Don’t miss the latest developments in business and finance.

Govt asks hotels to slash room rent

Image
Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 10:38 PM IST

Hoteliers will consider taking government suggestion on slashing room tariffs by 10-15% in the face of difficult situations for the tourism industry arising out of the global economic crisis.    

 
Representatives of leading hotels including Taj Ambassador and Leela Group met Tourism Secretary Sujit Banerjee, who asked them to consider reduction in room rents.     

"They (hoteliers) will consider the guidance given by the Tourism Secretary regarding room tariffs and formulate their response as soon as possible," the Tourism Ministry statement said here.     

The delegation of the Federation of Hotels and Restaurants Association of India (FHRAI) raised demands during the meeting with the tourism secretary.     

These included infrastructure status for hotels, delinking hotels from real estate and liberal rules for external commercial borrowings.     

They also described the building norms like the Floor Area Ratio (FAR) of the Urban Development Ministry as difficult as meeting them would result in high development charges.     

The hoteliers also wanted relaxation in FAR for their properties in the Lutyens zone in New Delhi.

Also Read

First Published: Nov 05 2008 | 6:20 PM IST

Next Story