Chennai: Hotels, restaurants and eateries in Tamil Nadu downed their shutters against the proposed GST, under which a new levy of 12.28 per cent is to be levied that will make this service sector more expensive and thus hitting tourism on which it depends.

As per the decision of the central government, a levy of 12.28 per cent is to be levied on hotel industry.

On Tuesday hotels, restaurants and eateries downed their shutters to protest this levy.

However small and road side eateries functioned as usual providing the relief to tourists.

The day-long bandh call was given by the Tamilnadu Hotels and Restaurant Association and is supported the South India Hotels and Restaurants Association (SIHRA).

“Due to the hotel strike we went to Pondicherry to a friend’s place from Thanjavur enroute to Chennai. Had the hotels functioned as usual we would have stayed back in Thanjavur a day more,” said a domestic tourist.

Many tourists are thus being forced to change their travel plans due to the token strike. However, the smaller eateries cashed in on the occasion and did brisk sales, right from Monday evening.

In a statement issued earlier, SIHRA had said hospitality and hotel industry is reeling under this or that problem since 2009 due to economic conditions.

“Recently, the Supreme Court came with a judgement preventing any liquour sales within 500 metres of the National and State highways and this had crippled business of hotels located near the highways and located on the arterial roads,” the statement said.