Industry status

The hospitality sector will soon obtain industry status

Very soon, the hospitality sector, mainly hotels, will get industry status, and the inspection of 181 hotels started on Wednesday in the Pune region. Recently, the government of Rajasthan granted industry status to the hospitality industry to boost investment in the tourism sector.

Maharashtra Tourism Department Deputy Director Supriya Karmarkar said: “The Pune Tourism Department is the first to start the inspection on August 3-4. The inspection committee and the designated agency will visit a total of 181 unclassified hotels. who have registered and applied since June 2021 in the Pune region. We made a few visits on Wednesday.

Dhananjay Sawalkar, Co-Director, Directorate of Tourism (DoT), said: “So far, 446 applications across Maharashtra have been received by the Department of Tourism. If these hotels meet all the criteria upon inspection, they will be eligible for industry status. This will make electricity charges, water bills, property tax, and non-agricultural tax available to registered hotels at industry rates.

Indira Thakur, Public Relations Officer for the Department of Tourism, said: “Hotels can continue to register with the Maharashtra Department of Tourism and enjoy industry status benefits.”

Recently, the government of Rajasthan granted industry status to the hospitality industry as part of a nationwide drive to attract investment in the tourism sector. However, Maharashtra was the first state to come up with this policy. Tourism department sources said: “The Maharashtra government had granted industry status to the hospitality sector in April 1999 but this remained only on paper and was not implemented. In 2020, the state government issued a Government Resolution (GR) announcing the criteria for levying taxes and fees at industry rates for unlisted hotels. Since then, unranked hotels have been invited to register and apply for the benefits.

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Small 10-room hotels can also apply for industry status. If they meet the criteria, the hotels will be able to benefit from advantages in terms of charges for electricity, water, property tax and non-agricultural tax. While existing hotels fall under the commercial category, they will then get industrial rates.