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.


Banyan Tree Samui Named Thailand’s Best Spa Resort for 2026

Banyan Tree Samui Named Thailand’s Best Spa Resort for 2026

By Hariharan U

Published on April 2, 2026

In a significant recognition for luxury wellness hospitality, Banyan Tree Samui has been named the “Best Spa Resort – Thailand” at the Global Spa Awards 2026, presented by The Luxury Spa Edit.

The award reflects a combination of expert panel evaluations, insights from global travel journalists and sustainability specialists, and over 85,000 public votes, reinforcing the resort’s strong positioning in the global wellness space.

At the heart of this recognition is the resort’s integrated approach to holistic wellbeing. The spa experience at Banyan Tree Samui goes beyond traditional treatments, offering a thoughtfully curated journey rooted in its “8 Pillars of Wellbeing” philosophy, focusing on rest, nourishment, mindfulness, movement, and personal growth.

A standout feature is its signature hydrotherapy facility, The Rainforest, which takes guests through a multi-sensory circuit of water jets, saunas, steam rooms, ice fountains, and vitality pools. This immersive experience has become a defining element of the resort’s wellness offering.

Speaking on the achievement, Naphasawan Badklang, Spa & Gallery Manager, credited the team’s rigorous training at the Banyan Spa & Wellbeing Academy and their commitment to delivering personalised guest experiences. Each treatment begins with a detailed consultation, followed by customised herbal oils and signature rituals that include sound healing, breathwork, and traditional techniques.

The award also coincides with the rollout of Banyan Tree Spa 2.0, an evolved concept that blends ancient Asian healing practices with modern wellness techniques. From personalised therapies to curated closing rituals featuring herbal foot cleansing and tea ceremonies, the experience is designed to create a deeper sense of relaxation and renewal.

Set against the scenic backdrop of Koh Samui’s Lamai Bay, the resort’s 88 private pool villas further enhance the sense of seclusion and calm. Complemented by curated dining experiences, wellness programmes, and nature-integrated design, the property continues to offer a sanctuary for travellers seeking both luxury and restoration.

With this recognition, Banyan Tree Samui strengthens its reputation as one of Asia’s leading wellness destinations, setting new benchmarks for immersive and experience-driven hospitality.


The Leela Gandhinagar Marks Earth Hour with Sustainability Initiatives

The Leela Gandhinagar Marks Earth Hour with Sustainability Initiatives

By Hariharan U

Published on April 1, 2026

The Leela Gandhinagar marked Earth Hour 2026 with a focused set of sustainability-driven initiatives, reinforcing its commitment to responsible hospitality and environmental stewardship.

As part of the global movement, the hotel switched off non-essential lighting and reduced power consumption across key areas for 60 minutes, from 8:30 pm to 9:30 pm. The symbolic gesture reflected a collective effort towards climate awareness while maintaining the refined standards associated with luxury hospitality.

Beyond the hour, the initiative underscored the hotel’s broader sustainability philosophy. From energy-efficient systems to responsible resource management, environmentally conscious practices are integrated into its day-to-day operations, aligning with the evolving expectations of modern travellers.

Speaking on the occasion, Vikas Sood said, “Earth Hour reminds us that meaningful change begins with small yet consistent actions. At The Leela Gandhinagar, sustainability remains integral to how we operate and deliver thoughtful luxury experiences.”

Through its participation, the hotel continues to build on its commitment to sustainable hospitality, contributing to a more responsible and environmentally aware future.


Novotel Jodhpur ITI Circle Marks Three Years of Hospitality and Guest Experiences

Novotel Jodhpur ITI Circle Marks Three Years of Hospitality and Guest Experiences

By Manu Vardhan Kannan

Published on March 31, 2026

Novotel Jodhpur ITI Circle marked its third anniversary on 28th March, celebrating three years of hospitality, memorable guest experiences, and a growing presence in the city. Over this period, the hotel has welcomed guests from across India and abroad, hosted over 30 distinguished celebrities, and maintained a strong position among top properties on TripAdvisor since its opening.

While these milestones highlight its journey, the hotel places equal importance on the moments it has shared with its guests. Over the years, it has grown into more than just a place to stay, becoming a space where people come together for celebrations, conversations, and memorable experiences. The return of familiar faces and continued guest trust have played a key role in shaping its journey.

A key part of the hotel’s identity is its dining approach. Known for its 100% vegetarian, sattvic cuisine, the hotel focuses on meals that are prepared with care and authenticity, while also keeping well-being in mind. This thoughtful approach has helped create a strong connection with guests who value both taste and mindful dining.

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Speaking on the occasion, Ritesh Mudgal, General Manager, said:

"These three years have been incredibly special for us. Beyond numbers and milestones, it’s the relationships we’ve built and the memories we’ve been part of that truly define our journey. We are deeply grateful to our guests for their continued trust and support."

Looking ahead, Novotel Jodhpur ITI Circle remains focused on growing further while continuing to offer experiences that reflect warmth, comfort, and flavour.

Three years. Countless memories. Infinite flavours.

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