Hotel Association of India (HAI) recently engaged in a constructive dialogue with Atul Patne, Principal Secretary – Tourism, Government of Maharashtra to discuss various issues related to the sector’s growth and development in the region with a focus on hotels.
The HAI delegation was led by Sanjay Sethi, the Association’s Honorary Treasurer and Chairperson of its Maharashtra Chapter accompanied by Charulata Sukhija, Deputy Secretary General. While complimenting the state on its robust tourism policy and vision document, the two shared key concerns of the hotels.
Industry Tariff for Electricity
The discussions centered around three key areas. First, was the expeditious implementation of industry tariff for electricity. Currently, hotels are charged commercial rates for power which are considerably higher.
The state was among the first to grant industry benefits to hotels but encountered some challenges in its implementation. As HVAC costs constitute a high component of operational expenses, this will help hotels to become more cost-effective.
Simplifying the Excise Licensing System
Secondly, HAI proposed the simplification of the excise licensing framework. The suggested ‘One License One Property’ (OLOP) model would replace the currently fragmented system with a unified license that covers all operational areas within a hotel — restaurants, banquets, terraces, and outdoor spaces. This would streamline compliance and eliminate logistical delays, promoting greater ease of doing business.
Strengthening Fiscal Incentives for Hotels
Lastly, the delegation recommended enhancement of fiscal incentives available to hotels under the state’s Tourism Policy 2024. These include an increase in capital subsidies, SGST refunds for a longer period, wage-based incentives to boost employment, and higher subsidies for sustainability initiatives. Together, these measures will facilitate long-term investment in the sector, fostering sustainable infrastructure development and unlocking tourism potential in underdeveloped regions.
Government Support and Sector Collaboration
Atul Patne was very receptive to all the suggestions and assured his and the government’s support. Tourism is one of the key pillars of Maharashtra’s socioeconomic development and it aspires to elevate its status from an “emerging” to a “leading” state in the sector.
HAI reiterated its support to the government’s initiatives in the growth, development and promotion of tourism & hospitality and tapping fully the sector’s capacity to grow jobs and the GDP of the region.
