Hotel Association of India (HAI) is very enthused by the statement of Union Tourism Minister G Kishan Reddy about giving industry status to tourism sector placed before the upper house of the parliament last week.
“According ‘industry’ status to the tourism sector would make it more competitive and lead to more sub-sectors of tourism having access to benefits including power tariff and other, taxes at industrial rates against the earlier requirement of payment at much higher commercial rates. This will also help to reduce costs of hospitality projects which are capital intensive and encourage further investment.
The Ministry of tourism has been advising the State governments and union territory administrations to grant Industry status to tourism in their respective states/union territories through correspondence at various interactions/meetings held with States/Union territories at the highest level, the Minister has stated.”
Appreciating Mr. Reddy’s support and statement, M.P. Bezbaruah, Secretary General, HAI, said, “Hospitality and tourism sector is one of the largest contributors to employment and GDP globally. Hotels generate jobs in every skill category and also employ women and specially abled persons in large numbers. This sector can help drive the government’s agenda of inclusive growth like no other.”
Given the demographic of the nation, hospitality can meet the needs of the country’s youth even in the remotest corner.
K.B. Kachru, Vice President, Hotel Association of India &Chairman Emeritus & Principal Advisor, South Asia, Radisson Hotel Group, said, “The hotel industry in addition to being capital intensive has high operational costs that are largely fixed in nature. Benefits of lower utility tariff and tax rates will make hotel and hotel projects more profitable and encourage investments in the sector. Hotels have demonstrated a higher multiplier effect in the economy than other sectors like manufacturing and agriculture. We are grateful to our ministry led by Shri Reddy for strongly supporting the requested policy interventions at the State level”