Treat hospitality as industry: HAI

New Delhi, May 5: There is an urgent need for the hospitality sector to be granted industry status at state level and infrastructure by the Centre for it to attract more investments and play a part in the development of 50 new destinations announced by the government, according to newly elected president of Hotel Association of India (HAI), KB Kachru.

The sector is also hopeful that international tourist arrivals in India will reach pre-pandemic levels by March next year but ease of getting visas needs to be facilitated, while also taking up campaigns to promote the country as a destination globally.

“The government has declared 50 new destinations. Investors will be interested to invest money in these destinations if the infrastructure is there,” Kachru, who is also chairman - South Asia, Radisson Hotel Group, said.

He further said, “People will only invest money if the related incentives are given...Unless the industry is motivated to invest in these destinations, we will not achieve what we want.”

Kachru asserted that the hospitality sector is not “asking for subsidies or things which are difficult for the government”.

“What we are saying is that whatever is the wish for the government, how can we contribute?...What we are saying is that treat us at state level as part of industry like any other such as manufacturing...If we are treated like that at state level, we will get all the related benefits and we can grow.”

In the absence of industry status in many states, the hospitality sector is treated as a commercial sector resulting in much higher power tariff and interest rates on borrowings.