Surendra Jaiswal, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), is at the forefront of shaping the future of India’s hospitality sector at a critical moment of transformation. With the industry navigating post-pandemic recovery, regulatory challenges, talent shortages, and rapid expansion into tier-II and tier-III cities, his leadership is focused on policy reform, sustainability, and inclusive growth. In a conversation with Asmita Mukherjee, Jaiswal shares his vision for strengthening hospitality as a key driver of tourism-led economic development, outlines FHRAI’s priorities for 2026, and discusses pressing issues ranging from GST reforms and OTA practices.
What are your top priorities for FHRAI in strengthening India’s hospitality sector in 2026?
My foremost priority is to reinforce FHRAI as the unified voice of India’s hospitality sector and to champion reforms that make it more competitive, resilient, and investment-ready. A key focus is securing Infrastructure Status, which will unlock long-term, low-cost institutional finance, a critical enabler for new projects, expansions, and upgrades across metros as well as Tier-II and Tier-III cities. Equally important is advocating for Industry Status at the state level, which can deliver tangible benefits such as utility tariff reductions, stamp duty exemptions, rationalised property taxes, and simplified compliance procedures. Beyond these, we are pushing for the rollout of single-window clearance system, resolution for copyright issues, accelerated digital adoption, and stronger skill development initiatives. By combining regulatory advocacy with capacity-building, FHRAI aims to create a sector that contributes meaningfully to tourism-led growth and the vision of Viksit Bharat 2047.
What key policy or GST reforms are most urgently needed to support hotels and restaurants across the country?
Restoring Input Tax Credit (ITC) stands out as the most pressing reform, particularly for small and mid-sized hotels operating on tight margins. Access to ITC is critical for managing operational costs while remaining competitive.
Other priorities include delinking restaurant GST rates from hotel room tariffs, as the current structure creates confusion and distorts pricing. Today, restaurants inside hotels are taxed based on the room tariff, not their own business operations. If a room crosses INR 7,500 tariff in a hotel, the restaurant is pushed into an 18% GST slab with ITC; if the tariff is below that threshold, the restaurant falls under 5% without ITC. This linkage discourages hotels from revising tariffs during peak seasons and leads to inconsistencies in pricing and compliance.
We are also seeking resolution for legacy demand notices that arose due to differences in interpretation, such as disputes over declared tariff versus transaction value, or how OTAs display rates. Many notices were not due to non-compliance but unclear guidelines. A predictable, transparent tax framework will restore industry confidence, encourage fresh investment, and make India’s hospitality sector more globally competitive.
How is FHRAI addressing concerns around OTAs; specifically pricing parity, commissions, and data transparency?
High commissions, pricing parity clauses, and limited transparency by OTAs continue to challenge smaller and mid-sized hotels, which often have less negotiation power. FHRAI is advocating for a fair and balanced digital ecosystem where hotels retain autonomy over pricing and inventory. We have recommended clear regulatory guidelines to curb anti-competitive practices, ensure fair contracts, and mandate transparent display of tariffs, rankings, and customer data. Misleading pricing, such as inflated rates that include OTA commissions, has also caused GST compliance issues and unnecessary disputes.
What steps is the association taking to streamline copyright licensing and reduce compliance burdens on hotel owners?
Current copyright and royalty frameworks place an undue burden on hotels, with multiple collecting societies often seeking overlapping fees for the same content, despite the actual users being the guests. This creates confusion, compliance challenges, and high costs. FHRAI is advocating for a single-window licensing system with clearly defined, usage-based tariffs, digital payments, and streamlined processes.
What benefits (economic or logistical) can farmers expect from deeper collaboration with hotels and restaurants?
Farmers benefit significantly from sustained, direct partnerships with hotels and restaurants. By eliminating intermediaries, they achieve better price realisation and more predictable income streams. Hotels also offer stable demand, enabling farmers and FPOs to plan production, invest in quality improvements, and reduce wastage. Growing demand for region-specific, clean, and sustainable produce encourages expansion into GI-tagged and organic products, creating long-term market stability.Additionally, hotels provide guidance on quality standards, packaging, traceability, and cold-chain logistics, enhancing farmers’ competitiveness. This collaboration fosters a mutually beneficial ecosystem, improving incomes, strengthening supply chains, and ensuring hotels have access to consistent, high-quality produce.
