Speed-breakers in the industry
There has been an economic slowdown globally. The first casualty is always the hospitality industry. We need to gear ourselves to cut costs and let the times tide over. Also, it is wrong to say the rupee slowdown makes India cheaper and attractive. To an extent, yes the country does become cheaper. But if
there is a slowdown, we would not get too many foreign tourists. Also, our imports become costlier. Our F& B costs have already increased along with electricity, water bills and soaring fuel costs. In addition, we have an anomalous situation existing in many states wherein luxury tax is charged on published room rates and not actual tariff. Conceptually, the proposed GST regime has the potential to alleviate a majority of the industry’s concerns with regard to taxation. FHRAI will constructively engage with the Central and State Governments at the highest level, so that this ambitious and progressive initiative results in a transparent and streamlined tax system.