Government of Rajasthan (Department
of Tourism) - New Hotel Policy 2006
The Tourism Policy of Rajasthan 2001 envisages creation of adequate and
suitable infrastructure like accommodation, transport, communication links
and other essential amenities. Although, Tourism Policy 2001 has identified
provision of suitable accommodation for various categories of tourists as
the most crucial component of tourism, however, the growth of hotel industry
in Rajasthan has been dismal during the last five years. The rapid increase
of tourist inflow in the State has thrown up an immediate requirement for
accommodation facilities in all categories. With a view to bridging the gap
between current demand and supply of hotel accommodation in Rajasthan and in
view of the projected growth of tourism in the coming decade a new Hotel
Policy 2006 has been announced by the State Government in June 2006. The
provisions of concessions & facilities on the New Hotel Policy would
apply only to new Hotels & accommodation units.
1. State Government shall ensure easy availability of suitable lands for
development of Hotel/Accommodation infrastructure by taking following
- JDA/UITs/Municipal Bodies /Gram Panchayats and Collectors of each
district shall identify and reserve adequate land (create land bank for
hotels) for setting up of hotels. Within this land Bank of hotels there
shall be separate hotel land identified and reserved for the following
categories of hotels namely (i) Budget hotels, 1/2/3 Star Hotels (ii)
Mid-Market hotels (4 Star Hotels) (iii) Luxury hotels 5 Star / 5 Star
deluxe & above.
- The land Bank so created shall be put on the Website of Department of
Tourism and on individual Website of each of these bodies and on the
website of the concerned District.
- The maximum land areas that can be provided to various categories of
hotels shall be as follows:-
MAXIMUM LAND AREA
Budget hotels (1/2/3 star)
1200 Sq. Mtr.
4 Star Hotels
6000 Sq. Mtr.
5 Star / 5 Star Deluxe Hotels and above
Up to 18000 Sq. Mtr.
2.(a) In case of Local bodies as indicated at (1) (a), there will be
special reserve price for all such lands identified and reserved under the
Hotel land Bank. The special reserve price for Hotel and accommodation Units
shall be 50% of the prevalent commercial reserve price applicable for the
area where the land is situated. This special reserve price shall be the
basic price for disposal of reserved hotel lands through the process of
competitive bidding and allotment. These Local Bodies shall notify their
special reserve price of various land identified for Hotel Project on their
Website and on the Website of Department of Tourism.
(b) The process of competitive bidding and allotment for such reserve hotel
lands with "special reserve price" shall be as follows: -
(i)The Local Bodies shall notify through public advertisement for sale and
disposal of hotel lands identified and reserved for this purpose through
The Special reserve price for the hotel land put on sale/disposal shall
also be indicated. This price shall be the basic price for disposal of land
through competitive bidding.
In case there is only a single bidder in the bidding process the concerned
Local Body may allot this land to the Single Bidder at the special reserve
price fixed for that land.
(ii) An applicant, interested in any hotel land identified & reserved
by the Local body, can apply for allotment of the land at Special Reserve
Price. On receipt of such application, the Local body shall however notify
through public advertisement. In case more applicants apply for the land
within the specified time period, the sale/disposal of land shall be done
through competitive bidding. In case no other applicant applies in the given
period the land may be allotted to the first applicant at the special
reserve price fixed for that land, subject to other conditions of the Hotel
(iii) In case of both 2b(i) and 2 b (ii), the Local Body shall ensure
pre-qualification of bidders who are allowed to bid for the hotel land or
the single applicant/bidder who is considered for allotment of land at
Special reserve price. The Local Bodies shall also ensure that the
successful bidder in the competitive bidding process or the single
bidder/applicant (who has been considered for allotment of the land) shall
provide a "performance guarantee" equivalent to 10% of the project
cost. The hotel project on such land shall be restricted to have maximum 15%
of constructed area for Commercial activities related to Hotel.
