The government is considering various measures, including abolition of the 12.5 per cent service tax on tour packages, reduction in development charges for new hotels and a four per cent uniform luxury tax on hotels across the country, in a bid to give a boost to the tourism sector in the country.

For the tourism sector, already hit by the global economic slowdown, the terror attacks on Mumbai has come as a double whammy.

Tourism minister Ambika Soni and prime minister Manmohan Singh are reported to have discussed various proposals to revive the ailing sector.

Besides rationalisation of luxury tax, the tourism ministry has also sought seamless movement of vehicles meant for tourists.

The ministry has convened a meeting of the National Tourism Advisory Board next week to discuss various issues. It is expected to consult all stakeholders regarding measures needed to be taken to assuage fears of both the domestic and foreign tourists in the backdrop of the terror strikes.

Meanwhile, occupancy rates at luxury hotels, which have already taken a beating in the wake of the global financial market meltdown, have further come down to less than 20 per cent of normal hotel bookings in the aftermath of the  terrorist attack on Mumbai.

In Agra, one of the top tourist destinations in the country, around 76 of a total 90 rooms were vacant at a top luxury hotel.

Tour operators, represented by the Indian association of Tour Operators (IATO) has sought export sector status for the industry, reduction in entry fee in monuments as also exemption of service tax on tour operators, income tax benefits, marketing development scheme and rationalisation of luxury tax to give a fresh boost to the tourism industry.