The hospitality sector in Mysuru, which is in the doldrums after the onset of the second wave of the pandemic, has sought a waiver on payment of property tax and trade licence renewal.
This is to partially offset the loss being incurred by the sector owing to closure of all hotels and restaurants and the cessation of tourism activity on which its fortune hinges to a large extent.
“The special package announced by Chief Minister B.S. Yediyurappa on Wednesday was for people in the unorganised sector and farmers and had nothing for us though we had apprised the government of our predicament and the imperatives of tax concessions’’, said C. Narayana Gowda, President, Hotel Owners Association.
The sector was on the road to recovery after the first wave and the economic turnaround was almost 50 per cent to 60 per cent from October through the last week of February. But the second wave of COVID-19 has crippled the sector and brought financial ruin, he added.
Notwithstanding the closure of hotels due to the cessation of tourism industry, there is no escape from property tax, electricity charges and trade licence fee. Even last year, the last date was extended but there was no waiver or concessions.
“Mysuru is the only city in Karnataka where the local authorities levy a super commercial slab and hence the tax rates are higher’’, said Mr. Narayana Gowda.
The Association has urged the government to waive property tax for two years and trade licence renewal fee for 3 years so as to provide financial respite.
The hospitality sector in Mysuru comprises about 180 to 200 hotels ranging from properties in the budget category to those in the luxury range. It also includes bakeries, restaurants and bars.
The sector generates direct employment to nearly 25,000 people but only a small percentage of them are receiving a portion of their regular wages as these employees have been retained for maintenance and other works. For the majority of the migrant workers employed by the hotel industry, it was a trip back home with uncertainty over their future.
