Quick Summary
India's hospitality industry is setting its sights on transformative reforms to unlock its full potential and compete globally. Industry stakeholders are calling for infrastructure status to lower financing costs, rationalisation of Goods and Services Tax (GST) rates to enhance competitiveness, a di
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FAQ :
The industry is requesting infrastructure status for hotel and convention centre projects costing ₹10 crore or more, which would provide access to long-term, low-cost financing.
Suggestions include reducing GST on hotel rooms above ₹7,500 from 18% to 12%, lowering GST for hotel restaurants to 12% with full input tax credit, and introducing a lower GST rate for MICE segments.
Granting infrastructure status is expected to catalyse growth, making it easier for businesses, especially SMEs, to access affordable financing and helping India reach its tourism economy targets.
The sector is also calling for a digital single-window clearance system for licenses, incentives for public-private partnerships in tourism development, and increased funding for workforce skill development.
Challenges include a shortage of hotel rooms, slow recovery of foreign tourist arrivals post-COVID-19, and high airfares due to currency depreciation and fuel costs.
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