Tax relaxation for landlords soon: Ambika Soni

New Delhi, July 21 (UNI) The government today said it is on the threshold of passing an Ordinance giving commercial tax relaxation to landlords renting out their accomodation to tourists.

''We are on the threshold of passing an ordinance that would allow landlords to rent out accomodation without commercial taxation,'' Tourism and Cultural Affairs Minister Ambika Soni said while addressing a WTTC conference here.

The concept of bed and breakfast, where guests are accommodated in a family residence, will also be promoted across the country, she added.

Advocating public-private partnership (PPP) model for the tourism sector, the Minister said the corporate enterprises can play a pivotal role in the growth prospects of the sector.

''It is important that tourism is included in the state or union list so that it receives more attention. However, the states have done a good job in promoting tourism at an individual level,'' Ms Soni added.

According to a study by industry body Assocham, the country will receive an estimated 10 million international foreign tourists in 2010, with almost one million international and another four million domestic tourists during the Commonwealth Games period alone. This is expected to give a boost not only to the tourism sector but the hospitality segment as well.

The Games will push up India's share in foreign tourist arrivals from a mere 0.52 per cent in 2006 to 1.5 per cent in 2010 compared to 842 million world's tourist arrivals.

The central government had also announced tax exemptions for hotels being constructed in the National Capital Region. But despite these economic sanctions, the Delhi Development Authority (DDA) has failed to find buyers for hotel plots. A prime reason remains the overpriced estates, especially in case of budget hotels.

It is in view of this scenario that the ministry has been forced to think of alternatives such as home-stays and Bed and Breakfast schemes. Seventy new hotel projects are under various stages of development that will add 19,000 rooms by 2010. Also, the Indian Railways has proposed to build about a 100 budget hotels on railway land.

The tourism sector contributed 6.6 billion dollars through tourism in the last year.

UNI