Security concern threat to hotel industry

Worsening law and order situation and recent incidents of terrorism have adversely hit hotel industry. Hoteliers are seriously concerned over rising risk to their business. They are also unhappy with the government policy for this sector. They want that the government should protect the hotel industry in Pakistan from natural and unnatural risks.
Islamabad is now running at lowest per cent occupancy as there are few foreign delegations visiting the country and very few government meetings. The guests now prefer to stay at government guest houses. The 9/11 incident gave some relief to hotel industry in Islamabad and Peshawar in Pakistan and few hotels in Afghanistan, but reducing number of the tourist in Pakistan in these beleaguered days hit this industry very seriously.
Taxation policy is also a concern to the hoteliers. They are, in particular, critical to provincial tax, calculation of room occupancy at 70 per cent, regardless of the actual bookings. tax collection at 7.5 per cent of room cost, has hit hotel industry seriously.
Chaotic conditions threat of extremism, diminishing tourism and worse law and order situation are posing serious threat to hotel industry. The trend of raising new hotels without assessing the ground realities may add to hoteliers woes. The government should recognise hotel industry as a valuable 'export' industry and grant it similar facilities besides abolishing unnecessary taxes.