The Hindu : Karnataka News : Tourism industry wants 5 p.c. cess on accommodation to go

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Saturday, Mar 27, 2010
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Karnataka

Karnataka

Tourism industry wants 5 p.c. cess on accommodation to go

Special Correspondent

Heritage site conservation plans welcomed
‘Taxes amidst rising costs will push the tourism sector into the red'

PANAJI: Fearing further adverse impact on the tourism industry which is smarting under the stress of global economic meltdown, Goa tourism industry on Friday demanded withdrawal of proposal to impose a 5 per cent cess on tourism accommodation.

Ralhp de Souza, president of TTAG (Travel and Tourism Association of Goa), a body representing hospitality and travel sectors, on Friday responded to the budget proposals for 2010-11 tabled in the Legislative Assembly by Chief Minister Digambar Kamat on Thursday.

The TTAG is upset over the 5 per cent cess imposed by the State Government on tourist accommodation and increase in liquor taxes and fees.

The TTAG has welcomed the announcement of enactment by the State Government for conservation of heritage monuments and suggested that they be “restored” without disturbing the surroundings and not “renovated”. The tourism industry has welcomed the proposal to undertake a Critical Area Space Plan for Sinquerim-Calangute-Baga beach belt in north Goa as “a step taken in the right direction.”

Referring to the decline in foreign tourist arrivals this season, a fact acknowledged by the Government through Governor's address to the State Assembly early this week, the travel and tourism body had lamented that the State budget had no allocation made for the promotions of the new markets in cities of Western Europe and North America where Goa now had direct connectivity through schedule airlines.

‘Goa will lose'

“This will keep Goa behind its competitors who will grab Goa's market share,” said Mr. de Souza.

He pointed out that garbage disposal being one of the main problems faced by tourism industry, there were no provisions made to provide and install solid waste plants in the State.

As for the tourism infrastructure, the TTAG felt disappointed that no mention of any allocations had been made in the Budget on its demands for marinas, cruise terminals or entertainment hubs in north and south Goa.

It has welcomed the budget allocation of Rs. 50 crore for proposed Mopa Airport land acquisition in north Goa as “this airport has to see the light of the day at the earliest”.

Liquor increase

The industry has objected to the statement made by Tourism Minister Micky Pacheco in the course of on-going budget session of the Legislative Assembly that Goa did not need a Tourism Board since the “scope for tourism in Goa is limited”.

“Nothing can be farther than the truth. Goan stakeholders in the tourism industry have invested over Rs. 20,000 crore employing over 5 lakh people and contributing to one-third of Goa's GDP.

Besides, over 90 per cent of the charter aircraft coming into India touched base in Goa,” said TTAG in its response.

The imposition of a cess of 5 per cent on room rents on an industry which was reeling under the burden of heavy taxes such as the luxury tax, VAT, entertainment tax, entry tax, service tax and so on, was uncalled for, the TTAG had said.

Besides increase in water tariffs and increase in excise on liquor would directly affect the profitability of units in the tourism sector and would surely take the industry further into red, said the TTAG reiterating its demand for scrapping the proposal.

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