Representatives from various bodies, including 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; Adventure Tour Operators Association of India; among others, participated in the meeting. In the pre-Budget meeting, they have also sought support from the Centre in nudging all states to grant ‘industry’ status to the sector, a person aware of the development said.
Granting of industry status has been a long standing demand from the hospitality and tourism players. Although many states have declared Tourism & Hospitality as an Industry and accorded “industry status”, others have yet to do so.
The representatives argued that the lack of formal industry recognition and the fragmented regulations have limited the tourism and hospitality industry’s access to affordable finance and incentives, according to sources.
Moreover, although GST is not a part of the pre-budget consultations, the representatives are believed to have sought clarity after the recent reduction in GST rates for hotel accommodation priced at Rs 7,500 and below without the availability of input tax credit (ITC), and suggested that the threshold of Rs 7,500 requires a regular review mechanism.
Representatives from tourism and hospitality industry bodies also emphasised upon the need for the introduction of a single-window clearance system for licensing, reduction in number of licenses, approvals and NOCs required for hotels, sources said.
They also sought establishment of an independent, empowered National Tourism Board under the National Tourism Policy — with strong private-sector representation and seasoned professionals — terming it vital for strategic planning, promotion, and long-term sectoral growth, according to the sources.
