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.


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.


IHCL Partners with Etihad Guest to Expand Global Loyalty Benefits

IHCL Partners with Etihad Guest to Expand Global Loyalty Benefits

By Hariharan U

Published on April 25, 2026

Indian Hotels Company Limited has announced a strategic partnership between its loyalty platform Taj InnerCircle-Neupass and Etihad Guest, expanding global benefits for travellers.

The collaboration brings together two established loyalty ecosystems, enabling members to access enhanced travel and stay privileges across participating hotels worldwide. As part of the alliance, Etihad Guest members can enjoy exclusive savings at IHCL properties and earn miles on hotel stays.

The benefits extend across IHCL’s diverse portfolio, including brands such as Taj Hotels, SeleQtions, Vivanta, Gateway, amã Stays & Trails, and Claridges Collection.

Commenting on the partnership, Praveen Chander Kumar, Executive Vice President – Commercial, IHCL, noted that as travel becomes increasingly seamless, guests are seeking familiarity and added value across destinations. He highlighted that the collaboration will allow IHCL to engage with a broader global member base while enhancing the overall loyalty experience.

From the aviation side, Etihad Airways strengthens its ecosystem by extending benefits beyond flights. Mark Potter, Managing Director, Etihad Guest, stated that the partnership enhances value for members by offering more opportunities to earn and redeem miles across a wider travel network.

The alliance reflects a growing trend in the travel and hospitality industry, where integrated loyalty ecosystems are becoming key to delivering seamless, personalised experiences. By combining hospitality and aviation rewards, the partnership aims to create a more connected journey for global travellers.

With this collaboration, IHCL and Etihad Guest are set to broaden their global reach, offering members a more rewarding and cohesive travel experience across destinations


TSG Hotels Brings Smiles with CSR Dinner

TSG Hotels Brings Smiles with CSR Dinner

By Hariharan U

Published on April 23, 2026

In a thoughtful CSR initiative, TSG Hotels & Resorts organized a special dinner for children at Pranab Kanya Sangha on April 20, creating an evening filled with warmth and happiness.

Guided by the vision of Managing Director Mr. G. Bhasker, the team spent quality time with the children, turning the gathering into more than just a meal. Conversations, shared laughter, and genuine interaction made the evening memorable for everyone involved.

Corporate General Manager Mr. Chiranjit Das, present at the event, reaffirmed the brand’s continued commitment to meaningful social initiatives. He expressed gratitude to the team at Pranab Kanya Sangha for the opportunity to contribute and engage with the children in such a positive setting.

The joy on the children’s faces reflected the impact of the gesture, as they enjoyed the dinner and the attention that came with it.

Through initiatives like this, TSG Hotels & Resorts continues to highlight its dedication to community care and social responsibility, going beyond hospitality to create real human connections

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