Goa Hotels Downgrade Ratings to Evade Fees, Claims Tourism Minister
Star hotels in Goa self-downgrading to avoid higher fees: Minister Khaunte
Business Standard
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Goa's Tourism Minister Rohan Khaunte revealed that several star-rated hotels are downgrading their classifications to avoid higher government fees, leading to revenue loss for the state. A team has been formed to inspect and verify the categories of these tourism enterprises across Goa.
- 01Several star-rated hotels in Goa are downgrading to lower categories.
- 02This self-downgrading is a strategy to avoid higher government fees.
- 03Tourism Minister Rohan Khaunte indicated potential action against department officials.
- 04A verification team has been established to inspect hotel classifications.
- 05The downgrading is causing significant revenue loss for the state government.
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Goa's Tourism Minister Rohan Khaunte announced that numerous star-rated hotels in Goa are intentionally downgrading their classifications to evade higher fees imposed by the government. This trend has led to a notable revenue loss for the state's exchequer. Khaunte mentioned that even some five-star hotels are moving to lower categories, which raises concerns about compliance and regulatory oversight. To address this issue, Khaunte has formed a verification team led by Tourism Director Kedar Naik, tasked with inspecting all tourism enterprises in the state to ensure proper categorization and compliance with registration norms. The team will also review hotel registrations and renewals, aiming to curb this practice that undermines the state's revenue.
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The downgrading of hotels may lead to reduced funding for state tourism initiatives, affecting local businesses and employment in the tourism sector.
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