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Jayalalitha promises hotel industry more city space
Indo-Asian News Service

Chennai, Oct 15 (IANS) Tamil Nadu Chief Minister J. Jayalalitha Saturday said Chennai would soon have a new master plan to allow for more hotels. 

Speaking at the annual convention of the Federation of Hotel and Restaurant Associations of India here, Jayalalitha said her government in tandem with the governments of other southern states was developing inter-state travel circuits in the region.

"We are in the process of finalising a new master plan for Chennai wherein we shall incorporate features to permit development of hotel accommodation in suitable locations," she said.

Taking note of the hotel industry's long-standing demand to reduce luxury tax on hotels in Tamil Nadu, the chief minister said her government had brought down the tax substantially in 2003.

Promising further tax reduction, she said Chennai was emerging a major investment destination and the demand for hotel accommodation would increase in the future. 

The chief minister said she believed that the hotel and restaurant industry was "basic infrastructure" that supported growth in the services sector.

"I endorse your request that the hotel industry should be treated as essential infrastructure," she said.

Tamil Nadu was promoting lesser-known destinations like Chettinad and Coimbatore, she said.

The government had taken up integrated destination development projects at Mamallapuram at a cost of Rs.93.2 million and at Yercaud at Rs.45 million, she said.

Her government was making efforts to develop a common circuit with Sri Lanka as both places were becoming "twin destinations" for a large number of European visitors, Jayalalitha said.

Efforts were also on to establish a circular "southern splendour" tourist train, she said.