TEAM HERALD
teamherald@herald-goa.com
PANJIM: In a major boost to the hospitality industry in the country including Goa, the Centre has designed a policy which will provide finance for setting up of hotels with a project cost of more than Rs 200 crore and of any star rating at any place in India.
The new policy also includes finance for Convention Centres with a project cost of more than Rs 300 crore each, in the Harmonized Master List of Infrastructure Sub-Sectors.
According to officials in the State tourism ministry, this had been a long pending demand from the hospitality industry which has finally been considered by the Union Finance ministry.
This facility will be applicable with prospective effects from the date of notification and available for eligible prospects for three years from the date of notification. Eligible costs exclude cost of land and lease charges but include interest during construction.
The Union Ministry of Tourism had been pursuing with the Ministry of Finance to include hotels with project cost of more than Rs 200 crore each in any place in India and of any star rating as well as Convention Centres with project cost of more than Rs. 300 crore each in the Harmonized Master List of Infrastructure Sub- Sectors.
The Minister of Tourism Dr K Chiranjeevi had met the Finance Minister P Chidambaram in this connection.
“The inclusion of hotels and convention centres in the Harmonised Master list of Infrastructure sub-sector will have an immediate multiplier effect on the overall economic development and will provide a fillip to employment generation in the country in the tourism sector,” says a communiqué from the central tourism ministry. It adds further that the inclusion of Convention Centres will also help to set-up niche products in tourism which have year-round business.
A senior official in the Goa tourism department said, “This is a step in the right direction,” and that this policy would help the tourism industry.
Presently in India the approximate room availability is around 1.65 lakh and there is a growing demand for increasing the same considering the fact that tourism in India is now a round the year activity.
“Building hotels in India is no longer cheap considering the fact that land rates are sky rocketing,” said this senior official attributing the hike in room rates to this aspect.
It is learnt that several captains in the hospitality industry in India have currently applied brakes on expansion plans and investment in the tourism sector due to all these negative factors.
“Now there will be cash flow, competitive rates of interest offered, long term for repayment schemes which will give tourism a thumbs-up,” this official said.
He also added that with Goa working to have its Master Plan in place within a year will go hand in hand with the new central finance policy for the hospitality industry to invest in Goa.
However, kingpins in the tourism industry in Goa are sceptical on the new policy.
Though not yet notified, the chief of the Travel and Tourism Association of Goa Francis Braganza doubts whether this will help the local tourism investors. He said, “The policy slates help for projects of an investment magnitude Rs 200 crore and convention centres of Rs 300 crore and more.”
