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.


Hyatt Hotels in Goa Launch GOA YOU 2026 with New Hyatt Hideaways Seasonal Experience

Hyatt Hotels in Goa Launch GOA YOU 2026 with New Hyatt Hideaways Seasonal Experience

By Hariharan U

Published on July 14, 2026

Hyatt Hotels in Goa have announced the launch of GOA YOU 2026, marking the fourth consecutive year of the destination-led campaign that celebrates Goa beyond its traditional tourism experiences. This year's edition introduces Hyatt Hideaways, a seasonal stay offering designed to encourage travellers to experience the destination at a slower, more personal pace during the summer and monsoon months.

Built around the belief that Goa allows every traveller to discover a different version of themselves, GOA YOU 2026 focuses on meaningful experiences ranging from relaxed mornings and local discoveries to leisurely dining and moments of quiet indulgence. The initiative highlights how every visit to Goa is unique, whether for families, couples, or solo travellers.

The campaign brings together Hyatt's five properties across the state: Grand Hyatt Goa, Alila Diwa Goa, Hyatt Centric Goa, Ronil Goa – a JdV by Hyatt Hotel, and Hyatt Place Goa. Together, the hotels offer diverse experiences spanning luxury resorts, lifestyle hotels, and contemporary accommodation across North and South Goa.

Introduced as the centrepiece of this year's campaign, Hyatt Hideaways is a curated seasonal package available for stays from 28 April to 30 September 2026, with bookings open until 15 September 2026. The offer requires a minimum stay of two nights and is designed to encourage guests to explore Goa beyond the peak holiday season.

The package includes a welcome beer on arrival, daily buffet breakfast, one cocktail or mocktail per guest during dinner or a daily beer bucket, along with an INR 1,000 hotel credit per night. Through these inclusions, Hyatt aims to enhance the guest experience while promoting longer, more immersive stays.

By showcasing Goa's lush monsoon landscapes, local culinary experiences, and slower pace of life, GOA YOU 2026 encourages travellers to rediscover the destination from a fresh perspective. The initiative reinforces Hyatt Hotels' long-standing connection with Goa while positioning the state as a year-round destination for leisure and experiential travel.


Encalm Hospitality Expands Airport Experience with New International Lounge at Hyderabad Airport

Encalm Hospitality Expands Airport Experience with New International Lounge at Hyderabad Airport

By Hariharan U

Published on July 11, 2026

Encalm Hospitality has announced the launch of its new International Lounge at Rajiv Gandhi International Airport, Hyderabad, further expanding its airport hospitality portfolio and reinforcing its focus on delivering premium travel experiences.

The new lounge has been designed to meet the evolving expectations of modern international travellers by integrating comfort, wellness, dining, and personalised hospitality within a thoughtfully curated environment. The launch marks another milestone in Encalm's strategy of building a comprehensive airport hospitality ecosystem across India's leading aviation hubs.

Designed as a space for relaxation before departure, the lounge features state-of-the-art sleeping pods, therapeutic spa treatments, private dining facilities for families and guests seeking privacy, and a well-stocked bar. The experience has been curated to transform pre-flight waiting time into a seamless journey of comfort and rejuvenation.

Food remains a central part of the experience, with interactive live culinary stations serving freshly prepared dishes that combine regional Indian flavours with contemporary international cuisine. The curated dining programme is complemented by a refined beverage selection, catering to a wide range of traveller preferences.

Commenting on the launch, Vikas Sharma, Group Chief Executive Officer of Encalm, said the new lounge reflects the company's commitment to creating future-ready hospitality experiences driven by innovation, thoughtful design, and operational excellence. He added that Encalm aims to continue setting new benchmarks by delivering intuitive and differentiated experiences for global travellers.

Pooja Bhondekar, Business Head – Airport Hospitality, Encalm, said the expansion reflects the brand's mission of creating memorable experiences across every touchpoint of the passenger journey. She noted that every element of the lounge, from wellness facilities to curated dining and personalised service, has been carefully designed to offer warmth, comfort, and convenience.

With the addition of the Hyderabad International Lounge, Encalm continues to strengthen its integrated airport hospitality ecosystem, which includes premium lounges, meet-and-assist services, wellness offerings, in-flight catering, and curated food and beverage concepts across major Indian airports.


Taj Connemara Hosts Parvathy Thiruvothu for Chennai Debut of Screen Expresso

Taj Connemara Hosts Parvathy Thiruvothu for Chennai Debut of Screen Expresso

By Manu Vardhan Kannan

Published on July 11, 2026

Taj Connemara, Chennai recently hosted the 15th edition of Screen Expresso, the popular conversation series by The Indian Express, marking the platform's first-ever event in Chennai. Held on June 30, the evening featured acclaimed actor Parvathy Thiruvothu, who engaged in an open conversation on cinema, gender equality, and staying true to one's values in the film industry.

The event was presented by AU Small Finance Bank, in association with Taj Hotels, with BMW KUN Exclusive as the Mobility Partner.

Known for her acclaimed performances across Malayalam, Tamil, Kannada, and Hindi cinema, Parvathy has built a reputation for choosing meaningful roles while also advocating for gender equality within the film industry. During the session, she shared her thoughts on speaking up, navigating challenges, and remaining committed to authenticity and artistic integrity throughout her career.

The discussion was moderated by Pooja Pillai, Senior Assistant Editor, The Indian Express, and drew a distinguished audience comprising leaders from the business, arts, media, entertainment, and hospitality sectors, making it one of Chennai's notable cultural gatherings.

Commenting on the occasion, Shilpa Rameja, General Manager, Taj Connemara, Chennai, said:

"It was a privilege for Taj Connemara to host the first-ever Chennai edition of Screen Expresso. At Taj, we have always believed that hospitality extends beyond creating memorable stays - it is about creating meaningful experiences and fostering conversations that inspire. Hosting an artist as accomplished and thought-provoking as Parvathy Thiruvothu made for an unforgettable evening. We are delighted to have partnered with The Indian Express to bring this celebrated platform to the city."

Guests were welcomed with an elegant high tea featuring a selection of regional delicacies and contemporary favourites. The menu included artisanal cookies, handcrafted tea cakes, open-faced canapés with roasted chicken and herb-infused mayonnaise, grilled seasonal vegetable sandwiches, cottage cheese and spinach turnovers, and a live station serving ragi paniyaram with gongura and cream cheese, accompanied by speciality teas, freshly brewed coffee, and refreshing beverages.

Following the conversation, attendees enjoyed a specially curated flying buffet featuring a mix of global and Indian flavours. The menu included honey chilli prawns, mutton galouti, Chettinad fried chicken, vegetable sushi, corn and jalapeño arancini, along with live stations serving dim sums, Thai curries, pastas, appams with stew, and dum biryanis. The evening concluded with desserts such as mango rasmalai, gulab jamun, vegan chia seed panna cotta, banana crème brûlée, and artisanal chocolates.

Through its association with Screen Expresso, Taj Connemara reinforced its commitment to creating spaces that celebrate meaningful conversations, creativity, and culture while continuing its legacy of blending hospitality with memorable experiences.

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