Effect of Omicron: Possibility of adverse effect on retail, hotels, restaurants

Due to the rapid increase in Omicron cases, various restrictions have been imposed along with the night curfew in many states of India like Delhi, Maharashtra, Uttar Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu, West Bengal, and Gujarat. The Retailers Association said that the night curfew in various states will not only affect the business but it also has a psychological effect on the customers.

As per the National Restaurant Association of India, December is generally the best month to do business, but due to restrictions imposed by the states, the business of December will be less than December from the year 2019. In Maharashtra, the curfew has been announced from 9 o’clock in the night, due to which the business on New Year’s party this year will also be negligible.

Due to the restrictions imposed by the government, there is an impact on the hotel industry as well which can be well observed. The shares of several hotels such as Asian Hotels, Rugby, Country Club, Lemon Tree, Mahindra Holiday saw a slight decline.

Due to the restrictions, the travelers traveling to different regions postponed their plans. The share prices of cafe coffee day, Barbecue Nation, Devayani International were also affected on Monday due to the night curfew.

Exports May be Affected in Global Trade

Ajay Sahai, Director General, Federation of Indian Export Organizations (FIEO) there may be a slowdown in the growth of global business in the first quarter of the year 2022, which is a matter of concern for all of us.