fhraimagazine

magazine Volume-12 Issue-4 • `50 • April 2012

FSSA 2006

Hospitality Deliberates on New Food Safety and Standards Act

On Land, In Air Eaton Smart: India’s First Airport Transit Hotel

Room Prices Up! Global Increase in Hotel Room Rates

(T)AXED!

Hospitality on Backfoot: Budget Forces Service Taxes to go up

[Contents] Editor Deepa Sethi Assistant Editor Sanjeev Bhar Desk Editor Neelam Singh Advertising Gunjan Sabikhi Harshal Ashar Shovan Kanungo Prem Sagar Design Alpana Khare Neeraj Aggarwal Neeraj Nath FHRAI REPRESENTATIVES ON THE EDITORIAL BOARD Chairman, Publications Sub-committee Vijai Pande Marketing S.P. Joshi FHRAI B-82, 8th Floor, Himalaya House Kasturba Gandhi Marg, New Delhi 110001 Tel: 91-11-40780780, Fax: +91-11-40780777 Email: fhrai@vsnl.com FHRAI Magazine is published, edited and printed monthly by Durga Das Publications Pvt. Ltd. On behalf of Federations of Hotel and Restaurant Association of India and published from Durga Das Publications Pvt.Ltd. 72 Todarmal Road New Delhi 110001 Email: info@ddppl.com Printed at Cirrus Graphics Pvt. Ltd. B 62/14, Phase-II, Naraina Industrial Area New Delhi 110028 For Editorial Feedback sanjeev@ddppl.com For Advertising gunjan@ddppl.com Tel : 91-11-23731971 Fax: 91-11-23351503 This issue of FHRAI Magazine contains 68+4 pages cover

All information in the fhrai magazine is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regrets that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by fhrai magazine or DDP. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of fhrai magazine or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.

The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.

This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation.

All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear.

6 FHRAI Magazine April 2012

April2012 8

President’s Message

10 Cover Story Hospitality (t)axed!

48

Design Crafting a Strategy

52

Explore Eaton Smart, Delhi

56

Report Room Prices Up!

58

Guest Column Extra Boost to Bookings

60

Conference Hi Aim 2012

61

Supplier Talk IDS Next

62

Products & Services

64

FIHM

66

Movements

68

Events

18 News Updates 30 FHRAI 36 Seminar Deliberations on New FSSA 2006 38 Technology What’s In, What’s Out! 40 Dine Out Red Mango 44 Chef Talk Bakshish Dean, Corporate Chef, Lite Bite Foods 46 F&B Sake, Shochu & Japanese Cuisine

Request Note: Federation of Indian NGOs on Drug Abuse Prevention (FINGODAP) is a network of around 500 Drug de-addiction centres. We request members to donate used & discarded items of the Hotels such as furniture, linen, electrical items, fixtures etc for which you could contact Dr. Rajesh Kumar Executive Director, FINGODAP; Ph: 011 26893872, Cell: +91 9891268872, Email: spym@vsnl.com Cover illustration: Raghuvir Khare

Visit FHRAI Website: www.fhrai.com

President’s Message

[Message]

8 FHRAI Magazine April 2012

Dear Readers, Every year, the much awaited Union Budget takes our expectations to the pinnacle before its announcement, but comes crashing down the moment we hear the finance minister’s budget speech, particularly this time when the Direct Tax Code or the GST implementation is not even visible as far away as the horizon lies.

Each one of you would have read, interpreted and perused the budget in great detail by now, especially the Service tax revised abatement, Cenvat and input tax credit when we should have been included by them in the negative list after such marathon persuasions, standard excise duty and exemptions on bakery products, 10 per cent hotels included to start with, in the Harmonized Master List of Infrastructure, eligible now for VGF funding, relaxation of ECB limits and easier access to credit enhancement and take-out finance from IIFCL, increased Public Private Partnerships, extension of 35AD of the Income Tax act to new hotels that are not operated by owners themselves, MVAT implication, TDS levied on our assets heavy immovable properties, marginal increase in the budgetary allocation for tourism to `1,282 crore from `1,170 crore last year, enhanced allocation to the National Skill Development Fund and the removal of sectoral restrictions on Venture Capital funds, alignment between central excise and service tax through a simplified common registration form and common return, likewise the list goes on.

