High taxes on tourism, soaring interest rates and policy lacunae are some of the issues hurting the growth of the Indian hospitality sector, according to the Federation of Hotel and Restaurant Associations of India (FHRAI).

“There are many pending issues hurting the growth of the Indian hospitality industry. Airport and tourist services, licensing, lack of trained manpower, exporter status, visa issues and the laws pertaining to the land acquisition for projects are other areas of concern,” said Kamlesh Barot, President, FHRAI.

FHRAI’s 47{+t}{+h} annual convention will be held in Goa from September 6 to 8, wherein discussions will be held to create a roadmap for the growth of the tourism and hospitality. This year’s theme is ‘Employment Generation’.

Currently, the size of industry is pegged at $11.2 billion with 6.29 million foreign tourist arrivals and foreign exchange earnings of $11.39 billion. The industry’s contribution in India’s GDP is 5.92 per cent (in 2011), which is expected to touch 7.3 per cent in 2012. The industry employs 53 million people.

FHRAI represents over 3,900 members including hotels, restaurants and associates.

nivedita.ganguly@thehindu.co.in

(This article was published on August 18, 2012)
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