The Hotel and Restaurant Association has appealed to the Maharashtra government to exempt its members from luxury tax, VAT and cut in electricity charges for at least two years in the forthcoming budget. This is because the hospitality industry has been badly affected due to recession and 26/11 terror attacks. The government aid will help the industry to cater to its clientele. The industry has been badly hit after the Mumbai terror attacks, said S P Jain, president, Hotel and Restaurant Association (western region).
Meanwhile, Indian Hotels Company Ltd (IHCL), a Tata group company that runs the Taj Hotels Resorts and Palaces chain of hotels, reported a 38 per cent drop in net profit at Rs 84 Crore for the quarter ended December 31, 2008, as compared to Rs 135 Crore in the corresponding period last year. The company said that it was substantially affected by the terror attacks that occurred in November 2008; its property, Taj Mahal Palace & Tower, Mumbai generally contributes a considerable amount to the company's total revenues.
According to Anil P Goel, Chief Financial Officer, Taj group, “We have assessed the damage and will present it to the insurance company.” |