HAI Partners with Maharashtra Tourism to Boost Hospitality Growth

The Hotel Association of India (HAI) engaged in a constructive dialogue with Dr Atul Patne, Principal Secretary – Tourism, Government of Maharashtra to discuss various issues related to the sector’s growth and development in the region with a focus on hotels.

The HAI delegation was led by Dr Sanjay Sethi, the Association’s Honorary Treasurer and Chairperson of its Maharashtra Chapter accompanied by Charulata Sukhija, Deputy Secretary General.

While complimenting the state on its robust tourism policy and vision document, the two shared key concerns of the hotels. The discussions centered around three key areas. First, was the expeditious implementation of industry tariffs for electricity. Currently hotels are charged commercial rates for power which are considerably higher. The State was among the first to grant industry benefits to hotels but encountered some challenges in its implementation. As HVAC costs constitute a high component of operational expenses this will help hotels to become more cost effective.

Secondly, HAI proposed the simplification of the excise licensing framework. The suggested ‘One License One Property’ (OLOP) model would replace the currently fragmented system with a unified license that covers all operational areas within a hotel —restaurants, banquets, terraces, and outdoor spaces. This would streamline compliance and eliminate logistical delays promoting greater ease of doing business.

Lastly, the delegation recommended enhancement of fiscal incentives available to hotels under the state’s tourism policy 2024. These include an increase in capital subsidies, SGST refunds for a longer period, wage-based incentives to boost employment, and higher subsidies for sustainability initiatives.

Together, these measures will facilitate long-term investment in the sector, fostering sustainable infrastructure development, and unlocking tourism potential in underdeveloped regions.

Dr Patne was very receptive to all the suggestions and assured his and the government’s support. Tourism is one of the key pillars of Maharashtra’s socioeconomic development and it aspires to elevate its status from an “emerging” to a “leading” state in the sector.

“Maharashtra is among the top ten States of India in terms of both - domestic tourist visits and foreign tourist visits and HAI Members are proud to contribute to its growth. Dr Sanjay Sethi would collaborate closely with the local government to identify and address key industry challenges, working together to realise the department’s vision of attracting investments in the sector and tapping its true potential in creating jobs,” stated Sukhija.

She further added, “The Chapter carries the full support of the HAI President, KB Kachru Chairman, South Asia Radisson Hotel Group,  all members of its executive committee and the Association Secretariat in developing a strategic partnership with the State government, engaging with it on a regular basis to ensure that the hospitality sector continues to be a key contributor to the State’s socioeconomic development. With a robust tourism policy that is well implemented, closely monitored and regularly reviewed, HAI is confident that Maharashtra will continue to thrive as a tourist destination with leading hotel groups and brands expanding their footprint not just in the major cities but also in smaller ones  and in the underdeveloped regions of the State.”