The government's decision to increase service tax to 12 per cent will make hotel tariffs more expensive, and will have an impact on overall occupancy and business for hotel companies, leading hoteliers said today.
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"The overall outgo for consumers will go up and there will be an impact on the average room rates and occupancies to some extent," Accor Vice President-Development Lokesh Sabharwal told PTI at the Hi-Aim 2012, an event for the hospitality sector. Finance Minister has announced raising of tax across services from 10 per cent to 12 per cent. "We were expecting rationalisation of taxes for hospitality sector, but instead the government has increased service tax which will have a direct impact on our businesses," Carlson Hotels President South-Asia K B Kachru said. "By doing so, we are making India even more expensive, compared to other destinations in the Asia such as Bangkok and Singapore," he added.
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"The overall outgo for consumers will go up and there will be an impact on the average room rates and occupancies to some extent," Accor Vice President-Development Lokesh Sabharwal told PTI at the Hi-Aim 2012, an event for the hospitality sector. Finance Minister has announced raising of tax across services from 10 per cent to 12 per cent. "We were expecting rationalisation of taxes for hospitality sector, but instead the government has increased service tax which will have a direct impact on our businesses," Carlson Hotels President South-Asia K B Kachru said. "By doing so, we are making India even more expensive, compared to other destinations in the Asia such as Bangkok and Singapore," he added.
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Search for Food & Beverage Jobs in Delhi