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.


Taj Chandigarh Secures EarthCheck Platinum for 13 Years

Taj Chandigarh Secures EarthCheck Platinum for 13 Years

By Manu Vardhan Kannan

Published on April 27, 2026

Taj Chandigarh has marked a major milestone by achieving the EarthCheck Platinum Certification for 13 consecutive years. This recognition highlights the hotel’s consistent efforts towards sustainability and responsible operations, setting it apart as a leader in eco-conscious hospitality.

The certification is awarded by EarthCheck, a globally recognised scientific benchmarking and certification body for the travel and tourism sector. Earning Platinum status is a significant achievement, given that it requires at least 10 continuous years of verified performance across key sustainability measures. By maintaining this level for 13 years, Taj Chandigarh has gone beyond the standard and strengthened its position in responsible hospitality.

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This achievement also reflects the larger vision of The Indian Hotels Company Limited (IHCL), under which Taj Chandigarh operates. Across its portfolio, IHCL has focused on reducing energy use, conserving water, and cutting down waste, all while ensuring a high-quality guest experience. The EarthCheck framework also aligns with global sustainability goals, including the United Nations Sustainable Development Goals (SDGs), making these efforts part of a broader purpose.

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Speaking on the milestone, Surinder Singh, Area Director – Operations & General Manager, Taj Chandigarh, said,

“Achieving EarthCheck Platinum Certification for 13 consecutive years is a proud milestone for us. It reflects our deep-rooted commitment to sustainability and responsible hospitality. At Taj Chandigarh, we believe that luxury and environmental responsibility must go hand in hand and this recognition reinforces our continued efforts towards creating a greener future.”

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Ankur Sharma, Chief Engineer, Taj Chandigarh, added, “This achievement is the result of consistent efforts, innovation and a strong focus on resource efficiency. From energy conservation to water management and waste reduction, our teams work tirelessly to ensure that sustainability is embedded in every aspect of our operations. We remain committed to enhancing our practices and setting new benchmarks in environmental performance.”

With travellers increasingly looking for responsible and sustainable choices, recognitions like this build trust and confidence. Taj Chandigarh’s continued success with EarthCheck Platinum not only celebrates a long-standing achievement but also sets a strong example for the hospitality industry, showing that luxury and sustainability can go hand in hand.


The Leela Gandhinagar Introduces E-Cycle Experience to Promote Sustainable Luxury

The Leela Gandhinagar Introduces E-Cycle Experience to Promote Sustainable Luxury

By Hariharan U

Published on April 26, 2026

Marking Earth Day, The Leela Gandhinagar has introduced an immersive e-cycle experience in collaboration with Svitch, reinforcing its focus on sustainability-led luxury.

The initiative is designed to offer guests a low-impact, mindful way to explore Gandhinagar, encouraging slower, more conscious travel while reducing carbon footprint. By integrating eco-friendly mobility into the guest journey, the hotel continues to position sustainability as a core element of its hospitality experience.

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Set against the city’s serene surroundings, the e-cycle experience allows guests to engage more deeply with their environment, blending wellbeing, exploration, and environmental responsibility. The offering reflects a broader shift in luxury travel, where guests are increasingly seeking experiences that are both meaningful and sustainable.

Commenting on the initiative, Vikas Sood, General Manager, highlighted the hotel’s commitment to creating experiences that are enriching while embedding responsible practices into everyday operations.

The launch was complemented by an Earth Day cyclethon, bringing together guests, hotel associates, and members of the local community. The activity aimed to foster a shared sense of responsibility towards sustainable living, while encouraging active participation in eco-conscious initiatives.

Following the ride, guests experienced the hotel’s signature Aujasya breakfast, aligning the sustainability narrative with wellness-focused dining.

Through initiatives like this, The Leela Gandhinagar continues to evolve the concept of responsible luxury, where sustainability is seamlessly integrated into the guest experience, enhancing both comfort and awareness.


WelcomHeritage Parv Vilas Resort & Spa Elevates Luxury Escapes in Kasauli

WelcomHeritage Parv Vilas Resort & Spa Elevates Luxury Escapes in Kasauli

By Hariharan U

Published on April 25, 2026

WelcomHeritage Parv Vilas Resort & Spa is redefining luxury getaways in the hills with its expansive offering set amidst the scenic Kasauli Hills.

Perched in the lush Shivalik range, the resort blends natural beauty with refined hospitality, offering guests a tranquil escape marked by panoramic views, fresh mountain air, and a thoughtfully curated luxury experience. Designed as a sanctuary for relaxation, the property combines modern amenities with a serene setting that encourages guests to unwind at a leisurely pace.

Operated under the WelcomHeritage umbrella since December 2022, the resort has positioned itself as a full-scale five-star destination in Solan. With 93 well-appointed rooms, the property caters to a wide range of travellers, offering accommodation options that include deluxe rooms, suites, family-friendly cottages, and an exclusive four-bedroom luxury villa.

The resort is equipped with a comprehensive range of amenities, including a luxury spa and salon, wellness centre, and an all-weather heated indoor swimming pool, along with a dedicated children’s pool. These features ensure a seamless and comfortable experience for guests across seasons.

Beyond leisure stays, the property has also emerged as a preferred venue for destination weddings, corporate conferences, and large-scale events, supported by its expansive layout and premium infrastructure.

The design philosophy strikes a balance between modern sophistication and timeless charm, creating a space that feels both elegant and inviting. From intimate vacations to grand celebrations, the resort offers an environment that blends comfort with understated luxury.

With its scenic location, comprehensive facilities, and focus on guest experience, WelcomHeritage Parv Vilas Resort & Spa stands out as a premier mountain retreat, offering travellers a refined escape in the hills.

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