Hospitality sector seeks infra status

New Delhi: Lack of infrastructure status, rationalisation of tax rates, easier visa processes and more incentives by state governments to promote investments are some of the key issues that need to be addressed for India’s hospitality sector to realise its full potential, Hotel Association of India President K B Kachru said ahead of the Budget.

In an interview to media, Kachru, emphasised upon the need for India to be marketed in a better fashion, and noted that countries like Japan, South Korea and Thailand have been able to grow their GDP by giving importance to the tourism sector.

He emphasised upon the need for India to identify and promote MICE (Meetings, Incentives, Conferences, and Exhibitions) destinations with high potential, and work towards building the required infrastructure to draw tourists globally.

“We need investment. Investment can’t be done by the government alone. Private sector has to come in and invest. What would motivate them to invest in the country is they must have a respectable (return on investment) ROI then only they will invest,” the Hotel Association of India President said. Highlighting that “taxation is a big issue” in India, Kachru pointed out the differential rates of taxation and stressed upon the need to rationalise the tax rates and follow best practices of countries such as Singapore, Sri Lanka and Thailand.

Moreover, he said, at the state level, governments have to be forthcoming in inviting people and giving them some incentives to invest their money. “... There was a time when we used to have close to 100 licenses to start a hotel. It has been substantially reduced.