The hotel and restaurant fraternity has demanded a status of an infrastructure industry in view of their contribution to the hospitality business. This status would entitle hotels to avail government subsidies and exemptions, which are accorded to the infrastructure industry.
Talking to Hindustan Times, SP Jain, president, Hotel and Restaurant Association (Western India) said: “The current environment has impacted the flow of foreign tourists and the government should take steps to revive this industry, which provides significantly in terms of revenue and employment.”
There are only 1,20,000 rooms across the country and a shortage of over 1,50,000 for which an investment of Rs 50,000 crore is needed.
The association also wants the government to increase the Floor Space Index (FSI) from the 3.5 in suburban Mumbai to 5 (which is allowed in the island city).
“There is no land in the island city and the costs are too prohibitive. We want an increase in FSI in the suburbs which has land,” Jain added.