Government promotes Budget tourist hotels through incentives

The Minister of Tourism and Culture Smt. Ambika Soni has said that there is some accommodation shortage at a few metro centers. Nevertheless there has been 13.2% growth in foreign and 18.9% in domestic tourists.

In a written reply in the Rajya Sabha today she said, construction of hotels is primarily a private sector activity and the Ministry of Tourism extends facilitation. Ministry of Tourism is in regular touch with the various Land Owning Agencies like Railways, Ministry of Civil Aviation, DDA, Ministry of Urban Development and State Land Owning Agencies etc. for identifying additional hotel sites. Ministry of Tourism estimates that 30,000 additional hotel rooms will be required in the city of Delhi and the NCR to meet the requirement of Commonwealth Games 2010. A budgetary allocation of Rs. 10 crore has been proposed for the year 2007-08 proposal 2007-08 under the head "Creation of Land bank for Hotels". Minister of Finance in his budget proposal 2007-08 has announced Tax Holiday for 5 years for hotels of budget category in the city of Delhi and some selected adjoining districts to promote investment in the hotel sector. Ministry of Tourism also offers Capital Subsidy of 10% of the loan to promote budget category hotels in the country. The outlay for 2007-08 under this head is Rs.20 crore.

Source : Press Information Bureau

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