After dip in occupancy rate, Gurgaon hoteliers want a cut in luxury tax

Hoteliers in Haryana have demanded a 4% reduction in luxury tax on rooms claiming that there is a 30% decrease in occupancy rates resulting in heavy losses.

Hoteliers in Haryana have demanded a 4% reduction in luxury tax on rooms claiming that there is a 30% decrease in occupancy rates resulting in heavy losses.

Representatives and members of the association met in Gurgaon on Thursday and apprised principal secretary of the Haryana tourism department, Sumita Misra, of their problems. (Parveen Kumar/HT Photo)

The hotel and restaurant association of Haryana has claimed that there has been a decrease in occupancy rates despite decrease in average room rent. Hotels in the state are suffering from big losses.

Representatives and members of the association in Gurgaon on Thursday where they apprised principal secretary of the Haryana tourism department, Sumita Misra, of their problems.

Hoteliers demanded a concession in the electricity tariff terming the tariff for hotels in Haryana as the highest in the country. The association claimed that the hotel industry is burdened with fixed charges of `170 per kilowatt on electricity and the same should be waived off.

The association representatives suggested various measures to be included in the New Tourism Policy 2016. The association also proposed a three-day Promote Gurgaon festival, which they said, would be jointly organised by the association and the tourism department.

“We want the tourism units in the state should be charged property tax on industrial rates. One time trade licensee should be issued only once and should not be renewed every year,” said Manbeer Choudhary, president of the association.

The members of the association demanded that yearly renewal of bar licences should be carried out at the district level by the respective district excise and taxation commissioners rather than by the excise and taxation office in Chandigarh. They also demanded reduction in bar licence fee for star category hotels.

Misra said that demands of hoteliers would be discussed and kept in mind while preparing the new policy. She said a new tourism circuit in southern Haryana is being developed for which Gurgaon would serve as an entry point.