(iv) The following eligibility criteria is laid for being eligible for
bidding and applying for hotel land under this policy
For Budget /1Star/2Star/3 Star
For 4 Star and above
The bidder / applicant should be a Hotelier/Tour
Operator having business experience in any Tourism activity. In case the
applicant does not have the above eligibility, a consortium with one of
the members having the desired eligibility condition can be eligible.
(c) With the provisions mentioned at clause 2 (a) and 2 (b) coming into
force, the State Government (Urban development Department) shall withdraw
facilities given to Hotel/Accommodation Units from its circular No.
F.3(28)Na Vi Vi/3/96 Part dated 17 November 2001 with immediate effect.
3. A special incentive package for new budget, 1 Star, 2 Star and 3 Star
Hotels shall be provided over and above the provisions given in Rajasthan
Investment Policy Scheme 2003. The special incentive package will include:-
(i) 100% exemption from land conversion charges
(ii) 100% exemption of entertainment tax
The above concessions will be valid till March 2010.
4. State Government shall henceforth provide the following incentives and
facilities to the new Budget category, 1 and 2-3 Star hotel units:-
(i) Water Supply charges as per industrial rates.
(ii) House tax to be charged as per industrial rates.
5(a) All such Nazool Properties and lands which can be converted into
heritage hotels, tourism complexes and accommodation units shall be
transferred to Tourism Department. The Department shall prepare PPP Project
proposal and ensure disposal under "Rajasthan Disposal of Land and
Properties by DOT/RTDC Rules, 1997".
5(b) State Government may also enter into a joint venture with private
sector for bringing up new hotel projects in the following manner:-
(i) By offering Government land and converting capital value of the land
into equity of Special Purpose Vehicle Company.
(ii) By offering Government land with the provision of mutually agreeable
6. Tourism Department shall prepare a scheme for private sector for
offering such Dak Bungalows and Rest Houses belonging to Government
Departments which can be utilized for providing accommodation to tourists.
The Scheme will incorporate list of such Dak Bungalows and Rest Houses which
can be utilized as Accommodation Units for tourists with the consent of
7.In order to provide Higher Floor Area Ratio (FAR) for new hotel projects,
the following notification shall be issued by the State Government :-
New Hotels in Existing areas :- Higher FAR within the scheme area up to
twice vis-à-vis what may be presently admissible under Building Bye
laws may be permitted subject to condition that over all FAR of the scheme
area shall not exceed 1 (One)
New Hotels in New Areas :- Higher FAR for hotel Buildings within the area
identified for township development under New Township Policy up to twice
vis-à-vis what may be presently admissible under Building Bylaws may
be permitted subject to condition that overall FAR of the Township area
shall not exceed 1 (One).
Department of Local Self Government and Department of UDH shall issue the
8. Government will promote and facilitate establishment of more heritage
hotels and conversion of old palaces and havelis into hotels.
9. Department of Tourism shall be the Nodal Department for development of
Hotel and Accommodation infrastructure. Department of Tourism shall perform
the following functions :-
(a) Department of Tourism shall be the Nodal Department for facilitating
speedier clearances of new Hotel/Accommodation Projects as also for various
issues and problems encountered by Hotel industry from time to time. A
notification to this effect shall be issued. For Hotel projects, Agenda
items for the BIDI & State Level Empowered Committee shall be brought
about by Tourism department instead of BIP.
(b) The Website of Department of Tourism shall exhibit the land Bank
details of various local bodies and of various districts.
© Tourism department shall be the First Entry Point for receiving
applications for new Hotel Projects. They will device a Single Composite
Application format for the new hotel/accommodation projects requiring
clearances from various departments and agencies.
(d) Tourism Department shall also develop a mechanism for registration of
Hotel and Accommodation units in the State and create and maintain authentic
(e) Tourism Department shall create a "Hotel Cell" in the
Directorate to perform the above functions.