BakeryBiz, Nov-Dec, 2020:
In a welcome move, the Maharashtra State Government has accorded Hospitality sector the status of an industry. The Hotel and Restaurant Association of Western India (HRA WI) has welcomed the move and thanked the Government in aiding the revival of the sector.
Through this cabinet approval of the proposal, in the first phase, it has been decided to levy electricity tariff, water supply charges, property tax, development tax and non-agricultural tax on hotels registered with the ministry of tourism at industrial rates instead of commercial rates from April 1, 2021. This will mean annual electricity rates and other land related rates will reduce significantly. While the status was actually accorded to the sector back in 1999 due to continuous efforts of Federation of Hotel and Restaurant Associations of India (FHRAI) and HRAWI, unfortunately, it had remained only on paper and had no meaningful benefits. The Government of Maharashtra had issued a Resolution (GR) dated 7th April 1999 conferring Tourism Sector the ‘Status of Industry’ but it was never implemented, until now.
“The Maharashtra Government’s recognition of Hospitality as an ‘Industry’ comes as a silver lining in the dark clouds. We welcome the decision and applaud the dynamism and commitment shown by our young Hon’ Tourism Minister – Aaditya Thackeray. We are also thankful to the Hon’ Chief Minister – Uddhav Thackeray and the Principal Secretary, Department of Tourism – Valsa Nair Singh for their support to the industry. The status had remained only on paper for over two decades but now with its implementation, Hospitality will be entitled to receive benefits under special schemes and subsidies, with minimal to none procedural roadblocks. This will unlock the massive potential that the sector holds. With such progressive and industry-friendly policies, Maharashtra leads in tourism efforts and sets the benchmark for other states to follow. We congratulate the entire fraternity – Way to go!” said an elated Sherry Bhatia, President, HRAWI.
“The HRAWI brought to the attention of the State Government about the long overdue resolution and requested that the GR be put into effect, especially during the post-COVID19 period. I thank Shri Uddhav Thackeray and Shri Aaditya Thackeray for giving the sector what it needs and the timing couldn’t have been better. With its implementation, the operating cost of hotels and other tourism related sectors will drastically come down
due to lower annual electricity rates and other land-related rates. The Industry is hopeful that apart from the first stage of benefits, the Government will issue various other benefits listed in the GR, which would help to alleviate to some degree, the huge burden being felt post-COVID19,” informed Vivek Nair, Member of Honor, HRAWI and Past President, FHRAI.
The HRAWI had been following up with the governments over this matter to get the industry the associated benefits. It was however only in a recent meeting with the Tourism Minister that the subject got the attention it required.
