Stakeholders want change in liquor policy in Visakhapatnam

Visakhapatnam: Stakeholders in the tourism industry are bristling at the impact of the Andhra Pradesh government’s liquor policy as they feel that liquor is a prerequisite for tourism promotion, but the excise policy in the state is not tourist-friendly and needs urgent rectification.

They point out that tourists have found liquor consumption in star hotels in Vizag and other cities in AP a prohibitive exercise, a factor that was affecting the tourism industry.

Liquor is costlier in star hotels in AP than in neighbouring Telangana, Karnataka, Tamil Nadu and Odisha. There are 12 star hotels and over 25 non-star hotels in Vizag with only the first serving liquor to tourists.

The liquor license fee for hotels for the sale of Indian Made Foreign Liquor (IMFL) and foreign liquor is '50 lakh a year, the highest compared to other states.
K. Ramabrahmam and SP Ravindra of the Vizagapatnam Chamber of Commerce and Industry say that hoteliers were selling the liquor at high prices to recover their investment, which was keeping tourists away.  

“Running a pub in Vizag is equally costly as pub owners too pay an annual fee of Rs 50 lakh to excise officials, which is discouraging city entrepreneurs wanting to start one,” says Seshagiri Mantri of Vihar Hospitality.

Two well-known pubs, Chrome and Tendowning Street, in the city closed down for the same reason, says a representative of the hotel industry. Thus, lack of a pub culture and the high prices of liquor in star hotels were not helping bring in tourists to Vizag city. According to Mr Mantri, if the government were to reduce the licence fee structure for star hotels and pubs, the inflow of tourists would increase.

Vizag is a tourist hub in AP, but the hotel industry has remained dormant due to restrictions such as these while not too many tourists have made a practice of carrying liquor to drink on Vizag’s beaches.