The industry has demanded that the govt earmark funds that can be used as working capital to pay salaries Many small and medium hotels and restaurants have either started shutting down, or are on the brink of doing so amid the lockdown that has depleted their cash reserves as customers have disappeared, industry executives said.
With no financial relief coming from the government and a demand recovery expected to be several months away, establishments feel that it may not be worth paying the high fixed costs.
The Southern Star Hotel in Mysuru shut down recently and several others are on the way, they said. “In the last two months, we have not earned a single rupee.