HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > NewsTrack
NEWSTRACK

Aviation, hospitality and construction sectors could take longer to recover from Covid impact: Report

Thursday, December 3, 2020, 10:52 Hrs  [IST]

Even as most sectors could see first signs of buoyancy from September next year, aviation, hospitality and construction sectors could take longer to get out of shock caused by Covid pandemic, a research report by ICRA said.

Beginning April this year companies in construction, aviation and hospitality sector have seen huge impact on their profitability and revenues. Some of the companies are still seeing huge impact on their cash flows say industry trackers.

“Investment-related sectors like construction, the pace of recovery remains to be seen, given fiscal constraints, especially of state governments, due to allocation of funds towards pandemic-relief measures. However, healthy project awards during the second quarter, especially by NHAI and MoRTH are encouraging, though pickup in execution also remains critical,” the ICRA report said.

As per media reports about 30% of the hotels and restaurants across India were shut down due to the impact of Covid pandemic. Most consumers stayed away from the hospitality sector amidst fears of catching the virus.

For avaiation sector on the other hand the trouble may have started even before the Covid pandemic. Most aviation companies were struggling with their working capital and profitability, said industry experts.

“Sectors like aviation and hotels continue to face challenges, which are expected to persist over a prolonged period. Daily airline passenger traffic, while improving sequentially over the months, still continues to remain at around half of pre-covid levels, given continued restriction (especially on international travel) and risk aversion towards travel, albeit improving. Similarly, the hotel sector also continues to grapple with historic-low occupancy levels, despite some quarantine-related and healthcare staff traffic diverted to hotels. Accordingly, recovery in these sectors is likely to be a longer-term phenomenon, given the discretionary nature of spend, and customer wariness that is likely to continue till a vaccine is made available commercially,” the report said.
(Source : The Economic Times)

 
Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with del.icio.usdel.icio.us Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
 POST A COMMENT
* Name :    
* Email :    
* Message :  
   
RELATED NEWS
»  Radisson Blu Hotel MBD Ludhiana completes nine successful years of providing remarkable hospitality services
»  Azure Hospitality gears up for the launch of three new restaurants in Goa
»  Trends in the future of cloud-based hospitality tech for 2022: Aditya Sanghi, Co-Founder, Hotelogix
»  Cancelled Christmas, New Year bookings result in INR 200-crore loss for hospitality sector
»  FHRAI Signs MoU With J&K Govt. To Develop Hospitality & Related Infrastructure In The UT
»  IHCL collaborates With CII and EHL, Switzerland, Will Impart Vocational Education To Hospitality
»  Noesis presents the 'Millennials report' on Travel and Hospitality
»  Hospitality Purchasing Managers Forum felicitated at Ambrosia Awards 2021
»  Oxford University Press organoses panel discussion on 'Future of Hospitality Management in India post Covid-19'
»  FHRAI Submits Hospitality Industry’s Recommendations To The Finance Ministry For The Union Budget 2022-23
»  IHCL Receives Global Honours At The Worldwide Hospitality Awards 2021
»  Two Glion Institute of Higher Education Alumni win the prize of Best Professional Success at the Hospitality Awards 2021
»  Indian School of Hospitality with Sommet Education Kick-off Development Plans for India Region
»  HRAWI welcomes Maha Govt’s order on lifting of timing restrictions for hospitality industry
»  Revenue management in the aftermath of Covid-19
»  Hospitality Industry Awaits Govt. To Notify Rs.60,000 Cr Loan Guarantee Scheme; FHRAI Requests FM’s Urgent Intervention
»  FHRAI appeals to the Pm for relief from abnormal price rise of LPG for hospitality industry
»  The Rug Republic acquires The Glass Villa Goa, enters the hospitality business with exquisite villas
»  9 Fern Resorts bags prestigious Hospitality India Travel Awards 2021
»  DreamSetGo becomes Manchester City's Official Football Hospitality Experiences Partner in India
 
CoverStory
Analysis
 
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
 
weekly
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar




Events
 
 
people
interview
newappoint
expert
© Copyright 2016 Saffron Synergies Pvt Ltd
HOME   |   ABOUT US   |   CONTACT US   |   FEEDBACK   |   DISCLAIMER   |   SITE MAP   |   ARCHIVES