One's gain is others' loss. This explains the current state of the hospitality industry. With the government determined to take austerity measures to cut down on unwanted and avoidable expenses, the hotel industry is complaining of losses in their revenue.
It was few weeks back when government asked the banks to conduct their meetings in their branch offices instead of arranging them at a holiday destination. This way the government could save a lot on air tickets, hotel booking and other travelling expenses. And now it has extended the ban on other officials as well.
Resulting from the direction, the renowned five-star hotels have reported a huge dip in their revenue due to cancellation of the bookings, as many companies are calling their bookings for meetings and conferences. The industry is further hit as the private companies have also adopted the trend in order to cut down on its cost.
The situation comes in the wake of announcement made by finance ministry for a 10 per cent in non-plan expenditure in the fiscal year 2013 as part of austerity measures aimed at containing fiscal deficit.