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.


ITC Hotels Strengthens Rajasthan Presence with Signing of Welcomhotel Jaipur

ITC Hotels Strengthens Rajasthan Presence with Signing of Welcomhotel Jaipur

By Hariharan U

Published on June 20, 2026

ITC Hotels Limited has announced the signing of a management agreement for a 140-key Welcomhotel by ITC Hotels in Jaipur, marking another significant step in the company’s expansion strategy across key state capitals and high-demand hospitality markets.

The upcoming property will strengthen ITC Hotels’ presence in Rajasthan, a state renowned for its rich cultural heritage, royal architecture, and thriving tourism sector. Jaipur, in particular, continues to attract domestic and international travellers, while remaining one of India’s most sought-after destinations for weddings, celebrations, and business events.

Designed to blend contemporary comfort with the city’s historic charm, Welcomhotel Jaipur will feature well-appointed guest rooms and suites, an all-day dining restaurant, a specialty restaurant, and a lounge bar. The hotel will also offer extensive event infrastructure, including more than 15,000 square feet of indoor banqueting space and 22,000 square feet of landscaped outdoor venues, positioning it as a preferred destination for MICE events and destination weddings.

Guests will have access to wellness and spa facilities, further enhancing the overall hospitality experience.

Commenting on the development, Anil Chadha, Managing Director of ITC Hotels Limited, said Jaipur represents a unique blend of heritage and growing demand for premium hospitality experiences. He noted that the project aligns with the company’s focus on strengthening its presence in high-visibility destinations across India.

Directors of Ashraya Hotels and Resorts Anil Agarwal, Sunil Agarwal, and Peyush Agarwal said the partnership aims to bring world-class hospitality experiences to Jaipur while celebrating Rajasthan’s cultural legacy.

The signing follows ITC Hotels’ recent expansion announcements in Bhubaneswar, Dehradun, and Hyderabad, reinforcing its long-term commitment to growing its hospitality portfolio across emerging and established markets in India.


MRG Group Expands Hospitality Footprint with Launch of Goldfinch Panjim Goa

MRG Group Expands Hospitality Footprint with Launch of Goldfinch Panjim Goa

By Hariharan U

Published on June 20, 2026

MRG Group has announced the launch of Goldfinch Panjim Goa, further strengthening its hospitality presence in one of India's most sought-after leisure destinations. Located in the heart of Panjim and overlooking the scenic Mandovi River, the new property joins the growing Goldfinch Hospitality portfolio across the country.

Designed for both business and leisure travellers, Goldfinch Panjim Goa offers 98 guestrooms, including seven suites, equipped with modern amenities and contemporary comforts. The hotel combines elegant interiors, green surroundings, and a central location to provide guests with a comfortable and convenient stay experience.

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The property's dining offering is anchored by Banjara, the all-day dining restaurant serving a mix of global cuisine and locally inspired dishes that celebrate Goa's rich culinary heritage.

Commenting on the launch, K. Prakash Shetty said the opening reflects the group's continued commitment to expanding its hospitality footprint in high-potential markets while focusing on sustainable growth, operational excellence, and guest-centric experiences.

Gaurav Shetty added that Goa remains one of India's most iconic travel destinations and the launch marks another important milestone in the company's hospitality growth journey.

The launch reinforces MRG Group's long-term expansion strategy, with the company targeting more than 3,500 hotel keys by 2035. The group currently operates several hospitality assets across India, including Goldfinch-branded hotels and partnerships with global hospitality brands.

For more information about the group, visit MRG Group.


International Yoga Day Finds Its Home at Four Seasons Resort Maldives

International Yoga Day Finds Its Home at Four Seasons Resort Maldives

By Hariharan U

Published on June 19, 2026

As the world celebrates International Yoga Day on June 21, wellness takes centre stage at Four Seasons Resort Maldives at Landaa Giraavaru, where yoga, nature, and holistic healing come together in one of the Indian Ocean’s most serene settings.

Nestled within the UNESCO-listed Baa Atoll Biosphere Reserve, the island resort has long been recognised for its immersive approach to wellbeing. Surrounded by turquoise waters and vibrant marine life, the resort offers a tranquil environment where guests can disconnect from daily routines and reconnect with themselves.

At the heart of the wellness experience is AyurMa, the resort’s dedicated wellness sanctuary whose name translates to “Mother of Life” in Sanskrit. Designed around the principles of holistic healing, AyurMa blends yoga, Ayurveda, naturopathy, and mindful living to create personalised wellness journeys.

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For International Yoga Day, guests can participate in a range of yoga experiences tailored to individual needs. Developed in collaboration with S-VYASA University, the resort’s Yoga Therapy programme addresses concerns such as stress management, spinal health, flexibility, and overall wellbeing. Guests can also explore unique experiences including AntiGravity Yoga, Aqua Float Yoga, and Pregnancy Yoga, each designed to make the practice accessible and engaging.

The island setting further enhances the experience, with yoga sessions conducted in open-air pavilions overlooking the lagoon. Guests can also take part in Rahumathuge Vaguthu, a sunset Earth Blessing ceremony that combines mindfulness with gratitude, creating a deeper connection to nature and community.

Complementing the yoga programme is AyurMa’s comprehensive Ayurveda offering, including personalised consultations, Shirodhara treatments, traditional oil therapies, and a Government of Maldives-accredited Panchakarma programme. Guided by Dr. Arun K. Tomson, these therapies are designed to support the body’s natural healing processes and restore balance.

This International Yoga Day, Four Seasons Resort Maldives at Landaa Giraavaru offers more than a wellness retreat—it presents an opportunity to embrace mindfulness, healing, and self-discovery in one of the world’s most extraordinary natural settings.

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