Lucknow’s hospitality market is growing rapidly. What factors make the city a rising hospitality hub?
Lucknow is fast becoming a key hospitality market thanks to its rich cultural heritage, strategic infrastructure developments, and rising tourism flows. Enhanced air and road connectivity, new convention facilities, and strong heritage appeal make it attractive to both leisure and business travelers. Corporate events, weddings, and government-led tourism initiatives in Ayodhya, Varanasi, and the broader Purvanchal corridor have further boosted demand. A growing middle class, youth demographic, and evolving F&B culture have also accelerated the opening of restaurants and boutique hotels. With demand across multiple segments, Lucknow is poised to become a leading hospitality hub in northern India.
How do you see tier-II cities like Lucknow and Kanpur shaping the next wave of hospitality expansion in India?
Cities like Lucknow and Kanpur are shaping the next growth frontier for India’s hospitality sector due to better connectivity, lower costs, and rising domestic tourism. These cities are seeing a steady increase in business travel and family leisure trips. Medical tourism and education-related visits are also growing, which is creating consistent demand for organised hotels and restaurants. Their progress contributes strongly to the regional economy. Hospitality growth directly benefits local MSMEs, food suppliers, and transport operators. It also creates new opportunities for artisans, handloom clusters, and event-related businesses. This expansion supports local livelihoods and helps retain young talent within the region. With improving infrastructure, a rich cultural identity, and a rising local consumer base, Lucknow and Kanpur are well-positioned to attract more branded hotels, convention facilities, and quality dining options in the coming years. Tier-II cities can become engines of tourism-led economic growth, creating employment and distributing development more evenly.
As someone managing prominent properties across Uttar Pradesh, how are guest expectations evolving in tier-II markets?
Guests in tier-II markets now expect modern amenities, hygiene, digital convenience, and seamless service. Contactless check-ins, premium F&B offerings, banquet facilities, and curated local experiences have become standard expectations.Sustainability is increasingly valued energy-efficient rooms, reduced plastic, and locally sourced ingredients are important considerations. Travelers are willing to pay for quality but expect transparency, consistency, and value for money. This evolution encourages branded hotels to expand, and local operators to upgrade service standards, technology, and training.
The hospitality sector faces significant talent shortages.What is FHRAI’s strategy for skilling, upskilling, and attracting young professionals, especially in tier-II and tier-III markets?
Talent development is central to FHRAI’s agenda. Through the FHRAI Institute of Hospitality Management, we are expanding skilling programs that equip youth with industry-ready competencies. Collaboration with the National Council for Hotel Management strengthens curricula, introduces specialized training, and increases exposure to real-world hospitality environments. We also focus on reskilling and upskilling the existing workforce via short-term modules, digital courses, and certified workshops. By promoting hospitality as a rewarding career in tier-II and tier-III cities, offering scholarships, and linking training to job placements, FHRAI aims to build a motivated, capable workforce that meets global service standards.
What is your long-term vision for India’s hospitality industry, and what legacy do you aim to create during your FHRAI presidency?
My vision is to create a fair, future-ready, and globally competitive hospitality ecosystem. Securing Infrastructure Status is central, enabling access to affordable finance and driving the growth of quality accommodation nationwide.Alongside this, I am focused on securing clarity on GST-related matters, such as delinking restaurant tax rates from room tariffs and resolving legacy demand notices, while also pushing for a fair, practical framework to address copyright compliance and ease the burden on small establishments. During my presidency, I aim to strengthen FHRAI’s advocacy, unify stakeholders, and create a predictable policy environment that boosts investment, employment, and service excellence. Ultimately, I hope to leave a legacy of constructive reform, stronger farmer hospitality linkages, regional growth, and an industry aligned with the vision of Viksit Bharat 2047.