VIJAYAWADA: In a move to promote tourism sector, the Andhra Pradesh govt has reduced the licence and registration fee for bars in 3-star and above rated hotels in the state.
The decision has been taken following recommendation by the tourism department as well as the excise and prohibition department. The licence and registration fee which was around ₹66 lakh in the past, has been brought down to ₹ 25 lakh.
AP Tourism Development Corporation (APTDC) managing director Amrapali Kata, in a report to the govt, has stated that the present licence fee and non-refundable registration charge for bars established in 3-star and above hotels work out to ₹66.55 lakh per annum, which is the highest in India when compared to the bar licence fee for 3-star and above hotels in other states.
The AP Hoteliers’ Association (APHA) has also requested the govt to reduce the licence fee for all classified hotels (3-star and above) in linewith the fee in states like Tamil Nadu, Maharashtra, New Delhi, West Bengal and Karnataka.
“The excise director echoed with the assessment of the tourism department’s proposal saying that the broader economic impact could be positive, with potential benefits such as growth in the hospitality sector, higher employment generation. It will help increase revenue of the state exchequer as the unclassified hotels may also seek classification and apply for bar licences, increase in footfalls, restaurant increase in sales and encouragement to new investments in the hospitality sector, leading to an expansion of high-end hotels and resorts,” said Mukesh Kumar Meena,principal secretary (excise).
He said that the excise director subsequently requested the govt to consider the proposal of the tourism department to reduce the licence fee and non-refundable registration charge of the bars established in 3-star and above hotels to ₹25 lakh per annum from the existing ₹66.55 lakh, stating that this initiative would result in positive economic impact in terms of higher employment generation, increased revenue from ancillary streams and give a fillip to the hospitality and tourism industry.
Accepting the recommendations, the AP govt has reduced the bar license fee and non-refundable registration charges, said Meena.
