Stakeholders in AP bat for industry status to tourism in policy tweaking

Visakhapatnam: Several stakeholders in the hospitality sector are making a strong pitch for granting industry status to tourism in Andhra Pradesh as the BJP-led NDA government has launched an exercise to unveil a New Tourism Policy.

Key players in the sector whom Bizz Buzz contacted, strongly favoured focus on improving connectivity, infrastructure for stay and entertainment as tourist places, a package of incentives to those creating employment as tourism is a labour-intensive sector, a red carpet to big ticket projects, time-bound completion of metro rail and greenfield and brownfield airport projects.

During an interaction with some of the representatives from the tourism sector here recently, Tourism Minister Kandula Durgest said they are making efforts in consultation with Chief Minister N Chandrababu Naidu to launch New Tourism Policy from April, 2025 with focus on promoting sustainable tourism.

When contacted, Ravi Godey, owner of Hotel Grand Central, told Bizz Buzz that granting industry status to them will provide easy access bank loans at a lesser interest, getting power at concessional tariff and benefits under MSME sector. He said 14 States including Kerala, Odisha and Rajasthan have already accorded industry status. Godey also wanted development of a designated area as an entertainment zone as a cosmopolitan city like Visakhapatnam is lacking social infrastructure.

This should be modelled on the lines of entertainment and gaming areas in Gurgaon. He also suggested an exclusive park for installation of statues in memory of warriors and others instead of keeping them on one side of the beach road in the city. Instead, one side of the road could be used as a parking lot as the beach road is thronged by a record number of people during weekends and public holidays. Another area, which the stakeholders wanted the government to consider is to reduce the licence fees for bars in hotels. Andhra Pradesh Tourism Forum president K Vijay Mohan said several star hotels in the city did not renew their licence as they found the fees unaffordable.

“As a result the city is losing MICE events and destination weddings. Smaller States like Odisha are getting the benefit as it offers facilities at a competitive rate,” he pointed out. During license renewal recently, 19 star hotels paid nearly Rs 13 crore to Rs 14 crore at the rate of Rs 66 lakh to Rs 70 lakh per permit. With the loss of MICE tourism and destination weddings, the State and the hotel and service sector is losing an estimated Rs 450 crore to Rs 450 crore to Rs 500 crore per annum in the form of revenue. Besides losing employment opportunities for locals, the State is also losing taxes to the tune of Rs 45 crore in lieu of SGST, he pointed out.Another hotelier pointed out that due to change in the excise policy by the previous government, many of them had not opted for bar licence. He said at least now after change in the government, in the New Tourism Policy, the pre-2019 bar fees for hotels, which was around Rs 56 lakh, should be restored. While Varun Group Chairman Prabhu Kishore wanted a relook at Coastal Regulation Zone (CRZ) restrictions coming in the way of creating tourist infrastructure on the Visakhapatnam-Bheemunipatnam beach road, Visakhapatnam Air Travellers’ Association vice-president O Naresh Kumar wanted the government to introduce a policy after adopting the best practices followed in other States.