The hospitality industry in Maharashtra is witnessing rising concerns over increased operational costs, which industry leaders say are threatening business sustainability and employment across the state. The Indian Hotel & Restaurant Association (AHAR) has voiced its apprehensions about the financial strain impacting thousands of establishments, from small eateries to larger hotel chains.
AHAR President Mr. Sudhakar Shetty stated that the industry is still in a recovery phase after the challenges brought on by the pandemic, and the current environment of growing expenses is compounding that pressure. “The rising costs are putting significant strain on businesses, many of which are still trying to stabilize,” he said.
Maharashtra’s hospitality sector includes over 19,000 licensed permit rooms and lounge bars, providing direct employment to more than 4 lakh individuals. Additionally, nearly 48,000 vendors are connected to this ecosystem, indirectly supporting the livelihoods of approximately 18 lakh people.
To address these mounting concerns, AHAR recently brought together 25 hotel and restaurant associations from across Maharashtra and the Mumbai Metropolitan Region. The collective effort focused on encouraging a more sustainable approach to business costs, without disrupting employment or consumer affordability.
“We support structured growth and compliance, but the current pace of cost increases can deter both customers and entrepreneurs,” Mr. Shetty noted. “This may also impact long-term industry health.”
AHAR underscored the importance of nurturing legal and licensed businesses, emphasizing that these establishments play a critical role in ensuring public safety, responsible operations, and industry integrity.
Mr. Vijay Shetty, Secretary of AHAR, highlighted the lack of consultation in the decision-making process. “There was no prior discussion with stakeholders, which can lead to unforeseen consequences. For many businesses, rising operational burdens could affect their ability to repay loans and meet obligations,” he said.
Despite the challenges, AHAR reaffirmed its commitment to work collaboratively toward practical solutions that support employment, promote tourism, and ensure the growth of the hospitality sector in Maharashtra.
