The Government of Uttar Pradesh has declared an effective hotel policy very recently. The salient features of the hotel policy are:-

• At the time of drafting of master plan, related regulated area and authorities by taking cooperation from Deptt. of Tourism will earmark the land for hotels and this land will be given for hotels. Where master plan has been finalised this action should be taken for vacant space. In authorities (development authority, industrial development authority, housing & development board) where master plan has not been finalised, with the help of Department of Tourism action to be taken to reserve suitable land for hotels keeping in mind the possibilities for tourism and whenever master plans are received then at that time also by taking help from Deptt. of Tourism the land will be reserved for hotels.
• The land earmarked for industry in the master plan should be kept reserved for tourism/hotel for a period of 5 years after the date of advertising the scheme. If no hotel entrepreneur comes forward in the time span of 5 years then in that case the authority will be free to convert the use of this land.
• If the land use conversion of the authority's land is necessary to grant the earmarked plot to hotel industry then the work regarding conversion of land use to be done at a competent level under the rules & regulations of authority on case to case basis.
• In places where there is no development authority, there as per requirement the land of village committee/town area body should be resumed and transferred to Deptt. of Tourism. Deptt. of Tourism can establish a land bank of such lands received from village committee/town area bodies. Deptt. of Tourism will provide this land to tourism industry/hotel, as per requirement. But under the rules there will be a binding that if the land is not used for tourism industry within a period of 5 years then this land will be automatically transferred to the village committee.
• In above places where are no development authorities but municipal bodies are formed, there the District Magistrate may provide the land to entrepreneurs on fixed circle rate or lease.
• Since Tourism has been granted the status of industry in which hotels are also included hence plot should be earmarked and allotted similarly like industries on industrial rates. This policy will be implemented in each district of the state.
• Whenever development authorities form their plans under the purview of Deptt. of industry development then they should also earmark the necessary land for hotels at the appropriate places.
• Hundred percent rebate in luxury tax for next 5 years be given to new hotels from the starting date. Other rebates will be applicable as per industrial policy.
• The allotment of earmarked land for hotel industry will be done only to hotel entrepreneur.
• Hotel entrepreneurs will be provided land on industrial rates by all authorities (Housing Deptt. and Industrial Development Deptt., Noida, Greater Noida). It will be ensured that all hotel entrepreneurs are benefited by this provision, for this above mentioned all authorities will make necessary order/revision in their rules. So that it becomes possible that the land can be made available to hotel entrepreneur on industrial rate.
• Department of Tourism will derive the number of plots as per the city wise need based on star rating of hotel.
• To identify plot a committee will be formed under the Chairmanship of the commissioner.
• Applicant entrepreneurs/society will not get more than one plot in a city.
• At places where more than one authority/society have land, there only one concern department will be made nodal deptt. by the Deptt. of Tourism which will invite application on behalf of all concern department but the final decision regarding allotment/auction, will be taken by the concerned departments only.
• After identification of land for hotel, applications will be invited from hotel/tourism entrepreneurs to provide them land on industrial rates.

Eligibility terms will be fixed for application, which will be following:-

• Only those companies/societies will apply who are registered and connected with the hotel industry and have earlier experience in this regard.
• In hotel policy eligibility terms have also been fixed in which 5 star and other level project will be given to those hotel entrepreneurs who have an average turn over of Rs. 100 crore or above in the last 3 years, positive net worth and minimum 10 years experience in hotel profession.
• For 4-Star and other 4-Star level project the rule will be following:-
• Average turn over of Rs. 75 crore or above in the last 3 years, positive net worth and minimum 10 years experience in hotel profession. Like wise for 3-Star and other level project an average turn over of Rs. 50 crore on above in the last 3 years, positive net worth and minimum 5 years experience in hotel profession will be required.
• In authorities where there is provision of industrial plots there as per the present time policy the allotment of industrial plots in case of more than one applicant will be done on the basis of suitability can be ascertained on the basis of their experience, turn over and net worth basis. And keeping eligible applicant rating in descending order on the basis of hotel plots being made available in a city, based on their priority the plot be allotted. This rating 5 star (or above), 4- Star and 3- Star categories can be done separately.
• For each hotel the applicant company's ownership or under the management will have points as under:-
  
  A- Experience in hotel profession will have maximum 50 points
  • 5-Star or above - 10 points per hotel
  • 4-Star - 7 points per hotel.
  • 3- Star hotel- 5 points per hotel
  • If the hotel has a tie up/contract with an international chain or the applicant himself is of international chain then for each such hotel 3 additional points will be provided.
    
• B- For turn over maximum 25 points will be fixed.
  • 1 point will be fixed per 10 crore turn over.
    
• C- For net worth maximum 25 points will be fixed.
  • 1 point will be fixed per 4 crore net worth.

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.

PROVISIONS:
1. State Government shall ensure easy availability of suitable lands for development of Hotel/Accommodation infrastructure by taking following steps:-

1. 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.
2. 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.
3. The maximum land areas that can be provided to various categories of hotels shall be as follows:-

	HOTEL CATEGORY	MAXIMUM LAND AREA
(i)	Budget hotels (1/2/3 star)	1200 Sq. Mtr.
(ii)	4 Star Hotels	6000 Sq. Mtr.
(iii)	5 Star / 5 Star Deluxe Hotels and above categories.	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 competitive bidding.

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 Policy.

(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

	Category Hotel	Eligibility Criteria
(a)	For Budget /1Star/2Star/3 Star	No conditions
(b)	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 revenue sharing.

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 concerned departments.

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 above notifications.

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 data.

(e) Tourism Department shall create a "Hotel Cell" in the Directorate to perform the above functions.