FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

By Nishang Narayan

Published on January 19, 2025

The Federation of Hotel & Restaurant Associations of India (FHRAI), one of the world’s largest hospitality associations, has outlined a series of reforms it hopes to see in the Union Budget 2025-26. Representing over 60,000 hotels and 500,000 restaurants nationwide, FHRAI emphasized that these changes are critical for bolstering investment, creating jobs, and driving the growth of India's hospitality and tourism sector—a significant contributor to the national economy.

Key Recommendations by FHRAI

  1. Infrastructure Status for Smaller Projects
    FHRAI proposes granting infrastructure status to hotel and convention center projects costing ₹10 crore or more. Currently, this status is limited to projects exceeding ₹200 crore for hotels and ₹300 crore for convention centers, along with a requirement for the city population to exceed one million. FHRAI highlights that these restrictions exclude smaller, tourism-rich towns, preventing their access to financing and infrastructure benefits.

    “India’s tourism sector has immense untapped potential in historically significant towns and emerging destinations,” said K Syama Raju, President of FHRAI. “Infrastructure status for smaller projects will unlock growth opportunities in these regions.”

  2. Simplified Licensing and Single-Window Clearance
    FHRAI calls for a single-window clearance system to streamline the complex and time-consuming licensing and approval processes. Simplified regulations would encourage investments and ease operations for hospitality businesses.

  3. GST Rationalization
    The association advocates for rationalizing GST rates to make India more competitive internationally. FHRAI recommends:

    • Delinking GST on restaurants from room tariffs.
    • Revising GST rates for restaurants, banquets, and events.
    • Revisiting GST’s "place of supply" rules to allow input tax credits for services sourced across states, thereby reducing operational costs.
  4. Excise and Liquor Licensing Reforms
    FHRAI emphasizes the need for simplified excise and liquor licensing processes. Drawing inspiration from the FSSAI registration system, the association suggests nominal fees and easier compliance to promote the growth of leisure and entertainment services.

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Addressing Industry Challenges

India’s hospitality sector, known for generating substantial employment and foreign exchange earnings, faces multiple challenges due to restrictive policies. FHRAI asserts that reforms in licensing, taxation, and infrastructure will enhance India’s competitiveness as a global tourism destination.

“Our hospitality and tourism sector is vital to economic growth, yet it operates under significant regulatory burdens,” Raju added. “Budget 2025-26 presents an opportunity for the government to align policies with industry needs, fostering sustainable growth and positioning India as a leader in global tourism.”

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Vision 2047: A $1 Trillion Tourism Economy

By addressing these critical reforms, FHRAI believes India can advance its vision of becoming a $1 trillion tourism economy by 2047. Simplifying regulations, fostering investments, and reducing operational barriers will create jobs, increase foreign exchange earnings, and drive the sector's long-term growth.

About FHRAI

Established in 1955, the Federation of Hotel & Restaurant Associations of India (FHRAI) is the apex body of the hospitality industry in India. Representing over 60,000 hotels and 500,000 restaurants, FHRAI serves as a voice for the sector, collaborating with government bodies and international organizations to support the growth of India’s hospitality and tourism industries.


WGH Hotels & Resorts Unveils Kochi Flagship to Kerala Industries Minister

WGH Hotels & Resorts Unveils Kochi Flagship to Kerala Industries Minister

By Nishang Narayan

Published on May 31, 2025

WGH Hotels & Resorts Pvt. Ltd., the hospitality wing of the diversified World Group, recently hosted Hon. Minister for Industries, Government of Kerala, P. Rajeev at the site of its upcoming flagship project in Kochi. The high-profile visit underlines the significance of this luxury development, which was also featured at the Kerala Global Investment Meet, reinforcing the state's push for sustainable and experiential tourism.

With a legacy that began in 2012 through the acquisition of World Backwaters Alleppey, WGH now boasts a strong presence in Kerala with operating properties in Alleppey, Munnar, and Thekkady. The group is now expanding ambitiously with new developments in Kochi, Varkala, Trivandrum, and Ashtamudi, including a signature wellness resort—all designed to meet international standards while staying true to Kerala’s heritage.

During the ministerial visit, WGH presented the master plan and design vision for its Kochi project, set for launch on January 1, 2028. The development aims to redefine luxury tourism in Kerala by fusing modern architecture with authentic, culturally immersive experiences.

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Mr. J. Jayakrishnan, Director of World Group and WGH Hotels & Resorts, thanked the government for its proactive support, stating:

“Kerala’s infrastructure development and progressive tourism policies are perfectly aligned with our vision. Our projects aim to promote responsible and sustainable tourism while gifting guests an immersive experience of Kerala’s unique lifestyle and traditions.”

