At the recent concluded tourism ministers’ conclave held at Kovalam in Kerala on Monday,tourism ministers from different states made a strong case for reduction, simplification and rationalization of various taxes and levies, including goods and services tax (GST), in tourism and travel industry to attract tourists and cushion stiff global competition.
The conclave was inaugurated by
Kerala chief minister Pinarayi Vijayan. Union minister of state for tourism and
culture Prahlad Singh Patel was the chief guest. Kerala tourism minister
Kadakampally Surendran, presided over the function.
A resolution which was unanimously adopted at
the conclave 2019 voiced concern at the high tax rate for hotel rooms compared
with other countries. The GST council of India has imposed 28% GST on hotel
room tariff over Rs.7,500 and 18% tax on rooms with tariffs between Rs. 2,500
and Rs. 7,500.
The resolution, was moved by Karnataka tourism
minister C.T. Ravi said reduction in GST in hotel rooms is necessary to attract
more tourists.
The resolution also sought measures to reduce
high airfares which face tough competition from other global destinations.”We
express concern over the high airfares during peak season and festival periods,
which are forcing holiday-makers to opt for economical destinations. Besides,
unexpected closure of certain airlines/carriers has led to increased airfares
while minimal air connectivity with 2-tier and 3-tier cities has only
compounded the problem,” it stated.
The conclave also took note of the high and
varied inter-state tourist vehicle taxes and called for its rationalization
across all the states to ensure
seamless travel.
In another resolution, the conclave proposed creation
of regional tourism councils and developing tourism circuits, which can be
region-based and in neighbouring states. “We resolve to jointly promote our
tourist attractions across the world in order to give a cutting edge to our
campaigns,” it said.
The resolution, moved by Tourism Minister of
Odisha, Shri Jyoti Prakash Panigrahi, said setting up regional tourism councils
will help periodic communication among different states and improve collaboration.
