Puneet Chhatwal calls for unification of tourism, hospitality, and aviation sectors to turbocharge India’s economic growth.
Lipla Negi
Puneet Chhatwal, MD & CEO, Indian Hotels Company Limited (IHCL), has long been a vocal advocate for uniting all stakeholders in the tourism and hospitality sectors to secure the long-overdue recognition they deserve. At a recent event in the capital, he strongly endorsed the unification of tourism, hospitality, and aviation, highlighting the powerful economic potential these three sectors could unlock. “These sectors are fundamental to India’s economic development, but there is a catch—unless they work in harmony, they risk missing the larger opportunity. The time has come when we bring the three sectors together—tourism, hospitality, and civil aviation,” he emphasised.
However, Chhatwal’s vision of a unified force goes beyond creating synergies between sectors; it is about reshaping India’s growth narrative. He stressed that the government must move beyond the narrow lens of domestic and inbound tourism to fully capitalise on the unprecedented surge in demand for travel. “When we talk tourism, we get lost in domestic and inbound travel,” he observed, emphasising that tourism alone cannot drive the kind of growth India needs. Hospitality is the real engine behind job creation. “The job creation is maximum in hospitality. Similarly, aviation needs to work together with these sectors. Without this coordination, we will not make the progress we seek,” he explained.
Double push: Centre and state
One of Chhatwal’s key critiques focused on the lukewarm support tourism and hospitality receive from both the central and state governments. He argued that the central government is falling behind, especially in terms of providing long standing infrastructure status to the hospitality sector, which could help the sector attract more investment.
Chhatwal advocated for a comprehensive policy that recognises hospitality as a critical component of the nation’s infrastructure development. “If the government is making strategic investments in highways, roads, and airports, hospitality must be integrated alongside,” he highlighted. “At the same time, states need to incentivise hospitality,” he urged, stressing that the outdated view of hospitality as a luxury sector must be discarded. “It is a sector that drives maximum job creation,” he pointed out.
Taxation: A levelled playfield
One of the key areas where Chhatwal sees room for improvement is in the taxation of the hospitality sector. He firmly believed that the current tax structure, particularly the high GST rates, is hindering the sector’s growth and competitiveness within the South Asian region. “The concept of taxing hospitality the most must go if we are to create more jobs,” he said, adding, “It should have never reached a 28 per cent GST on hotels.”
Chhatwal also highlighted the challenges posed by these high taxes, which place hotels at a disadvantage. He also noted that the 18 per cent GST on F&B services in hotels with room tariffs exceeding 7,500 rupees is particularly burdensome for classified hotels. Besides, he strongly advocated for a holistic approach to policy-making—one that can bring and integrates tourism, hospitality, and aviation as a unified engine for India’s economic prosperity.
“GST should not hinder competitiveness for hotels.” – Puneet Chhatwal, MD & CEO, Indian Hotels Company Limited (IHCL)
