Cut multiple taxes or lose foreign tourists to places like Singapore, Hong Kong and other places in China. The Federation of Hotel and Restaurants' Association of India (FHRAI), in its memorandum to the Centre, said the country was still not considering hotel as basic necessity for tourists but a luxury, as a result of which they were losing a large chunk of visitors, in turn revenue, to China and Singapore as per a report.

FHRAI blames the dip in tourist influx on the manifold taxes hotels here have to pay, which they pass onto their guests' bill. Unlike in India, hotels in other soth Asian countries have to pay a single tax, ranging from 5% to 7%, while in Hong Kong, the amount is nil.

"Foreign tourists have been skipping a long stay in India. Against an annual figure of 30 million foreigners visiting Singapore, the number is merely 6 million for Mumbai because of huge taxes India imposes on hotels," said Kamlesh Barot, president of FHRAI. Hotels here pay 5% value added tax ( VAT) and 10% luxury tax, besides 10.33% service tax.

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