Union budget memorandum: Hotel Federation

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The Federation of Hotel & Restaurant Associations of India(FHRAI),formed in the year 1955, is the apex body of the Hospitality Industry in India, which represents  about 3500 Members, comprising of 2160 Hotels,(with nearly1,20,000 rooms), 1064 Restaurants and allied members spread throughout the country, has great pleasure in presenting its pre-budget proposal for the Union Budget 2009-10.

The country earns over Rs 50000 crores in foreign exchange through foreign tourists. It is projected that tourist arrivals will reach 10 million by 2010 provided the requisite inventory of hotel rooms could be made available.  As far as domestic travelers are concerned the present demand will soar to 500 million in the years ahead.  There is at present only about 120000 rooms, and hence the shortage of 150000 rooms needs to be bridged for which an investment of over Rs.50000 Crores is required in the next 3-4 years.

The Government should design a special package for this sector delinking it with the Real Estate definition(by RBI) and linking it with SME sector for small hoteliers for priority lending at PLR as a confidence building major of this industry.  We also wish for grant of Infrastructure Status to the Hotel Industry under Income Tax Act as well  as in RBI definition.

We look forward to your favourable consideration of our proposals for the Union Budget 2009-10.
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