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During pre-Budget discussions, tourism and hospitality representatives urged the government to streamline licensing through a single-window system, grant industry status uniformly across states, and clarify GST norms for hotels under INR 7,500. They highlighted challenges caused by fragmented regulations, which limit access to finance and incentives. The industry also proposed forming an independent National Tourism Board with private-sector involvement to guide long-term strategic growth and promotion. These measures aim to enhance foreign tourist arrivals and strengthen the sector's overall development.
Tourism and hospitality industry representatives recently met with Finance Minister Nirmala Sitharaman in a pre-Budget consultation to present several key proposals aimed at attracting more foreign tourists and strengthening the sector. Industry bodies, including the 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, and Adventure Tour Operators Association of India, participated in the discussions. Advertisement
The stakeholders requested the government to encourage all states to grant 'industry' status to tourism and hospitality, highlighting that while some states have recognised the sector as an industry, others have not. They pointed out that the absence of formal industry recognition, coupled with fragmented regulations, has limited access to affordable finance and sector-specific incentives.
Although GST was not officially part of the pre-Budget talks, the representatives sought clarity following the recent reduction in GST rates for hotel accommodation priced at INR 7,500 and below, without input tax credit (ITC). They suggested that the INR 7,500 threshold should be reviewed regularly to ensure it reflects market realities.
The industry also proposed the introduction of a single-window clearance system for licensing, as well as a reduction in the number of licenses, approvals, and NOCs required for hotels. They emphasised the need for an independent and empowered National Tourism Board under the National Tourism Policy, with strong private-sector participation and experienced professionals. Such a board, they argued, would be crucial for long-term planning, strategic promotion, and sustainable growth of the tourism sector.
Source PTI
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