Sihra Symposium

TN hospitality likely to see relaxed FSI norms

Sangeetha Neeraja - Chennai

Tourism Minister N Suresh Rajan (right) at a symposium in Chennai with Information Minister Parithi Illamvazhuthi and president of SIHRA MP Purushothaman

Addressing a recent symposium on 'Strategies for Growth of Hospitality & Tourism in Tamil Nadu' jointly conducted by the South india Hotels & Restaurants Association (SIHRA) and Tamil Nadu Tourism Ministry, Suresh Rajan, the state's tourism minister, assured that he will take up the issue of relaxed FSI norms for the hospitality sector with chief minister Karunadhi. "The state government will assess the feasibility of extending the relaxation of FSI accorded to the IT sector to hospitality as well," Rajan said.

The hotel industry feels that relaxing the FSI will facilitate existing hotels to increase room supply to about 50 to 100 rooms each. Chennai alone will need an additional 4,000 rooms in the three to five-star categories by 2010 against the existing 5,300. The minister's assurance came as a response to the plea made by MP Purushothaman, president of SIHRA.

Another demand by SIHRA includes infrastructure status which allows 10-year tax holiday. Though several state governments have declared hospitality as an industry, no matching benefits have been extended. Hoteliers are seeking support from the government in getting land on long lease for hotel construction, much like the land banks given for the development of industrial parks. This will nurture private-public partnership, thereby improving the climate for investors in the hospitality industry in Tamil Nadu.

Other issues that were highlighted are reduction of luxury tax from 12.5 to 10 per cent, and the bar timings extended to 1.30 am similar to that in Greater Mumbai and New Delhi. Following the ranks of FHRAI in establishing a world-class institute in association with the Ecole Hoteliers de Lausanne, Switzerland, SIHRA requested the government to give land on a long lease. Chief Secretary, LK Tripathy in his keynote address, said, "The government is in the process of addressing the infrastructural gaps, which will provide impetus to tourism promotion in the state." A masterplan is being prepared with the help of HUDCO (Housing & Urban Development Corporation) and is expected to be ready by the end of 2008.

The minister also said the government has made huge budgetary allocation for developing lesser-known tourist spots like Yelagiri, Kovai, Courtalam, Kallanai and Kazhugumalai to make them investor friendly. He added that soft loans at the rate of 0.1 per cent interest per annum for first five years will be made available to interested investors.

V Irai Anbu, tourism & culture secretary, stated that the government proposes to bring promotional schemes to suit both high-end and budget tourist. Tamil Nadu Tourism Development Corporation (TTDC) director, M Rajaram, requested the industry to work with the government to preserve the environment and promote eco-friendly tourism.