Hotels body seeks level playing field with online service providers

Garima Singh New Delhi | Updated on January 09, 2018

The Federation of Hotels & Restaurants Association of India (FHRAI) has sought a level playing field in the sector, particularly vis-a-vis online hospitality service providers.

“After putting in lot of money, the hotels have to compete with those who have not built anything. Bread and breakfasts online service providers are just aggregators, they do not even own a property. The government cannot have two different rules for those working in the hospitality department,” said Garish Oberoi, President, FHRAI.

Bread and breakfast (B&B) schemes are gaining popularity in the country in the recent times. Under the B&B scheme, rooms, apartments and houses are rented out to tourists. The aim is to provide clean and affordable place to foreign as well as domestic travellers.

“When a hotel is set up in India, it has to follow several compliances such as fire, safety, pollution etc. On the other hand, online marketplace and hospitality services such as Airbnb do not take such measures. Therefore, security and safety could be a major issue at these places,” he added.

Besides, B&Bs should also come in the tax bracket, he said adding “The Goods & Services Tax of 28 per cent and 18 per cent are only on hotels, while the B&Bs do not have to pay taxes.”

There are 313 units of Breakfast and Homestay establishments in India which are approved by the Ministry of Tourism.

Published on November 24, 2017

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