Hotels keen on industry tag

The hotel business in would see a huge upturn if the next government at Centre could accord the much-awaited industry status coupled with uniform taxation through the implementation of GST and visa simplification, said global upscale hotel brand Radisson.

"India is strongly placed among the BRICS group to attract interest from global brands. A lot of investment had happened in the country from big mutual funds in the last few months as others have been grappling with some uncertainty," said Raj Rana, CEO (South Asia) of Carlson Rezidor Group, which maintains the Brand Radisson globally.

While China is witnessing oversupply in the branded hotel space, Russia is confronting crisis near its borders making India an attractive destination for global brands to forge partnerships with local players.

According to Rana, while most of the funding needs are currently being met through commercial banks, he bats for increased role for real estate-focused REITS.

Ajay K Bakaya, executive director of Sarovar Hotels ,said the GST regime would bring optimism in the sector. Hotel and hospitality business contributes 7.5 per cent to the GDP.

Bakaya said the country had a huge potential as a holiday destination. While China, US and France were attracting more than 60 million tourists annually for holiday tourism, India fared low with around 7 million. To jack up the numbers here, visa liberalisation holds the key. "A tourist visa for four heads costs $100 in Thailand. In India, this come around $1,000," he said.

Carlson Rezidor Group today announced a tie up with pan-India hotel player Sarovar Hotels and Resorts. Under the partnership, "Carlson with its global reach and brand visibility would help Sarovar drive the business topline," said Bakaya.