BHUBANESWAR: The hotel industry in the state has sought financial incentives in the upcoming budget for giving a boost to infrastructure development as well promoting adoption of eco-friendly practices for sustainable tourism.
Taking part in the pre-budget consultation meeting chaired by Chief Minister Mohan Charan Majhi, Hotel and Restaurant Association of Odisha (HRAO) chief JK Mohanty said for infrastructure development, capital investment subsidy should be increased up to 40 pc for three-star and above category hotels.
“The state government should do a projection of short-term (two years) and long-term (four years) on increase of tourist footfalls and improve the infrastructure in tourist places accordingly,” Mohanty said.
Other than Puri and Bhubaneswar, the requirement of rooms in two star category hotels at tourist destinations is 4,000, three star 2,000 and around 500 rooms under four star/five star category.
Mohanty said at the recent Pravasi Bharatiya conclave recently, the deputy chief minister Pravati Parida had announced that the state is focused on promoting sustainable tourism.
“By offering financial incentives that promote eco-friendly measures in the tourism sector, such as energy-efficient lighting, water-saving devices, and waste-reduction practices, the government will be encouraging the industry to contribute to these global goals,” he said.
The association has urged the chief minister to modify the tourism policy of 2022 and constitute a tourism development board under the chairmanship of deputy chief minister. It has also urged the CM to press for a uniform 12 per cent GST on the hospitality sector with the Union Finance minister. Rooms with tariff of Rs 7,500 and above now attract a GST of 18 per cent and those between Rs 1,001 and Rs 7,500 are taxed at 12 per cent. Stating that 18 pc is too high in the competitive scenario, Mohanty said the GST should be uniform at 12 pc across all hotel categories and room tariffs.