Reforms needed to revive hospitality sector in Punjab: Assn

Chandigarh, February 16

With Assembly poll round the corner, the Federation of Hotel and Restaurant Associations of India (FHRAI), has submitted a representation to the parties demanding reforms in the hospitality industry.

The association has urged for a helpful environment for the survival and revival of the sector.

Surendra Kumar Jaiswal, vice-president, FHRAI, said, “We request the government to bring some much-needed policy reforms for our industry. Among these, our foremost request is that the liquor licence fee be reduced by 50% for all categories of hotels and restaurants for next five years to support the recovery of industry in the state. The current licence fee of Rs 5 lakh per year for 5-star hotels is too high for the pandemic-hit industry. We also request that the VAT on sale of liquor in hotels and restaurants be reduced to 7% from the existing rate of 14.41%.”

He also added that power constitutes a significant operational cost for all hotels and restaurants. For the industry to recover losses incurred during the pandemic, power tariff should be revised from the existing Rs 6.91/KWH to Rs 5/KWH.

The FHRAI has also requested the government to commence direct international flights from the Mohali airport to Canada, the US and Singapore.

“Facilitating international flights from Mohali will not only be beneficial for the residents of the state and its people living abroad, but it will also give a strong boost to the tourism sector,”said Jaiswal.