Hotels need to be declared as a social infrastructure sector: MP Bezbaruah

To build quality accommodation supply in the country, Hotels Association of India (HAI) advised that hotels need to be declared as a social infrastructure sector. The Secretary General of HAI, MP Bezbaruah discussed the association’s vision at the Indian Tourism Vision Day organised by Federation of Associations in Indian Tourism & Hospitality (FAITH) – the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI).

Bezbaruah said, “Land banks are the most critical resource for hospitality projects. They are also the biggest capex drivers. Very high-quality land assets are available with public sector units and government which can be used to enhance hospitality growth.”

“However to do that, our hospitality PPP models need to be standardised across the  country which create lease structure which enable government share to be linked to business growth and not as fixed payouts which will drive immense hospitality capital into India,” he added.

Floor to Area Ratio (FAR) or Floor Space Index (FSI) is a critical tool to bring down the per room cost of hospitality. Bezbaruah further mentioned that high FSI policies for hospitality standardised across the country need to be created which should be changed to global standards for all metros.

Concluding his address, he informed, “Service Exports from India Scheme (SEIS) scrips help enhance our global cost competitiveness and increase our global market access and the SEIS scrip rate must be enabled at 10 per cent for all future period and must be effective year 2019 -20.”