Industry status

Maharashtra grants industry status to hospitality sector

The government of Maharashtra has officially granted “industry status” to the hospitality sector.

Status was actually granted to the sector in 1999 through the continued efforts of the Federation of Hotel and Restaurant Associations of India (FHRAI) and the Hotel and Restaurant Association of West India (HRAWI). , but unfortunately stayed only on paper and had no significant benefit.

However, effective April 1, 2021, the hospitality industry as an industry will be subject to tariffs and duties on electricity, water, property, development, and non-farm taxes at industrial rates.

“The Cabinet approved the proposed ‘statute of the industry’ for hotels in Maharashtra. It is a defining moment for the hotel industry. After the reduction of pre-establishment licenses from 70 to 10, the industry statute will provide essential support to hotels, ”tweeted Tourism, Environment and Protocol Minister Aaditya Thackeray.

HRAWI and FHRAI welcomed this initiative and thanked the government for helping revive the sector.

“The statute had only remained on paper for more than two decades, but now, with its implementation, the hotel industry will be entitled to receive benefits under special regimes and subsidies, with minimal procedural obstacles. or even none, ”said Sherry Bhatia, President of HRAWI.

“With its implementation, the operating costs of hotels and other tourism-related sectors will drop significantly due to lower annual electricity tariffs and other land-related tariffs. The industry hopes that apart from the first stage of benefits, the government will provide various other benefits listed in the GR, which would help alleviate to some extent the enormous burden felt after Covid-19, ”said Vivek Nair , former president. , FHRAI.

“Industry status relieves the industry of utility payments and rights to the state that were at commercial tariff rates. This includes some of the high cost items like electricity, water and goods among others. At industrial rates, operating costs will decrease to a large extent. This is a great relief for our industry and it has come at a time when hotel and restaurant businesses are being hit hard due to the forced lockdown from the pandemic and low consumer confidence, ”said Gurbaxish Singh Kohli, door – speech by HRAWI.