Hyderabad: Hotel Association of India (HAI) has stressed the need to infuse liquidity in hotel industry through means like extension of moratorium, one-time loan re-structuring, improved terms under the Emergency Credit Line Gurantee Scheme (ECLGS) and revised eligibility ratios under the resolution framework.
HAI vice-president Kachru, secretary general MP Bezbaruah, corporate member Dr Jyotsna Suri, member Rohit Khosla and deputy secretary general Charulata Sukhija met Union Minister of Culture and Tourism G Kishan Reddy to give a representation on the status of the severely impacted hotel industry.
The association requested the Minister to consider policy changes and sought an `Infrastructure industry’ tag by the Central government which is a long-pending demand. This allows access to low-cost funding and tax benefits that are currently available to industries like ports, railways, highways. Hotels are capital intensive and have a long gestation period similar to infrastructure industries, it said.
HAI also stressed the need to encourage all States to accord hotels the status of an `Industry’ as recently notified by some States to support the industry’s revival. A large percentage of hotel operating costs are fixed in nature making them unsustainable under the current conditions. Industry status would allow hotels to receive benefits available to manufacturing segment like lower property taxes, land at subsidised rates, lower costs of utilities like power and water, said the industry body.
HAI offered to be a part of the task force formed by the government to aid the industry’s survival, revival and long-term survival, a release said.
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