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A Study on Problems and Challenges Faced By Small Hotel Businesses during Demonetization in Mysuru City

Abstract:

In India, Demonetization was announced by Honourable Prime Minister Sri. Narendra Modi on Nov 08, 2016.This is the bold step taken by our present PM towards the economic policy in Indian history to fight war against the black money, corruption, terrorism and counterfeit notes. Nov 8th is marked as the day when the largest democracy in the world declared 86% of its currency as dead. This will engender a marked fall in the use of cash transactions in India and thus pave way for the transition to a cashless economy. It would be foolish to argue that demonetization aims only at extinguishing the black money. The demonetization move causes a huge amount of uncertainty and will disrupt transaction in general to common man and all sectors of business, but especially for smaller businesses such as provision stores, vegetable vendors, hotels, restaurants and food and beverage operations etc. which run their business on the basis of cash transaction. Mysuru the name evokes images of palaces, of tranquillity, of rich culture and heritage which echoes in the fascinating tourist attractions that consist of panoramic palaces to religious attractions, exceptional gardens, glorious festivals and also extremely colourful crafts. Mysuru will unquestionably get hold of most of the hearts and minds of travellers and tourists from all around the world through the beginning which gave pace to grow the hospitality, tourism and hotel industry. According to reports, demonetization has affected Mysuru tourism sector. Over the next 2 years, the demonetization drive will have mixed effects on the hospitality industry in the country. In long term, demonetization will have a positive impact and restaurants businessbut this sector will experience a short term slowdown in growth. Therefore, the present study attempts to understand the impact of demonetization on hospitality industry in Mysuru.

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