Slash In Bar Licence Fee For Star Hotels A Shot In Arm For Hospitality Biz

Visakhapatnam: The reduction in bar licence fee for star hotels and the extension of the deadline to serve their guests in the restaurants are considered as the steps in the right direction to prevent diversion of Meetings, Conferences and Exhibitions (MICE) to other States.

Andhra Pradesh Cabinet following representations from the Hotels and Restaurants Association of AP and Tours and Travel Association of Andhra (TTAA) on Thursday reduced licence fee for three star hotels from Rs66 lakh to Rs25 lakh. Due to hefty amounts raised during the previous government, several star hotels in Visakhapatnam and Vijayawada had surrendered their bar license.

The Cabinet also decided to add 50,000 rooms this year through Tourism Department so as to increase the revenue in addition to creating job opportunities for many.

"Now with the decision to reduce the fee and allow the restaurants till late evening, .we can stop flight of MICE events and destination weddings to Odisha, Telangana and other States," K Vijay Mohan, president of TTAA, told Bizz Buzz. The decision is also expected to give a boost to the businesses of the hospitality sector.

On an average, Visakhapatnam records a tourist footfall of 1.5 crore including a large number of foreigners. More than half of the domestic tourists are from West Bengal, Odisha and Telangana. Tourist operators believe the decisions will further increase footfall with plans underway to develop a Buddhist circuit and augment the existing infrastructure.

The government has already given green signal to development of resorts by Oberoi Group and Mayfair Group near 17th century Dutch township of Bheemunipatnam. The Bhogapuram International Airport is expected to be made operational by the end of 2026 or early 2027. There are also decisions to develop a convention hall on the compound of Shilparamam at Madhurawada and another to host international events at APIIC Harbour Park by the Abu Dhabi-based LuLu Group. Varun Group recently launched work on construction of two skyscrapers for a star hotel and highend service apartments near RK beach at a cost of Rs600 crore

Andhra Pradesh Tourism Forum secretary Pavan Kartheek said the decision to reduce bar licence fee to Rs25 lakh for the star hotels will undoubtedly boost tourism in the State by attracting more corporate and social events. "We would like to extend our special thanks to Chief Minister N. Chandrababu Naidu and Tourism Minister Kandula Durgesh for their tireless efforts in promoting tourism

in AP," he said.