The Hindu Business Line : Infrastructure status for hotels urged

, THE hotel industry needs the support that other infrastructure industries get, and it should be treated on par with power, roads and ports, according to Mr M.P. Purushotaman, President, Federation of Hotel and Restaurant Association of India (FHRAI).

"The hotel industry, being highly capital intensive, needs the protection and support as an infrastructure industry, and the Government should grant it the same status that is granted to power, roads, and ports," he said.

"Benefits such as uninterrupted power at lower rates, which are extended to other industries, are not available to hotels," he added.

He was briefing newspersons here on Thursday on a convention titled The Road Ahead, to be held from October 15 to 17 at the Chennai Convention Centre, Nandambakkam. The focus of the convention would be on infrastructure development in the country to facilitate tourism growth.

In a presentation to the media, Mr T. Natarajan, Honorary Secretary, FHRAI, pointed out that the hotel industry in India has witnessed gradual growth in the last decade, with 1,570 approved hotels countrywide, and 85,481 hotel rooms. "But one single city in China, that of Beijing, has the same number of available rooms," said Mr Natarajan.

The presentation went on to highlight some of the problems that the hotel industry is facing. Apparently, it is classified as an industry only by a few States, including Tamil Nadu and Kerala, and even in those States, benefits are not given as they would be to a manufacturing industry.

"Also, we are liable to pay a luxury tax on things like air-conditioning, carpets and light fittings, when the Government should realise that these are no longer luxuries in this day and age," said Mr Natarajan. "Also, the Floor Space Index (FSI) is held at a proportion of 1:2 in the hotel industry, whereas for the IT industry, it is 1:3."

Mr Purushotaman said, "The IT and ITES sector has propelled India to the top of the world stage. This involves many foreigners coming into India on business development projects. The Government needs to be more practical in its viewing of the hotel industry and extend all the support possible."

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