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RESOLUTIONS ADOPTED AT THE 49 th FHRAI ANNUAL CONVENTION IN JAIPUR.
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Till implementation of the GST regime, hotel accommodation and restaurants must be included in the Negative List for Service Tax.
We further request that higher FSI/ FAR and relaxed parking norms be permitted for hotels so as to make projects financially feasible.
In areas which have been identified as part of the upcoming integrated tourist circuits, surplus land available with various Government agencies, should be utilised for construction of affordable tourist accommodation under the PPP model.
Therefore, we recommend that our rigid CRZ norms should be liberalised in accordance with the recommendations of the M.S. Swaminathan Committee, so that identified coastal stretches can be developed as special tourism zones and new beachfront hotels and resorts can be set up.
This anomalous policy unduly penalises those hotels who have voluntarily opted for classification and thereby undermines the efforts to benchmark India's tourist accommodation infrastructure to contemporary global standards.
As such to be economically viable, these hotels require differentiated support and impetus from the Government by way of fiscal concessions, tax incentives and subsidies. In many cities, several Heritage Buildings are presently occupied as government offices, which can instead be restored and turned into productive tourism assets.
It is necessary to formulate a comprehensive National Policy to support Heritage Hotels and promote Heritage Tourism in the country.
To this end, FHRAI and IHHA will form a joint Committee to pursue this cause with the Central Government.
In this regard, we urge the Central Government to institute a dedicated National Tourism Entrepreneurship Fund, which will provide start-up risk capital and soft loans to innovative hospitality entrepreneurs.
FHRAI requests that the citizens of a majority of those countries which constitute the top 15 source markets for FTAs in India should be included within the first phase of this scheme's launch.
As a further incentive service tax exemption & VAT refunds should be extended to foreign tourists visiting India in 2015.
The hospitality industry will volunteer its expertise and resources for the success of this noble national endeavour.