FHRAI News

Government Aid Required For Sustained Growth Of The Hospitality Industry: Purushottaman

S Nithya Kamakshi - Chennai

Federation of Hotel & Restaurant Associations of India (FHRAI) has officially announced the topic for its 41st National Convention scheduled to take place in Chennai from October 15-17. Titled as 'The Road Ahead,' the theme of the three day long convention will focus on infrastructure development for tourism growth. Tamil Nadu Chief Minister, Jayalalithaa, will inaugurate the convention at the Chennai Convention Centre. Apart from the theme, shortage in accommodation and the controversial issue of high tariffs will be the other topics that will occupy centre stage at the FHRAI convention. The Chennai convention has a special significance as it marks the Golden Jubilee of FHRAI.

The President of FHRAI and South India Hotels & Restaurants Association (SIHRA), M P Purushottaman said, "The theme of the convention has been carefully chosen keeping in mind the growth of the IT and ITES sector which has opened doors to MNCs. This propels the demand for quality hotel rooms and good infrastructure." In terms of allowances from the government, Purushottaman reiterated, “The need of the hour is that both, Central and State Governments have to be proactive in their approach and be more practical about the hospitality sector. They have to extend all support to this vital industry, which is the second largest foreign exchange earner." He further called for classifying hotels as an industry in all respects and rationalisation of the tax structure on liquor.

According to Purushottaman the various State and Central duties and taxes need to be reworked to help stimulate the travel industry, which would in turn boost the occupancy levels in hotels. He opined that the Floor Space Index (FSI) must be increased on par with the software industry. "We need to be given the same benefits like low electricity tariffs, sales tax rationalisation, reduction in taxes on liquor and special concession on stamp duty. Currently there are 1,570 approved quality hotels providing 85,481 rooms. We are aiming to increase this by adding one lakh rooms at a cost of Rs 11,000 crores in different parts of India. This will be possible only if both the Central and State Governments are proactive in their policies," stated Purushottaman.