SRINAGAR: Ladakh Lieutenant Governor Vinai Kumar Saxena on Wednesday granted "industry" status to hotels and guesthouses registered with the tourism department, aiming to strengthen the hospitality sector in the Union Territory.
Key Details of the Order
The order will come into force on June 1. It is expected to benefit 1,257 hotels and guesthouses across Ladakh, including 1,078 in Leh and 179 in Kargil. These establishments can now avail electricity and water tariff at industrial rates, which are lower than commercial rates. Stakeholders, including the All Ladakh Hotel and Guesthouse Association, had been pressing for this status for the sector.
Official Statement
"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.
Benefits for Hospitality Units
With the new status, hospitality units will receive incentives, concessions, and infrastructure support at par with other industries in Ladakh. Most hotels operate for only about six months annually and remain closed during harsh winters when temperatures can plunge to minus 40 degrees Celsius in some areas, leading to high maintenance costs and unsustainable businesses.
The industry tag also makes hotels and guesthouses eligible for concessional bank loans under the UT and central governments' industrial policies. Additionally, they will be exempted from property tax and gain access to capital incentives, subsidies, and other schemes.
