Thursday, 13 March 2014

HRAWI WELCOMES THE GOA BUDGET - APPEALS TO MAHARASHTRA GOVERNMENT TO FOLLOW SUIT


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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