Radisson at top among posh hotels
Doulot Akter Mala | Saturday, 23 August 2008
Three posh hotels -- Radisson, Dhaka Sheraton and Pan pacific Sonargoan -- paid over 27.28 per cent of total sales as value added tax (VAT) in fiscal 2007-08.
There are 1,855 quality hotels and restaurants across the country.
According to statistics of the National Board of Revenue (NBR), around 10,000 small and big hotels are registered with the VAT department.
VAT payment by hotels and restaurants was worth Tk 1.32 billion in 2007-08, a rise of 63.96 per cent over the previous year.
However, the NBR collected tax worth Tk 800 million, Tk 687 million, Tk 479 million in 2006-07, 2005-06 and 2004-05 respectively from the service sector.
Radisson Water Garden paid the highest VAT followed by Hotel Sheraton and Pan pacific Sonargoan.
Radisson, the country's one the largest luxury five-star hotels, which began its operation in 2006, paid Tk 157.5 million in sales tax in 2007-08.
The international chain hotel paid Tk 126.9 million and Tk 41.7 million in 2006-07 and 2005-06 respectively.
The hotel is part of a major expansion programme being undertaken across Asia pacific by US based Carlson Hotels Worldwide. The hotel is owned by Sena Hotel Developments Limited (A local joint venture of Sena Kalyan Sangstha and Army Welfare Trust).
In 2007, the hotel generated total revenue worth US$ 13.377 million, which was the highest revenue recorded by a hotel in Bangladesh in a year. The gross operating profit (GOP) of US$ 6.7 million was also the record GOP.
The Dhaka Sheraton, which is in the second position on payment of sales tax, paid Tk 129.9 million in the just concluded fiscal. The luxury hotel paid Tk 116.5 million 2005-06 that dropped to Tk 95.8 million in 2006-07.
The Dhaka Sheraton last year made an operating profit of Tk 285 million. The hotel has an average occupancy rate of 75 per cent while it claimed 32.8 per cent market share in 2007.
Pan Pacific Sonargoan hotel paid VAT worth Tk 91.1 million in 2007-08, which was Tk 63.6 million and Tk 111.3 million in 2006-07, and 2005-06 respectively.
In 2007, Pan pacific Sonargoan made operating profit worth Tk 70 million with 18 per cent market share and 59 per cent occupancy rate as claimed by the hotel authority.
The hotel authority said overall sales of the hotel dropped due to sluggish trend of economy and renovation work.
Revenue board officials said there is a booming growth in tourism sector, but payment of VAT at local stage is not satisfactory excepting for six top luxury hotels.
Another luxury hotel Westin paid VAT worth Tk 81 million in the just concluded fiscal. The hotel began it operation in the capital in July 2007.
Dhaka Regency, a British-Bangladesh venture by non-resident Bangladeshis (NRBs) opened in April 2007, paid Tk 7.7 million worth of VAT in 2007-08, which was Tk 1.5 million in the previous fiscal.
Royal Park, a luxury hotel in Dhaka, paid Tk 1.1 million in VAT in the just concluded fiscal. In 2006-07, it paid Tk 9.6 million.
Hotel operators said a large portion of hotel income comes from arranging different fairs. But after establishment of Bangladesh China Friendship Conference Centre (BCFCC) the revenue is being diverted to the centre as it is able to accommodate more people compared to luxury hotels.
There are 1,855 quality hotels and restaurants across the country.
According to statistics of the National Board of Revenue (NBR), around 10,000 small and big hotels are registered with the VAT department.
VAT payment by hotels and restaurants was worth Tk 1.32 billion in 2007-08, a rise of 63.96 per cent over the previous year.
However, the NBR collected tax worth Tk 800 million, Tk 687 million, Tk 479 million in 2006-07, 2005-06 and 2004-05 respectively from the service sector.
Radisson Water Garden paid the highest VAT followed by Hotel Sheraton and Pan pacific Sonargoan.
Radisson, the country's one the largest luxury five-star hotels, which began its operation in 2006, paid Tk 157.5 million in sales tax in 2007-08.
The international chain hotel paid Tk 126.9 million and Tk 41.7 million in 2006-07 and 2005-06 respectively.
The hotel is part of a major expansion programme being undertaken across Asia pacific by US based Carlson Hotels Worldwide. The hotel is owned by Sena Hotel Developments Limited (A local joint venture of Sena Kalyan Sangstha and Army Welfare Trust).
In 2007, the hotel generated total revenue worth US$ 13.377 million, which was the highest revenue recorded by a hotel in Bangladesh in a year. The gross operating profit (GOP) of US$ 6.7 million was also the record GOP.
The Dhaka Sheraton, which is in the second position on payment of sales tax, paid Tk 129.9 million in the just concluded fiscal. The luxury hotel paid Tk 116.5 million 2005-06 that dropped to Tk 95.8 million in 2006-07.
The Dhaka Sheraton last year made an operating profit of Tk 285 million. The hotel has an average occupancy rate of 75 per cent while it claimed 32.8 per cent market share in 2007.
Pan Pacific Sonargoan hotel paid VAT worth Tk 91.1 million in 2007-08, which was Tk 63.6 million and Tk 111.3 million in 2006-07, and 2005-06 respectively.
In 2007, Pan pacific Sonargoan made operating profit worth Tk 70 million with 18 per cent market share and 59 per cent occupancy rate as claimed by the hotel authority.
The hotel authority said overall sales of the hotel dropped due to sluggish trend of economy and renovation work.
Revenue board officials said there is a booming growth in tourism sector, but payment of VAT at local stage is not satisfactory excepting for six top luxury hotels.
Another luxury hotel Westin paid VAT worth Tk 81 million in the just concluded fiscal. The hotel began it operation in the capital in July 2007.
Dhaka Regency, a British-Bangladesh venture by non-resident Bangladeshis (NRBs) opened in April 2007, paid Tk 7.7 million worth of VAT in 2007-08, which was Tk 1.5 million in the previous fiscal.
Royal Park, a luxury hotel in Dhaka, paid Tk 1.1 million in VAT in the just concluded fiscal. In 2006-07, it paid Tk 9.6 million.
Hotel operators said a large portion of hotel income comes from arranging different fairs. But after establishment of Bangladesh China Friendship Conference Centre (BCFCC) the revenue is being diverted to the centre as it is able to accommodate more people compared to luxury hotels.