Hoteliers want to boost hospitality infrastructure – Gudstory

“The government has set an ambitious target of 100 million tourists by 2047 and this requires large-scale accommodation. Hotel Association of India general secretary MP Bezbarua said, we are hopeful that infrastructure development plans for hotels and tourist destinations will be announced in the budget.

The infrastructure status, which the industry is looking for, comes with many perks for developers, especially when it comes to financing their projects, such as easy access to bank loans, affordable development costs and tax benefits for projects. .

Bezbarua pointed to last year’s budget proposal to develop 50 new tourism destinations, a plan that has gone largely unimplemented.

Highlighting the potential for sustainable tourism development and showcasing India’s diversity, he said, “We need more growth to achieve the $1 trillion tourism contribution to GDP for which the government has set its target Is.”

“We have a lot to show the world, having 50 or so new tourist destinations would be a great achievement. Otherwise, many destinations like Agra, Jaipur etc. may see over-tourism and will be in danger of destabilizing.”

Bezbarua acknowledged the limitations of the vote-on-account budget in an election year. “Significant changes are unlikely, but we hope the government will consider our suggestions in the long run,” he said.

A major area of ​​concern is the Goods and Services Tax (GST). “The current 18% GST rate on hospitality is higher than other sectors, and rationalizing it could increase revenues for both the government and the industry,” he said.

Another hurdle is the different GST rates between hotels and independent restaurants, creating an uneven playing field. Bezbarua urged the government to remove this inequality.

Revamping the ‘Incredible India’ campaign also features prominently on the wish list of hoteliers. “Inbound tourism has not fully recovered and renewed marketing efforts both online and offline are important. Vietnam’s successful operations demonstrate its capabilities to us and the rest of the world.”

The government has recently cut the foreign propaganda budget Only Rs 524 crore in 2021-22 167 crores in 2024 has worried the industry. Acknowledging the benefits of digitalization, Bezbarua said traditional offline campaigns should not be ignored in attracting tourists.

“We would also like to suggest that the marketing of India should be renewed, especially since inbound tourism has not increased much. We would be happy if more attention is given to India’s marketing. Something needs to be done to elevate Incredible India.”

“While digitalization of campaigns is also good and a lot of tourists follow digital campaigns, running regular offline campaigns is also important and should get the attention of the government. For example, Vietnam, even though it is such a small country, is doing very well in its campaigns and is getting a lot of attention,” he said.

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Published: Jan 26, 2024, 11:31 pm IST