The Federation of Himachal Hotels and Restaurant Association (FOHHRA) has written to Prime Minister Narendra Modi, seeking urgent relief to revive the state’s battered tourism and hospitality industry. The association has called for strict enforcement of RBI and MSME restructuring frameworks, a halt to SARFAESI actions, and financial assistance to support struggling hoteliers.

In its appeal, FOHHRA has requested interest subvention and a nine-month moratorium on loan repayments, pointing out that hotel units have remained completely shut during this year’s monsoon season, which caused widespread destruction across Himachal Pradesh.

The association’s four-page letter also pressed for flexible restructuring timelines, long-term hotel loans of up to 20 years, reversal of excess interest and penal charges, and a freeze on asset downgrades without collateral backing.

According to official data, Himachal received 41% excess rainfall between June 20 and September 25, leading to losses of nearly ₹4,861 crore. The state recorded 47 cloudbursts, 98 flash floods, and 148 major landslides, claiming 262 lives this year alone. In 2023, monsoon-related losses were estimated at around ₹10,000 crore with over 550 fatalities.

FOHHRA president Gajender Thakur stressed the urgency of intervention, saying, “Himachal is a tourism-based economy, and a large number of people—hoteliers, transporters, shopkeepers, travel agents, guides, taxi drivers, photographers, and vendors, depend on it. Many small and medium operators have already shut down, while others are on the brink of collapse after taking loans for their businesses.”

The association flagged that many borrowers are being charged interest rates as high as 15%, forcing some to sell personal assets or resort to high-interest informal loans just to stay afloat. Despite being registered MSMEs, hoteliers are reportedly facing SARFAESI proceedings, which FOHHRA argues violate RBI’s restructuring guidelines.

The letter urges the Prime Minister to direct the Finance Ministry, Reserve Bank of India, Ministry of Tourism, and state authorities to ensure effective relief measures, helping the sector move toward sustainable revival.

The tourism industry, a backbone of Himachal’s economy, has been hit repeatedly in recent years by natural disasters, financial disruptions, and regulatory challenges, leaving the hospitality sector in urgent need of government support.