IATO Pushes For Tourism To Be Included In CMP Of UPA Govt

ET&T Staff - New Delhi

The annual convention of the Indian Association of Tour Operators (IATO) concluded with a call to include the tourism industry in the Common Minimum Programme (CMP) of the UPA government. The convention, in unanimous resolutions pleaded for providing the status of infrastructure sector to the tourism industry and extend to tourism similar benefits that are provided to the software and IT sectors under Section 10 of the Income Tax Act.

It called for the strengthening of tourism infrastructure with more airports, at least one in each state capital, for better connectivity, greater air capacity and more hotel rooms. The convention also sought the implementation of the Naresh Chandra Committee Report on civil aviation in totality and not selectively. It also urged the government to rationalise taxes and bring about uniformity in taxation throughout the country by bringing tourism on the concurrent list. The convention also suggested drastic reduction in sales tax on Aviation Turbine Fuel (ATF) and wanted it to be made uniform (not more than four per cent) in all States so that domestic air operations become viable and tourism packages cheaper for travellers.

It called for abolition of service tax for all segments of the tourism industry. While demanding the scrapping of luxury tax, it said wherever this was not feasible, the tax should be only on contracted price and not on the printed price (under no circumstances to be more than five per cent) to make travel packages competitive via a vis neighbouring countries like Singapore, Thailand, Malaysia and Singapore.

The convention expressed concern over hike in hotel room rates in violation of contracts already entered into and suggested this trend be stopped. The point was also made that tour operators, on their part, should also honour their contracts with hotels.

Implementation of visa on arrival from at least 20 source market countries was also emphasised. Mention was also made that Air-India and Indian Airlines should be strengthened by augmenting their fleet and suggested better connectivity of tourist destinations by restoration of flights which have since been suspended. It also sought upgradation and modernisation of metro and other airports. The convention urged the industry and its various associations and organisations to work as a united force.