The Hotel and Resort Association Punjab has criticized the state government’s imposition of a 12% land-use conversion charge on hotels built on industrial plots, labeling the policy as a major setback for the state’s hospitality and tourism growth.
The association’s president, Satish Arora, expressed concern that this hefty fee for changing land use from industrial to commercial would deter investment in Punjab’s hotel sector, particularly in emerging business hubs like Ludhiana, Amritsar, and Jalandhar. These cities are strategically located near major commercial zones and transport hubs, making them prime spots for hospitality development.
“This decision increases financial strain on an already burdened industry dealing with high GST, rising operational costs, and competition from online platforms,” Arora said. “Such policies discourage new investments and stifle the growth of the hospitality sector in Punjab.”
Hoteliers argue that the fee undermines efforts to position Punjab as a business-friendly destination. The association has called for the fee to be reduced or scrapped altogether, emphasizing the need for policies that encourage infrastructure development rather than hinder it.
Industry leaders have urged the government to engage in discussions to explore mutually beneficial solutions.
source: The Tribune
