Members of the Vijayawada Hotel Owners Association have urged the Andhra Pradesh government to address the key challenges affecting the hospitality sector.

In a representation submitted to Vijayawada Joint Collector S. Ilakkiya on Tuesday (June 9, 2026), the association acknowledged the government’s continued support to the industry, emphasising that hotels and restaurants play a significant role in employment generation, tourism promotion, public service, and the State’s economic development.

Flagging the steep rise in commercial PNG prices as one of the major concerns, they said that while the international market conditions and geopolitical uncertainties had contributed to higher fuel costs, certain distributors were allegedly charging disproportionately high rates, causing a severe financial burden to hotels and restaurants.

They pointed out that public sector companies generally maintain standard pricing structures, whereas some private suppliers in Vijayawada charge significantly more. Drawing comparisons with gas providers in Rajamahendravaram, where the prices were relatively reasonable, they argued that if the hospitality sector was expected to adopt piped gas systems, the government must ensure uniform regulation and rationalisation of commercial PNG prices across the regions.

The hoteliers also sought a reduction in the 18% GST levied on rental premises used by hotels and restaurants. According to the association, this high tax burden adversely impacts the operational viability of businesses, particularly small and medium establishments. They requested that the GST rate on such commercial rentals be reduced from 18% to 5%, saying that it would provide relief to the industry, help retain employment, encourage investment and improve long-term sustainability.