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Tuesday, July 14, 1998

Hoteliers intensify lobbying for export status 

Our Bureau  
New Delhi, July 13: The hotel industry has intensified its lobbying with the government for an export industry status. Leading hoteliers, under the aegis of the Hotel Association of India (HAI), will meet commerce minister Ramakrishna Hedge later this week on the issue.

The hoteliers will also take up the issue of setting up tourism export promotion council with the minister. Industry sources pointed out that the minister is in favour of according an export industry status to tourism along with extending a host of incentives which are given to other forex-earning sectors.

This will be the first formal interaction of the hoteliers with the commerce minister on the issue ever since he is understood to have given an in-principle approval to the export promotion council.The industry has also taken up the issue with the tourism minister Madan Lal Khurana. The proposed council will be the first such collaboration between the government and the hospitality industry to boost foreign exchange earnings. Theproposal was mooted by leading hotel groups including the Taj, Oberoi, ITC and ITDC and has the support of the Federation of Indian Export Organisation (FIEO).

The proposal envisages creating an initial corpus of Rs 330 crore, which is three per cent of the total turnover from tourism in India. This amount will be shared equally by the government and the private sector, with the former chipping in its half by putting in the taxes collected from the hospitality industry.

The council will be supported by 3,000 tourism-related export companies, including 1,050 travel agents and 1,100 hotel companies.Sources said that the objective of the export promotion council will be to create awareness, develop infrastructure and market India effectively.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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