Symbolic picture only. , Photo credit: The Hindu
Bangalore
India’s tourism and hospitality sector, which is currently witnessing a market recovery following the COVID-19 pandemic, is looking forward to several positive signs including implementation of a level playing field for the industry, rationalization of GST, other reliefs and incentives. More robust and efficient single window clearance mechanism and provision for long term loans from the Union Budget 2023-24.
Industry associations have demanded a uniform GST across the country at 12% on all hotel categories and room tariffs and also sought exemption from Minimum Alternate Tax for two years from April 2023 to March 2025.
Hospitality norms, policies need to be reworked and rationalised, says JB Singh of InterGlobe Hotels
The chairman and managing director of Royal Orchid and Regenta Hotels, Chander K. Balji said, the hospitality industry has been demanding the government to provide uniform industry status across the country to help the sector grow.
“We request the finance ministry to provide us with a long-term loan. Internationally, hotel loans tend to be 15 to 25 years old, given the large gestation period. A similar structure should be implemented in the Indian hospitality industry and under such a system hoteliers will not go through crisis and banks will also not face NPAs,” suggested Mr. Balaji.
The sector’s long-standing request for industry and infrastructure lending status, regardless of project cost, is first and foremost on the industry’s wish list, as it will help boost investment and encourage hotel development , especially in several offbeat holiday destinations and Tier 2 and Mandeep S. According to Lamba, President (South Asia), HVS ANAROCK, 3 cities across the country.
“Additionally, enhancing the ease of doing business in the sector through online single window clearance and reducing the GST rate on hotel tariffs are much-anticipated announcements that will aid in accelerating the growth of the sector,” said Mr. Lamba.
Vineet Verma, Director, Brigade Hospitality, said, “With a push from the government in the form of policy and incentives for rapid growth of the hospitality and tourism sector, which is slowly returning to pre-pandemic levels and beyond, can do well with region. While some measures have been implemented, much more is needed for sustained growth.
Jai Sridhar, joint managing director and CEO of Rosetta-Sakleshpur, a luxury residence in Karnataka, said, “The current 18% GST slab currently discourages promotion of tourism and is not a sustainable option due to high overhead costs. We expect We are sure that the government will recognize the contribution of our industry to the GDP and help us with a lower tax slab.
Several bodies representing the industry have also been demanding extension of the ECLGS (Emergency Credit Line Guarantee Scheme) loan tenure for the hospitality sector to a maximum period of six years from the existing one.