The travel and tourism sector expects cut in the tax burden, upgrade of infrastructure and smoother connectivity from the upcoming Union Budget 2019, that will help double both the international as well as domestic tourist traffic.
Cox & Kings Group CEO Peter Kerkar urged the government to speed up tourism projects in destinations that have the carrying capacity to absorb tourists in large numbers.
“Last mile connectivity from major metros to tourism destinations will act as a catalyst to double our tourism numbers and contribute to overall development,” he added.
Another area that the government should focus on is to increase the air seat capacity as this is one big challenge that the tourism sector is facing when it comes to attracting more overseas visitors, he said.
On the domestic front, the UDAN scheme should be extended to more airports and help the private sector in making it viable, he added.
Hotel and Restaurant Association of Western India (HRAWI) president and Federation of Hotel and Restaurant Associations Of India (FHRAI) vice president Gurbaxish Singh Kohli said the government should grant soft loans to hotels with a minimum project cost of Rs 25 crore against the present Rs 250 crore.
Further, he said, GST on property rent should be abolished as this makes it totally unviable for establishments to sustain the high costs.
For hotels, he said, are presently are required to levy either 0 or 12 or 18 or 28 percent GST rates based on the declared room tariffs.
“We recommend that the rate categorization be on the basis of transaction value instead and also that a uniform rate of 12 percent be levied,” Kohli added.
FCM Travel Solutions, Indian Subsidiary of Flight Centre Travel Group, Managing Director Rakshit Desai said the Union Budget 2019-20 is expected to be promising for the travel industry, complemented by further tax rebate for the middle-income group.
“A review of GST is needed as tax on hotels varies according to room tariffs (18 percent to 28 percent). Tax on premium hotels in India is among the highest in the world, more than hotels in New York, London or Paris,” he added.
EaseMyTrip co-founder and CEO Nishant Pitti said the travel and tourism industry in India account for more than nine percent of the GDP and creates great opportunities for employment and foreign-exchange.
“There should be fund allotment for the infrastructural developments, be it the airports and railway stations, tourist places or other facilities. There must be no delay in refund of GST since the postponement in the refund blocks the working capital and creates stress for the industry,” he said.
Tags: Tour & Travel Industry
