Monday, January 27, 2025 India’s hospitality sector is looking at significant transformations to remain competitive on a global scale. Key measures, such as the granting of infrastructure status to hotels and convention centres, the rationalisation of goods and service tax (GST) rates, and the introduction of digital mechanisms for hotel approvals, are being anticipated by industry stakeholders to boost the growth of the sector. Additionally, efforts to increase the skilled workforce in the industry are high on the agenda, as India’s travel and tourism sectors still have vast untapped potential.
The growing shortage of hotel rooms in comparison to global peers is a challenge that India’s hospitality industry is grappling with, and these anticipated changes are seen as a solution to this problem. Infrastructure Status to Lower Financing Costs One of the most significant changes the hospitality sector hopes to see is the granting of infrastructure status to hotel and convention centre projects with investments of Rs 10 crore or more. This would make it easier for these projects to access long-term financing at more affordable rates, a move that industry professionals believe is crucial to sustaining growth.
The hospitality sector is urging the Indian government to take this step, as it would help stimulate growth within the industry, which is critical to achieving the broader vision of making India a $1 trillion tourism economy by 2047. The grant of infrastructure status .
