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.
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.”