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Budget 2024: The Federation of Hotel & Restaurant Associations of India (FHRAI) unveiled a set of pre-budget expectations on Wednesday. The industry body, representing hotels, proposed a measure to confer universal infrastructure status to hotels with a project cost of Rs 10 crores and above, regardless of city population. FHRAI emphasized that this inclusive approach aligns with the spirit of equitable development, promising a nationwide surge in the hospitality sector. ....
"The initiatives, including encouraging citizens to explore 15 domestic destinations by 2022, bolstering infrastructure, developing tourism circuits and the recent Wed in India appeal, have significantly propelled domestic tourism, boosting local economies and reducing expenditure on overseas destination weddings," said Surendra Kumar Jaiswal, vice president, FHRAI. ....
Lawyer Lalit Bhasin, who appeared for NRAI argued that service charge is an agreement between a restaurant management and its staff, hence it should be dealt with the authorities under the labour laws. ....
Hotels and restaurants are in a legal battle with the Union government on whether service charge can be imposed compulsorily, or if it must be paid voluntarily. ....
Delhi High Court mandates replacing service charge with staff contribution, capping it at 10% of the bill. Restaurants and hotels affiliated with FHRAI must display notices informing customers that tips are optional post staff contribution payment. The court s interim order addresses FHRAI and NRAI s challenge against CCPA s guidelines, which discourage automatic service charge inclusion. ....