The hospitality industry demands infrastructure status for hotels

The Hotel Association of India (HAI) stated in its pre-Budget memorandum that policy interventions are critical for the sector’s survival and a rapid return to normalcy.

With a new wave of COVID-19 wreaking havoc on the hospitality industry, industry association HAI said on Monday that it has requested the government to consider granting hotels infrastructure status, extending the loan moratorium, and rationalising taxes.

The Hotel Association of India (HAI) stated in its pre-Budget memorandum that policy interventions are critical for the sector’s survival and a rapid return to normalcy.

“On the strength of domestic tourism – leisure and events, the hospitality industry was steadily recovering, only to be thrown back into uncertainty by the Omicron menace. “Protecting the industry amid such protracted times of scepticism about business prospects is vital,” HAI said in a statement.

According to the report, one of the main demands from the industry is that hotels be given the status of ‘Infrastructure,’ as this will ease a lot of the problems that hotels and hospitality organizations experience. The move will also assist the company stay afloat in terms of operations and attract investment in the area.

“Access to softer financing, longer loan repayment periods, and a shorter gestation time will make hotel projects more appealing and viable.” More hotels would result in more jobs and growth, according to HAI.

“Infrastructure status will also enable hotels to take advantage of lower taxation, utilities prices, and a simplified approval process for developments,” the group stated, noting that the sector’s cascading influence on the economy has already been well established and recorded. “The road to recovery can also be aided by measures such as an extended moratorium, tax rationalisation, and making conducting business easier,” it added.

According to HAI, the hospitality industry contributes 9% to India’s GDP, employing about 4.5 million people and providing livelihood to around 16 million people.

“The potential impact of the pandemic on the livelihoods of millions of people employed in the hospitality industry is huge.” The Indian hospitality sector, which has been designated as the fourth pillar of the Indian economy, will play a vital role in the post-pandemic economic recovery, according to the report.