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.


Country Inn Hotels & Resorts Adds Six Properties in a Month

Country Inn Hotels & Resorts Adds Six Properties in a Month

By Hariharan U

Published on April 29, 2026

Country Inn Hotels & Resorts, the flagship brand of Espire Hospitality Limited, has marked a significant milestone with six hotel openings within a single month, strengthening its footprint across key travel destinations in India.

The latest additions include new properties in Goa, Katra, and Patna, following earlier launches in Rishikesh and Dehradun. With this, the brand continues to build a diverse, multi-format portfolio catering to leisure, pilgrimage, and business travellers.

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The 44-key Country Inn in Goa marks the brand’s entry into one of India’s most popular leisure markets. Located close to Calangute Beach, the hotel offers a relaxed coastal setting with an all-day dining restaurant, Ruhani, and a poolside bar, Liquid, alongside modern rooms and leisure facilities.image

In North India, the launch of Country Inn in Katra strengthens the brand’s presence in pilgrimage destinations. Positioned near the gateway to Vaishno Devi Temple, the 36-room hotel is designed to offer convenience and comfort for spiritual travellers, with easy access to key routes and attractions.

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Further expanding into urban markets, Country Inn Smart Stays in Patna introduces a new format tailored for city travellers. Located in a central commercial district, the 50-room property offers access to landmarks such as Mahavir Mandir, Golghar, and Bihar Museum, along with business-friendly amenities including banquet halls and meeting spaces.

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Commenting on the expansion, Akhil Arora said, “These openings across Goa, Katra, and Patna, following our recent launches in Uttarakhand, represent a thoughtful step in strengthening our presence across India. By tapping into diverse markets—from leisure and pilgrimage to urban centres, we are building a portfolio that aligns with evolving travel trends.”

With this rapid expansion, Country Inn Hotels & Resorts continues to focus on destination-led growth, combining accessibility, comfort, and brand-led hospitality across emerging and established markets.


The Golden Tusk Launches All-Inclusive Summer Retreat Amid Micro-Vacation Boom

The Golden Tusk Launches All-Inclusive Summer Retreat Amid Micro-Vacation Boom

By Hariharan U

Published on April 29, 2026

The Golden Tusk has introduced a curated all-inclusive summer retreat, responding to the growing demand for short, driveable ‘micro-vacations’ among Indian travellers.

Located on the edge of Jim Corbett National Park, the experiential resort is positioning itself as a preferred escape for North Indian families, especially as rising temperatures follow a phase of erratic weather across the region.

Industry trends indicate a notable shift in travel behaviour, with an estimated 18% year-on-year increase in summer bookings. Travellers are increasingly opting for bundled, hassle-free experiences, moving away from traditional itineraries toward destination-led stays that offer convenience and immersion.

Commenting on the trend, Anirudh Lakhotia said, “Summer travel in India has moved past simple sightseeing. With the sudden onset of intense heat, families are looking for a ‘resort-as-a-destination’ where every hour is thoughtfully planned. We’ve created an environment where children stay engaged while parents can truly unwind.”

The summer package is built around effortless relaxation and all-inclusive comfort, offering full-board dining with buffet meals and evening high tea, alongside curated entertainment experiences that bring a lively, community-driven atmosphere to evenings.

For active travellers, the resort integrates sports and recreation with nature-led experiences. Facilities include multiple swimming pools, courts for volleyball, badminton, and basketball, along with a dedicated pickleball court—reflecting the rising popularity of the sport in India. Younger guests are catered to with craft activities, indoor play areas, and outdoor recreational zones.

The offering also includes wellness-driven benefits, such as discounts on spa services and dining experiences, enhancing the overall stay. Packages start at ₹29,999 for a two-night, three-day experience, with optional jeep safaris available to explore the park’s high tiger-density zones.

Lakhotia added, “As travellers seek more meaningful short breaks, our focus is on creating experiences where nature, wellness, and recreation come together seamlessly, ensuring guests leave with memories that go beyond the duration of the stay.”

With this launch, The Golden Tusk reinforces its positioning as a destination-led retreat, aligning with evolving travel preferences where shorter, experience-rich getaways are becoming the new norm.


ibis Chennai Sipcot Hosts First-Ever Coffee Rave Experience

ibis Chennai Sipcot Hosts First-Ever Coffee Rave Experience

By Manu Vardhan Kannan

Published on April 29, 2026

ibis Chennai Sipcot introduced a fresh take on morning gatherings with its first-ever Coffee Rave, bringing together specialty coffee, music, and social interaction in a lively setting. Held on April 26 from 7 AM, the event created a high-energy start to the day, offering guests an engaging and experience-driven way to begin their morning.

The concept reflects a growing shift in hospitality, where spaces are moving beyond traditional formats to create more interactive and community-led experiences. With this initiative, ibis Chennai Sipcot positions itself as an early adopter of lifestyle-driven programming that blends culture, creativity, and social connection.

Designed especially for Chennai’s young professionals, millennials, and Gen Z audiences, Coffee Rave taps into the city’s rising interest in experiences that feel active and engaging. The format encourages guests to connect, interact, and be part of a shared environment, rather than simply unwind passively.

“Coffee Rave reflects our strategic approach to reimagining hospitality through an experiential lens creating culturally relevant moments that resonate with today’s urban audience while naturally driving stronger engagement and brand recall. It’s about building a consistent rhythm where culture, community, and everyday interactions come together to deliver experiences that feel both fresh and meaningful,” said Tejus Jose, Director of Operations - ibis & ibis Styles India.

Adding to this, Parvez, Cluster General Manager, ibis Chennai Sipcot and ibis Chennai City Centre, shared, “At the property, there is a visible shift in how guests are choosing to engage with experiences, with growing interest in formats that encourage interaction, collective engagement, and effortless participation. Coffee Rave, introduced as a one-of-its-kind concept at the property in line with emerging experiential trends, responds to this shift by bringing together music, coffee, and community in a morning setting that offers a different way of engaging with the space.”

The morning featured a series of curated experiences, starting with a dedicated coffee station serving both cold brews and classic hot beverages. Guests also explored a hands-on brewing zone, where they could learn the basics of coffee-making through simple, guided interactions, adding a personal and interactive touch to the event.

A live DJ set kept the energy high throughout, turning the space into a vibrant social hub. Guests were seen enjoying conversations over coffee, along with spontaneous moments on the floor, creating a lively atmosphere where music and social interaction blended naturally.

With initiatives like Coffee Rave, ibis Chennai Sipcot highlights a broader change in hospitality, where hotels are becoming spaces for culture and connection. As guest preferences continue to evolve, such formats show how everyday experiences can be turned into something more engaging and memorable.

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