Tax Incentives: Hoteliers Await Industry Status to Hospitality Sector
Vijayawada: Hoteliers in Andhra Pradesh are awaiting industry status for the hospitality sector. This would grant several tax incentives, lower power tariff and bank loans at low interest rate to further their business.
Chief Minister Nara Chandrababu Naidu recently announced industry status for the tourism sector while he was taking part in the World Tourism Day celebrations here. “We too have been waiting for industry status and hope this would be granted,” say hoteliers.
They expect that once they get such a status, their municipal tax on the property where hotels are run will come down, as would the power bills. Apart from this, registration charges could be reduced while they can get bank loans on subsidy basis with low interest rate, so that they can set up hotels and restaurants or to develop the existing ones.
They promised to pass on the benefits through tax incentives they derive to the customers by reducing room tariff so that more tourists can book rooms in the hotels when they visit tourist places at an affordable cost.
President of the Hotel and Restaurant Association of AP, S Prasanth said, “Industry status will give a major boost to the hospitality sector, and the customers too would be benefited.”
The hoteliers are also expecting the present GST of 12 to 18 per cent to come down and setting up of a single window to clear the applications for new hotels and restaurants and tax rebates and incentives to the existing ones.
They say that the increased air connectivity from Vijayawada airport to other metros like Hyderabad, Chennai, Bengaluru, Mumbai, Delhi, Shirdi and to Dubai is expected to increase the bookings for rooms in hotels here. This apart, the conduct of a series of government programmes would also help good occupancy for hotel rooms and function halls.
It is said that the chief minister has directed the officials to implement GO-25 dated October 15, 2018, to permit the hotels, restaurants and eateries to extend business hours up to 12.00 midnight.
Recently, hoteliers submitted a representation to the tourism principal secretary to extend the business hours of hotels and restaurants upto midnight.
State hotels association president RV Swamy said, “Getting industry status to the hospitality sector will give a major impetus to the hotels business. We will get bank loans at low interest rate under the MSME category.”
Meanwhile, the Visakhapatnam police gave permission on Oct 18 for hotels and restaurants and other eateries to continue their business up to midnight. Other districts too would get such permission from the police soon.
