The Delhi Government is going to rationalise taxes in the tourism sector and major announcement regarding this can be expected in the upcoming Delhi Budget 2016-17, said Kapil Mishra, Delhi Tourism Minister. He also revealed that the Government is working on a major Delhi Festival, a 15 day long cultural event in Delhi to be held in the month of November on the lines of Dubai Festival. The Delhi Government will start major destination branding activity this year as well. “We have completely changed our event organising policy and are also planning 10 smart streets which will be made into tourist hubs in the city. We are revamping all monuments. This year a massive and aggressive Delhi branding will be launched. We are working on rationalising the taxes and this budget will bring good news for the industry,”  he said while addressing the HRANI Conclave on February 27, 2016 at Le Meridien, New Delhi. The HRANI Conclave addressed issues of hoteliers and restaurateurs of Delhi and put across suggestions to the Delhi Tourism Minister. Luv Malhotra, President, HRANI, said, “There are three primary issues which we are addressing with the Tourism Minister at an open forum. The Luxury tax levied is a major issue. The exorbitant charges on environment tax which we have to pay as restaurateurs and hoteliers for which discussions are on in the court and ease of doing business are other issues.” Malhotra mentioned that as of present the industry requires 40 odd  licences, certifications and clearances to function which are only 5 when compared to countries like China and Malaysia. The Minister further added that the Government is keen to work closely with the Tourism and Hospitality industry to …

Kerala Tourism’s Muziris Heritage Project, a conservation undertaking based on archaeological findings on the ancient Spice Route linking India’s maritime contacts with contemporary ancient civilisations, has been inaugurated by President of India Pranab Mukherjee in Kodungallur (Thrissur). Realising the cultural significance of this ancient maritime trade route, Kerala Tourism has launched the ‘Spice Route’ tourism initiative linking 41 countries in Asia and Europe with India, particularly Kerala. The President also released a coffee table book on the Spice Route, which in first-ever by a tourism board, is also available on Kindle. Addressing the gathering at the launch, Mukherjee said that the project should spread the message of Indian cosmopolitanism far and wide adding to the country’s soft power across the world. “Kerala has through the ages demonstrated a remarkable ability to adapt to new traditions and values in every sphere of human thought and endeavour. Participation of people in planning and implementation of the project will further ensure full utilisation of the economic and employment prospects that growth in tourism will bring to the region,” he said. Kerala Minister for Tourism A.P. Anilkumar said the Muziris project would open doors to the immense opportunities in educational tourism, which is a growing industry across the world. The project is an effort to conserve and showcase a culture that had existed for over 3,000 years, when Kerala had established itself as a major centre of spice trade with the ancient port of Muziris as its hub. The port was the centre of trade between the Red Sea and the Indian Ocean regions. Also present on this occassion were Governor of Kerala Justice P. Sathasivam and Chief Minister of Kerala Oommen Chandy.

Sarovar Hotels & Resorts has opened a brand new property ‘Kalyan Hometel’ in Vandalur-Chennai. A contemporary business hotel, with 108 rooms and suites, was formally launched by Anil Madhok, Managing Director, Sarovar Hotels & Resorts. The room rates start at Rs 3,450++. Speaking on the occasion, Madhok said, “The existing demand-supply gap in this industrial town offers huge opportunity for hospitality brands. This allows us great prospect for our brand Hometel which is designed to provide unmatched facilities at value for money price. We are happy to associate with the Kalyan Grand Stay Pvt. Ltd. who is taking initiative to invest and promote this destination which has great potential. Hotels in Tier II and III cities are seeing major hospitality developments and will continue to be some of the most attractive locations for our future investments. Some of our new openings this year include Sarovar Portico hotels in Dehradun, Bhavnagar, Bengaluru and Raipur and we will be soon reaching out to newer destinations like Amritsar and Greater Noida.” K. Saravana Prakash, Managing Director, Kalyan Grand Stay Pvt. Ltd., said, “Facilities at the hotel include an all-day dining with bar and a fitness centre compliment the overall guests experience. Banquet & conference spaces along with business centre make it a perfect venue to host trainings, workshops, product launches, exhibitions, weddings and other social events. We are glad to partner with Sarovar Hotels & Resorts and we look forward to providing a memorable stay to business travellers to Vandalur”.

