Kerala   

Tourism industry seeks incentives

THIRUVANANTHAPURAM: The Confederation of Kerala Tourism Industry (CKTI), which represents various segments of tourism industry, has urged the State government to lend a helping hand with incentives and tax concessions to overcome the crisis due to global recession.

In a memorandum to Finance Minister T.M. Thomas Isaac, the confederation points out that tourism generates more than Rs.13,000-crore revenue and employment to 15 lakh people.

Its president E.M. Najeeb and secretary M.R. Narayanan say the industry is going through a very difficult patch with the tourist arrivals to the State going down. The industry seeks exemption to laundry charges, Ayurvedic treatment charges and massage charges from the levy of luxury tax. The deferment of half the tax payable by registered tourist resorts and houseboats in last budget in view of the global recession is yet to be implemented.

The industry seeks amendment to Section 4 of the Kerala Tax on Luxuries Act to make it clear that the levy of tax is to be confined to lodging charges collected from guests. A tax holiday for at least five years has been sought for all new tourism units.

The levy of luxury tax should be made applicable only to those hotels having 15 rooms and above. Hotels with less than 15 rooms may be exempted from registration. The industrial power tariff should be made applicable to the hotel industry. The rate of luxury tax should be reduced from 15 per cent to 8 per cent. It should be reduced to 50 per cent of the normal rate during off-season.

Places of tourism importance such as Kumarakom, Kovalam (including Poovar), Munnar, Thekkadi, Fort Kochi, Wayanad and Bekal should be declared as special tourism zones. The industry wants the government to declare a friendly policy for cruise operation from Kochi and Thiruvananthapuram.

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