Gujarat hotels woo tourists with heavy discounts

It's discount season for tourists. In an effort to boost tourism, hotels in the state are luring tourists by offering special discounts.

President of the Hotel and Restaurant Association, T K Tekwani told Business Standard the hotels in the state would be able to offer even more discount if the government waives 15 per cent luxury tax at least for the tourism year.

Although industry officials agree that giving discount or room charges is a "practicable proposition", this is nothing new as hotels have been giving discount ranging 10 per cent to 30 per cent depending upon the business volume. During lean seasons, discounts are even given to walk-in guests.

Taking a step ahead, General Secretary of the Association and owner of Grand Bhagwati hotel Narendra Somani claims that his hotel is willing to shed as many as 25 per cent to woo tourists - with our without the government. waiving the tax.

He says that there are also many other hotels who are also willing to give similar discount to support the Tourism Year. He also urged hotels to tie up airlines and offer attractive packages.

"Last year, Kuala Lampur and Singapore were very popular destinations because hotels tied up with airlines and offered attractive packages," he told Business Standard.

General manager of Inder residency D Mukherjee also toes Somani lines saying that waiving tax is not a "practical solution" to woo tourists.

"No country has ever waived tax to promote tourism", he argues.

He also dismiss the issue of giving discount in return of waiving tax saying the hotel is already giving special offers and discounts, at times as high as 40 per cent.

According to Tekwani, 15 per cent tax is among the highest in the country.

He looks forward for the government to waive the tax at least for the tourism year. He said the state may relax the tax to 5 to 7 percent, which is normal tax in other states from the next year.