Kamat Hotels India Ltd , a key player in the Indian hospitality sector, is optimistic about a potential boost in demand following proposed Goods and Services Tax (GST) simplifications and rate reductions. The company's executive director, Vishal Vithal Kamat, shared insights on how these changes could impact the industry and consumer behavior.

Impact on Tourism and Competitiveness

Kamat highlighted that the current 18% GST rate on hotels puts India at a competitive disadvantage compared to popular tourist destinations like Thailand and Taiwan. He emphasized that this high tax rate could be contributing to a loss of foreign tourists, underlining the importance of tax rationalization in the hospitality sector.

Expected Benefits of GST Rate Cuts

The proposed GST rate cuts are anticipated to bring several benefits to the hospitality industry:

• Increased Customer Spending: Lower GST rates are expected to encourage customers to spend more on hospitality services.
• Improved Tourism Positioning: Reduced tax rates could strengthen India's position as a competitive tourist destination.
• Forex Inflow: Attracting more foreign tourists could lead to increased foreign exchange inflows.

Restaurant Sector Already Benefiting

While hotels currently face higher GST rates, Kamat noted that restaurants are already benefiting from a lower 5% GST rate. However, he stressed the need for rationalizing higher tax brackets to attract more travelers across all segments of the hospitality industry.

Projected Growth and Consumer Behavior

Despite a soft first quarter, Kamat projects strong growth for the hospitality sector through September-November. He attributes this expected upturn to several factors:

• Increased Disposable Income: Consumers are likely to have more spending power due to the proposed tax cuts.
• Premiumization Trends: The changes are expected to drive trends towards higher-quality products and services.
• Upgraded Customer Choices: Repeat visitors may opt for better products, altering their usual spending patterns.

Upcoming GST Council Meeting

The hospitality industry, along with other sectors, is eagerly awaiting the outcomes of the upcoming GST Council meeting scheduled for September 3-4. The council is set to decide on rate cuts for over 150 items, with proposals to shift items from the 12% and 18% slabs to 5% or nil GST categories.

As the hospitality sector in India braces for these potential changes, companies like Kamat Hotels India Ltd are optimistic about the positive impact on demand, competitiveness, and overall growth in the industry. The proposed GST simplifications could mark a significant turning point for India's tourism and hospitality landscape, potentially attracting more visitors and boosting the sector's contribution to the economy.

Kamat Hotels (India) Limited (KHIL), a pioneer in environmentally sensitive Indian hospitality, has announced a significant expansion of its presence in North Goa. The company has signed a management agreement to operate a second luxury hotel under its 'IRA by Orchid Hotel' brand, marking another milestone in its growth journey.

Property Details

The new property, set to become operational by September 30, 2025, will feature:

• 43 well-appointed guest rooms
• A banquet hall
• A swimming pool
• Two in-house restaurants
• A fully equipped health club

This strategic addition aims to strengthen KHIL's foothold in one of India's most popular leisure and tourism destinations, catering to both leisure seekers and business travelers.

Management Perspectives

Dr. Vithal Kamat, Executive Chairman & Managing Director of KHIL, expressed enthusiasm about the new venture, stating, "We are delighted to announce our new hotel in North Goa, a destination that holds immense potential for hospitality and tourism. This will be another milestone in our growth journey under the IRA by Orchid brand, and we remain committed to offering eco-friendly, world-class hospitality experiences to our guests across India."

Executive Director Vishal Kamat emphasized the company's commitment to sustainable hospitality, noting, "North Goa has always been a preferred choice for travelers, and with IRA by Orchid Hotel, we aim to provide them with an authentic yet sustainable hospitality experience. The property's facilities are designed to serve both leisure and business guests, making it a perfect blend of comfort, convenience, and our signature eco-conscious ethos."

Strategic Location

North Goa, renowned for its vibrant beaches, rich Portuguese heritage, and thriving nightlife, continues to attract both domestic and international travelers. From the bustling markets of Anjuna and Mapusa to the serene beaches of Vagator and Morjim, the region offers a unique mix of culture, adventure, and relaxation. The addition of IRA by Orchid Hotel in North Goa is expected to enhance the brand's footprint in this highly sought-after market.

Company Background

Kamat Hotels (India) Limited has established itself as a pioneer in environmentally sensitive Indian hospitality. The expansion in North Goa under the IRA by Orchid brand underscores the company's commitment to growth while maintaining its focus on eco-friendly and world-class hospitality experiences.

As the hospitality industry continues to evolve, KHIL's strategic expansion in North Goa positions the company to capitalize on the region's enduring popularity among travelers seeking both leisure and business accommodations.