Hotels ask for GST relief for boosting tourism growth

Published on : Saturday, September 21, 2019

Since hotels boost tourism and generate more jobs, the tourism industry has sought one single rate under Goods and Service Tax to aid its growth.


“The imposition of 18% and 28% GST at different hotels creates confusion in the business. If this is equalized and made 12%, it will be far better,” said Dr. Vitthal Kamat, the chairman and managing director of Kamat Group of Hotels.


India Brand Equity Foundation, an initiative of the Union Ministry of Commerce, said that international hotel chains will supply 47% to the tourism and travel sector in the country by 2020. This figure is expected to touch 50% in 2022.


“As far as employment is concerned, the industry has a lot of potential. For instance, just for housekeeping and maintenance of a room in a five-star hotel, nearly 38 employees are required,” added Kamat. He proposed reintroduction of dry incentives for propelling the industry.


IBEF said that the travel and tourism sector contributed to 8% of total opportunities in 2017. This is expected to grow 10% by 2028.


International tourist arrivals in India are expected to reach 30.5 million by 2028. By 2020, the medical tourism industry is likely to touch $9 billion. India has a diverse range of niche tourism products – cruises, adventure, medical, wellness, sports, eco-tourism, rural and religious tourism.


Under the Swadesh Darshan scheme, 13 thematic circuits in the country have been selected for improving tourism infrastructure. India offers geographical diversity, attractive beaches, 30 World Heritage Sites and 25 bio-geographic zones.


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