According to the assessment of the tourism ministry of government of India ,around 40,000 - 50000 hotel rooms are needed during the Commonwealth Games in 2010,which is nearly impossible task as there is already a shortage of hotel rooms in the country.
As the construction of hotels is primarily a private sector and investment intensive activity and the government cannot invest huge amounts for the purpose .So the ministry is planning to encourage the private sector by the way of different rebates and tax concessions
The governments of Delhi and Uttar Pradesh has been advised to follow investor friendly land policies and single window clearances for hotel projects
Ministry of Tourism would offers subsidy for budget hotels of one, two and three star categories in the country.
The ministry keeps in regular touch with state governments, various land owning agencies like the Indian Railways and the civil aviation ministry for creating land banks for hotels.
The tourism ministry has requested that they allot land on a joint venture and revenue sharing basis.
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