In a significant move that underscores the growing unrest in Maharashtra’s hospitality sector, over 20,000 hotel bars and restaurants across the state have suspended alcohol service today, July 14, 2025. The protest — dubbed the ‘Bar Bandh’ and ‘No Alcohol Day’ — has been spearheaded by the Hotel and Restaurant Association of Western India (HRAWI) in response to the Maharashtra government's recent hike in liquor-related taxes.
At the heart of the protest lies a three-pronged increase in taxes on the hospitality industry:
These revised tax rates, announced as part of the state’s fiscal policy, are being strongly opposed by the hospitality sector, which has labelled them “punitive and unsustainable.”
The protest has received widespread support from hotels, bars, and restaurants across Palghar, Vasai, Pune, Nagpur, Aurangabad, Lonavala, Mahabaleshwar, Nashik, and other cities. Over 11,500 hotel-based bars — including establishments in five-star hotels, city-based pubs, and budget eateries in tourist towns — are participating in the bandh.
Backed by HRAWI’s parent organization, the Federation of Hotel & Restaurant Associations of India (FHRAI), the protest is being hailed as one of the largest collective shutdowns in Maharashtra’s hospitality history.
Speaking on behalf of the industry, Jimmy Shaw, President of HRAWI, voiced strong concern over the government's fiscal measures.
“This tax hike is nothing short of an existential threat to the hospitality sector. For many establishments, this triple blow will mean shutting shop permanently. By participating in this protest, our members are not merely expressing dissent — they are fighting for survival,” he said in a press release.
Shaw emphasized that the increased cost of doing business would disproportionately impact small and medium-sized outlets, potentially leading to widespread closures.
The tourism and hospitality sector is one of Maharashtra’s key economic pillars. It supports an estimated 20 lakh direct and indirect jobs and contributes significantly to the state’s GDP through both domestic and international tourism.
HRAWI has warned that the new tax regime could:
“An average tourist spends between ₹2,000 and ₹5,000 a day, and a significant part of that is on food and beverage. With these new taxes, Maharashtra is effectively pushing leisure tourism out of reach for Indian families,” Shaw added.
Industry stakeholders argue that the tax hike threatens not only businesses but also Maharashtra’s image as a tourist-friendly state. With the surge in liquor-related expenses, the state risks losing competitive edge to neighbouring destinations like Goa, Karnataka, or Rajasthan — where alcohol taxation and hospitality costs are relatively lower.
The Hotel and Restaurant Association is urging the Maharashtra government to:
In their joint representation with FHRAI, HRAWI has stressed the importance of policy predictability and affordability for operators in the hospitality sector — especially after years of pandemic-induced strain.
Today’s Bar Bandh may be silent in form, but its message is loud and clear: the hospitality sector in Maharashtra is sounding the alarm. With over 20,000 establishments participating, the protest reflects the gravity of the issue and the united voice of a vital industry fighting to stay afloat.
As Maharashtra seeks to boost revenues through taxation, the government must weigh the long-term repercussions — on employment, tourism, and investor confidence — against short-term fiscal gains.
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