The Ladakh administration on Wednesday granted “industry status” to hotels and guest houses registered with the Tourism Department, a move aimed at extending incentives, concessions and infrastructure support to the hospitality sector at par with other industries in the Union Territory.
Lieutenant Governor VK Saxena termed the decision “another historic day for the tourism sector in Ladakh” and said the order would come into effect from June 1.
The L-G said the move would make hotels and guest houses eligible for several benefits available to industries, including electricity and water tariffs at industrial rates, which are lower than existing commercial rates, and concessional bank loans under Central and UT industrial policies.
He said the establishments would also get exemption from property tax.
“Additionally, this move would reduce the operating costs of hotels and guest houses and enhance investor confidence in Ladakh,” Saxena said.
He expressed confidence that fulfilling this long-pending demand would accelerate the growth of the hotel industry in Ladakh and help cater to the increasing influx of tourists.
“This would create an enabling environment for the expansion and strengthening of the hospitality industry and ensure a memorable experience for tourists visiting Ladakh,” he added.
Officials said hotels, guest houses, resorts and homestays in Ladakh are currently charged commercial electricity tariffs at the rate of Rs 5.49 per unit.
With the grant of industry status, eligible units will now be charged industrial electricity tariffs of Rs 4.10 per unit.
Similarly, commercial water tariffs applicable to tourism establishments presently range between Rs 28 and Rs 46 per kilolitre, depending on consumption slabs, whereas industrial water tariffs range between Rs 26 and Rs 29 per kilolitre, offering substantial relief to tourism units. Significant reductions will also apply to flat-rate water connections.
“In effect, these incentives and concessions would reduce the operational cost of lodging and boarding establishments, enhance investor confidence, improve project viability, facilitate access to institutional finance and enable tourism enterprises to avail benefits under industrial policies and infrastructure support mechanisms,” an official statement said.
