UP to construct 5,000 hotel rooms ahead of C'Wealth Games

New Delhi, Apr 21 (UNI) Eyeing a share in the booming hospitality sector, especially in view of the Commonwealth Games, the Uttar Pradesh government will construct hotels around the national capital, providing 5000 rooms out of the estimated requirement of 30,000 rooms required for the 2010 Games.

Unveiling the state's first hotel policy containing major concessions for the industry, Uttar Pradesh Tourism Minister Kawkab Hameed told reporters here that hotels would come up in Ghaziabad, NOIDA and Greater Noida, for which land would be provided at industrial rates.

As per the eligibility norms under the new policy, five-star projects will be given to those entrepreneurs who have an average turnover of Rs 100 crore or above in the last three years and a minimum experience of 10 years in the profession.

For 4-star hotels, average turnover of Rs 75 crore and a a minimum experience of 10 years will be required while three-star hotels would be given to those entities having a turnover of Rs 50 crore and above during the last three years and an experience of at least five years.

''Our emphasis is on construction of quality hotels and we want only proven players to undertake the project,'' Mr Hameed said.

Although tourism had been granted the status of an industry in 1997-98, the industrial privileges could not be provided to the sector, the Minister said, adding the new policy contained all the corrective measures which would give an impetus to the tourism industry.

Under the policy, 100 per cent rebate in luxury tax would be given to the new hotels for five years. Land will be earmarked allotted only to hotel entrepreneurs.

For providing a level playing field to competing players, he said a person would be allotted only one plot for constructing a hotel in a particular city.

To avoid delay in allottment of land, the Tourism Department will appoint a nodal department at places where more than one authority or society has land.

The land earmarked for hotels in the master plan would be kept reserved for a period of five years after the date of advertising the scheme. If no hotel entrepreneur comes forward during this period, the land will be automatically transferred to relevant authorities. Conceding that tourism industry had not flourished to the desired extent, Mr Hameed said the new policy would cut red-tapism, which was a major hurdle in expediting the projects.

''The new policy will enable Uttar Pradesh to fully tap its tourism potential,'' he said.

UNI NAZ/SKS HS KP2004