Liquor Likely to Be Cheaper in Star Hotels

Vijayawada: Liquor is likely to be relatively cheap in the bars of even star hotels in Andhra Pradesh. The state government, it is learnt, proposes to reduce the annual licence fee of Rs 67 lakh for such bars soon.

Star hotels charge high prices for several brands of liquor in their bars, covering the costs of maintenance, ambience etc. Hence, guzzlers generally prefer other bars where liquor is sold at lower rates.

Now, in view of some policy changes, star hotels are slowly seeing an increase in their revenues. The TD-led alliance government is aiming to accord industry status to the hospitality sector. In this context, the hoteliers approached the government recently with a request to reduce the annual licence fee for bars.

They say the fee is very high in AP, compared to Telangana, which charges Rs 40 lakh and Tamil Nadu and Kerala charge only Rs 12 lakh each. They also explain how some star hotels like Gateway are running in heavy losses.

Moreover, they note that it is mandatory for all-star hotels to have a bar in their premises. Hence, despite losses, the owners have to keep running the bars.

A delegation of hoteliers led by AP hotels association president RV Swamy met Chief Minister Chandrababu Naidu recently and pleaded for a trimming of the annual licence fee for bars. The CM subsequently directed the officials to examine the issue.

Swamy said, “We are confident that the government will consider our request and help us out. We expect the licence fee to be fixed around Rs 20 lakh. If so, we are ready to offer more brands of liquor for the benefit of guzzlers.”

The association leaders said 27 out of the 47 hotels that are above three-star have been shut due to poor returns in the state. A positive response from the government would give a fillip to the hospitality and tourism sector, they stressed.