Hotel and Restaurant Association welcomes government's revenue sharing plan

07 April 2008

Mumbai: The Hotel and Restaurant Association of Western India (HRA) has appreciated the Central Government's initiative to lease out land to private hotel developer and enter into revenue-sharing agreement.

Under the scheme, the bidder who offers the government the highest ratio will bag the project. However, before finalising the project, the Centre would discuss it with the states as land is a state subject.

The revenue share arrangement will also depend on the location of the project, and may range from 20-30 years depending on the project.

In a statement HRA president  Dinesh Khanna, said, "Tourism sector has immense growth potential and the major hindrance to the inbound tourist besides the lack of infrastructure is the insufficient hotel rooms. This initiative of the Centre Government will not just give room for 5-star projects but also to mid-segment hotels.''

He further said that the centre and the state governments should make the policy foolproof, and mark the auction land exclusively for the hotel developers.

Khanna also pointed out five major challenges faced by the hospitality industry, as: