In Andhra Pradesh, non‑classified hotels have officially petitioned the government for 3‑star bar licence fee relief, citing the soaring hospitality costs that are making operations financially unsustainable. Hoteliers revealed that current licence fees far exceed those in states like Tamil Nadu and Karnataka, placing undue strain on smaller establishments that lack star classification but nonetheless invest in high‑level services.
The plea for licence fee reduction arrives amid a broader push to strengthen Andhra Pradesh’s tourism and hospitality sector, as the state looks to attract more visitors and investment. Relief on these regulatory costs would enable smaller hotels and resorts to secure bar licences, potentially increasing footfall, occupancy rates, and revenue streams, while simultaneously promoting equitable growth across the industry.
Should the government act on this request, it could establish a more competitive regulatory environment in the region—encouraging non‑classified properties to upgrade, obtain classifications, and contribute more significantly to local employment generation and the tourism economy. This policy shift may also align with recent trends of fee reductions for star hotels, signaling a more inclusive approach to hospitality development.
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