Hotel and Restaurant Association of Western India Optimistic About BJP’s Victory, Urges Quick Improvements in Hospitality Sector

Published on June 12, 2024

The Hotel and Restaurant Association of Western India (HRAWI) warmly congratulates the newly elected BJP-led NDA government on their success in the 2024 Lok Sabha elections. HRAWI views this victory as a promising sign of continuity and stability that bodes well for the tourism and hospitality industries. The election highlighted the vital role of civic participation, a principle championed by HRAWI through its ‘Pledge To Vote’ campaign. With the new government in place, the association is optimistic about receiving proactive support for the hospitality sector. HRAWI has identified critical issues needing urgent attention, including the need for industry status and infrastructure status for hospitality. The association calls on the government to swiftly address these concerns to support the nation’s hotels and restaurants.

“We congratulate and welcome the newly elected Union Government and are optimistic about the future of the tourism and hospitality industries. With the right focus and policies, India can be transformed into a tourism haven for both domestic and international travellers, contributing significantly to the economic growth and development of the country. Apart from our longest standing demands for Industry and Infrastructure statuses, we urge the Government to streamline regulatory processes to facilitate Ease of Doing business. Simplifying license procurement, reducing bureaucracy and clarifying regulations will promote growth and innovation within the sector,” says Mr Pradeep Shetty, President, HRAWI.

HRAWI is advocating for a revision of the current GST structure on food and beverages served in hotel restaurants, which currently ties GST rates to room charges exceeding Rs. 7,500. The association recommends a uniform GST rate for all restaurants, whether they are within hotels or standalone, to eliminate disparity and unpredictability. It suggests separating GST rates from room charges to foster fair competition and enhance the sustainability of the industry.

“In its last term, the NDA Government put a lot of impetus on developing tourism and tourism infrastructure. Hotels and restaurants play a critical role in complementing this development and needs equal attention. Any kind of disparity between the two will only pose hurdles in the achieving our aspiration of welcoming 100 million tourists by 2047 and achieving a USD 3 trillion tourism economy. We urge the Governments to continue its drive in developing tourist circuits, heritage sites and transportation networks to enhance accessibility and visitor experience,” adds Mr Shetty.

“As we look ahead, the Government’s support will be crucial in realizing our vision for the country’s tourism and hospitality sectors. By addressing our immediate concerns and promoting a conducive environment for growth, we can collectively work towards positioning India as one of the top global tourism destinations. HRAWI remains steadfast in its commitment to collaborating with the Government and all stakeholders to drive the tourism and hospitality industries forward. Together, we can harness the country’s vast potential, creating a thriving, vibrant and inclusive economic landscape that benefits all,” concludes Mr Shetty.