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.


Summit Hotels & Resorts to Open 17-Villa Retreat in Lachung, Sikkim

Summit Hotels & Resorts to Open 17-Villa Retreat in Lachung, Sikkim

By Hariharan U

Published on October 25, 2026

Summit Hotels & Resorts is set to expand its Signature Collection with a 17-villa retreat in Lachung, North Sikkim, scheduled to open in December 2026. The upcoming property will strengthen the company's premium hospitality portfolio in the Eastern Himalayas, with an emphasis on local architecture, cultural experiences and the region's natural landscape.

Located at an altitude of approximately 8,600 feet, Lachung is around 118 km from Gangtok and serves as a gateway to destinations including Yumthang Valley, Zero Point and Katao. The retreat will feature 17 villas inspired by traditional Sikkimese architecture, reflecting the area's cultural character and mountain setting.

Beyond accommodation, the property is expected to offer experiences that encourage guests to explore North Sikkim beyond conventional sightseeing. Planned activities include guided village walks, opportunities to discover Bhutia traditions and cuisine, visits to nearby orchards and monasteries, and excursions to alpine valleys. Seasonal experiences such as rhododendron viewing, winter snow excursions and stargazing are also being considered, subject to local conditions.

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Commenting on the development, Sumit Mitruka, CEO, Summit Hotels & Resorts, said, “North Sikkim has considerable potential to develop beyond conventional sightseeing-led tourism. Lachung is already an important stop on the Yumthang and Zero Point circuit, but we believe there is an opportunity to encourage travellers to spend more time in the destination itself. With this retreat, we want to introduce a premium stay experience that draws on the region's architecture, culture and natural surroundings. We also see opportunities to work with local communities through employment, sourcing and destination experiences as tourism develops.”

The project comes amid renewed tourism interest in North Sikkim, supported by improved accessibility along the Lachung–Yumthang–Zero Point circuit. Known for its Himalayan scenery, rhododendron forests and traditional Bhutia settlements, Lachung offers opportunities to develop longer, nature-focused stays alongside established sightseeing itineraries.

The retreat will join Summit's Signature Collection, which includes Summit Norbu Ghang in Gangtok and Summit Rungkhung Village Resort in Dirang, Arunachal Pradesh. The collection forms part of the company's wider strategy to develop premium, destination-focused hospitality across the Eastern Himalayas and other leisure markets in India.

With the Lachung project, Summit is looking to combine premium accommodation with local culture and nature-based experiences, while creating opportunities for community participation as tourism in North Sikkim evolves


The Long Weekend Escape You Didn't Know You Needed: Cintacor Island, Karwar

The Long Weekend Escape You Didn't Know You Needed: Cintacor Island, Karwar

By Manu Vardhan Kannan

Published on October 22, 2026

Looking for a peaceful escape this Dussehra? Cintacor Island Resort in Karwar, Karnataka, offers a private island getaway where guests can enjoy the beach, explore the sea and unwind amid nature. Spread across a 33-acre private island along Karnataka's lesser-explored coastline, the resort offers an alternative to crowded holiday destinations for the festive long weekend from 20–22 October 2026.

Surrounded by the Arabian Sea, the resort brings together relaxation, outdoor activities and scenic coastal views. Guests can spend their days at the private beach, enjoy the swimming pool or explore the island's NatureLab, making it a refreshing choice for travellers looking to slow down and enjoy a few days away from their usual routine.

For those who want more than a relaxed beach holiday, Cintacor Island offers several experiences on land and at sea. Guests can try kayaking and fishing or head out on dolphin cruises to explore the surrounding waters. Those looking to unwind can visit the private Kurmasana Spa, which offers a peaceful setting to relax during their stay.

One of the island's highlights is Nemo's Deck, located at its highest point. Offering panoramic views of the Arabian Sea, it provides a beautiful spot to watch the sunset. As the day winds down, guests can head to Jolly Rogers for a leisurely meal while enjoying the island's relaxed atmosphere.

With its private beach, sea-facing experiences and natural surroundings, Cintacor Island Resort offers a different way to celebrate the Dussehra long weekend. Whether travellers are looking for a quiet break, a little adventure or simply time by the sea, the island provides an opportunity to step away from busy holiday destinations and enjoy a coastal retreat.

For those planning a festive getaway, Cintacor Island Resort, Karwar, presents an inviting option to spend the long weekend surrounded by nature, with the Arabian Sea setting the scene for a memorable holiday.

  • Venue: Cintacor Island Resort, Karwar, Karnataka
  • Location: Cintacor Island Resort
  • Dates: 20–22 October 2026.


Sayaji Raipur Brings Dussehra Dining and Halloween Celebrations to October

Sayaji Raipur Brings Dussehra Dining and Halloween Celebrations to October

By Hariharan U

Published on October 20, 2026

Sayaji Raipur is bringing the festive season to the table with two special dining experiences this October, combining a Dussehra celebration at Cravings with a themed Halloween evening at its rooftop destination, Horizon.

Designed around food, festivities and social gatherings, the hotel's October calendar offers guests opportunities to celebrate traditional occasions and enjoy a contemporary seasonal experience with family and friends.

Dussehra Celebration at Cravings

On October 20, 2026, Cravings at Sayaji Raipur will mark Dussehra with a special festive dining experience featuring traditional flavours and a celebratory atmosphere.

Guests can avail themselves of a 2+1 offer during lunch, providing an opportunity for families and groups to gather over a festive meal.

Halloween Night at Horizon

The celebrations will continue on October 31, 2026, with a themed Halloween Night at Horizon, Sayaji Raipur's rooftop destination.

The evening will feature Halloween-inspired food and drinks, themed décor and an entertaining ambience, bringing a seasonal twist to the rooftop dining experience.

Guests can also enjoy 15% off the à la carte menu, while drinks will be available at MRP.

Together, the two events reflect Sayaji Raipur's approach to seasonal dining, bringing traditional festivities and contemporary themed celebrations into its October programme.

Event Details

Dussehra at Cravings

  • Date: October 20, 2026

  • Offer: 2+1 during lunch

Halloween Night at Horizon

  • Date: October 31, 2026

  • Offer: 15% off the à la carte menu

  • Drinks: Available at MRP

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