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.


The Serai Resorts Promotes Conservation-Led Safari Tourism in Karnataka

The Serai Resorts Promotes Conservation-Led Safari Tourism in Karnataka

By Manu Vardhan Kannan

Published on May 26, 2026

The Serai Resorts is reinforcing its commitment to conservation-focused safari tourism across its wildlife destinations in Bandipur and Kabini. As travellers increasingly seek more meaningful and responsible wildlife experiences, the hospitality brand is placing sustainability, ecological balance, and community involvement at the centre of its safari offerings.

Located within Karnataka’s ecologically important regions of Bandipur Tiger Reserve and Nagarahole National Park, The Serai Resorts has designed its safari experiences around regulated tourism practices, local expertise, and long-term coexistence with nature. Rather than encouraging high-volume tourism or staged wildlife encounters, the focus remains on creating experiences that respect natural habitats and follow established conservation protocols.

The safari model at The Serai Bandipur and The Serai Kabini places emphasis on smaller and quieter experiences that allow guests to better understand the ecosystem. All safari bookings are conducted through authorised government systems and follow Forest Department regulations related to visitor capacity, timings, and approved movement routes within reserve zones.

Guests are accompanied by experienced naturalists and authorised guides who provide deeper insights into wildlife behaviour, birdlife, habitats, and forest ecology. This approach shifts the experience from simply seeking animal sightings to understanding the larger rhythm of the natural environment. The resort also encourages guests to book safaris in advance to help manage visitor movement responsibly during peak seasons.

The Serai Resorts has also maintained a clear stance on ethical wildlife practices. In line with Forest Department regulations, the brand does not support night safaris in protected areas such as Bandipur National Park and Nagarahole National Park, recognising the need to avoid disturbing wildlife during crucial nocturnal activity periods. Instead of promoting guaranteed sightings, guests are introduced to the realities of nature and encouraged to appreciate wildlife responsibly.

Naturalists regularly guide visitors on safari etiquette, including maintaining silence, avoiding sudden movement, and respecting wildlife boundaries to ensure minimal disturbance to the ecosystem.

Community involvement remains a key part of the brand’s conservation philosophy. A large portion of the teams working at Bandipur and Kabini come from nearby regions and bring strong local knowledge of forest landscapes, biodiversity, and wildlife movement patterns. Several naturalists also contribute through their field expertise and close association with Forest Department initiatives and wildlife observation efforts.

Beyond employment opportunities, the company also supports community wellbeing through education assistance for employees' children, medical insurance support, and healthcare access where needed. The same philosophy of coexistence extends to wildlife movement near resort spaces, where a non-interventionist approach is followed, allowing animals to move naturally without disruption.

The brand is also expanding nature engagement beyond traditional jeep safaris. Guests can participate in guided nature walks and seasonal boat safaris, creating opportunities to experience wildlife and biodiversity from different perspectives. At The Serai Kabini, boat safaris across the Kabini backwaters provide changing wildlife and birdwatching experiences throughout the year, while nature walks offer a slower and more immersive connection with the environment.

As part of its wider conservation efforts, The Serai Resorts also documents wildlife and bird sightings during safari experiences and shares relevant observations with forest authorities as supporting ecosystem inputs. Through its blend of regulated safari experiences, local participation, and conservation-focused practices, the brand continues to promote a more sustainable future for wildlife tourism in India.


NILE Hospitality to Launch Rajkot’s First International Branded Hotel with Radisson Hotel Group

NILE Hospitality to Launch Rajkot’s First International Branded Hotel with Radisson Hotel Group

By Author

Published on May 25, 2026

NILE Hospitality has announced the upcoming opening of Park Inn & Suites by Radisson Rajkot, marking a significant milestone in Rajkot’s hospitality landscape as the city’s first internationally branded hotel.

The launch further strengthens NILE Hospitality’s growing portfolio of internationally managed properties while reinforcing its long-term strategic collaboration with Radisson Hotel Group. The upcoming property represents the seventh operational partnership between the two organisations and is expected to be the first among several Park Inn & Suites developments planned across emerging Indian markets.

Located in one of Gujarat’s fastest-growing commercial hubs, the hotel will feature 55 contemporary rooms, an all-day dining restaurant, and modern banquet facilities spread across approximately 2,500 sq. ft., catering to business meetings, social gatherings, and events.

The property will operate as an exclusively vegetarian hotel, reflecting regional culinary preferences and evolving traveller expectations in the Gujarat market.

The opening is expected to significantly elevate Rajkot’s hospitality ecosystem by introducing globally benchmarked service standards to a city witnessing strong industrial, commercial, and infrastructure-driven growth. Rajkot continues to emerge as a key business centre in Gujarat with thriving engineering, automobile, manufacturing, and SME sectors, creating increasing demand for professionally managed branded hospitality offerings.

Speaking on the development, Vikram Singh Chauhan said, “The hospitality landscape in Rajkot continues to undergo significance in line with the long-term development of its diverse economy and potential. Introducing Rajkot’s first international branded hotel, along with NILE’s long-established presence in Gujarat and Radisson’s world-class distribution network, will put us in a great position to contribute to the ongoing growth and diversification of the city’s hospitality sector.”

He further added that the collaboration with Devdwarika LLP as promoters reinforces the company’s commitment towards offering premium accommodation experiences for both leisure and business travellers seeking globally recognised hospitality standards.

The project highlights the growing importance of emerging urban markets within India’s hospitality expansion story, with branded hotel operators increasingly targeting high-growth commercial cities beyond major metros.


Ramee Group of Hotels Expands East India Footprint with Upcoming Hotel in Gaya

Ramee Group of Hotels Expands East India Footprint with Upcoming Hotel in Gaya

By Hariharan U

Published on May 25, 2026

Ramee Group of Hotels has announced its upcoming hospitality project in Gaya, further strengthening the group’s growing presence across East India. The expansion aligns with the company’s broader strategy of entering high-potential destinations driven by spiritual tourism, leisure travel, and business demand.

Recognised as one of India’s most significant pilgrimage destinations, Gaya continues to attract strong domestic and international footfall, supported by improving tourism infrastructure and enhanced connectivity. The city’s growing hospitality demand has made it an important market for hotel brands looking to expand into emerging travel hubs.

The upcoming property is being designed to offer a blend of comfort, convenience, and contemporary hospitality experiences. The hotel will feature well-appointed guest rooms, an all-day dining restaurant, banquet facilities, and an open-to-sky jacuzzi experience aimed at both leisure and spiritual travellers.

The property is also expected to position itself as a preferred venue for weddings, conferences, corporate events, and social gatherings with nearly 4,000 sq. ft. of dedicated banquet space.

Speaking on the expansion, Saurabh Gahoi said, “East India remains a key focus market in the company’s expansion plans, with Gaya emerging as a strategic hospitality destination due to its religious importance, growing tourism landscape, and improving infrastructure. The property aims to offer a seamless and guest-centric experience for both pilgrimage and business travellers.”

He further highlighted that increasing tourism activity and rising demand for quality accommodation continue to strengthen Gaya’s position as a promising growth market for the hospitality sector.

The launch marks another step in Ramee Group’s ongoing India expansion strategy as the company continues to build a diversified hospitality portfolio across business, leisure, and pilgrimage-led destinations. The group remains focused on delivering thoughtfully designed hospitality experiences backed by service excellence and guest comfort.

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