‘There should be a single tax structure’

Rabinder Singh Bedi, president, Hotel and Restaurant Association Western India (HRAWI), talks to Dinkar Farwaha about the challenges facing the industry and the initiatives he has taken as the president of the association.

Rabinder Singh Bedi

What are the challenges facing the Indian hospitality industry?

The biggest challenge for the industry is to counter the high real estate costs. I believe that the government should provide land to the industry as joint venture lease proposition. Another challenge facing the industry is the lack of infrastructure in the transportation sector. Also, high energy duties and the imposition of several taxes by the various state governments are other issues, which need to be seriously addressed. The industry ends up paying multiple taxes to the government, which thereby increases their overall costs by a huge margin. Therefore, the need of the hour is to have a single tax structure.

Which region has shown the maximum development according to you?

South India in particular has shown tremendous potential in the recent past. Various international class airports have come up in the region and the infrastructure has drastically improved. Moreover, the MICE market in the region too, has developed. North and West too are showing a lot of promise. With the upcoming Commonwealth Games to be held in the North, developments are taking place at a fast pace in the region. The West too is undergoing a lot of development. However, the East has lagged behind in the race. However, with the recent industrial growth in the region and also increasing participation from the government, we can soon witness signs of growth in the East too.

What are the initiatives that you have taken as the president of HRAWI?

During my tenure we have addressed the state governments regarding various issues like the need for better infrastructure (international standard airports, better roads, convention centres, waste management system of international standards, improvement in supply of water and power), fiscal incentives, tourism incentive package schemes like subsidies on luxury tax, electricity duty, stamp duty to be paid on the purchase of land, etc. Some of our demands have already been sanctioned. We are striving to get approval for our remaining demands as well.

What issues do you plan to raise at the forthcoming FHRAI trade show 2007?

The trade show will be held in Kolkata this year, which will help in encouraging development in the East. We have invited various state tourism boards in the region and provided a platform for them to promote themselves. On the whole, we will be addressing national issues such as high real estate costs, the need for a better infrastructure, single tax structure and subsidies in energy duties, etc.