Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

By Hariharan U

Published on September 8, 2025

The recent GST reforms announced at the 56th GST Council meeting are set to reshape India’s travel and tourism industry, placing travel agents at the intersection of new opportunities and emerging challenges.

For hotel accommodation priced up to ₹7,500 per day, the GST rate has been reduced from 12% with input tax credit (ITC) to 5% without ITC. While this makes travel more affordable for consumers, travel agents lose ITC benefits, potentially compressing margins.

In non-economy class air travel, the GST rate has increased from 12% with ITC to 18% with ITC. This change raises fares for business travelers but ensures agencies serving corporate clients can still claim full ITC, aiding cash flow management.

One of the most significant developments is the amendment of Section 13(8)(b) of the IGST Act, which now allows services provided by travel agents and tour operators to foreign clients to qualify as exports. This recognition enables agencies to avail zero-rated benefits under GST, including refunds of input tax credit, while also strengthening their global competitiveness.

The motor vehicle transport sector has also seen changes. The GST rate remains at 5% without ITC, but for those opting for full ITC, it has risen from 12% to 18%, requiring agencies to evaluate their business models carefully.

Commenting on the reforms, Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council, said,“The latest GST reforms bring both relief and responsibility for travel agents. On one hand, reduced hotel tariffs will stimulate demand in the domestic tourism segment. On the other, the removal of ITC in this category will require agents to realign their pricing strategies. Most importantly, the recognition of intermediary services as exports is a game-changer, unlocking opportunities for Indian travel businesses to expand their global footprint while enjoying the benefits of zero-rated taxation. Luxury travel is as important and needs to be promoted more, as the returns are higher, spends are higher, and it is exclusive. India needs to focus on inbound luxury tourism to stay competitive with neighbouring countries”.

As the sector adapts, the focus will be on balancing affordability with sustainable business models, ensuring Indian travel agents remain competitive in both domestic and international markets.


Himachal Hotels Association Seeks PM’s Intervention for Tourism Revival

Himachal Hotels Association Seeks PM’s Intervention for Tourism Revival

By Hariharan U

Published on September 28, 2025

The Federation of Himachal Hotels and Restaurant Association (FOHHRA) has written to Prime Minister Narendra Modi, seeking urgent relief to revive the state’s battered tourism and hospitality industry. The association has called for strict enforcement of RBI and MSME restructuring frameworks, a halt to SARFAESI actions, and financial assistance to support struggling hoteliers.

In its appeal, FOHHRA has requested interest subvention and a nine-month moratorium on loan repayments, pointing out that hotel units have remained completely shut during this year’s monsoon season, which caused widespread destruction across Himachal Pradesh.

The association’s four-page letter also pressed for flexible restructuring timelines, long-term hotel loans of up to 20 years, reversal of excess interest and penal charges, and a freeze on asset downgrades without collateral backing.

According to official data, Himachal received 41% excess rainfall between June 20 and September 25, leading to losses of nearly ₹4,861 crore. The state recorded 47 cloudbursts, 98 flash floods, and 148 major landslides, claiming 262 lives this year alone. In 2023, monsoon-related losses were estimated at around ₹10,000 crore with over 550 fatalities.

FOHHRA president Gajender Thakur stressed the urgency of intervention, saying, “Himachal is a tourism-based economy, and a large number of people—hoteliers, transporters, shopkeepers, travel agents, guides, taxi drivers, photographers, and vendors, depend on it. Many small and medium operators have already shut down, while others are on the brink of collapse after taking loans for their businesses.”

The association flagged that many borrowers are being charged interest rates as high as 15%, forcing some to sell personal assets or resort to high-interest informal loans just to stay afloat. Despite being registered MSMEs, hoteliers are reportedly facing SARFAESI proceedings, which FOHHRA argues violate RBI’s restructuring guidelines.

The letter urges the Prime Minister to direct the Finance Ministry, Reserve Bank of India, Ministry of Tourism, and state authorities to ensure effective relief measures, helping the sector move toward sustainable revival.

The tourism industry, a backbone of Himachal’s economy, has been hit repeatedly in recent years by natural disasters, financial disruptions, and regulatory challenges, leaving the hospitality sector in urgent need of government support.


