Favourable tax structures in the offing for hospitality sector

He was speaking at the Gujarat Tourism Summit 2009,organised by the Confederation of Indian Industry (CII) on Saturday. Rao said the new policy “will possibly have luxury tax slabs for different categories of hotels”. Hotel associations have already written to the state government to lower the different taxes levied on hotels in the state.

Gujarat has been focusing on tourism in a major way. The state has decided to make a tourism hub by 2015. According to a study conducted by CII,Gujarat Tourism in 2015,Gujarat will be one of the top-five states in India for both domestic and international tourists.

In order to reach the target,the state government is planning to pump in investments. The government will invest around Rs 1,500 crore in three different projects in as many years through the Public-Private Partnership (PPP) mode,including Ambaji in Banaskantha,Saputara in Dangs and Gandhi Ashram in Ahmedabad. Ambaji will be made a pilgrim and tourism destination.

State Tourism Minister Jay Narayan Vyas said: “We are planning a world class rejuvenation centre and a 200-bed hospital. Ambaji is being developed on the model of 51 Shaktipeeth.” He added that every year,four crore people visit Ambaji.

On Saputara,he said: “We are spending around Rs 500 crore in making it an attraction. We are planning golf courses there.”

He further said that the government will start paragliding in Pavagadh.

Only 2 per cent foreign tourists in 2007-08
According to the CII report,domestic tourists dominated the sector in Gujarat in 2007-08,accounting for almost 79 per cent,followed by 19 per cent from other states. Foreigners accounted for only 2 per cent of the total tourists visiting the state. Ahmedabad and the pilgrim destinations of Ambaji and Dwarka together attracted about 33 per cent tourists. Most of the tourists or visitors come to the state for business (55 per cent) followed by religious purpose (34 per cent). Major cities such as Ahmedabad,Surat,Vadodara,and Rajkot attracted these visitors.