Transcript RESOLUTIONS ADOPTED AT THE 49th FHRAI ANNUAL

RESOLUTIONS
ADOPTED AT THE
th
49 FHRAI ANNUAL
CONVENTION IN JAIPUR
1. To facilitate the massive investment which is required to bridge the
serious shortfall in the availability of hotel rooms in the budget & midmarket segment, FHRAI recommends that the minimum project cost
mandated for inclusion of hotels in the RBI's Infrastructure Lending norms,
should be reduced from Rupees 200 crore to a threshold of Rupees 20 crore,
so that hotels across diverse categories and market positioning become
eligible to access lower cost long-term finance.
2. FHRAI calls for the early nationwide introduction of a unified Goods &
Services Tax (GST), which should subsume all state and central indirect tax
levies. In order for India to be competitive as a tourist destination vis-a-vis our
neighbouring countries in Southeast Asia, it is imperative that GST should be
applicable on the hospitality sector at a concessional rate not exceeding 8%.
Till implementation of the GST regime, hotel accommodation and restaurants
must be included in the Negative List for Service Tax.
3. The scarcity and exorbitant cost of land in cities is a major impediment for the
hotel industry. FHRAI recommends that the Government should earmark
suitable land parcels as 'hospitality development sites', which instead of outright
auction, are offered to promoters on long-term graded lease.
We further request that higher FSI/ FAR and relaxed parking norms be permitted
for hotels so as to make projects financially feasible.
In areas which have been identified as part of the upcoming integrated tourist
circuits, surplus land available with various Government agencies, should be
utilised for construction of affordable tourist accommodation under the PPP
model.
4. India is fortunate to be endowed with a vast coastline of 7500 kms. A part of
this strategic natural resource must be sustainably leveraged to promote
coastal and beach tourism, which as per the UNWTO is the dominant market
segment in global tourism.
Therefore, we recommend that our rigid CRZ norms should be liberalised in
accordance with the recommendations of the M.S. Swaminathan Committee,
so that identified coastal stretches can be developed as special tourism zones
and new beachfront hotels and resorts can be set up.
5. FHRAI demands that State Governments must not prescribe higher
differential rates of minimum wages, property tax, license fee etc for star
hotels.
This anomalous policy unduly penalises those hotels who have voluntarily
opted for classification and thereby undermines the efforts to benchmark
India's tourist accommodation infrastructure to contemporary global
standards.
6. Sustenance of our heritage, built, natural and tangible, is vital to the sustenance of Tourism in
India. About 80% of our Heritage Hotels are located in rural and environmentally sensitive areas,
where there are inherent constraints on account of paucity of skilled manpower as well as lack of
primary infrastructure, for instance, power, water, sewerage, transportation etc, which leads to
higher operating costs.
As such to be economically viable, these hotels require differentiated support and impetus from
the Government by way of fiscal concessions, tax incentives and subsidies. In many cities, several
Heritage Buildings are presently occupied as government offices, which can instead be restored
and turned into productive tourism assets.
It is necessary to formulate a comprehensive National Policy to support Heritage Hotels and
promote Heritage Tourism in the country.
To this end, FHRAI and IHHA will form a joint Committee to pursue this cause with the Central
Government.
7. India's tourism sector offers infinite opportunities for self - entrepreneurship
which can transform our youth from being job-seekers to becoming jobcreators.
In this regard, we urge the Central Government to institute a dedicated National
Tourism Entrepreneurship Fund, which will provide start-up risk capital and soft
loans to innovative hospitality entrepreneurs.
8. We applaud the Government's firm commitment to operationalise the
ETA/ E-Visa facility for international tourists.
FHRAI requests that the citizens of a majority of those countries which
constitute the top 15 source markets for FTAs in India should be included
within the first phase of this scheme's launch.
9. To coincide with the launch of the landmark E-Visa initiative, FHRAI
suggests that 2015 be celebrated as "Visit India Year", featuring food
festivals, cultural extravaganzas and myriad experiential activities for
tourists, across the country, throughout the year.
As a further incentive service tax exemption & VAT refunds should be
extended to foreign tourists visiting India in 2015.
10. FHRAI pledges its support for the Prime Minister's ambitious Clean India
Mission.
The hospitality industry will volunteer its expertise and resources for the
success of this noble national endeavour.
11. We express complete solidarity with our fellow citizens in Jammu &
Kashmir and are resolutely committed to assist the state's hospitality and
tourism sector in overcoming the adverse impact of the unprecedented
natural calamity in the region.