Highly dissatisfied with the Union Budget,  Sunil Kumar, President, Travel Agents Association of India (TAAI), says tourism has been again been put on the back burner. “It is a big tragedy for an industry that has so much to offer many countries of the world. Wonder when India will consider this industry as an important economic success strategy.” Kumar reiterates that the budget does not meet up to the expectations of the industry, which has been projecting innovation with wide reforms and a more dynamic India. “There were expectations on Service Tax reliefs; boost to tourism sector; incentives for foreign exchange earnings, and these appear to have missed out. The income tax relief should have been on most classes, but is only done for lower slabs. The focus on Voluntary Disclosure is not too strategic and may not yield good results. Whatever must happen in the areas of travel, tourism and aviation, will not be dependent on this budget at all. In fact, the new 0.5% cess is going to add liability to all. The new budget has hardly any positive impact on our industry, which is sad,” he says. “For Travel industry to grow, especially during a time when the challenges are too many and the industry does require a boost, government must address the issues concerned, including sustainability. For this industry being a very large employer of people and generator of huge revenues for government in the form of taxes, government’s attention is rather disappointing,” Kumar added. Unless the government firmly reviews the challenges of all stakeholders in this industry, it will not be able to support the growth that is available in plenty. The TAAI President says …

Guldeep Singh Sahni, President, Outbound Tour Operators Association of India (OTOAI), says the only positive point in the Budget is making non-functional airports operational. “It is a very neutral budget, and there is nothing in it for the tourism industry. The only positive point is that the government is considering making non-functional airports operational, which would give a boost to inbound tourism. However, nothing substantial is there for the travel industry,” he says.

Rajan Sehgal, President (Northern Region), Travel Agents Association of India (TAAI), said, “There is hardly anything for the travel industry in this budget. The only positive thing in this Budget is that the Finance Minister has addressed the connectivity issue by saying that there are 160 airstrips in India which can be developed. Many small destinations are not easily accessible for tourists and this announcement would give fillip to domestic tourism. We are still waiting for more details. However, there is no direct mention of anything positive for the tourism industry.”

E.M. Najeeb, Chairman and MD, Air Travel Enterprise Group, says, “Union Budget 2016 is a welcome move and a very mature one by the Finance Minister. While the details are awaited, we are very positive and would really appreciate that the infrastructure allotment will include development in the tourism circuit. I welcome the focus on aviation industry and development of airports, which has been mentioned in the budget. The budget focused on social, agriculture, education, infrastructure and railway, and it scores seven out of ten for me.”

Commenting on the General Budget 2016-17, Jyotsna Suri, immediate past president of FICCI, said, “Nothing for tourism this year, is it something new? Overall the budget this year was on infrastructure, rural development and spending on buildings. That is what is the need of the hour. This is going to increase the economy and that will somehow affect tourism altogether. Though we didn’t have much for tourism this time like last year I think if economy grows tourism will grow.”

Expressing disatisfaction over the Budget ’16, Conrad Clifford, Regional Vice President, Asia Pacific, International Air Transport Association (IATA), said, “The budget had a minimal focus on aviation. We hope the government will do a better job with the National Civil Aviation Policy. While the NCAP is a step in the right direction, there are areas of concern, especially where it adds costs to the industry or where it deviates from well-established global standards. We hope the government will address three priority areas – retract the 2 per cent Regional Connectivity Fund levy, abandon the plan to auction traffic rights, and allow AERA to perform its functions independently by not enshrining any ‘Till’ for airport charges in the Policy document.”

Jyoti Kapur, President, ADTOI, says, “With the Finance Minister talking about old airstrips to be developed, we believe that it would result in boosting domestic and inbound tourism. With the Ek Bharat Shreshtha Bharat scheme, now in full swing the connectivity to remote areas will increase, and it looks like a positive approach for attracting tourists to destinations in India beyond just pilgrimage sites. Also, in the budget, the government has sanctioned a huge amount for developing infrastructure and Swacch Bharat, and we believe that this too will boost tourism within the country. Cleanliness is a huge issue in India and if that is tackled, it will do wonders for tourism. It is still to be seen how the government is going to initiate these programs. However, since nothing has been done about the taxes plaguing the industry, we are a bit disappointed. Domestic tourism in India is suffering despite the rupee being weak, owing to poor infrastructure, higher taxes and connectivity. While two of these things have been addressed, we would’ve been happier had the taxes been rationalised.