The Hotel Association of India warmly welcomes the statement of the Finance Minister to look into the main concerns of the hospitality industry for infrastructure industry status and tax breaks needed for boosting the growth of hotel accommodation infrastructure in the country made at his post-Budget conference on the 7th July 2009.
The grant of infrastructure status to hospitality industry will be an important measure towards bridging the gap of 1,50,000 hotel rooms in tourism industry in the country and enable the hospitality industry to enhance its contribution to GDP and create larger employment opportunities for the people.
The Union Budget 2009 spells out a sound framework for restoring the economic growth on a nine per cent trajectory during 2009 -10. This will usher in opportunities for growth sectors like hospitality and tourism to make a larger contribution to both GDP and employment in the country.
The budget has provided exemptions from customs duty on Water Sports equipment which will give a boost to adventure tourism in the country. Service tax exemption has been provided for transportation of passengers in vehicles bearing contract carriage permits which is expected to bring down the cost of travel within the country and increase popularity of tourist circuits like the Golden Triangle. Abolition of Fringe Benefit Tax will also benefit the industry.
Hotel Association of India