Karnataka Tourism Society welcomes Karnataka State Cabinet's move to grant industry status to classified hotels/resorts

The Karnataka State Cabinet recently approved the proposal to grant industry status to classified hotels and resorts. Karnataka is the second state after Maharashtra to accord the industry status to classified hotels and resorts.This will be effective from April 1.

The Karnataka State Cabinet recently approved the proposal to accord industry status to classified hotels/resorts in Karnataka which will be effective from April 1, 2021.

Speaking on the favourable step taken by the government, K Syama Raju, President, South India Hotels and Restaurants Association (SIHRA) and President, Karnataka Tourism Society said, "This is only the electricity charges, property tax, and what they're charging for the industry. Earlier we're paying the commercial rate of electricity tariff. Now it will become the industry tariff. And they have been charging the property tax at a commercial rate. Now, after this proposal they will charge the industry rate, for the property tax. This is a huge benefit for hoteliers who are already having classified hotels. Not all hotels will get the benefits. Any star category, be it one, two, three, four, or five affiliates. Any hotel classified by the Government of India will get the benefit. Already they have declared hotels as an industry, which is very positive news for us. Yesterday, first, the cabinet meeting approved the same. Today we had a press conference along with the Tourism Minister.  The electricity tax will be less, and property tax will also reduce. These are all the benefits for the hospitality industry. We are very happy with this announcement and we want more hotels to come under classification so that they may benefit from the same."

"Our Karnataka government is the second state after the Maharashtra government to grant industry status to its hotels and resorts. We also took inputs from the Maharashtra government, and we appealed to the Karnataka government to implement these steps for benefitting the hoteliers," he added.

Expressing his happiness on the positive move taken by the state government, he stated, "We succeeded! We are the second state first the Cabinet had approved now today the Minister has briefed the press regarding the benefit of the schemes. This will be effective from April 1."

Highlighting the current state of hospitality sector in the state, Raju said, that all the urban hotels are not doing well and only the resorts are doing a bit better these days. Since everybody is moving out of cities, now the occupancy is improving day by day. However, he too is unsure when the occupancy will completely recover.

COVID-19 pandemic has severely jolted the tourism and hospitality sector. In such circumstances, the government's decision to grant 'industry status' to classified hotels/ resorts will provide respite to the ailing sector.

Karnataka government recently released its Tourism Policy 2020-25 with an aim to attract investments by providing incentives, subsidies and concessions. Moreover, the Government of Karnataka will be supporting initiatives to revive the Tourism and Hospitality sectors in the state.

The members of Karnataka Tourism society and stakeholders in Travel, Tourism and Hospitality sector thanked B.S. Yediyurappa, Chief Minister, C.P. Yogesgwar, Minister of Tourism, Ecology and Environment Department, P.Ravi Kumar, IAS, Chief Secretary, T.K.Anil Kumar, IAS, Principal Secretary, Department of Tourism, N.K. Ramesh, IAS, Director, Department of Tourism, Government of Karnataka, for their timely and favourable move towards supporting the sector in the state.


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