Kolkata, Nov 9 (KNN) With the aim to draw investments in tourism and to generate employment, the West Bengal state cabinet has approved the proposal to grant industry status to the hospitality sector, according to a report in The Telegraph online.

“The tourism department had put forward a proposal to give the status of industry to the hospitality sector, which includes hotels and other tourism-related facilities. The cabinet has approved the proposal as it would help to draw investment in the sector that has a tremendous potential to generate jobs,” said a minister present in the cabinet meeting at Nabanna.

The granting of the industry status will firstly help the hotels save a handsome amount on electricity bills as they would have to pay power tariff as per the industrial rate, and not the much higher commercial rate. Secondly, the hotels would have to pay electricity duty at a much reduced rate once the hospitality sector gets industry status, Thirdly, they would be able to save on water supply bills and would also have to pay lesser licence fees and other taxes, including property tax.

As per reports, once the hospitality sector gets the status of industry, it would be entitled to a better FAR (floor-area ratio).

Sudesh Poddar, the president of the Hotel and Restaurant Association of India and the president of the organisation’s eastern chapter said that there was a longstanding demand for the status of industry for the hospitality sector.

“As the cabinet has approved the proposal, it would encourage investors to invest in the tourism sector in the state. Also, it would aid the expansion of the existing infrastructure,” he said.

The tourism industry contributes around 13 per cent of Bengal’s GDP, which is higher than the national average of 7.5 per cent.

(KNN Bureau)