New Delhi, Hotel sector players want the government to give infrastructure status to hotels to make investments in new properties more attractive instead of categorizing them as luxury or even 'sin goods' in the upcoming Union Budget, considering the sector's potential to play a key role in the Indian economy. growth.
They also want the government to consider incentives in the form of tax breaks or subsidies for the adoption of sustainable and environmentally friendly practices, while stating that the next budget must accelerate the tourism agenda, saying it is an opportunity to make Indian hospitality the emerging driver of GDP. growth and job creation.
"The sector is burdened with high taxes, licenses, costly and multiple approvals and compliances. Hotels are capital-intensive and have a long gestation period. The cost of operating hotels is high and largely fixed. This makes hotel investments are risky. There is a need to make hotel investments more attractive with better investment rate and promote ease of doing business," said Hotel Association of India (HAI) president KB Kachru.
He further said that the upcoming Union Budget "offers an opportunity to unlock the potential of Indian hospitality in its contribution to India Vision 2047 by making key policy changes by considering the sector based on this potential instead of categorizing hotels." as luxury, elite or even 'sin'.
Kachru said HAI's key policy recommendation for the budget is for the Center to grant infrastructure status to hotels. "This will enable them to access softer finance, with better interest rates and longer payment terms, thereby attracting investments." "he added.
Puneet Chhatwal, MD & CEO, Indian Hotels Company Ltd, expressed similar views: “Based on the state of infrastructure in the sector, a favorable impetus will be provided to promote investment, enabling the sector to play a pivotal role for India to become the third largest economy by 2027."
Chhatwal, who is also the president of CII National Tourism and Hospitality Committee and Federation of Indian Tourism and Hospitality Associations (FAITH), further said that the sector creates around 10 per cent of the total employment in the country. and has been among the key growth ones. sectors for the economy "To unlock India's hospitality sector, which remains underserved compared to major accommodation markets globally, the upcoming budget must accelerate the tourism agenda," he said.
Chalet Hotels Ltd managing director and chief executive officer Sanjay Sethi said that apart from being employment intensive, the hospitality sector is also capital intensive and requires substantial investments.
"Our long-standing demand for infrastructure status and industrial benefits at the state level will only provide a significant boost to businesses to continue reinvesting for industry growth," he added. Advantages such as lower utility rates, taxes on Reduced ownership costs, easier access to finance and softer loans are crucial to reducing the cost of doing business, ensuring the long-term viability of the sector and, in turn, more investment in the sector will drive job creation. Sethi said.
Royal Orchid Hotels CFO Amit Jaiswal reiterated that the hospitality sector has high expectations from the upcoming budget, particularly on how it can support the sector as it has been significantly affected by the recent economic fluctuations, and a supportive framework solid is crucial for recovery and growth.
"Incentives to adopt sustainable and environmentally friendly practices would be very beneficial. These incentives could include tax breaks or subsidies for investments in renewable energy, waste management and water conservation technologies, which are fundamental in our goal of making our operations more environmentally sustainable," he said. Jaiswal also said that the sector anticipates favorable tax reforms and highlighted that "India imposes one of the highest tourism GST rates compared to countries like Thailand, Vietnam, Sri Lanka and even European nations.”
Greater support for skills development and training programs is also needed to close the talent gap and improve the quality of service in the sector, he said, adding that tourism is one of the sectors that generates the most employment and, therefore , requires a focused approach from the government.
The sector also expects to see greater investment in infrastructure development, including better connectivity to key tourist destinations through more airports and better road networks, which can significantly boost domestic and international tourism, Jaiswal added.
They also want the government to consider incentives in the form of tax breaks or subsidies for the adoption of sustainable and environmentally friendly practices, while stating that the next budget must accelerate the tourism agenda, saying it is an opportunity to make Indian hospitality the emerging driver of GDP. growth and job creation.
"The sector is burdened with high taxes, licenses, costly and multiple approvals and compliances. Hotels are capital-intensive and have a long gestation period. The cost of operating hotels is high and largely fixed. This makes hotel investments are risky. There is a need to make hotel investments more attractive with better investment rate and promote ease of doing business," said Hotel Association of India (HAI) president KB Kachru.
He further said that the upcoming Union Budget "offers an opportunity to unlock the potential of Indian hospitality in its contribution to India Vision 2047 by making key policy changes by considering the sector based on this potential instead of categorizing hotels." as luxury, elite or even 'sin'.
Kachru said HAI's key policy recommendation for the budget is for the Center to grant infrastructure status to hotels. "This will enable them to access softer finance, with better interest rates and longer payment terms, thereby attracting investments." "he added.
Puneet Chhatwal, MD & CEO, Indian Hotels Company Ltd, expressed similar views: “Based on the state of infrastructure in the sector, a favorable impetus will be provided to promote investment, enabling the sector to play a pivotal role for India to become the third largest economy by 2027."
Chhatwal, who is also the president of CII National Tourism and Hospitality Committee and Federation of Indian Tourism and Hospitality Associations (FAITH), further said that the sector creates around 10 per cent of the total employment in the country. and has been among the key growth ones. sectors for the economy "To unlock India's hospitality sector, which remains underserved compared to major accommodation markets globally, the upcoming budget must accelerate the tourism agenda," he said.
Chalet Hotels Ltd managing director and chief executive officer Sanjay Sethi said that apart from being employment intensive, the hospitality sector is also capital intensive and requires substantial investments.
"Our long-standing demand for infrastructure status and industrial benefits at the state level will only provide a significant boost to businesses to continue reinvesting for industry growth," he added. Advantages such as lower utility rates, taxes on Reduced ownership costs, easier access to finance and softer loans are crucial to reducing the cost of doing business, ensuring the long-term viability of the sector and, in turn, more investment in the sector will drive job creation. Sethi said.
Royal Orchid Hotels CFO Amit Jaiswal reiterated that the hospitality sector has high expectations from the upcoming budget, particularly on how it can support the sector as it has been significantly affected by the recent economic fluctuations, and a supportive framework solid is crucial for recovery and growth.
"Incentives to adopt sustainable and environmentally friendly practices would be very beneficial. These incentives could include tax breaks or subsidies for investments in renewable energy, waste management and water conservation technologies, which are fundamental in our goal of making our operations more environmentally sustainable," he said. Jaiswal also said that the sector anticipates favorable tax reforms and highlighted that "India imposes one of the highest tourism GST rates compared to countries like Thailand, Vietnam, Sri Lanka and even European nations.”
Greater support for skills development and training programs is also needed to close the talent gap and improve the quality of service in the sector, he said, adding that tourism is one of the sectors that generates the most employment and, therefore , requires a focused approach from the government.
The sector also expects to see greater investment in infrastructure development, including better connectivity to key tourist destinations through more airports and better road networks, which can significantly boost domestic and international tourism, Jaiswal added.
