The Department of Tourism approves hotel projects from the point of view of their suitability for international tourists. Various incentives and benefits are linked to such approvals. Till 31 st December 1997, 115 hotel projects were approved in various categories, which, on completion, would provide 6663 additional rooms for tourists.

The Hotel and Restaurants Approval and Classification Committee (HRACC) set up by the Department classifies the functioning hotels under the star system into six categories from one to 5-star Deluxe.

A new category of Heritage Hotels has also been introduced since 1994. The Department also reclassifies these hotels after every three years to ensure that these hotels maintain the requisite standards. The Committee set up for the purpose has representatives from Central Department of Tourism, State Government and hotel and travel industry associations.

As on March 2000, there were 1164 hotels with 64573 rooms on the approved list of the Department of Tourism. The break up of these hotels by different star categories is as given below:

During the year 1997, 97 new hotels were classified and 65 existing hotels were reclassified. In addition 19 restaurants were approved and 34 re-approved during the year. The Department of Tourism also introduced a new scheme of approving Air Catering Units in a bid to strengthen the requirement of the industry and to improve the overall catering facilities.

Time Share/Apartment Hotels

In a bid to increase budget/moderately priced accommodation, the Department of Tourism formulated Guidelines for the approval of Time Share/Apartment Hotels. This concept is approximately 30 years old and has been appearing successfully throughout the World. In our country, this is likely to-attract a large number of middle class foreign tourists apart from catering to the needs of domestic travelers.

Heritage Hotels

The concept of Heritage hotels was introduced with a view to convert the old Palaces, Havelies, Castles, Forts and residences built prior to into accommodation units as these traditional structures reflect the ambience and life-style of the by gone era and are immensely popular with the tourists. The scheme is aimed at ensuring that such properties, landmarks of our heritage, are not lost due to decay but become financially viable properties providing additional room capacity for the tourists.

The Heritage hotels have also been sub-classified in the following categories

Heritage:
This category covers hotels in residences/Havellies/Hunting Lodges/Castles/Forts/Palaces built prior to 1950 but after 1935.

Heritage Classic:
This category covers hotels in residences/Hevellies/Hunting Lodges/Castles/Forts/Palaces built prior to 1935 but after 1920.

Heritage Grand:
This category covers hotels in residences/Havellies/Hunting Lodges/Castles/Forts/Palaces built prior to 1920.

Till the end of 1997, as many as 31 properties have been classified as Heritage Hotels providing a room capacity of 946 rooms. Guidelines have also been formulated for conversion of Heritage properties into Heritage Hotels and their approval at project Planning stage.

At present 38 Heritage properties are approved as projects, which on completion would add 806 rooms in the Heritage Category.

The Department of Tourism through an advertisement campaign has invite attention of all the owners of havellies/old buildings for converting them into Heritage properties.

Paying Guest Accommodation and Guest Houses

As envisaged in the National Action Plan for the Tourism, two new schemes of Paying Guest Accommodation Scheme and Guesthouses were introduced under the Paying Guest Accommodation Scheme. House owners having lettable rooms of reasonable standards are approved and enlisted as Paying Guest Accommodation. Regional Committees consisting of representatives of Central Department of Tourism, State Tourism Department/Corporations, tour operators, travel agents, hotels and the district administration have been set up to register such accommodation. So far, 1440 premises providing 5313 rooms have been approved.

Tourist Charters

With the liberalization of Charter policy by the Department of Civil Aviation, 804 tourist charter flights were received in India during the year 1996 bringing a total of 81850 tourists.

Tourist Facilitation and Complaint

The Inspection Unit of the Department of Tourism continued to handle matters relating to simplification of entry and exit formalities for tourists. Complaints made by foreign and domestic tourists were also handled and settled through Central and State Administrative Department by this unit. (Source: Annual Report 1997-98, Govt. of India Ministry of Tourism)