Ramada Plaza by Wyndham to Open in Jim Corbett Kotabagh

Ramada Plaza by Wyndham to Open in Jim Corbett Kotabagh

By Manu Vardhan Kannan

Published on September 28, 2025

In a boost to Uttarakhand’s hospitality landscape, Ashoka Leisure Valley LLP has announced the upcoming launch of Ramada Plaza by Wyndham Jim Corbett Kotabagh, an upscale 100-room hotel expected to open in the third quarter of 2027. Developed in partnership with Wyndham Hotels & Resorts, the world’s largest hotel franchising company with more than 8,300 hotels in over 100 countries, the new property will bring Wyndham’s trusted international hospitality standards to one of India’s most sought-after wildlife destinations.

Nestled in the scenic surroundings of Kotabagh and located close to the Kota Safari Zone via the Bhandarpani Gate, the hotel will combine nature with premium comfort. It will feature well-appointed guestrooms, a multi-cuisine restaurant, a stylish bar, expansive lawns, and a modern banquet hall, catering to both leisure and business travellers.

Ashok Arora, Partner at Ashoka Leisure Valley LLP, said, “We are proud to partner with Wyndham Hotels & Resorts to bring the Ramada Plaza by Wyndham brand to Kotabagh. With its strategic location near the Kota Safari Zone and premium facilities, this hotel is designed to attract domestic and international travellers while setting a new benchmark for hospitality in the region.”

Rahool Macarius, Market Managing Director, Eurasia, Wyndham Hotels & Resorts, added, “Partnering with Ashoka Leisure Valley LLP to introduce Ramada Plaza by Wyndham to Jim Corbett reflects our commitment to expanding in high-demand leisure destinations across India. The hotel will provide travelers with a premium stay experience that combines Wyndham’s global standards with the unique natural beauty and local charm of this iconic region.”

The signing of Ramada Plaza by Wyndham Jim Corbett Kotabagh reinforces Wyndham’s expansion strategy in India, particularly in wildlife and leisure destinations. Once complete, the hotel will not only serve as a premium getaway for travellers but also elevate Jim Corbett’s growing reputation as a world-class tourism hub.


Eco Hotels and Resorts Expands with New Property in Vadodara

Eco Hotels and Resorts Expands with New Property in Vadodara

By Manu Vardhan Kannan

Published on September 28, 2025

Eco Hotels and Resorts Limited has announced the opening of its newest property in Vadodara, Gujarat, a city known for its rich heritage and fast-growing business landscape. With the launch of the Vadodara Sama Savli hotel unit, the company now operates 136 rooms across three hotels and is set to open 30 additional rooms in Varanasi, Uttar Pradesh, later this month.

Speaking on the milestone, Vinod Kumar Tripathi, Chairman of Eco Hotels and Resorts, said, “This is a significant milestone for the Company. Our Vadodara property reflects Eco Hotels’ dedication to delivering superior guest experiences without compromising on financial discipline or environmental responsibility. We designed this hotel with the modern business traveller in mind, offering top-notch comfort, wellness-oriented dining, and advanced event spaces. Vadodara is a vibrant city with tremendous growth potential, and we are excited to contribute to its generous landscape while staying true to our eco-friendly ethos.”

The new property features 57 rooms, each designed for business travellers seeking eco-friendly stays with comfort and style. Amenities include 400-thread count linen, 650 GSM bath towels, and 8-inch orthopedic mattresses, rarely offered in the 3-star+ category.

The dining experience is fully vegetarian, with two in-house restaurants. Sahar Restaurant serves no onion, no garlic meals and gluten-free breakfast options, while Kick in the Brick offers curated vegetarian Pan-Asian and Continental cuisine. Both menus are designed with wellness and dietary preferences in mind, reflecting the brand’s commitment to sustainability and traditional values.

For business and social gatherings, the property houses modern banquet and conference facilities. The 2,800-square-foot banquet hall is equipped with a 100-square-foot LED screen and a 2000-watt sound system, making it suitable for impactful presentations, hybrid meetings, and brand showcases.

The Vadodara hotel highlights Eco Hotels and Resorts’ mission to provide environmentally conscious hospitality that balances luxury, sustainability, and value for the modern traveller.

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