An autonomous research institute under the Ministry of Finance


Tariff Policy in Indian Hotels

Publication date

Jan, 2000


Report submitted to the Hotel Association of India.


Ashok K. Lahiri, Hiranya Mukhopadhyay, Dipankar Purkayastha, R. Kavita Rao, Mamata Parhi and Sudip Ranjan Basu


The primary objective of the study is to investigate pricing policies of Indian hotels and to examine their implications on the industry on one hand, and on tourism and the Indian economy, on the other. At present a number of hotels quote two official prices for any given category of room: a rupee price for the Indian client and a dollar price for the foreign client. The study aims at examining the optimality of the tariff structure and the need, if any, for a changeover from the dual tariff structure to single tariff in regard to the future full convertibility of the rupee. In addition, it also tries to analyze the current pattern of the central and state taxation policies, especially those pertaining to the expenditure tax and luxury taxes impacting the hotel industry, and to suggest a rational tax structure.

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