The lack of any specific announcement in the budget has dampened the spirit of the tourism and hospitality industry in Andhra Pradesh. Officials of the Tourism Department are, however, optimistic that the initiation of number of projects and allocation of funds by the State government and the positive indications from the Centre would boost tourism in a big way.
“The hospitality industry is going through the worst crisis and we hoped for concessions in power tariff and tax relief but nothing has happened,” says V. Prabhu Kishore, Managing Director of Novotel Varun Beach, a 5-Star hotel located on the Beach Road.
He said that hotels were spending 25 to 28 per cent of their running cost on heat light power (electricity) as they were forced to purchase power at commercial rate. He felt that the hotel industry would get 25 to 30 per cent relief, if they were charged at domestic rates. The amount of taxation was also very high and it needs to be reduced.
“The liquor licence fee for hotels in AP was four to five times that being levied in other states. Similarly, service tax and VAT at 26.5 per cent is very high and is a deterrent to guests from performing weddings and other functions at the hotels. Some relief in taxes would not only benefit the guests but also help in the survival of the hotel industry,” he said.
“A number of tourism projects are in the proposal stage and the present government in the State is keen on tourism promotion in the coastal areas. The Chief Minister and the Special Chief Secretary have taken up the matter with the Centre and we are optimistic that there are good days ahead for tourism,” General Manager of AP Tourism Development Corporation (Vizag Division) G. Bheemasankara Rao told The Hindu .
A survey of the entire coastal AP has already been done to initiate beach tourism projects. “Vizag has maximum tourism potential while the other coastal areas are also promising,” he felt.
