Hotels, guesthouses get industry status in Ladakh

SRINAGAR: Ladakh lieutenant governor Vinai Kumar Saxena on Wednesday granted “industry” status to hotels and guesthouses registered with tourism department with an aim to strengthening hospitality sector in the UT.

The order will come into force on June 1. It is expected to benefit 1,257 hotels and guesthouses in the UT, including 1,078 in Leh and 179 in Kargil, as they can now avail electricity and water tariff at industrial rates, which is lesser than commercial rates. Stakeholders, including All Ladakh Hotel and Guesthouse Association, had been pressing for the industry status to the sector.

“The hospitality and tourism sector has significant potential to catalyse sustainable economic development and tourism promotion in Ladakh. This reform will also enhance visitor experience and further establish Ladakh as a world-class tourism destination rooted in sustainability, culture and hospitality," Saxena said.

Now the hospitality units will receive incentives, concessions, and infrastructure support at par with other industries in Ladakh. Most of these hotels operate for only about six months in a year and remain closed during the harsh winter when temperature plunges to as low as minus 40 degrees Celsius at some places, resulting in high maintenance costs making hotel and guesthouse businesses unsustainable.

The new tag also makes hotels and guesthouses eligible for concessional bank loans under the UT and Central govts’ industrial policies. These hotels and guesthouses would also be exempted from property tax, and they would also be able to access capital incentives, subsidies and other schemes.