The tourism and hospitality sector of Uttar Pradesh is going to get a boost now with the government awarding it an industry status. The proposal to do the same has been given a thumbs up by UP Chief Minister Yogi Adityanath.
Uttar Pradesh tourism sector is both culturally rich and popular and with this step, local economies are anticipated to benefit heavily. It will also make investment simpler and more sustainable, experts said.
How does an industry status help?
Once a sector is granted an industry status, it tremendously helps the state in terms of economy, attracting more tourists, and so on.
For starters, tourism accommodation facilities like hotels, resorts and lodges, once given an industry status, will be eligible for industrial rates which are way cheaper than commercial rates.
“Power charges and taxes will come down significantly once tourism becomes an industry in Uttar Pradesh. This will also make land allotment easier for new projects in places like Varanasi which is very short of land for expansion,” an official said.
The soon-to-be-granted status will revive the area that suffered due to the pandemic, besides facilitating development of homestays and heritage hotels since it will remove the interference of banks providing loans.
“Industry status will lower the input cost for revival of hotels and resorts which will prevent loss making entities from closure. Alongside, it will encourage subsisting projects to re-start.”
A member of Uttar Pradesh hotels and restaurants association stated.
Uttar Pradesh is a tourism hub and after getting the industry stamp, the tourism numbers are predicted to improve. Reportedly, 109.71M domestic tourists and 33,737 foreign tourists flocked to the state last year. As per IBEF, the foreign tourists’ number crossed 4.74 M in 2019.
Besides enhancing local economy, the step will help conserve the state’s traditional tokens like its rich art and craft, its renowned cuisines, and so on.
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