The representatives of the hospitality and tourism sector on Thursday requested the government to grant ‘industry’ status to the sector as it would help the stakeholders to get affordable finances. Finance Minister Nirmala Sitharaman held a consultative meeting with the representatives of the hospitality and tourism sector in view of the upcoming Union Budget.
Which bodies participated in the meeting?
According to sources, the meeting was attended by the representatives from Hotel Association of India, Association of Domestic Tour Operators of India, Indian Association of Tour Operators, India Food Tourism Organisation, Tourist Guide Federation of India, Adventure Tour Operators Association of India, MakeMyTrip, VFS Global among others.
Apart from industry status, the representatives also demanded introduction of a single-window clearance system for licensing, reduction in number of licenses and approval required for hotels.
Other requests
The sector also requested for increased global promotional campaigns to boost tourism and also sought clarity on goods and services tax (GST) treatment for the hotel industry. Currently, the hotel industry attracts 5% and 18% GST. For the room tariff between Rs 1000 and Rs 7500, the GST rate is 5% and for the rooms with tariff above Rs 7500, the tax rate stands at 18%.
