Third Covid wave dashes hopes of Kerala resort and hotel business’ recovery

With spread of Omicron variant this month, occupancy goes down to mere 5 per cent
Third Covid wave dashes hopes of Kerala resort and hotel business’ recovery

KOCHI: A damp New Year season and the third wave of Covid, which is fast spreading in the state, have completely shattered the resort and hotel business in Kerala.

According to resort owners, after the first and second waves, there were some positive signs of a recovery from the adverse impact of the two lockdowns.

However, the footfall in tourist destinations was less during this New Year because of the restrictions imposed by the state government. By January, the Omicron variant started spreading in the state, resulting in occupancy at hotels and resorts going down to a mere five per cent.

“After the first and second waves, there were some signs of recovery. The occupancy at major hotels and resorts slowly climbed to 65% by November 2021. Many of these resorts and big hotels came up with attractive packages and discounts for those who had booked rooms. As a result, by December, the occupancy rose to 80% in some of these properties. Most of them were expecting a good New Year season. However, the restrictions imposed by the government on New Year celebrations completely killed their hopes,” said Kerala Travel Mart (KTM) secretary Jose Pradeep.

He said in most of the hotels now, the average occupancy has come down drastically.

“That is only one or two rooms are booked in a property. With the industry showing some signs of recovery last year, most of the hotels and resorts were working with full staff strength. As a result, they are finding it difficult to maintain the operational cost,” he added.

Without New Year celebrations, the resorts in major tourist destinations saw a dull season this year.

For instance, at the resorts in Varkala, one of the most sought-out spots in Kerala for New Year celebrations, the average occupancy this time was a mere 35%.

“We have offered attractive packages like ‘Work from resorts’ so as to recover from the setback faced due to Covid. The 2021 New Year too was good. However, with travel restrictions and flow of foreign tourists declining, the business has been witnessing a steep fall. The damp New Year and Omicron have completely destroyed the resort business,” said Deepak Ashok, a partner of Cliff Stories Resort, Varkala. The bar-restaurants too are going through tough times.

They will have to pay an annual licence fee of Rs 30 lakh every year.

“Last year, the state government helped us by a proportionate waiver of the bar licence fee. This year too, we have requested the same. We have also requested the chief minister to consider waiving off the fixed charges on electricity bills of the hotels,” added Pradeep.

Hit by restrictions

According to resort owners, after the first and second waves, there were some positive signs of recovery from the adverse impact of the two lockdowns.

However, the footfall in tourist destinations was less during this New Year because of the restrictions imposed by the state government.

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