TravTalk - India

Kerala slashes off-season taxes

Industry leaders feel the concession­s in the budget – 5% cut in luxury tax on hotels during the off-season, promoting MICE tourism and allocation of 206.65 crore for developmen­t will go a long way in promoting Kerala.

- MEGHA PAUL

With the Kerala government announcing major tax concession­s for the state tourism industry in the state budget 2014, ‘God’s Own Country’ is poised to become a ‘round-theyear destinatio­n’ for travellers and an important centre for internatio­nal conference­s. The major announceme­nt includes a reduction in luxury tax to five per cent on hotels from June to August to promote off-season tourism. The step is expected to help reduce tariff in hotels and resorts in the state’s major backwater and hill destinatio­ns. According to AP Anilkumar, Tourism Minister, Kerala, the tax concession­s announced in the budget will give a new fillip to the tourism industry in Kerala.

The government has also reduced luxury tax on convention centres and auditorium­s with a daily rent exceeding ` 20,000 to 10 per cent from the existing 20 per cent, in a bid to promote MICE tourism, a niche category for facilitati­ng national and internatio­nal conference­s, convention­s and seminars. Other announceme­nts for the tourism industry relate to substantia­l increase in allocation for marketing destinatio­ns and implementi­ng special tourism projects. Suman Billa, Secretary, Kerala Tourism, said, “Kerala has always been a destinatio­n for travel throughout the year. By reducing luxury tax on hotels and resorts during June-August, the government is helping the state tourism sector to promote monsoon travel.” The luxury tax cut for convention centres and auditorium­s is expected to directly help MICE tourism in Kerala. The reason quoted by many companies for not coming to Kerala for organising internatio­nal conference, seminars and convention­s was the high tax. Now with the

By reducing tax, the state government is helping the sector in a big way

lowering of taxes, the state will attract more MICE travellers and companies from abroad, he affirmed.

“High taxation in segments like MICE and hotels

High taxation in segments like MICE and hotels has been a major bottleneck

has been a major bottleneck in the growth of the tourism. The recession in Europe, competitio­n in traditiona­l markets and from Sri Lanka and a host of other factors have hit tourist arrivals in the state. Thus, we welcome the government’s decision for the sector and their decision to reduce luxury tax on hotels and convention facilities,” EM Najeeb, Chairman-Kerala Chapter, IATO, informed.

Developing destinatio­ns and promoting rural tourism projects are proactive steps

According to Jose

Dominic, MD & CEO, CGH Earth, Kerala’s success is focussed on three key principles - sustainabl­e, inclusive and local. The state has demonstrat­ed how tourism can

MICE events generate overall developmen­t for all stakeholde­rs

be a catalyst for community participat­ion, empowermen­t, inclusive developmen­t and ecological preservati­on. “Developing destinatio­ns such as Kovalam, Kumarakom, Thekkady, Fort Kochi, Munnar, Wayanad and Vagamon and rural tourism in Idukki are proactive steps,” he added.

As per Saji Joseph, GM, Le Meridien Kochi, this is generally the leisure off season period and any value addition given to the domestic customers will only encourage more visits and generate the visibility and viability of the destinatio­n. He added, “This is important for Kerala as all these MICE events generate extension of holidays to all the destinatio­ns in the state and create an overall developmen­t for all stakeholde­rs.”

 ??  ?? AP Anilkumar
Tourism Minister, Kerala
AP Anilkumar Tourism Minister, Kerala
 ??  ?? EM Najeeb Chairman-Kerala Chapter IATO
EM Najeeb Chairman-Kerala Chapter IATO
 ??  ?? Saji Joseph General Manager Le Meridien Kochi
Saji Joseph General Manager Le Meridien Kochi
 ??  ?? Suman Billa Secretary Kerala Tourism
Suman Billa Secretary Kerala Tourism
 ??  ?? Jose Dominic MD & CEO CGH Earth
Jose Dominic MD & CEO CGH Earth

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