HRAWI PIN HOPES ON NEW GOVERNMENT

Mumbai: Hotel and Restaurant Association of Western India (HRAWI) has welcomed the appointment of Mr. Shripad Naik as the new Union Minister of State for Tourism (Independent Charge), besides congratulating the Bharatiya Janata Party and the Prime Minister, Narendra Modi for the massive success at the elections.

Following the change in the government, the hospitality industry hopes for major pro-hospitality initiatives in the months to come. The hotel industry has been gripped by several harsh financial burdens brought about by both the central and state governments that include Service Tax – charged by the Central Government, Luxury Tax – charged by the State, Value Added Tax (VAT) – on Food and Beverage, Excise Duty – on Beverages and Octroi Duty - on items imported into the State, among others.

“This is one of the few occasions in the history of independent India that a prime minister has emphasized the importance of tourism and hospitality as a key component in the growth of economy. In the poll manifesto the elected Government has emphasized on the role tourism as a foreign exchange earner and its ability to create millions of jobs every year. The hospitality industry alone accounts for approximately 8.8% of total employment and is a significant contributor to the country’s GDP. With the right kind of vision and leadership, tourism can flourish in the state as much as in the country,” says Mr. D.S. Advani, President, HRAWI while welcoming the new Government.

As per the manifesto tourism plays a key role in socio-economic progress through creation of jobs, enterprise, infrastructure development, and foreign exchange earnings.

“Hospitality and tourism industry go hand in hand.  Growth of tourism is integral to the growth of hospitality industry. We appeal to the new government, which is fully aware of this potential, to simplify the tax regime and make licensing processes easy and transparent,” adds Mr. Advani.

In its manifesto the new government had underscored the need for a clear growth plan and plans to initiate a mission to create 50 tourist circuits that are affordable and built around themes like Archaeological and Heritage; Cultural and Spiritual; Himalayan; Desert; Coastal; and, Medical (Ayurveda and Modern Medicine), among others. These are expected to lead to the creation of infrastructure and employment around each tourist circuit and help boost revenue generation. The manifesto further sought to introduce specialized courses in tourism for capacity development, besides according due priority to the safety and security of tourists.

“With the new government recognizing and accepting the status of this sector, we from the hotel industry are hopeful about development and growth. In the last few years, the hospitality sector had been neglected and burdened with high taxation and unfriendly policies,” says Mr. Gurbaxish Singh Kohli, Vice-President, HRAWI. “For instance in Maharashtra, electricity duty charged to Hotels and Restaurants is at the commercial rate of 13% as against the rate of 6% levied on industrial units. Power and water are the major cost of operation in hotels and restaurants. If the Government gives us the due benefits, not only will the hospitality industry grow, but tourism in Maharashtra will also see a big surge,” adds Mr. Kohli.

“The states of Rajasthan, Goa, Kerala and more recently Gujarat and MP, are considered to be tourist havens not because they are more beautiful than Maharashtra but because these Governments proactively promote tourism, allocate necessary funds and legislate tourism friendly policies. In our state, Foreign Tourist Arrivals (FTAs) as well as domestic tourists have decreased steeply in the last few years and we know that this new government (that has tasted the fruits of Tourism promotion in Gujarat), will take necessary steps to change this trend for all round betterment, before the damage becomes irreparable,” says Mr. Kamlesh Barot, immediate past President, HRAWI.

 About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 64 years old Association of Hotels and Restaurants in Western India. Its members include Hotels up to 5-Star Deluxe categories like The Taj, Trident, Hyatt, J.W. Marriott and The Leela who are some of the prominent members of our Association. With around 1300 members across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa is considered to be the voice of the Hotel Industry. The association is part of the national body of Federation of the Hotels & Restaurants Associations of India (FHRAI), located in New Delhi, which was originally founded in Mumbai in 1950 by the late Mr. J.R.D. Tata.