of the year. However, once the pandemic curve has been flattened out, industries will slowly start climbing up. This is when they will be on the look out for professionals who can help these industries bounce back. This is why we at the Higher Education Digest felt the importance of showcasing “10 Must-Watch Hotel Management Institutes in India” during these troubled times as paramount. The names listed in this issue have created a niche for themselves in the industry and will continue to support the Hotel Management vertical at all times.
