Hotel Industry Seeks Infrastructure Status: HAI

New Delhi, Jun 13 (PTI) The Hotel Association of India on Thursday expressed hope that the tourism ministry under the new leadership of Gajendra Singh Shekhawat will fulfil the hospitality sector's demand for infrastructure status and extend industry benefits to hotels.

The industry body said the hospitality sector is the emerging engine of GDP growth and employment and can contribute significantly to the India Vision 2047 of a "Viksit Bharat" and the government's objective of promoting sustainable and inclusive growth.

"We are hopeful that the new leadership will build on the work done so far and make the industry's wish list to accord 'infrastructure status' and extending of 'industry' benefits to hotels a reality," Hotel Association of India (HAI) President KB Kachru said in a statement.

Kachru, who is also the chairman, South Asia, Radisson Hotel Group, further said the hotel industry is a key pillar of both domestic and international tourism.

"In the year 2019-20, 39 million jobs were created in the tourism sector in India, the majority of which were in hotels. The industry has shown extreme resilience and bounced back to pre-covid levels," he added.

HAI Vice-President and Indian Hotels Company Ltd Executive Vice President (Operations), Rohit Khosla said, "HAI looks forward to working closely with the ministry during the current 'Amrit Kaal' to realise India tourism vision 2047 of a developed nation as the nation turns 100."

He said Indian hospitality is looking to contribute USD 1 trillion to the US 3 trillion tourism economy by 2047.

"All this can be possible only with the help of key policy interventions by the government," Khosla added.

At present, in the absence of industry status in many states, the hospitality sector is treated as a commercial sector resulting in much higher power tariff and interest rates on borrowings.

At the central level, due to the absence of infrastructure status, the sector is unable to borrow money at reasonable interest rates.

Kachru said the hospitality sector is looking forward to working closely and collaborating with the tourism ministry to showcase India's rich heritage and promote it as a preferred destination for tourists and for MICE (Meetings, Incentives, Conferences and Exhibitions).