Ahead of the upcoming Union Budget, the Hotel Association of India (HAI) has made a strong appeal to the government, calling for critical policy reforms to fuel growth and build resilience in the hospitality sector. The industry body has reiterated its persistent demand for granting infrastructure status to hotels, arguing that such a move is essential to recognize the sector's substantial economic contribution.
Key Demands for Policy Support
In a formal statement, HAI President K B Kachru emphasized that the hotel industry deserves stronger policy backing due to its significant role in driving GDP, generating employment, and earning foreign exchange for the country. Kachru, who also serves as the Chairman for South Asia at Radisson Hotel Group, stated that policymakers must prioritize sector-specific reforms.
The two primary interventions sought are according infrastructure status and extending industry benefits to hotels. According to Kachru, granting a harmonised infrastructure status would transform the sector's financial landscape. It would improve access to finance through longer loan tenures and lower interest rates, ease capital availability, and reduce project delays often caused by financial constraints.
Unlocking Investment for a Self-Reliant India
Kachru elaborated that this policy change would help unlock substantial investment, enabling the hospitality industry to play a much larger role in job creation. This aligns directly with India's broader vision of building an Aatmanirbhar Viksit Bharat (Self-Reliant Developed India). A financially empowered hotel sector can significantly amplify its impact on the economy and infrastructure development.
Beyond infrastructure status, the HAI president also highlighted the urgent need to improve the ease of doing business for hoteliers. He pointed to the cumbersome process of obtaining numerous approvals, no-objection certificates, and clearances required to build and operate hotels, which increases both cost and time.
Streamlining Processes and Incentivizing Growth
Kachru specifically advocated for a single-window clearance mechanism as a provision requiring immediate attention. This would drastically simplify bureaucratic procedures. Furthermore, he recommended reinstating the rewards scheme for foreign exchange earnings and allowing higher rates of depreciation for hotels. These measures are seen as vital to enhancing the sector's competitiveness and profitability.
The association's pre-budget recommendations underscore a clear message: strategic policy support is not just a concession but a necessity to harness the full potential of India's hospitality industry. As the budget formulation process continues, all eyes are on whether these long-standing demands will be addressed to propel the sector towards a more robust and resilient future.
