The Hotel and Restaurant Association of Western India (HRAWI) today said it will appeal to the government to create a level playing field for all hospitality players to bring uniformity in regulations.
"While five star hotels pay a substantial 38 per cent of the room revenue as direct and indirect taxes, some of the lavish bungalows listed in sites of some hotel aggregators do not pay a single rupee as taxes," HRAWI said in a statement issued here.
It further said, over 42 licences are needed to start and operate an organised sector hotel, while the unregulated sector operates without undergoing any such process.
"We welcome competition in any and every form, but this kind of disparity is unhealthy for the industry. It is almost as if we are doing our businesses with our hands tied," HRAWI President Dilip Datwani said.
This is also a loss of revenue to the exchequer, he added.
According to him, in a country like India where tourism is at a nascent stage, the unorganised accommodation could spell doom.
"The primary problem is that there are no standardisations or categorisations. There have been multiple cases of exaggerated promises, misrepresentations, disagreements and conflicts with guests, hygiene issues and intimidations among others. Because the stays are unregulated, there are no redressal systems in place," Datwani pointed out.
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