FHRAI Predicts Hotel Tariffs May Fall By 2-3 Percent

The apex body of hotel and restaurant associations, Federation of Hotel and Restaurant Associations of India (FH&RAI) has affirmed that the hotel tariffs may go down by 2 to 3 percent if the infrastructure status demand made by FHRAI in its post-budget memorandum submitted to the Government, is extended to below three star hotel categories and the threshold of location outside cities with population of more than one million is removed, in the near future.

“According to the tourism department, the industry employs 24 million people and by 2017 it will add another 44 million more employees to the Travel and Trade industry,” said Kamlesh Barot, President, FH&RAI. “We were given infrastructure status in this Budget but it only covers 5 percent of our hotels. The remaining 95 percent will not enjoy infrastructure status. We have requested the Government to provide this status to the entire segment. We will then be able to compete with the rates at which foreign hoteliers operate.”

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