‘Tourism should be brought under Concurrent List’

Federation proposes setting up of national tourism council

February 16, 2022 10:44 pm | Updated 10:44 pm IST - CHENNAI

The Federation of Associations in Indian Tourism & Hospitality (FAITH) on Wednesday called for tourism to be made a concurrent list subject so that it can be shared between the Centre and the States.

Speaking at the online launch of Vision 2035, Nakul Anand, chairman, FAITH, said tourism did not find a place in any of the subject lists and the industry was under many Ministries. The vision called for the setting up of a national tourism council with the Prime Minister and Chief Ministers of States as its members.

He said the Vision 2035 had a set of goals and laid a tangible execution path for the country, which is commemorating the 75th year of Independence. One of the major steps would be to reduce GST rates to 10% with full set offs on hotels and restaurants. Grant of travel credit for domestic travel and MICE, single window e-clearance for all projects, fix industrial rates for all utilities, set up five nega tourism zones in each State and ensure creation of last mile connectivity to all destinations.

High GST rates

Garish Oberoi, treasurer, FAITH, said high GST rates made both domestic and inbound tourism in India quite expensive.

“The 18% GST category for hotels above room rates of ₹7,500 must be abolished and merged with the category of 12% GST. Gradually, it should be brought below 10% with full set offs in line with global trends. Restaurants have an 18% and also 5% slab but which is without setoffs. The 18% category needs to be abolished and there needs to be an option made available of GST at 12% with full set offs. Additionally, there needs to be no linkage to room tariffs above ₹7,500 as it currently exists,” he said.

Office-bearers from the ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI and TAFI addressed the press meet organised as part of the launch of Vision 2035 that has set a target of 75 million inbound tourists, aimed for 7.5 billion domestic tourism visits and creation of 15 crore direct and indirect jobs in sector by 2035.

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