Conferences and events shifting to Sri Lanka due to 28 per cent GST hike on Indian hotels : Report

Conferences to be held in India are being moved to Sri Lanka as organisers claim the 28 % tax hike on Indian hotels  is more than that of neighbouring countries.

According to the Economic Times - a nine-day conference to be held in September in Kochi, Kerala, has just moved to Sri Lanka, with the organisers coming around to the view that footing the GST rate of 28% is way too much than paying taxes in hotels in the neighbouring country. 

"With most hotels being close to the national highways in Kerala, business was already hit with the SC ruling on liqour ban. GST has made the MICE business a national issue and has made matters worse. Why have they complicated matters with multiple slabs? The concept of GST globally is one tax, one slab," said Jose Pradeep, treasurer of the Kerala Mart Travel Society. 

Hotels across the country in India have started getting cancellation requests, and hosting MICE (meetings, incentives, conferences and exhibitions) events have become an expensive affair since the GST rates kicked in on July 1. 
 

Hoteliers said with 28% tax slab, high-end Indian hotels have become steeper than countries like Thailand and Sri Lanka, leading to bookings being renegotiated or even moving to other countries. 
 

Elsewhere, at Le meridian in Lutyens' Delhi, calls and concerns are pouring in for MICE events. "People are expressing concerns and expecting us to renegotiate our base rates. We are evaluating these events on a case-to-case basis as some of these events are planned in advance and cannot be moved at the last minute." said Tarun Thakral, COO at Le Meridian Delhi. 

Garish Oberoi, V-P, Federation of Hotel and Restaurant Associations of India, said hotels, especially in Delhi, Kerala and Agra which boast of large convention centres for corporate events are losing business to other countries.