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FHRAI submits representation to tourism minister: what this means for the hospitality industry

The Federation of Hotel & Restaurant Associations of India (FHRAI) has submitted a representation to the Minister of State for Tourism (Independent Charge), Prahlad Singh Patel, for the revival and growth of the hospitality industry. In its representation, FHRAI has highlighted the challenges faced by the hotel industry due to the Covid-19 pandemic and suggested measures that can help revive the sector.

FHRAI President Gurbaxish Singh Kohli said that the hotel industry has been one of the worst-hit sectors due to the pandemic and there is an urgent need for revival measures. He said that hoteliers are struggling to pay their employees, meet their obligations towards lenders, and maintain their properties. He urged the government to provide financial support to hoteliers in the form of interest-free loans and a moratorium on loan repayments.

Kohli also requested that hotel management courses be included under the Skill India Mission so that more people can be trained in hotel management and put to work in the hospitality industry. He said that this will help create more employment opportunities in the sector. He also asked for a reduction in GST rates on hotel rooms to 5% from 18% and asked for the input tax credit to

Hotels, according to the association, are capital intensive and require large investments and a long gestation time. Mid-market and budget hotel projects are typically built for less than Rs 200 crores and have a 7 to the 8-year payback period. High bank interest rates, on the other hand, deter investment in the sector.

The Reserve Bank of India had identified hotels as a sub-sector of social infrastructure. Hotel developments worth more than Rs 200 crores were given infrastructure status. To give a boost to cheap hotels, this threshold should be reduced to Rs 10 crores per hotel. According to Pradeep Shetty, Jt. Hon Secretary, FHRAI, granting infrastructure status will allow hotels to obtain term loans with longer repayment schedules of 15 or even 25 years, similar to other sectors such as roads, railways, and ports, and will also make statutory utilities such as electricity available to the sector at industrial rates rather than commercial rates.

Conclusion :

The FHRAI has put together a proposal for the Minister of Tourism, which contains recommendations for the revival and growth of Indian hospitality. We request your support in this endeavor so that we may continue to provide quality education and career opportunities in hotel management to students across India. If you are looking to build a successful career in hotel management, make sure to book your seat at IIHM Kolkata today. With our world-class faculty and industry-leading curriculum, you’ll be on your way to success in no time!

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SOHEE LIM
Marriott

"I am Hovaz and I come from Iran. I wanted to study in IIHM Hotel School in India and therefore I came to Kolkata. IIHM is renowned as an institute that prepares students to succeed in International Hotels, and that is what I look forward to. I am in the 2013 -2016 batch and now I am studying in the Final Year Thanks to IIHM."

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