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India launches hotel booking tax

India has recently introduced some new taxes that are expected to make the price of trips to the country go up, the Association of Russian Tour Operators reports.

The Indian Government adopted a new budget legislation for the years 2011-2012 that imposes new taxes on booking hotel rooms as well as on the hotel food and drink. Now one will have to pay 5.15% off the price of the accommodation and 3.09% off the price of catering when booking a hotel in India.

The Indian tour operators are warning their Russian partners that all the reservations, even those made before the new laws come officially into force, will have to be re-billed in accordance with the new regulations. In other words, India’s budget is to increase with the help of all the tourists coming to the country.

The new development was confirmed by the government last week, and we had no way of informing you of the changes any earlier than this. The tax increase will result in greater prices. We will soon be sending out the new price lists for all the Indian destinations we are offering,’ the Indian tour operator Travelite tells the Russian tour operators.
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