Hotel Sector can get Infrastructure Status

January 12, 2009	(1 votes, average: 1 out of 5)  Loading ...
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THE MINISTRY of Tourism today exhorted Indian tourism organisations to forge a united front under a common umbrella so that their voice is heard as one and their policy pitch is seen as being concerted and one of continuity. Speaking at a panel discussion on Impact of Global Meltdown and Terrorism: India Tourism Fights Back organised by FICCI, Sujit Banerjee, Secretary, Ministry of Tourism, said: “I would like the myriad agencies in the hospitality sector to establish an apex federation of tourism industry so that the entire industry works with one objective.”

Banerjee said the Ministry of Tourism has made a strong pitch to the various arms of the government including the Reserve Bank of India to grant infrastructure status to the hotel industry. “There is some hope that the hotel sector may be granted that status provided to the corporate entity involved in the hotel industry and sets up a hotel. This status, however, may not be accorded to developers who set up hotels. It would be given to the corporate entity that buys the property from the developers,” he pointed out. The Secretary expressed satisfaction that foreign tourist arrivals in the calendar year 2008 rose to 5.37 million despite all the difficulties witnessed in the latter half of the year from 5.08 million in 2007. Foreign exchange earnings from tourism also increased to Rs 50,700 crore in 2008 from Rs 44,000 in 2007.

The terrorist strike of November 2008 in Mumbai was the first direct attack on the hospitality sector and “we have to face the challenge and be able to show to the world that we are one in fighting back, “Banerjee said, adding that the Ministry of Tourism has made a strong plea for relief to the tourism sector in income tax, service tax, road tax and easier access to credit.

Industry leaders strongly underlined the need for unified thought and action in staving off and fighting crises such as the global meltdown and the subsequent terrorist attacks in Mumbai. The called for a long term strategy to give a fillip to the tourism sector, the need for structured reform, concerted action to communicate to the world the recovery process undertaken by the government and industry and called for all-out attempts to focus on domestic tourism.

News Published Under:   Hotel Industry in India |

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