An Analytical Study of the Informal Sector Economy and Hotel Labour Challenges: A Case Study of New Digha, West Bengal

national lockdowns on the informal economy and hospitality sector in New Digha, Purba Medinipur, West Bengal. As a premier coastal tourism hub, New Digha's economy is heavily dependent on a vast network of informal traders and hotel workforces. The study employs a case study approach to analyze the vulnerabilities of these groups, focusing on shifts in income, employment status, and livelihood strategies during and after the lockdown period. The research utilizes primary survey data collected from various informal participants, including stall owners, street traders, and hotel employees. Geographic analysis was supported by Land Use Land Cover (LULC) mapping and Slope mapping to understand the physical and functional morphology of the study area. Economic Loss: Approximately 52.85% of informal traders reported significant income loss, while 21.42% faced the double burden of income loss and product expiration. Informal Sector Composition: The informal market in New Digha is dominated by food shops (35.71%) and shopping/accessories stalls (41.42%), with the majority of traders (57.14%) earning a monthly income between ₹1,000 and ₹10,000. Hotel Industry Impact: Most hotels in the region remained closed for 12–16 months. This led to a sharp decrease in the workforce; while many workers originated from West Bengal (42.85%) and Odisha (34.28%), a significant portion of the staff resigned due to salary issues or to seek better job facilities elsewhere. Livelihood Shifts: During the lockdown, 60% of respondents were unable to find any work, while others temporarily shifted to manual labor (25.71%) or agriculture (11.42%) for survival. Lack of Support: Notably, the study found that 100% of the surveyed informal traders reported receiving no financial assistance from the government during the crisis. The findings highlight the extreme fragility of the tourism-dependent informal sector. The paper emphasizes the need for sustainable tourism development and policy interventions to provide a safety net for unorganized workers to mitigate the impact of future economic shocks.