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Economic slowdown dampens New Year spirit
With New Year’s Eve fast approaching, locals are gearing up to don their best outfits and hit various pubs and hotels. This year, however, the economic slowdown has led to a decrease in customers, said hoteliers and pub managers.
“We have noted a 25 per cent decrease in customers this year when compared to last year. This has affected our sales figures by 20 to 25%, and this can be attributed to the economic slowdown. People are opting to stay at home, as costs are less and they can avoid tax,” said a manager of a popular pub in the city.
According to Anand Nair, general manager of InterContinental Chennai Mahabalipuram Resort, the slowdown has affected the leisure consumer base by a small margin of around 10 per cent.
“We have noticed significantly lower rates from corporates due to the slowdown. Usually, this is the time of the year for many corporate events, get-togethers and team-building meets, and that is not there this year when compared to earlier years,” he said.
Both noted that the protests have not affected business yet, stating that the effects from the current political situation can only be predicted closer to the date.
However, another hotelier stated that there has been no drop in the consumer base this year during the end-of-the-year festive season and credited this to a loyal consumer base and varied menu and entertainment offerings.
In the July-September quarter for 2019-2020, India’s GDP dropped to 4.5 per cent, the lowest in 26 quarters. This has had an effect in sales across sectors, and hospitality is one of them, despite boasting wide, curated food and beverage menus and entertainment.