Industry experts want hospitality to be given an industry status that will catalyse access to long-term financing at lower interest rates along with a host of other benefits.
Virendra Razdan, General Manager of The Leela Bharatiya City, said, “The recent travel boom presents a golden opportunity, but to truly unlock our potential, we need the government to strategically recognise hospitality as an industry and grant infrastructure status to hotels exceeding a certain bar. This will catalyse access to long-term financing at lower interest rates, streamlined regulations for faster project execution, and potential tax breaks for the industry. This isn’t just about filling rooms; it’s about transforming hospitality into a magnet for investment.”
He added, “Infrastructure status creates a win-win: it incentivizes
developers, lowers the cost of capital for new projects, and ultimately fosters
a more vibrant hospitality sector that contributes even more to our nation’s
GDP, job creation, and foreign exchange earnings.”
Navneet Nagpal, Principal Consultant and Director of Spectra Hospitality Services, said, “Recognising hospitality as an official industry and granting infrastructure status to qualifying hotels would be transformative. This strategic initiative would facilitate access to long-term financing at lower interest rates, streamlining regulatory processes for quicker project execution, and offer potential tax incentives. These measures are not just about increasing occupancy rates; they aim to transform hospitality into a significant investment attraction, driving economic growth, job creation, and boosting foreign exchange earnings.
“Addressing these critical needs will ensure a vibrant and competitive hospitality sector, significantly contributing to the nation’s economic prosperity. We are on the brink of a tremendous opportunity, and with the right support, we can fully unlock the potential of the hospitality industry.”
