Chennai: The Tamil Nadu Bar and Club Owners Association (TANBAC) plans to stage an agitation at late chief minister J. Jayalalithaa’s memorial on the Marina soon if the State government does not reassign the highways and allow hotels, clubs and restaurants within 500 meters of the highways to serve liquor. “Our members have suffered a huge loss of Rs 700 crore revenue since April when the ban came into force. Overall, Tamil Nadu has incurred a loss of over Rs 1,800 crore on account of closure of bars and shops,” says ‘Benze’ Saravanan, general secretary of TANBAC.
The city and state have been hard hit by the liquor ban on roads within cities and towns that have been classified as national or state highways, but are in effect roads in populated urban areas. While a city like Chandigarh and states like Punjab, Haryana, UP, Bengal have acted with alacrity on a top court suggestion to reconsider and denotify stretches of highways passing through cities, Tamil Nadu is yet to move on this despite a number of hospitality establishments on Mount Road in the heart of the city, OMR and ECR being hard hit by the ban. Around 770 bars in clubs, hotels and restaurants have been shut in TN after the Supreme Court order banning the sale of liquor within 500 metres of highways came into effect on April 1.
“The bars in cities have little to do with trucks on highways. What the ban is doing is killing us in a very competitive world. For instance, we are losing MICE business to Colombo or Bengaluru as corporates are reluctant to host conferences for 2-3 days if they are not able to serve liquor to their guests who wish to drink. The wedding bookings are taking a hit. While we always promote responsible drinking, what the issue does not do is to distinguish between selling bottles of liquor and serving drinks in a pub or restaurant,” says Mr Anil Chadha, Vice-President (South) and General Manager, ITC Grand Chola.
Anil Chadha
The hotels are also pointing out the dip in the economy of running hotels is having an effect on employment. If any staff members are leaving their employment, the hotels are not replacing them because they too have to economise on shrinking revenues. The economy of the city and state too could take a hit if the situation prolongs because it only makes sense that a person in a state that is not dry should be able to make his choice of drinking. The hospitality business is taking the biggest hit because of the ban prolonging in the state.
Chennai, which accounts for good number of hotels including many in the star category had to bear the brunt, he says. “Chennai hotels which served liquor have registered a revenue loss of about '1,200 crore and Hyatt has reported a loss of '110 crore. While ITC has reported a dip, many clubs like the Cosmopolitan Club, Gymkhana and Madras Race Club have remained dry. The closure has affected the livelihood of 2.5 lakh employees. The State government does not appear to be moved by our plight as its revenue through the TASMAC, which constitutes 95 per cent of the revenue through sale of liquor, has remained unaffected. Our sales account for only 5 per cent. Hence, we have decided to stage a protest agitation at Amma’s samadhi demanding that the government reassign the highways and permit the sale of liquor. If we fail to evoke a favourable response from the government then we will intensify our protest and strive for the closure of the TASMAC outlets,” Mr ‘Benze’ Saravanan, said.
The State owned enterprise – Tamil Nadu Tourism Development Corporation (TTDC) hotels and restaurants are no exception. Even they are wilting on account of remaining dry. “Our bookings have drastically declined and there has been no sale since the last couple of months,” says a TTDC official at Mamallapuram resort. Like this resort, many hotels in Ooty, Kodaikanal, Madurai, Tiruchy, Kanyakumari and Tiruchendur have also suffered big losses owing to the Supreme Court ruling against selling liquor within 500 m radius of highways.
“Although the peak foreigners’ season is during the Margazhi month lasting upto mid-January culminating with the Pongal festivities, MICE tourism has taken a severe beating in TN, especially in Chennai which showcases excellent facilities,” a senior tourism official said.
