Delegates from several organizations, including the Hotel Association of India, the Association of Domestic Tour Operators of India, the Indian Association of Tour Operators, the India Food Tourism Organisation, the Tourist Guide Federation of India, and the Adventure Tour Operators Association of India, participated in the discussions. They also called for the Centre’s support in encouraging all states to grant ‘industry’ status to the sector, according to an insider.
The demand for industry status has been a longstanding concern for players in the hospitality and tourism sectors. While some states have recognized Tourism & Hospitality as an Industry and granted “industry status,” others have not yet followed suit.
The representatives noted that the absence of formal industry recognition and the fragmented regulatory framework have hindered the tourism and hospitality industries’ ability to access affordable financing and incentives, as per sources.
Furthermore, although GST was not part of the pre-budget discussions, the representatives reportedly sought clarity following the recent reduction in GST rates for hotel accommodations priced at Rs 7,500 and below, without the option for input tax credit (ITC). They proposed that the Rs 7,500 threshold should undergo regular reviews.
Additionally, the representatives stressed the importance of establishing a single-window clearance system for licensing, aiming to reduce the number of licenses, approvals, and NOCs required for hotels, sources indicated.
They also advocated for the creation of an independent, empowered National Tourism Board under the National Tourism Policy—comprising strong private-sector representation and experienced professionals—which they deemed essential for strategic planning, promotion, and long-term growth in the sector, according to the sources.
