The Gujarat government has reportedly taken an in-principle decision to directly approve liquor permit shops in four- and five-star hotels across the state, according to top sources. This move is aimed at eliminating procedural delays in granting permissions to hotels for operating liquor permit shops, especially as Ahmedabad prepares to host international sporting events in the coming years.
Easing of Norms for Three-Star Hotels
Sources indicate that the government also intends to ease the policy for granting permissions to liquor shops in three-star hotels in the near future. With this development, the liquor shop network in the state is set to expand rapidly, potentially boosting tourism and hospitality revenues.
Background and Rationale
During last year's Chintan Shibir, a brainstorming session on boosting tourism, several officers proposed relaxing norms concerning liquor shops in premium hotels. The Hotels Association has long demanded a more liberal approach in granting permits for liquor shops in hotels. Currently, it takes several weeks or more to obtain approvals for starting permit shops even after hotels have begun operations. This delay often results in hotels failing to attract clients.
An official stated, "The government has decided to provide permits to hotels of three-star category or below on a case-to-case basis as well. A proposal has also been mooted for relaxing prohibition norms in Kutch and areas with tent cities, which attract visitors during specific seasons."
Rise in Liquor Permit Applications
In February, the government informed the state assembly that the number of applications for new liquor permits in Ahmedabad increased by 227% in one year. In a written response, the government revealed that 292 new liquor applications were made between January 21, 2024, and January 20, 2025, while 956 new applications were filed between January 1, 2025, and January 20, 2026.
During the recently concluded assembly session, the government also reported that in the past two years, licenses were issued to 32 hotels in Ahmedabad and Gandhinagar districts for selling liquor. Additionally, the state government earned revenue of Rs 116.39 crore over two years from the sale of alcohol at permitted liquor shops in hotels in these two districts.
Future Implications
The decision to streamline liquor permit approvals is expected to significantly enhance the tourism experience in Gujarat, particularly for international visitors attending events. The expansion of liquor shops in hotels may also contribute to increased state revenue and support the hospitality sector's growth.
