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.

image

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.”

image

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.


Cravings at Sayaji Hotel Vadodara Wins Family Restaurant of the Year 2026 Award

Cravings at Sayaji Hotel Vadodara Wins Family Restaurant of the Year 2026 Award

By Author

Published on July 19, 2026

Cravings, the signature all-day dining restaurant at Sayaji Hotel Vadodara, has been honoured with the prestigious ‘Family Restaurant of the Year 2026’ award at the Restaurant India Awards 2026. The recognition celebrates the restaurant’s commitment to culinary excellence, exceptional service, and creating memorable dining experiences for families and guests across generations.

A flagship dining destination at Sayaji Hotel Vadodara, Cravings has established itself as a preferred choice for guests seeking quality cuisine, variety, and warm hospitality. Known for its extensive breakfast, lunch, and dinner buffets, the restaurant offers a diverse selection of Indian and international cuisines, along with thoughtfully curated menus, seasonal food festivals, and live culinary experiences.

With its inviting ambience and guest-focused approach, Cravings caters to a wide range of occasions including family celebrations, festive gatherings, business lunches, and casual dining experiences. The restaurant continues to blend culinary innovation with the signature hospitality standards of Sayaji Hotels.

Commenting on the achievement, Anand Mishra, Director of Operations, Sayaji Hotel Vadodara, said, "We are honoured to receive the 'Family Restaurant of the Year 2026' award at the Restaurant India Awards. This recognition reflects the dedication of our team and the trust of our guests, who inspire us to continually elevate our dining experiences. We remain committed to delivering exceptional hospitality and creating memorable moments for every family that dines with us."

The award highlights the passion and dedication of Cravings’ culinary and service teams, who continue to enhance the dining experience through innovative concepts, regional food festivals, interactive dining experiences, and personalised service.

Through its focus on quality cuisine, guest satisfaction, and memorable experiences, Cravings continues to strengthen its position as one of Gujarat’s leading family dining destinations. The recognition further reinforces Sayaji Hotel Vadodara’s commitment to delivering exceptional culinary experiences and hospitality excellence.


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.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.