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.


Raffles Cambodia Secures Top Honours in Travel + Leisure Luxury Awards 2026

Raffles Cambodia Secures Top Honours in Travel + Leisure Luxury Awards 2026

By Hariharan U

Published on June 30, 2026

Raffles Cambodia’s iconic heritage hotels have secured top honours in the Travel + Leisure Luxury Awards Asia-Pacific 2026, reaffirming their position among the region’s leading luxury hospitality destinations.

Raffles Hotel Le Royal in Phnom Penh was ranked Cambodia’s No. 1 city hotel, while Raffles Grand Hotel d’Angkor in Siem Reap secured the No. 2 position in the same category. Both properties also featured prominently across additional award categories, highlighting their continued excellence in luxury hospitality.

In the “Best Hotel Swimming Pools” category, Raffles Hotel Le Royal ranked No. 2, while Raffles Grand Hotel d’Angkor secured the No. 4 position. The Siem Reap property also earned the No. 4 spot in the “Best Hotel Spas” category. Adding to the accolades, Raffles Hotel Le Royal General Manager Dagmar Lyons was recognised among Cambodia’s best General Managers.

Commenting on the recognition, Dagmar Lyons said the achievement reflects the dedication of the entire team in bringing the heritage spirit of the hotel to life while maintaining Raffles’ signature warm and intuitive service.

Joseph Colina, General Manager of Raffles Grand Hotel d’Angkor, noted that the recognition reinforces the hotel’s role as a historic gateway to Angkor and its commitment to preserving Cambodia’s cultural and hospitality legacy.

The strong performance at the awards follows recent heritage-focused initiatives by Raffles Cambodia, including the launch of the “Grand Path of History” tour and a new publication chronicling the golden age of travel in Southeast Asia. The brand also continues to showcase archival materials and historical artefacts across its properties.

Raffles Hotel Le Royal, originally opened in 1929, is known for its French colonial, Khmer, and Art Deco-inspired design, following a major restoration completed in 2019. Meanwhile, Raffles Grand Hotel d’Angkor, established in 1932, continues to reflect classic French Art Deco architecture blended with Cambodian influences.

Both properties were previously among the select hotels in Cambodia to receive MICHELIN Keys in the inaugural edition of the guide for the country. Raffles Hotel Le Royal was also ranked the No. 2 hotel in Southeast Asia in the Condé Nast Traveler Readers’ Choice Awards 2025.

With continued global recognition, Raffles Cambodia strengthens its position as a custodian of heritage luxury hospitality, blending history, culture, and refined service across its iconic properties.


Novotel Cairo Airport Marks World Oceans Day with ‘From the Nile to the Ocean’ Initiative

Novotel Cairo Airport Marks World Oceans Day with ‘From the Nile to the Ocean’ Initiative

By Hariharan U

Published on June 25, 2026

Novotel Cairo Airport commemorated World Oceans Day with its "From the Nile to the Ocean" initiative, a sustainability-focused programme designed to highlight the connection between local environmental responsibility and global marine conservation.

The initiative brought together wellness, education, and responsible dining experiences to encourage greater awareness of the importance of protecting water resources. Through the campaign, the hotel sought to demonstrate how local actions can contribute to broader environmental preservation efforts.

The day began with an outdoor yoga session overlooking the Nile River, creating a reflective and mindful setting for participants. The wellness activity reinforced the campaign's message that meaningful environmental change begins with individual awareness and conscious choices.

Following the yoga session, hotel associates participated in an interactive educational presentation focused on water conservation and ocean safety. The discussion highlighted the role local waterways play in supporting larger marine ecosystems and emphasized the importance of protecting rivers such as the Nile as part of a global sustainability effort.

As part of the celebration, Novotel Cairo Airport's culinary team curated a special menu centred on fresh, local, and responsibly sourced ingredients. Served poolside, the dining experience showcased how sustainable sourcing and conscious food choices can contribute to environmental stewardship while supporting local communities.

By integrating wellness activities, environmental education, and sustainable dining into a single initiative, the hotel aimed to create a holistic experience that encouraged participants to reflect on their relationship with natural resources and the environment.

The programme further reinforces Novotel Cairo Airport's commitment to responsible hospitality and sustainability, while supporting Accor's broader vision of promoting environmentally conscious practices across its global portfolio.

Through initiatives such as "From the Nile to the Ocean," the hotel continues to engage both its team members and guests in conversations around sustainability, inspiring collective action toward the protection of vital water ecosystems and the preservation of the planet's natural resources.


The Forum Hotel & Convention Centre Celebrates International Yoga Day with Wellness Morning in Ahmedabad

The Forum Hotel & Convention Centre Celebrates International Yoga Day with Wellness Morning in Ahmedabad

By Hariharan U

Published on June 24, 2026

The Forum Hotel & Convention Centre marked International Yoga Day with a thoughtfully curated wellness initiative that brought together guests, wellness enthusiasts, and hotel associates for a morning dedicated to mindfulness and holistic wellbeing in Ahmedabad.

The event featured a guided yoga and meditation session designed to encourage participants to slow down, reconnect with themselves, and embrace balance in an increasingly fast-paced lifestyle. Attendees from different age groups took part in yoga asanas, breathwork exercises, and mindfulness practices in a calm and energising environment.

Positioned as a community-focused initiative, the celebration reflected the growing importance of wellness in modern hospitality experiences. The session aimed to create a shared space where participants could prioritise both physical and mental wellbeing while taking a conscious break from daily routines.

Speaking about the initiative, Kalpesh Prajapati, Managing Director of The Forum Hotel & Convention Centre, highlighted that wellness has evolved from being an occasional luxury to an essential part of contemporary living and travel. He emphasised the hotel’s commitment to creating experiences that promote mindfulness, balance, and overall wellbeing within the community.

As wellness continues to shape the hospitality landscape, The Forum Hotel & Convention Centre has been focusing on experiences that extend beyond accommodation and events, encouraging meaningful engagement with both guests and the wider Ahmedabad community.

The International Yoga Day celebration concluded with healthy refreshments and informal interactions among participants, reinforcing the importance of conscious living and collective wellbeing.

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