Budget 2022: Hotel Association of India demands 'infrastructure' status for hotels

As India continues to see a rise in cases of the Omicron variant of coronavirus, the hospitality industry which was slowly getting into a recovery mode on the strength of domestic tourism – leisure and events, is plunged back into uncertainty. Ahead of the upcoming Union Budget, the Hotel Association of India (HAI) has suggested to the Finance Ministry some policy reforms which will help in the revival of the industry and will also enable it to flourish in the long run.

According to HAI, the status of ‘Infrastructure’ will resolve a large number of the issues being faced by hotels and hospitality companies. It will also help survive operationally and encourage investments in the sector.

The association believes that access to softer funding, longer periods to repay loans, resultant shortening of the gestation period will make hotel investments more attractive and sustainable. More hotels would mean more jobs and more development. Infrastructure Status will also enable hotels to avail benefits of lower taxation, utility tariffs and a simplified approval process for projects.