Rajasthan government working on extending industry benefits to tourism sector

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After prolonged Persuasion by the tourism bodies, thestate governmentseems to be heeding to their demand for extendingindustry benefitsto the sector that has been hobbled by the pandemic.

The state finance department has communicated to thetourism departmentto prepare an action plan to offer benefits to the hospitality sector.

Industry benefits will include electricity rates, UDH and land taxes which are currently paid by the hospitality sector at commercial rates which are higher.

Tourism was declared as an industry in 1989,

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but the benefits were not extended by states and the units are paying taxes and electricity tariffs at commercial rates. Recently, states likeMaharashtraand Karnataka have given the sector the industry benefits.

As per industry estimates, energy costs account for a significant part of a hotels operating expenses ranging from 15-35%. It is the second highest expenses after manpower cost. Additionally, whether a hotel or restaurant consumes electricity or not, it has to pay a fixed tariff.