Kochi sources have stated that hotel food to become dearer to offset the rise in prices of vegetables, provisions and cooking gas. Steep rise in the prices of rice, sugar and milk and the imposition of GST on small and medium hotels has also made the current prices unviable for hotels.
Kerala Hotel and Restaurants Association General Secretary G Jayapal had said that the prices will have to be raised to ensure the survival of the survival of the hotels, including the very small ones. He added that the association will not make a decision on the raise unilaterally.
The prices of cooking gas have gone up by Rs. 300 to touch Rs. 1400. The price of rice has crossed Rs.40, sugar Rs. 45 and that of vegetables have doubled. The hotels which have a turnover of Rs. 20-50 lakhs will now be required to file a 5% tax. They have also been asked to pay their workers, mostly migrant laborers, through bank accounts. Even small shops with a daily income of Rs 6000 will fall into the Rs 20 lakh bracket. Even these establishments will now be forced to maintain a clear record of the workers they employ.
With the steep rise in the prices of milk and sugar, tea will now cost a minimum of Rs.10. The hotels that supplied meals for Rs.35 to 40 will soon have to raise prices by Rs. 10 each. On an average hotel food will cost 12% more than what it used to. Struggling under the slump caused by demonetization, the hotels are already losing customers. With the new prices, the fear is more customers will shun hotel food. The hotels are also expecting more support in the form of fair price vegetables from horticrop to tide over the crisis.