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The World Group, with nearly four decades of business leadership across mining, logistics, agriculture, DRI, and consulting, has already invested INR 250 crores in Kerala's hospitality sector over the past two years. An additional INR 500 crores has been earmarked for future ventures—including the flagship resorts, a hospitality college in Kochi, and a chain of vegetarian restaurants throughout the state.

The proposed hospitality college is envisioned to train 200 professionals annually, building a strong local talent pool to meet global industry standards. Meanwhile, the Varkala and Ashtamudi resorts are scheduled to open by 2027, further anchoring WGH’s role in shaping Kerala’s tourism future.

WGH Hotels & Resorts remains deeply committed to supporting Kerala's growth as a world-class tourism hub, guided by principles of sustainability, cultural authenticity, and community development.


Clarks Exotica Champions Purpose-Driven Culture at Work

Clarks Exotica Champions Purpose-Driven Culture at Work

By Nishang Narayan

Published on May 30, 2025

In the world of luxury hospitality, where lavish experiences often steal the spotlight, Clarks Exotica Convention Resort & Spa stands out by leading with a deeper mission — purpose. For Clarks, hospitality is not just about the scenic views and impeccable service; it’s about building a culture rooted in values, unity, and community responsibility.

At the core of Clarks' success is a people-first philosophy — a belief that genuine service begins with a strong, supported team. Under the leadership of Nilisha Ghuliani, Vice President, the resort has cultivated a workplace that feels less like a job and more like a purpose-driven family.

Honouring National Pride: #OperationSindoor

One of Clarks’ standout initiatives this year was #OperationSindoor, a heartfelt tribute to the Indian Armed Forces. Employees dressed in red and pink — symbols of strength, unity, and gratitude — and came together to honour those who serve the nation.

This was more than just a ceremony. It was a collective expression of patriotism, creating a sense of purpose and solidarity among team members. “At Clarks, patriotism is not a moment — it’s a mindset,” shares Nilisha Ghuliani.

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Nurturing the Earth: Earth Day Tree Planting

Sustainability isn’t just a policy at Clarks — it’s a practice. On Earth Day, employees participated in a tree-planting initiative at the Clubhouse Lawn, reflecting the resort’s long-standing commitment to the environment.

From water conservation to green operations, Clarks has consistently invested in planet-positive action, ensuring that everyday efforts contribute to long-term impact.

Empowering People: Culture of Care

Employee wellbeing and growth are central to the Clarks ethos. Through training programs, internal recognition, and continuous engagement, the resort empowers its team to lead, grow, and evolve. Whether it's supporting career advancement or celebrating small wins, Clarks ensures that its people feel seen, heard, and valued.

"Every initiative — whether for the nation, the environment, or our people — is designed to deepen connection and build meaning," Nilisha explains.

Clarks Exotica is proving that a great workplace isn't just built with policies — it's built with heart. Here, service excellence begins within, and each action is a step toward a more unified, compassionate, and conscious world.


Cocoon at The Machan Lonavala: A Luxurious Monsoon Escape in the Sky

Cocoon at The Machan Lonavala: A Luxurious Monsoon Escape in the Sky

By Nishang Narayan

Published on May 30, 2025

Elevate your monsoon experience at The Machan Lonavala with The Cocoon, a stunning 2,500+ sq. ft. villa nestled high among the treetops. Crafted as a dome-shaped sanctuary, this is the brand's most luxurious and architecturally distinct offering — designed for those who seek the perfect blend of indulgence and nature.

Timed perfectly for the rains, The Cocoon immerses guests in forest serenity with panoramic views from a soaring foot ceiling and a sprawling private deck. Whether you’re enjoying the misty monsoon air or stargazing at night, the elevated setting delivers tranquility at every turn.

The villa offers four unique sleeping zones: a cozy loft, a main-level space, and two suspended bedrooms on the lower floor. From elegant copper bathtubs to an open-to-sky His & Hers shower, and a modern multi-tiered bath, the bathing options alone are an experience in themselves.

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Step onto the private deck to discover a heated plunge pool, sunken seating, and an alfresco dining spot — all overlooking the lush, green canopy of Lonavala.

Sustainability lies at the heart of The Cocoon. Powered entirely by solar energy and constructed using eco-sensitive materials, this retreat reflects The Machan’s commitment to luxurious yet conscious living.

Perfect for romantic getaways, family vacations, or friends' reunions, The Cocoon is more than just a villa — it’s a retreat where skies meet serenity.

Bookings are now open on www.themachan.com.

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