Industry seeks govt support
Federation of Associations in Indian Tourism and Hospitality (FAITH) is playing a pivotal role to take the issues concerning different verticals of tourism and hospitality with the Centre.
The Finance Minister conducted a pre-budget meeting to discuss key recommendations to the budget inviting industrialists, industry chambers and travel associations. Elaborating on the propositions made, Sarab Jit Singh, Vice Chairman, FAITH, says, "Currently the effective indirect taxation rate on tourism in India is estimated between 18-20 per cent which is way higher than the total net indirect tax incidence on tourism in other Asian competitors like Thailand, Malaysia, Singapore, estimated to be 6-9 per cent. Exemption from service tax on tourism exports will make India a more competitive destination."
Kiran Vinchhi, Regional MD, ATPI Group, India, says, "The recent initiative by the government to build 150 new airports by 2020 coupled with India’s passion for travel could add to robust and advanced growth prospects for India’s travel and tourism market. The time has come when India stands tall on the international radar and for this we are optimistic that the Union Budget will introduce friendly solutions and simpler direct and indirect tax regimes."
Vinchhi adds, "Infrastructure and security of travellers are two concerns for India and we expect the Union Budget 2016-17 to provide necessary measures to address them. In addition, there is a need to boost domestic movement as well as international connectivity in order to present India as a global business brand."
FAITH proposed structured Union Budget initiatives like creating a policy environment for Mega Tourism Zones. Singh says, "These zones can be built on the lines of SEZ or national manufacturing zones and will stimulate infrastructure development in the tourism industry." Resonating Vinchhi's comment to boost domestic movement, Singh adds, "Incentivising and reducing the cost of travel on domestic tourists will increase the average spend and increase visitation from the domestic tourism segment."