The Ministry of Tourism aims to increase India’s total share in global tourism from the current 0.58 per cent to one per cent by the end of the 12th Five-Year Plan (2012-17), said Union Tourism Minister Subodh Kant Sahai.
This will give a big boost for employment generation in this sector, the Minister said at the annual conference of Federation of Hotel and Restaurant Associations of India (FHRAI). At present, nine per cent of total employment is generated from the tourism sector.
The country received 6.29 million foreign tourists in 2011, earning $16.56 billion.
Western Europe and North America are the top two regions from where most foreign tourists come from.
Infrastructure status
The Tourism Minister also said the Ministry was seeking infrastructure status to the hotel and restaurant industry.
“I have been discussing this with the Infrastructure Committee and assure that the anomalies present in the current status of infrastructure to the industry will be removed,” Sahai said.
The hospitality sector has been demanding infrastructure status for the industry from some time now. “Infrastructure status will give us the impetus to grow, which will facilitate the hospitality sector in getting loans at lower rates with tax concessions. Currently, the hospitality industry is heavily taxed both by Centre and State Governments,” said Kamlesh Barot, President of FHRAI.
He also said that the Centre should implement the Direct Taxes Code and Goods and Services Tax, which would help in removing the double taxation faced by the industry now.
Barot also added that State Governments should notify Hospitality Development Promotion Board in order to expedite tourism development in various States.