Rajindera Kumar, President, Federation of Hotel & Restaurant Associations of India

Every year we look up to the Finance Minister with the hope that hotels will be put on the agenda but unfortunately hotels fail to make an appearance. Finance Minister should consider this industry which has stood through tough times (like recession, terror attacks) without retrenching anyone. The industry that provides foreign exchange, employment should be considered for at least the minimal reasonable benefits.

Chender Baljee, Chairman and Managing Director, Royal Orchid Hotels

Every year we have expectations but not much has been done about the hotel segment. There is no clarity on the industry status for hotels and it has been classified under the real estate segment. However, infrastructure status if granted will help the hotelier in terms of getting sanctions (like loan etc). Service Tax (12 per cent) and VAT (12.5 per cent) both are levied on banquet services which results in double taxation and results in government losing on revenue. Hence this has to be rationalised.

Peter Kerkar, Executive Director, Cox and Kings (India), Ltd.

The forthcoming Budget presents an opportunity for the Finance Minister, Pranab Mukherjee to provide some relief to the travel industry. As it is the largest employer the industry would like the government to look at it favourably. The government should first accord infrastructure status to the travel industry. This will provide the necessary impetus to invest in key tourism projects and enable us to create world class products that will appeal to tourists. Taxation is another issue that should be looked at and I believe that early implementation of the General Sales Tax (GST), will pave way to a friendlier tax regime benefiting all stakeholders. The government should also propose a Public Private Partnership model that will encourage serious players to enter the tourism industry. In terms of infrastructure, development of the same will have a huge bearing on the tourism industry as mobility and access will become easier. One important area that the government needs to look at is decreasing Service Tax as it is quite high at the moment.

Vipul Gupta, Executive Director, The Metropolitan Hotel

In spite of the fact that things have improved slightly for the Indian hotel industry now, it did pass through a difficult phase on account of the economic downturn, the after effects of the Mumbai terror attacks and swine flu over the last one year. To keep the things right on track, we (hoteliers) have a ‘wish list’ that we expect to see fulfiller in Union Budget 2010. At the helm of all affairs lies the dire need to allot ‘Infrastructure’ status to the hotel industry. This would aid companies to raise funds at lower interest rates. It will provide tax concession also. Additionally extended tax holiday for hotels and enhanced ‘Incredible India’ campaign will help to fortify India’s tourism offerings in global and domestic markets.

Rajiv Bhalla, Country Head – Sales & Marketing, NEC India

We foresee a progressive budget that assures healthy growth of the economy and greater consideration to the use of technology for the betterment of the society as a whole. The Budget should pave the way for investment-led growth and stimulate demand through fiscal measures. The tourism industry is witnessing recalibrated growth. It is important that with the growth of a particular industry, the infrastructure that supports it should also be strengthened. In this case to ensure growth of tourism, the hospitality sector needs to be strengthened. The government policies and tax structures should be attractive enough to encourage investments in the hotel sector. This in turn will empower hoteliers to look at adopting technology to enhance productivity, ensure customer satisfaction and reduce operational cost. The IT industry undoubtedly is one of the most significant sectors critical to India’s emergence as the next economic superpower.

Asif Adil, Vice-Chairman and CEO, John Distilleries

The alcoholic beverage industry contributes over Rs 40,000 crores to the states and accounts for approximately a third of all the state revenues. The industry is one that is readily looked to for extra tax revenues as it is a ‘Sin Industry’. Country liquor should be banned nationwide by following the example of the Southern Indian states. As a result, the Southern states have seen their tax revenues increase by over 50 per cent. State alcohol distribution system should be corporatised so that excise leakages can be reduced. States that have done this have seen their tax revenues increase dramatically. Excise slab on the premium brands should be increased disproportionately on the premium brands so that the excise pain is absorbed by the sections of societies, who can afford.

Vinay Phadnis, Chairman and Managing Director, Phadnis Infrastructure Ltd

Budget 2010-11 will be the most expected budget to be tabled by the Finance Minister. It is very critical for India to survive in the global financial crisis and at other hand the common man of India is very concerned over growing inflation. Hence it is very serious task for the Government to address wide range of concerns and expectations from every segment of society. The real challenge is to maintain the GDP while keeping a control over shooting prices.

On the top of the list let me put infrastructure and real estate segment that is directly linked to prosperity of society and the nation. Hospitality is emerging as one of most prominent business sector and is expected to earn USD 42.8 billion business in the next five years. The industry is reviving significantly after few months of economic slowdown. Unfortunately, we neither have industry status for this segment nor have master plan for its development. The government must look forward in this direction and adopt new policies to encourage more and more investment in this segment. At the same time, we also are expecting a justified and rational taxation system with better clarity.