The hospitality industry has expressed concern over the lack of specific recommendations for the sector in the draft national tourism policy 2015 formulated by the tourism ministry.

The hospitality industry has expressed concern over the lack of specific recommendations for the sector in the draft national tourism policy 2015 formulated by the tourism ministry which aims to develop and promote the sector. Among other issues, the draft policy does not address the longstanding demand of single window clearance, according to industry executives.

The draft policy released earlier this month calls for putting tourism — currently a state subject — into the concurrent list to enable the Centre to play a significant role. "You need licences for even the smallest things like grinders, rolling shutters, electrically lit signboard, whitewashing walls every year, etc, which increases the time taken to get approvals for building a hotel," said Bharat Malkani, president, Hotel and Restaurant Association of Western India.

More than 100 licences are required for building a new hotel, with the result that it takes nearly five years to complete a hotel project. "Setting up a hotel continues to be one of the most complex activities. Such complex process contributes to our dismal position each year in the ease of doing business index," said Mandeep Lamba, managing director-hospitality group at consultancy firm JLL India.

The proposed policy also calls for establishing a university for tourism and hospitality education for development of skilled workforce. However, hotel industry experts point out that the government needs to revamp the existing apex body of hotel management institutes — National Council for Hotel Management and Catering Technology — rather than setting up new ones. "The government should focus on upgrading the quality and curriculum of the existing council," said Lamba.

According to Tejinder Singh Walia, president, Federation of Hotel and Restaurant Associations of India (FHRAI), the government's decision to discontinue the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, will also impact the growth of tourism in the region. "There is tourism potential in this region and discontinuation of the policy will affect these states," said Walia. FHRAI represents 4,000 hotels and restaurants including brands such as the Taj, ITC, Oberoi and The Leela. Hoteliers also point out that the policy lacks clarity on GST for the industry. Hotels in India currently levy taxes in the range of 20% compared to just 2-5% on average across the globe.

However, the industry praised the government's decision to include projects with .`20 crore capex (excluding land cost) and hotels with at least one-star rating, in infrastructure sub-sector segment for availing loans under the RBI's harmonised list.