India Ratings and Research (Ind-Ra) has said covid-19's third wave is expected to have a benign impact on the hotel industry due to lesser restrictions along with the sector's pro-active preparation. According to the ratings agency, the impact across the sector will be lower because of lesser restrictions by Central and state governments than in the first and second waves.
Moreover, it stated as witnessed during the first two waves, the ebbing of the infection wave starts from metro cities; therefore, the minimal restrictions by the government and self-restrictions by the people will start blurring away in a couple of months.
Besides, it pointed out that unlike the first two waves, the overall impact will be benign due to the pro-active preparation by the sector in terms of cost cutting during the times when the cases begin to rise. However, it cited that recovery of the sector will be more protracted and patchier than its base case. It assumed near normal occupancy in FY23 but mass cancellation of planned events on the back of limits on number of attendees will impact the sector.
