Lok Sabha Question No. 114 (STARRED), answered on 2019-11-25
Subject: Budget Hotels
Ministry: TOURISM
Asked by: Vinayak Bhaurao Raut, Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA STARRED QUESTION NO.*114 ANSWERED ON 25.11.2019

## BUDGET HOTELS

- *114. SHRI VINAYAK RAUT:

SHRI SHRIRANG APPA BARNE:

Will the Minister of TOURISM be pleased to state:

- (a) whether there is a huge shortage of hotel rooms, especially in the budget hotels in the country due to huge inflow of foreign and domestic tourists and if so, the details thereof;
- (b) whether the Government proposes to set up any new budget hotels  and  if  so,  the  details  thereof,  State/UT-wise  and  the amount allocated and spent by the Government in setting up the  tourist  centres/budget  hotels  during  the  last  three  years and  the  current  year,  State/UT-wise  along  with  the  progress made in this regard;
- (c) whether  the  Government  has  asked  State  Governments  to follow  tourism  friendly  policies  for  augmenting  budget  hotels and if so, the response of the State Governments thereto;
- (d) whether the Government is also giving incentives to encourage the growth of budget hotels and if so, the details thereof; and
- (e) whether  the  Government  has  conducted  any  review  on  the working of budget hotels to remove their shortcomings and if so, the details thereof?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (SHRI PRAHLAD SINGH PATEL)

- (a) to (e): A statement is laid on the table of the House.

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STATEMENT IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO.*114 ANSWERED ON 25.11.2019 REGARDING BUDGET HOTELS.

- (a): As per the Report of the 'Working Group on Tourism' for the 12 th Five-year Plan (2012-17) set up by the then Planning Commission,  for  a  projected  annual  growth  of  12%  in  Foreign Tourist Arrivals, the projected requirement of additional hotel rooms in  2016  over  2010  was  estimated  to  be  approximately  2  Lakh.  No assessment  has  been  made  by  Ministry  of  Tourism  regarding shortage of hotel rooms for tourists in the country.
- (b): Construction  and  operation  of  hotels  is  primarily  a  private sector  activity.  The  Ministry  of  Tourism,  Government  of  India  only classifies operational hotels under its voluntary scheme of classification/approval  of  hotels,  on  the  basis  of  the  facilities  and services provided by them.

Development of Tourist centres is primarily the responsibility of respective State Governments / Union Territories. However, Ministry  of  Tourism,  augments  the  efforts  of the  States  /  Union  Territories  through  its  schemes  like  Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) and Swadesh Darshan.

- (c): The Ministry of Tourism, vide letter dated 09.01.2018, has requested the State Governments / UT Administrations to give due weightage  to  development  of  mid  segment  hotels  which  typically will fall in 3 star and 4 star categories while earmarking /auctioning of land for developing hotels.

In order to further augment supply of hotel accommodation for budget tourists, the Ministry has voluntary schemes for approval of Guest  Houses,  Incredible  India  Bed  and  Breakfast  Establishments and Incredible India Homestay Establishments.

The voluntary scheme of the Ministry of Tourism for approval of hotels at project stage and classification stage stipulate that the hotels  of  1,  2,  3  and  4  star  categories  availing  subsidy  /  tax benefits/other  benefits  from  the  Central  /  State  Government  would be subject to a lock - in period of 8 years during which they would not  seek  up  gradation  to  a  higher  category  so  that  these  hotels continue to serve as budget category hotels. (d): The  Ministry  of  Finance,  Government  of  India,  on  17th October, 2017 notified the Harmonized Master List of Infrastructure Sub-Sectors to boost supply of hotel rooms in the country which includes three Star or higher category classified hotels  located  outside  cities  with  population  of  more  than  1 million.

(e): No, Sir.

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