As the anticipation builds for the presentation of the Interim Budget 2024 in the Lok Sabha on February 1, all eyes are on Union Finance Minister Nirmala Sitaraman for potential policy changes and allocations that could shape the future of the Indian hospitality industry. With high expectations for tax reforms and increased infrastructure spending, industry leaders and hoteliers have shared their wishlists with ETTravelWorld, highlighting key areas for growth and development.
According to a report by the Hotel Association of India, the Indian hotel market holds immense growth prospects, with the potential to contribute USD 1504 billion to the country’s GDP by 2047. With this promising backdrop, industry leaders are hopeful for measures that will foster growth and recovery in the hospitality sector.
KB Kachru, Chairman Emeritus & Principal Advisor of Radisson Hotel Group, South Asia, emphasised the need for policies that support the resilience and growth of the hospitality industry. Kachru called for a full-blown infrastructure status for the hotel sector, further rationalisation of the Goods and Services Tax (GST), and investment in skill development to deliver high-quality services and generate employment opportunities.
Zubin Saxena, Senior Vice President and Country Head, India – Hilton, stressed the importance of tax overhaul, including a significant reduction in GST rates for hotels, to position India ahead of global competitors. Saxena also advocated for industry-wide infrastructure status for the hospitality sector to lower utility tariffs, reduce property tax, and improve financial access.
Kush Kapoor, CEO of Roseate Hotels & Resorts, highlighted the need for GST rate reduction for rooms with tariffs of Rs 7,500 and above and emphasised the importance of infrastructure status for the hotel sector. Kapoor also called for a central single-window clearance for hotel projects to ease regulatory processes and foster growth.
Among the sectors with high expectations is the Indian travel and tourism industry, which is advocating strongly for industry and infrastructure status, policy reforms, and taxation benefits to support infrastructure development. In light of this, industry leaders have shared their wishlist for the budget with ETTravelWorld, highlighting key areas for transformation and growth.
Navneet Nagpal, Principal Consultant and Director, Spectra Hospitality Services, emphasised the critical juncture at which the Indian hospitality and tourism sector stands. Nagpal called for financial assistance, tax burden reductions, and infrastructure development to revive the sector and contribute to the country’s economic growth.Devendra Parulekar, Founder of Saffron Stays, advocated for uniform GST rates of 12 per cent on the hospitality industry to promote domestic tourism and increase employment opportunities. Parulekar also called for investments in tourism infrastructure, including Vande Bharat trains, to unlock destinations across India.
Mehul Sharma, Founder & CEO of Signum Hotels & Resorts, highlighted the need for reduced GST rates, extension of financing options like the Emergency Credit Line Guarantee Scheme (ECLGS), and tax holidays for new projects to support the recovery of the hotel sector.
As the industry awaits the Union Budget 2024, there is optimism for measures that will address key concerns and pave the way for sustainable growth and development in the hospitality sector, ultimately contributing to India’s economic prosperity.
