Requests Urgent Attention Towards Industry Status Implementation, Granting Infrastructure Status & De-linking GST Rates From Room Charges For Hospitality

Mumbai, June 20: The Hotel And Restaurant Association (Western India) – HRAWI has congratulated Shri Gajendra Singh Shekhawat on his appointment as the new Union Minister of Tourism & Culture and has expressed optimism about the future of hospitality under his leadership. HRAWI has stated that the newly elected Government should provide continuity and stability, which is a boon for the tourism and hospitality industries. The Association looks forward to collaborative efforts to bolster the tourism and hospitality sectors and is keen to address several pressing issues that have long impacted the hospitality industry. It has spelled out the key issues that require immediate attention including the non-implementation of Industry Status and the granting of Infrastructure Status for the hospitality sector.

“We welcome Shri Gajendra Singh Shekhawat ji and his appointment brings a wave of optimism and we are confident that under his guidance, the tourism and hospitality sectors will flourish. We request the Hon’ble Minister to expedite the implementation of our longest standing demands for Industry and Infrastructure statuses for the sector. We also urge him to streamline regulatory processes to facilitate Ease of Doing business. With the right focus and policies, India can be transformed into a tourism haven for both domestic and international travellers, contributing significantly to the economic growth and development of the country,”

Pradeep Shetty, President, HRAWI.

Granting infrastructure status to the hospitality sector is a top priority. The status would facilitate access to long-term loans at competitive interest rates, accelerating growth and development within the industry. HRAWI has also urged the Tourism Minister to revisit the existing GST structure for F&B served in restaurants within hotels. Presently linked to room charges exceeding Rs.7500/-, the Association proposes de-linking GST rates from room charges to promote fair competition and ensure industry sustainability.

“Infrastructure Status is crucial for achieving the ambitious target of welcoming 100 million international tourists by 2047 and contributing to a USD 3 trillion hospitality tourism economy. Also, the industry needs to have uniform GST rates for all restaurants, whether inside hotels or standalone. We appeal to Shri Gajendra Singh Shekhawat ji to consider our request to de-link the GST rates from room charges to eliminate unfairness and unpredictability,”

Pradeep Shetty, President, HRAWI.

Investing in the development of tourist circuits, heritage sites and transportation networks is essential. Robust infrastructure not only attracts tourists but also creates employment opportunities and stimulates local economies. Prioritizing these developments will enhance accessibility and the overall visitor experience.

“HRAWI remains committed to working closely with the new MoT to realize the full potential of India’s tourism and hospitality industries. By addressing our immediate concerns and promoting a conducive environment for growth, we can collectively work towards positioning India as one of the top global tourism destinations. Together, we can create a thriving, vibrant and inclusive economic landscape that benefits all,” concludes Mr Shetty.

About the Hotel And Restaurant Association (Western India) – HRAWI

The Hotel And Restaurant Association (Western India) – HRAWI is a 73 years old Association of Hotels and Restaurants in Western India. Its members include Restaurants and Hotels up to 5-Star Deluxe categories. With membership base spread across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and Union Territory of Dadra and Nagar Haveli and Daman and Diu, and is considered to be the voice of the Hospitality Industry. The association is part of the national body of the Federation of Hotel & Restaurant Associations of India (FHRAI), located in New Delhi, which was originally founded in Mumbai in 1950 by the late Mr J.R.D. Tata. 

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