Hotels And Tourism

Most hoteliers believe that this year's Union Budget will leave them plenty of room for growth "" outside the four metros. The hotel industry should get a big boost from the finance minister's promise not to tax new constructions in the hills, rural areas and pilgrim centres.And that isn't all. Mr Chidambaram has slashed customs duty on specific food items, which have been cut from 50 per cent to 25 per cent. Similarly, customs duty on maintenance equipment has been reduced from 35 per cent to 25 per cent. However, not everyone is ecstatic about the Budget. Tour operators are grumbling that there are no incentives to give the tourism industry a fillip.