Snippets

Govt scraps ACD on imported spirits, beer

The Centre recently withdrew the additional customs duty (ACD) imposed in lieu of state excise duty on imported liquor, wine and beer. Hitherto, the ACD ranged between 20 per cent and 150 per cent over and above the basic customs duty of 150 per cent for spirits and liquor. The basic customs duty on wines, however, is being increased from 100 per cent to 150 per cent, the WTO bound rate. Spirits and liquor will continue to attract basic customs duty of 150 per cent. Government sources said separate legislation allowing states to impose a special levy would be introduced in the Parliament soon.

The move comes in the wake of complaints made by the EU and the US to the WTO regarding India's discriminatory tariff structure for imported wines and liquors. Australia, Chile and Japan have also lodged protests against the tax structure. Scrapping the ACD will bring down the price of imported wines and spirits significantly and open up the domestic market. It is estimated that India will be among the top five fastest-growing markets for the next four years.

Haryana to impose luxury tax from August 1, 2007

Haryana Cabinet's decision to levy 10 per cent luxury tax on hotels and banquet halls has taken aback the burgeoning hotel industry. The government had given the nod on June, this year hoping to mop-up Rs 50 crore per annum. The new tax structure will come into effect from August 1 and will be applicable on the hotels charging Rs 2,000 and above per day. For the banquet halls and marriage palaces, the ceiling is Rs 20,000 and above per day.

Mohan Bir Singh, owner of Hotel North Park at Panchkula said, "The hotels in Haryana were mostly running under losses as the industry was not doing well. Also, the inflow of foreign tourists in Haryana was limited." He said most of the tourists were domestic tourists and hailed from middle class who had limited budget. If the proposed luxury tax is not withdrawn, the tourists will prefer states like Punjab, Chandigarh and Uttar Pradesh. In Rajasthan, it is eight per cent and in Uttar Pradesh, which encompasses Noida and emerging Ghaziabad, it is five per cent he informed. The chief minister should intervene and order withdrawal of the proposed luxury tax, he added.

Hoteliers say the proposed luxury tax may hit the industry as tourists will prefer the neighbouring states and the hotel occupancy in the state can dip to 15 per cent. Eventually, the government will lose revenue on account of the levy of tax. Adding, they said, actual room rates were 40 per cent lower than published rates hence they will have no option but to charge enhanced tariff from customers.

Shervani Hotels calls for promotion of small hotels in Delhi-NCR

Shervani Hotels, that promotes small boutique hotels in the country, has called for promotion of small hotels in Delhi-NCR in order to meet the region's current room shortage. Syed Shervani, its proprietor, said, "The government should endorse small hotels now that the Commonwealth Games are just three years away." Recalling the last time Delhi's infrastructure was being overhauled in 1982, he says, "We experienced enormous room shortage during the Asian Games in Delhi, but small hotels and other accommodation facilties came to the rescue. Hotels like Le Meridien had failed to be completed in time as it was a five-star hotel." Shervani, who is also the executive committee member of FHRAI, constructed his first hotel in 1981. The 19-room Shervani boutique hotel, located in posh Sundar Nagar, is within walking distance of Pragati Maidan.

Metropolitan Hotel is first Summit Hotel in India

The Metropolitan Hotel New Delhi has joined the Preferred Hotel Group under the Summit Hotels & Resorts collection. The hotel joins three other signature hotels in India under the Preferred Hotels & Resorts brand - The Imperial, Devi Garh and Samode Palace. The five-star hotel, formerly franchised Nikko Hotel, is located in Connaught Place, New Delhi.

Government launches B&B scheme

The ministry of tourism, Government of India has launched the Incredible India Bed & Breakfast scheme with a view to overcome acute hotel room shortage and empower women. The scheme enables foreign tourists to stay with an Indian family to experience local customs and traditions and taste ethnic cuisine at affordable rates. As per the scheme, classification of bed and breakfast will be given only in cases where the owner of the establishment along with family, physically resides in the same establishment. Apart from that a minimum of one room and a maximum of five rooms (10 beds) with proper facilities like comfortable beds, working space, air-conditioning facilities as well as attached western toilets should be provided to be included under the scheme. The owner also has to provide Indian or continental food and display the rates to be charged for the rooms as well as breakfast. Based on the facilities provided the establishments will be categorised as Silver and Gold.

Park Hotels appoints ITG Sales & Marketing as UK partner

The Park Hotels has appointed ITG Sales & Marketing to handle its sales, marketing and representation in the UK. The partnership is aimed at increasing the number of visitors from the corporate, leisure and MICE segment to India. This is the hotel group's second marketing tie-up in the UK, after the Design Hotels that has been marketing The Park Hotels in Europe and UK for over the past four years of which The Park Hotels in Bangalore, Chennai, Kolkata and New Delhi are the members.

Banyan Tree to organise 9th Vertical Marathon

Bernold O Schroeder, the hotel's GM, with staff

Bangkok-based Banyan Tree will organise its ninth Vertical Marathon on September 9, 2007, the finishing point of which is at the hotel's former helicopter pad, now converted to the award-winning Vertigo restaurant on the 61st floor, one of the highest al fresco hotel restaurant in Asia. Running up 1,093 steps calls for a registration fee of 350 baht (US$ 10) per person includes the official marathon t-shirt and a meal box. Trophies from HRH Princess Soamsawali, luxurious accommodation and gift vouchers are also up for grabs for winners of other categories.

Proceeds from the event will be donated to the HIV Formula Feeding Fund, a Thai Red Cross initiative under the patronage of Her Royal Highness Princess Soamsawali.