In a meeting with G Kishan Reddy, Union Minister of Culture, Tourism and Development of North East Region, the Hotel Association of India (HAI) sought Government’s support in reviving the hospitality industry. A delegation of the association led by its Vice President, K.B. Kachru, Chairman Emeritus & Principal Advisor-South Asia, Radisson Hotel Group, also apprised the Union Minister of the status of the industry severely impacted by the ongoing pandemic.
While highlighting the urgent need to infuse liquidity in the Industry through means like an extension of moratorium, one-time loan restructuring, improved terms under the ECLGS scheme and revised eligibility ratios under the resolution framework, the Association also emphasized a consideration of policy changes.
According to hospitality the status of an “Infrastructure industry” by the central government and allowing it to avail the benefits of low cost funding and tax benefits that are currently available to industries like ports, railways, highways etc. is one of the policy changes that the industry has been voicing for a long time now. Hotels are capital intensive and have a long gestation period similar to infrastructure industries.
Encouraging all the Indian States to accord hotels the status of an “Industry” as recently notified by some States is another policy recommendation articulated by the delegation to support the revival of the industry. A large percentage of hotel operating costs are fixed in nature making them unsustainable under the current conditions. “Industry” status will allow hotels to receive the benefits available to manufacturing like lower property taxes, land at subsidised rates, lower costs of utilities like power and water.
In its representation, HAI highlighted the urgent need to infuse liquidity into the industry through means like an extension of moratorium, one-time loan restructuring, improved terms under the ECLGS (Emergency Credit Line Guarantee Scheme) and revised eligibility ratios under the resolution framework.
