The Hotel Association of India (HAI), the supreme body of the Indian hotel industry, met with G Kishan Reddy, Minister of Culture, Tourism and Development of the North East Region, and the ‘informed about the situation of the industry seriously affected by the current crisis. pandemic.
A delegation from the association led by its Vice President, KB Kachru, President Emeritus and Senior Advisor for South Asia, Radisson Hotel Group, also reviewed the issues facing the industry.
While emphasizing the urgent need to inject liquidity into the sector through means such as the extension of moratoria, restructuring of one-off loans, improving conditions under the ECLGS program and revising eligibility ratios in As part of the resolution, the association also called for a review of policy changes. .
Grant the hospitality industry the status of an “infrastructure industry” by the central government, thus allowing it to enjoy the advantages of low cost financing and tax advantages currently available to industries such as ports, railways, highways etc is one of the policy changes that the industry has been clamoring for the argument that hotels are capital intensive and have a long gestation period, similar to infrastructure industries .
Encouraging all states to grant hotels “industry” status, as recently notified by some states, is another policy recommendation made by the delegation to support the revival of the industry. A large percentage of hotel operating costs are fixed in nature, which makes them unsustainable under current conditions. The status of the industry will allow hotels to take advantage of benefits available to manufacturers, such as lower property taxes, land at subsidized rates, and lower utility costs such as electricity and water.
After hearing the pleas of the delegation, the minister promised to look into the issues and continue the dialogue with HAI.