Govt announces subsidy for number of rooms in hotels
In one-star category, the government will give Rs 2 lakh per room, subject to a maximum of Rs 30 lakh for 15 rooms. Know your target employer!
By PTI |
NEW DELHI: With a view to create more budget hotel rooms capacity ahead of the Commonwealth Games, the government on Tuesday announced subsidy tied to number of rooms built by the hotelier.
Earlier the budget hotels were given a lumpsum subsidy, just based on the star-rating of the hotel.
The government also brought into the ambit of new subsidy scheme the budget hotels in the metropolitan cities, which were earlier not entitled to any such incentive.
According to the new scheme announced by the Ministry of Tourism and Culture, in one-star category, the government will give Rs 2 lakh per room, subject to a maximum of Rs 30 lakh for 15 rooms.
For two-star hotel, the incentive will be Rs 3 lakh with a ceiling fixed at Rs 75 lakh for 25 rooms.
In the heritage hotels and three-star category, the government raised the ceiling to Rs 100 lakh at the rate of Rs 3 lakh per room.
The government is at its wit's end to create guestroom capacity of 1,50,000 in the backdrop of skyrocketing land prices, lukewarm response of the builders in view of escalating construction costs, and anticipated tourist deluge during the games in 2010. The currently nationwide capacity is barely 50,000 guestrooms.
To meet the demand for affordable accommodation, the Ministry had earlier this year already announced tax waivers for the families who want to double up their homes as bed and breakfast facilities for the travellers.
Earlier the budget hotels were given a lumpsum subsidy, just based on the star-rating of the hotel.
The government also brought into the ambit of new subsidy scheme the budget hotels in the metropolitan cities, which were earlier not entitled to any such incentive.
According to the new scheme announced by the Ministry of Tourism and Culture, in one-star category, the government will give Rs 2 lakh per room, subject to a maximum of Rs 30 lakh for 15 rooms.
For two-star hotel, the incentive will be Rs 3 lakh with a ceiling fixed at Rs 75 lakh for 25 rooms.
In the heritage hotels and three-star category, the government raised the ceiling to Rs 100 lakh at the rate of Rs 3 lakh per room.
ADVERTISEMENT
The government is at its wit's end to create guestroom capacity of 1,50,000 in the backdrop of skyrocketing land prices, lukewarm response of the builders in view of escalating construction costs, and anticipated tourist deluge during the games in 2010. The currently nationwide capacity is barely 50,000 guestrooms.
To meet the demand for affordable accommodation, the Ministry had earlier this year already announced tax waivers for the families who want to double up their homes as bed and breakfast facilities for the travellers.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
