The MD of Indian Hotels highlights high taxes as a major barrier to growth in India’s hospitality industry. This burden affects the ability to create global brands and stay competitive.
Puneet Chhatwal, speaking from New Delhi on May 30, emphasizes that India has great potential to attract foreign tourists. Yet, the country is falling behind because of the heavy tax load. He points out that high taxes make it hard to build internationally known hotel chains.
He calls for more support, referencing the inclusion of infrastructure status for 50 tourist spots in this year’s budget. He also urges for official industry status, a long-standing demand.
Chhatwal notes that India lacks an edge in profit margins. He says, “If you are the most taxed sector through GST, excise, and charges during COVID, how can you establish global brands?” He adds that during the pandemic, businesses had little budget for promotion and relied solely on existing assets.
During the CII Annual Business Summit, he states India is more than just a big market; it is a country of hopes. The next 500 million middle-class travelers will come from within India. Their income and desire to travel will change how India is viewed both locally and internationally.
Referring to the finance minister’s budget speech, Chhatwal says, “We fought hard for infrastructure status for these 50 locations. Now we need a further push.”
In her budget speech on February 1, Finance Minister Nirmala Sitharaman said the government will work with states to develop these top tourist spots. States will supply land for the infrastructure needed in these areas.