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Tuesday, Oct 18, 2005


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Infrastructure status sought for hotel industry

Our Bureau

Chennai , Oct. 17

ON the final day of its annual convention, the Federation of Hotel and Restaurant Associations of India (FHRAI) urged the Union Government to give an infrastructure status to the hotel industry.

Mr M. P. Purushothaman, President, FHRAI, said that this would bring in more investment into the sector. The incoming President of the FHRAI, Mr Manbeer Chaudhary, who is also the Managing Director of Hotel Jewel's in New Delhi, said that only if the hotel industry were given this status, it would be able to reap benefits such as industrial rates of power tariff. He added that the hotel industry should be given an increased floor space index (FSI).

Mr Purushothaman said that the federation had requested the Tamil Nadu Government to relax the FSI for hotel projects as in the case of the information technology industry. He said that the FHRAI had asked the State Government to reduce the luxury tax and levy it on the actual tariff rather than on published rates.

The FHRAI also urged the various State governments to relax restrictions on nightlife in the metros. Mr Purushothaman pointed out that most international flights land after 11 p.m. and guests would like to have a drink before retiring. Foreign tourists and expatriate company executives are used to nightlife and expect it here also. Mr Chaudhary said that in Delhi, the bars are open 24 hours and there have been no problems so far.

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