HOSPITALITY SECTOR PIN HOPES ON ‘GOAN’ TOURISM MINISTER

Goa: 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) and the fifteenth Prime Minister of India, Mr. Narendra Modi.

The change in Government and the appointment of Minister from the tourism centric state of Goa have raised hopes of the beleaguered hospitality sector, especially of Western India. “The new government has been highlighting the importance of tourism and hospitality as a key driver of the nation’s economical growth. We expect it to push major pro-hospitality initiatives in the months to come. To begin with, the Government can consider revision in the current tax structure, diesel subsidies for power generation and incentives for investing in waste management and re-cycling of waste,” says Mr. Charles Bonifacio, Chairman, Goa sub-committee, HRAWI.

In its poll manifesto, BJP had identified tourism as a major foreign exchange earner that also has potential to create millions of jobs every year. The hospitality industry accounts for approximately 8.8% of total employment and is a significant contributor to the country’s GDP.

“Tourism is the back bone of Goa’s economy, employing one third of its population and contributing 50% of the total collected revenues. But it is now facing challenges from tourism promoted by Sri Lanka, Thailand, Singapore and other new destinations. Many nations offer incentives in the form of lower taxation and lower interest rates to boost tourism. We, in India, too would need such assistance to remain competitive and lowering the cost of the product to the end consumer,” adds Mr. Bonifacio. “Currently entry visa for India from the UK is one of the most expensive in the world and is restricting tourism revenue from UK which is our bane. The government should rectify this at the earliest.”

“Some of the other problems include restrictions on flying in and out of Goa. If you fly to Goa on a charter flight then you can’t fly home on a direct schedule service, it has to go via Delhi or Mumbai. Also, if you fly to Goa on a charter flight then you can’t fly home on another carrier’s charter flight. This policy is arbitrary and is a hassle for tourists who come here to unwind and relax,” says Mr. Bonifacio.

  

In its manifesto the Governing party had proposed to initiate a mission to create 50 tourist circuits that are affordable and built around themes of 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.

“Hospitality and tourism go hand in hand.  Growth of tourism is integral to the growth of hospitality. The new tourism minister is familiar with tourism and is fully aware of its potential. We from the hotel industry have our hopes pinned on this Government to lead us to newer heights,” concludes Mr. Bonifacio.

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.

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.

Ahead Of Budget, HRAWI Seeks Boost To Tourism Industry

To Make Goa Tourism Globally Competitive

Feb, Goa: Ahead of the State budget of Goa, Hotel and Restaurant Association of Western India (HRAWI) has sought assistance from the Government for incentivizing key aspects of the hospitality and tourism industry to make it competitive globally.

In the pre-budget memorandum submitted to the Finance Minister and Chief Minister of Goa, the industry has appealed for revision of the current taxation system, subsidy on diesel for power generation and incentives for investing in waste management and re-cycling of waste.

“Tourism is the back bone of Goa’s economy, employing 1/3rd of its population and contributing 50% of the total collected revenues to the State coffers in terms of revenues from various sources. Goa’s tourism scene is challenged by tourism promoted by Sri Lanka, Thailand, Singapore and also some other Indian states. Unlike in other states and countries which have incentives in terms of lower taxation and lower interest rates that boost the tourism industry, the hospitality industry only seeks assistance from the Government to make it more competitive in market by lowering the cost of the product,” says Mr. Charles Bonifacio, Chairman, Goa sub-committee, HRAWI.

Among the key measures, HRAWI has suggested amendment to Tourism Trade Act and validity of certificates. The association has requested for a single window clearance that will allow establishments to bring uniformity in obtaining various licenses and certificates, pay fees annually and retain validity for 5 years. Presently, only the certificate of hotel classification issued by the Central Government has a validity of 5 years.

“Cleaning and regulating beach tourism is of utmost importance for a litter free and safe beach enjoyment experience. Unfortunately, this is another area of concern, which presently ranks somewhere in the bottom list of priorities. Besides this, we’ve also requested the administration to form either a co-operative or corporate body to regulate taxis and provide subsidy on taxi meters that will weed out any malpractices in fares being charged to tourists,” adds Mr. Bonifacio.

The recommendations, if incorporated in the upcoming budget, will have the capacity to boost tourism and place Goa on the international map as one of the most sought after tourist destinations.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 63 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.