Mumbai: Hotel and Restaurant Association of Western India
(HRAWI) has welcomed the revisions announced in the Goa vote-on-account budget for
the state. The state has granted several sops and reviewed existing schemes for
the tourism sector. Citing this as an ideal example of a state promoting
hospitality and tourism, the HRAWI in Mumbai has appealed to the Maharashtra
government to emulate Goa and adopt some of the key policies that are in force
there.
The HRAWI is the
apex body of hotels and restaurants of western region of India. The States
covered include Gujarat, Madhya Pradesh, Maharashtra, Goa and the union territories
of Daman-Diu and Dadra & Nagar Haveli.
“We applaud the
administration of Goa for being a pro-tourist state. The success of tourism in
Goa is driven not by the beautiful beaches alone, but also by its tourism
friendly policies. The Goa Government’s decision to relax tax burden by 60%
during off season is a visionary move. This will not only help hotels to
sustain during the slump and serve tourists better during the peak season, but
will also encourage budget tourists to visit Goa during off season and increase
absolute collection of tax,” says Mr. D.S. Advani, President, HRAWI.
Meanwhile, in
Mumbai, hotels are paying the highest taxes in the country. “We’ve been
requesting the administration to re-consider the taxes imposed as Luxury Tax in
hotels. Hopefully, our government here will take notice of our neighboring
state’s tax structures and give the hotel industry the much needed boost,”
added Mr. Advani.
“We are urging the
government to pay heed to Goa's policies. We being a neighboring state that’s
just 45 minutes away by flight are losing most of our tourism to the state of
Goa on the basis of tax disparity. This needs to change and our government
needs to realize that tourism is the sleeping giant in Maharashtra. We have the
kinds of terrain to make inbound tourists stay that many days longer,” says Mr.
Gurbaxish Singh Kohli, Vice-President, HRAWI.
The hotel industry
has been engaging with the Maharashtra Government at various levels for a
revision in the Luxury Tax. Presently, any hotel room with a tariff of above
Rs.750/- and up to Rs.1199/- attracts a tax of 4% and those above Rs.1200/-
attracts 10%.
“We have been
repeatedly requesting for an increase in the threshold limits. Since, a mere
Rs.750/- does not justify being called luxury in today’s scenario, we are
proposing that the limit be raised to at least Rs.2000/-. Also 10% tax is
exorbitant. So we have proposed that the next applicable tax slab be 6% for a
room tariff of above Rs. 3000/-,” adds Mr. Kohli.
“Maharashtra
has one the most varied and beautiful landscapes in the country. The serene
coastline alongside the bountiful forests and majestic mountains make
Maharashtra a spectacular destination. Add a dash of culture and heritage, and
the State becomes a powerhouse in Tourism. Mumbai is the icing on the cake.
With a little bit of incentives, tourists who come here for business can easily
be persuaded to extend their stay and add a few days of pleasure. Our request
to the state administration is to harness the tremendous potential that our
city has to offer and in the process create wealth for the State and job
opportunities for its residents,” concludes Mr. Kamlesh Barot, immediate
past-President, HRAWI.
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