Pune’s Hospitality Industry Faces Crisis Following Stringent Crackdowns, Many Plan Shift To Goa And Other Cities
Reported by Sumit Singh & Tikam Shekhawat
Pune, 15th July 2024: The Porsche accident on May 19, which claimed the lives of two IT professionals after a drunk teenager collided with their bike in Kalyani Nagar, has triggered a significant fallout for Pune’s hospitality sector. Following the incident, the state excise department, Pune police, and Pune Municipal Corporation (PMC) launched a series of crackdowns on restaurants and bars serving alcohol.
The aftermath of these stringent measures has been devastating for the industry. According to hoteliers, approximately 5,000 individuals have lost their jobs due to the suspension or cancellation of licenses for about 70 pubs and bars by the District Collector. Additionally, the reduced footfall of customers has forced many establishments to cut staff, leading to further job losses.
“Due to the excessive harassment and unjust treatment by authorities in Maharashtra, many restaurateurs and F&B industry professionals have decided to shift their business and jobs to more welcoming and business-friendly places like Goa, Bangalore, Hyderabad, and others,” the hoteliers stated. “Despite our efforts to comply with regulations, we have been consistently treated like criminals and subjected to unnecessary baiting tactics. In contrast, states like Goa, Bangalore, and Delhi have shown a more supportive approach towards the industry. We look forward to a fresh start and a more positive environment that allows us to focus on serving our customers and growing our business.”
The exodus of businesses is expected to have severe financial repercussions for the state of Maharashtra. The hospitality industry is a significant contributor to the state’s revenue, and the current situation is set to result in a substantial economic loss. The state stands to lose more than Crores in annual revenue from excise license fees alone.
Moreover, the departure of these businesses signifies not only a loss of revenue but also a decline in investment within the state. This move is likely to tarnish Maharashtra’s reputation, making it appear non-congenial and unfriendly towards businesses.
The crackdown on pubs and bars was aimed at addressing public safety concerns and preventing incidents like the fatal accident in Kalyani Nagar. However, the hospitality industry argues that the measures have been excessively harsh and have had unintended consequences, pushing businesses to relocate to states with more favorable regulatory environments.
As Pune’s once-thriving hospitality sector faces an uncertain future, stakeholders are calling for a balanced approach that ensures public safety while also supporting the growth and sustainability of local businesses. The industry’s plea for more cooperative and fair treatment highlights the need for policies that foster both safety and economic prosperity.
