The country’s hotel industry, already reeling from LPG shortages triggered by conflict in West Asia, is eyeing another crisis in the form of a potential mass exodus of migrant workers who form the industry’s dominant workforce.
The gravity of the situation was highlighted at the Kerala Hotels and Restaurants Association (KHRA) Secretariat meeting held online on Saturday (March 14, 2026). According to KHRA’s rough estimate, about 1,200 restaurants across Kerala have downed their shutters due to the LPG crisis.
“Migrants dominate the workforce in hotels as locals are virtually absent from the industry. Closing hotels risks not only losing customers and revenue but also workers who may decide to return home. With assembly elections in West Bengal, the exodus may intensify. We are exploring solutions such as asking them to return in batches as elections there are likely to be held in phases,” said TJ KHRA state secretary, Manoharan.
Migrants from West Bengal constitute nearly 40% of the labor force in Kerala, followed by Assam with about 20%. Both states are headed for elections. The extra intensive revision of electoral rolls and the Ramzan season are other factors driving workers home, while the worsening LPG crisis may add to the trend. In addition to the hotel industry, industries such as small construction, plywood and fishing may also be affected.
However, Benoy Peter, executive director of the Center for Migration and Inclusive Development, noted that LPG shortages alone are unlikely to be the main trigger, except for single male migrants dependent on food. “Very few people cook using small gas cylinders sold through petrol pumps. For example, plywood workers mostly use firewood and plywood waste. The shortage may further increase the demand for plywood, even though it is highly toxic. With Ramzan, fasting is also prevalent among migrants from the Muslim community,” he said.
George Mathew, chairman of the Progressive Workers’ Organisation, which works for the welfare of migrants, said it was too early to predict whether the LPG shortage would lead to a return of workers. “However, if the crisis persists, it may have an impact on migrants in the long term,” he added.
Published – 14 March 2026 20:59 IST
