Budget 2024-25: HRAWI President Pradeep Shetty's Expectations for Tourism & Hospitality Sector

Industry Watch | July 9, 2024 | News

Union Budget HRAWI Pradeep Shetty Tourism & Hospitality Sector

The Union Budget for the financial year 2024-25 will be presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on July 23. The Parliament's Budget Session is scheduled from July 22 to August 12.

Further to this, Pradeep Shetty, President, Hotel And Restaurant Association (Western India) – HRAWI, shares his budget expectations for the Tourism & Hospitality Sector, saying, “We believe that tourism and hospitality, accounting for around 10 percent of India's GDP, should be declared a priority sector. Granting infrastructure status to hotels and convention centres of project cost of Rs 10 crore and above is essential for attracting investments and accelerating growth in the hospitality sector. The current GST rates for hospitality are among the highest globally, making tourism expensive. We urge the abolition of the 18 per cent GST category for hotels with room rates above Rs.7500/-, merging it with the 12 per cent GST category to boost both domestic and inbound tourism. Ease of doing business is essential. A national e-single window clearance system for hotels and restaurants through the Hospitality Development Promotion Board can significantly reduce costs and improve competitiveness. Additionally, accessible credit at affordable rates is vital for this capital-intensive industry. Allowing hotels to levy IGST will streamline the GST chain and boost inter-state corporate demand. Lastly, a level playing field among all accommodation providers, including B&Bs, guest houses and short-term rentals, is critical. These measures will prepare for a significant leap in the future, contributing substantially to India's economic prosperity and cultural heritage. The vision is to position India as a top global tourism destination, welcoming 100 million foreign tourists by 2047. For this, we need an enabling environment supported by both State and Central Governments.”

Union Budget for the financial year 2024-25 will be presented by Finance Minister Nirmala Sitharaman in Lok Sabha on July 23. The Parliament's Budget Session is scheduled from July 22 to August 12.

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