Jammu Kashmir Hoteliers Club (JKHC) on Monday said the Kashmir tourism industry was on the verge of collapse and demanded the government to provide them “promised” reimbursement of GST till the issue was taken up with the GST council.
Aspokesman of the JKHC — an apex organization of all the leading hoteliers ofJammu & Kashmir — said that a delegation led by its chairman, MushtaqAhmad Chaya, raised the issue with Governor Satya Pal Malik at Raj Bhavan onMonday.
Inthe meeting it was pointed out by Chaya that tourism industry in Kashmir was onthe verge of collapse and near closure. “For last almost three years we arerunning cash losses and were left with no resources to pump into theestablishments. Hoteliers have been keeping the hotels open against all odds.The current year has shown depressing and disappointing tourist foot fall thatit had become impossible for them to keep the hotels open and have theemployees on board,” the spokesman quoted Chaya as having said.
“Itwas suggested that way back in 2004 the then prime minister of India, Mr. AtalBihari Vajpayee, considered room wise financial assistance to variouscategories of Hotels as listed in Tourism Department for revival and refurbishmentof the properties. On the same lines we submitted that similar kind of approachneeded to be adopted in instant cases in the form of Cash Assistance to beprovided to various categories of hotels for each room as was done in 2004, butthis time around it has to be ex-gratiaand non-refundable cash support to thehospitality sector of the tourism industry till such time it shows some signsof health,” said Chaya.
Hesaid the quantum of support for each room will be worked out by them inconsultation with the Govt.
Chayasaid that Kashmir tourism used to be exempted from the taxes, but since theextension of GST the overall tourism industry has been hit by the rise in costsand prices at hotels, guest houses, houseboats, restaurants and even the touroperator services.
“Evenafter the several promises made by Govt. and concerned, at state level, we havenot been given any relaxation of tax waiver to help and promote the tourismsector in most exasperating times where the business has gone down highly.
“Inthis connection it was submitted that till the Govt. persuades the GST councilto drop the tax the promised reimbursement of the GST be kindly done as we fallunder micro, small and medium enterprise. This is the commitment made by theGovt. as a policy matter and not by way of any concession as this service(hospitality) industry is included in the industrial policy,” he said.
TheGovernor gave a patient hearing in a cordial atmosphere to the submissions madeby the delegation. It is essential to mention here that the helpful attitude ofthe Governor was inspiring and we express our thankfulness to him.
TheGovernor, he said, was kind enough to tell the delegation that he would lookinto the matters and get all these problems resolved without delay. “To thiseffect a detailed memorandum, which contains other points as well, wassubmitted to him for his kind consideration,” said Chaya.