Hotels approved under Tourism Policy 2020–2026 await subsidy from government of Karnataka

Hoteliers are ready to provide services mandated by the government of Karnataka, but the the subsidy does not reach them on time.

The Tourism Department had given in-principle approval for the establishment of 54 new hotels across the State under the Karnataka Tourism Policy 2020, between 2022-23 and 2024-25. Though many of these hotels have been granted approval, none of them have received any monetary benefits (subsidies) from the government, which were prescribed in the policy. Responding to a question raised in the recently concluded legislature session in Belagavi, Tourism Minister H. K. Patil informed that no money had been sanctioned for the subsidy. 

The Karnataka Tourism Policy 2020 was touted as a springboard for various activities and development of tourist destinations until 2026. A majority of these hotels would be situated in popular tourist destinations in Uttara Kannada, Vijayanagara, Udupi, Hassan and Kodagu districts.

The policy had several specifications for the hotels to be established, including 6,000 square feet land, 20 rooms, a lounge, dining room, facilities for differently-abled, and classification of 1-star or 2-star hotels. It had guidelines for responsible tourism with steps such as purchasing fresh produce, dairy and poultry from local groups, experiential tour packages for guests, live demonstration of local arts and crafts, and local cuisine once a week. 

The hoteliers are ready to provide services mandated by the government of Karnataka, but the the subsidy does not reach them on time.

“While these policies and schemes are publicised with great pomp and show, we do not get any benefits from them. Though the government gets good income in the tourism sector from the hotel industry, but we do not get support in the right manner. Most government-run hotels are not clean, and tourists often prefer private properties. We need these subsidies and all possible help from the government to set up good hotels in tourist destinations. Even with these tourism policies, we have received no benefits,” said Chandrashekar Hebbar, honrary president, Karnataka State Hotels’ Association. 

Apart from tourist destinations, hotels are also needed on highways, which need support from the government. “Hotels are the sole providers of basic facilities like food, water and washrooms on highways. We are not getting enough benefits from the government for the services we are providing. If the government does provide support, then a lot more people would come forward to set up hotels,” he said.  

While acknowledging that the hotels that have been granted full approval are yet to receive the subsidy, Mr. Patil said, “There has been no proposal in the department about providing subsidy to hotels to which in-principle approval has been given. After an official committee meeting, according to provisions of the budget, subsidy will be declared for the proposals, which have been granted approval.”