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Grant industry status to hotel and tourism sector, Muttaiah panel tells govt

The group on service industries headed by Dr A C Mutaiah has recommended that 'industry status' be accorded to the hoteleering and tourism in three months.

The group is part of the prime minister's advisory council on trade and industry.

In its ten point recommendation, the group has recommended debate on abolishing luxury tax.

It also asked the government to direct the financial institutions to declare tourism development as core sector deserving priority status.

It also suggested allotment of government land at concessional rates for construction of hotels or tourism related facilities.

The question of private tour operators being consulted in the management of facilities in national parks and game sanctuaries should also be examined, it suggested.

The other major recommendation of the group was to transfer the department of culture from human resources ministry to tourism and civil aviation ministry.

Prime Minister Atal Bihari Vajpayee had convened the second meeting of the advisory council on trade and industry Monday night in which the convenors of all the six groups briefed him about their reports.

Vajpayee has already decided to constitute a three- member empowered committee of his Cabinet to go into the report and take up necessary discussions and implement the recommendations which had a consensus with immediate effect.

The Mutaiah group recommended that the government have a fresh look into the 1991 notification on coastal regulation zone as it had been viewed to affect the development of tourism-related facilities in coastal areas.

A group consisting of representatives from ministries concerned may be set up to look into the matter, it suggested.

UNI

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