Govt urged to give sops to boost hotel industry

PANAJI: Ahead of the Goa budget, the Hotel and Restaurant Association of Western India (HRAWI) has sought assistance from the state government for incentivizing key aspects of the hospitality and tourism industry to make it competitive globally as Goa is an expensive tourist destination due to high taxation.

In the pre-budget memorandum submitted to chief minister Manohar Parrikar, who is also the finance minister, the industry has appealed for revision of the current taxation system, subsidy on diesel for power generation and incentives for investing in waste management and re-cycling of waste.

Tourism is the backbone of Goa’s economy, employing 1/3rd of its population and contributing 50% of the total collected revenues to the state coffers in terms of revenues from various sources.

Pointing out that Goa’s tourism scene is challenged by tourism promoted by Sri Lanka, Thailand, Singapore and also some other Indian states, Charles Bonifacio, chairman, Goa sub-committee, HRAWI, said that unlike in other states and countries which have incentives in terms of lower taxation and lower interest rates that boost the tourism industry, “the hospitality industry only seeks assistance from the government to make it more competitive in the market by lowering the cost of the product.”

HRAWI has also demanded that VAT on food and beverages should be reduced to 8% from the present 12.5%. The VAT on soft drinks, aerated and carbonated non-alcoholic beverages is currently very high at 20% and should be reduced to 8%, it said.

As the Goa government is presently not in a position to provide continuous power supply to the hotels due to which they use DG sets, they (hotels) should be given 50% concession in the general rates for use of diesel in generating electricity in the hotels, Bonifacio said.

Among the key measures, HRAWI has suggested amendment to Tourism Trade Act and validity of certificates. The association has requested for a single window clearance that will allow establishments to bring uniformity in obtaining various licenses and certificates, pay fees annually and retain validity for 5 years. Presently, only the certificate of hotel classification issued by the central government has a validity of 5 years.

Expressing concern over the lack of cleanliness along the coastal belt, HRAWI said that there is no incentives to resolve the issue. Private industry managing waste and recycling waste should be given benefits in terms of tax holidays, tax relief, lower interest on loans, assistance in acquiring land through the government, zero stamp duty, relief on other local taxes so that private industry comes forward to take up the challenge, Bonifacio said.

Govt urged to give sops to boost hotel industry