In a report on Monday, it has been said that to promote the tourism sector, the government should simplify the hotel GST rates and must encourage the private participation because it has a huge potential to further increase the jobs and economic growth. By the year 2029, the Indian tourism sector could see a growth of 6.7% every year to reach 35 lakh crore rupees said a FICCI-Yes Bank Report, which is dubbed as ‘India Inbound Tourism: Unlocking the Opportunities’ after listening to the measures.
The report suggested 14 measures and apart from that, the other steps are-
- Creation of the National Tourism Authority and Advisory Council,
- Release of tourism competitiveness index,
- Greater coordination at the state level, and
- Creation of land bank repository
It also added “GST applicable on hotels varies according to the room tariff. Rooms with a tariff of Rs 2,500-7,500 per night attract a rate of 18%, and rooms with a tariff of Rs 7,500 and above per night attract a rate of 28%. This makes the premium/luxury hotels and resorts in India among the most taxed in the world, higher than cities such as New York, London and Paris,”
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The report said that in comparison with other Asian countries, the taxes over here are higher due to which this sector is less competitive. It further said, “It is recommended to reduce GST with a ceiling of 18% on hotel rooms to make the segment more competitive”.
It has been said in the report that the very first step to proceed with the development of tourism is to find the perfect land. It demanded a discount in the visa reign and suggested that for ‘Combined Visa’, India must go hand in hand with the other member countries of ASEAN, SAARC, and BIMSTEC. It said, “Such visa will result in the conversion of stopovers to short-haul visits and will also add India on itinerary of tourists on long visits to the South Asian region”.
It further added that for enhancing the tourism sector, the quality of the housing infrastructure in the entire area must be given more attention and it must be done urgently because only after that, the tourists will get to know about the actual potential of the northeast region of India.
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The report also said that in 2018, there were 26.7 million jobs from the tourism sector and it is predicted that till 2029, it will increase to 53 million people anyhow.
