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.


Vivanta Debuts in Vrindavan, Strengthening IHCL’s Spiritual Tourism Portfolio

Vivanta Debuts in Vrindavan, Strengthening IHCL’s Spiritual Tourism Portfolio

By Hariharan U

Published on March 29, 2026

Indian Hotels Company Limited has announced the opening of Vivanta Vrindavan, marking the brand’s debut in one of India’s most revered spiritual hubs, Vrindavan. The launch reinforces IHCL’s continued focus on expanding its presence across key pilgrimage and spiritual destinations in the country.

Strategically located close to major temples and cultural landmarks, the 135-key property has been designed to offer a calm and immersive stay experience, reflecting the spiritual essence of the destination while maintaining Vivanta’s contemporary hospitality approach.

Speaking on the launch, Deepika Rao noted that spiritual destinations in India continue to witness sustained and diverse travel demand, with Vrindavan remaining central to this journey. She added that the hotel aims to deliver a stay experience rooted in the ethos of the destination.

The property features multiple dining and lifestyle offerings including Mynt, an all-day vegetarian restaurant with global and regional influences; Swirl, a lobby café; Wink, a poolside bar; and Tease, an alfresco dining space. Guests can also access wellness facilities such as a spa, fitness centre, and an open-to-sky infinity pool.

Highlighting the operational vision, Saurabh Mitra shared that the hotel has been thoughtfully designed to reflect the vibrant character of Vrindavan, with a focus on delivering meaningful and personalised guest experiences.

The opening aligns with IHCL’s broader strategy of tapping into India’s growing spiritual tourism segment, where destinations like Shri Banke Bihari Mandir and Prem Mandir continue to attract both domestic and international travellers.

With this addition, IHCL further strengthens its position in the experiential hospitality space, blending cultural authenticity with modern comfort to cater to evolving traveller preferences.


LOYA at Taj West End Bengaluru Hosts an Intimate Storytelling Afternoon

LOYA at Taj West End Bengaluru Hosts an Intimate Storytelling Afternoon

By Manu Vardhan Kannan

Published on March 29, 2026

LOYA at Taj West End, Bengaluru marked World Storytelling Day with a calm and thoughtfully curated afternoon that brought people together over stories and shared experiences.

The gathering was designed as a space for open conversations around storytelling, seen as a way to preserve meaning and capture the beauty and emotion of everyday life. Much like food, which often brings people closer, storytelling became the centre of the afternoon’s experience.

The session featured a diverse group of voices, including writer and journalist Ruth D’Souza Prabhu, wine expert and writer Ruma Singh, hospitality connoisseur Aslam Gafoor, and sensory artist Indu Antony, known for capturing the unique scents of Karnataka.

As the conversation unfolded, it became clear that despite their different backgrounds, storytelling connected them all. Rooted in Indian culture and heritage, food emerged as a shared theme, bringing together memories, perspectives, and personal journeys, reflecting what LOYA aims to celebrate.

The menu added another layer to the experience, featuring dishes with strong cultural roots and stories of their own. Guests were served selections such as Dal ki Chaat, Dahi Kraal, Gola Paratha, Tudkiya Bhaat, and Kala Moti Gucchi Pulao, each offering a glimpse into traditional flavours.

Set against the serene backdrop of Taj West End, Bengaluru, the afternoon carried a sense of quiet elegance. Conversations flowed naturally, supported by a thoughtfully planned culinary experience.

Through such initiatives, LOYA continues to create a space where food, culture, and storytelling come together in a meaningful way, offering guests an experience that goes beyond dining.

LOYA, operated by IHCL, is the brand’s flagship North Indian concept that celebrates the culinary traditions of the region. With a focus on time-honoured recipes, slow cooking methods, and heirloom ingredients, the restaurant presents flavours that are both authentic and refined. With a seating capacity of 117, LOYA at Taj West End, Bengaluru offers an experience where every detail, from the interiors to the music, is designed to reflect India’s rich food heritage while blending it with a modern touch.


Courtyard Pune Chakan Enhances Stay with Focus on Comfort and Well-being

Courtyard Pune Chakan Enhances Stay with Focus on Comfort and Well-being

By Hariharan U

Published on March 28, 2026

Courtyard by Marriott Pune Chakan has introduced a property-wide upgrade aimed at improving guest comfort and overall well-being, with a clear focus on enhancing the stay experience.

As part of this initiative, the hotel has installed new mattresses across all rooms, addressing the growing importance of quality sleep for travellers. The move reflects a shift in hospitality priorities, where rest and relaxation are becoming key parts of the guest journey.

The upgrade has been designed keeping both business and leisure travellers in mind, offering a space that supports better sleep, reduces travel fatigue, and creates a more relaxed environment throughout the stay.

Commenting on the development, Amol More said, “At Courtyard By Marriott Pune Chakan, we believe that true hospitality goes beyond service, it’s about how our guests feel during and after their stay. This upgrade is part of our ongoing commitment to ensuring every guest experiences superior comfort, relaxation, and peace of mind.”

The refreshed room experience is part of the hotel’s continued effort to align its offerings with wellness-focused travel trends, where guests increasingly look for stays that help them unwind and recharge.

With this update, the property continues to strengthen its approach to guest-centric hospitality, focusing on simple yet impactful changes that make a noticeable difference to the overall stay.

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