For this year’s 47th FHRAI convention, as you would have already blocked your dates, the theme finalized is ‘Employment Generation: Engine of Inclusive Growth’. Our aim is to raise the bar of our annual national convention and make this year’s FHRAI convention an International showcase. We are in advance talks for participation by the International Hotels and Restaurants Association (IH&RA boasts of three hundred thousand hotel members and seven million restaurant members), FAITH, Cornell Hospitality, the American Hotel & Lodging Association (AH&LA with its 10,000 plus members), World Travel & Tourism Council – India Initiative as well as the South African Tourism Association and Asian American Hotel Owners Association (AAHOA), covering most of the large continents already and more to join. The synergy of FHRAI, AH&LA, AAOHA, WTTC-II, SATSA, FAITH, Cornell and IH&RA shall be felt by our fraternity and media at large alike, this September in Goa. I am very optimistic with the appointment of the PR consultant for the first time at FHRAI.

With warm wishes, Kamlesh Barot President kamleshbarot@revivalhotel.com (facebook.com/kamlesh.barot; twitter:@KamleshBarot)

Visit FHRAI Website: www.fhrai.com

[Cover Story]

Hospitality (t)axed!

Taxes on restaurants and food have increased from 3 per cent to 5 per cent now while the tax on rooms has been increased from 5 per cent to 7 per cent. The announcement made has been a far cry from what the industry was expecting in this year’s Union Budget. FHRAI Magazine attempted to record the opinion of the industry on paper, which suggests that negative impacts of the budget on hospitality are partially matched up with some positives that lie between the lines.

“ Subodh Kant Sahai Union Minister for Tourism Government of India

“

We have a tough year ahead and in these difficult times, the Finance Minister has presented a balancing budget which will provide stability in the years to come. Though, it will be tough initially, but in the long run, it will be beneficial and contribute to the nation’s growth

10 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Cover Story] Highlights of the Union Budget 2012-13 for Hospitality & Travel Industry • Air travel, eating out becomes costlier • Service tax raised to 12 per cent from the existing 10 per cent that will yield an additional revenue of `18,660 crore • GST to be introduced likely in August 2012 • ECB to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US$ 1 billion • Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users • Proposal to allow foreign airlines to participate up to 49 per cent in the equity of an air transport undertaking under active consideration of the government

Kamlesh Barot President FHRAI

Against expectations: Despite presenting FHRAI’s pre-budget wish list to the ministry, the Budget looks quite against the hospitality industry. Taxes on restaurants and food have increased by 2 per cent now while the tax on rooms has also increased by the same digit percentage.

In fact, in many states, the duplication of taxes is hitting revenue and profit margins of the hospitality players.

Earlier, during our interaction with the tourism ministry, we were positive about getting a good budget and were convinced to get certain tax relief, but nothing is visible in the budget. We were expecting rationalisation of taxes in the hotel industry which is nowhere in the picture in the Union Budget.

Positives in the budget: First of all I don’t consider this a completely lacklustre budget for hospitality and travel sectors because we did get a few things like for the service tax input tax credit, excise duty exemptions on bakery products, few hotels included in the ‘Harmonised Master List of Infrastructure’, increased Public Private Partnerships, extension of 35AD of the Income Tax Act to new hotels that are not operated by owners themselves, a marginal increase in the budgetary allocation for tourism, enhanced allocation to the NSDF, removal of sectoral restrictions on Venture Capital funds, alignment between central excise and service tax not to be exhaustive.

Stringent approach: Though a lot of these announcements have made it a very stringent budget like the increase of service tax and excise duty which is

Visit FHRAI Website: www.fhrai.com

across the board and not only for our hospitality and travel industry, but our service tax abatements have reduced both in the food as well as the rooms when we should have been included in the negative list of services, the budget provides no clarity on the timeline for the introduction of GST and the DTC for this ‘ProPoor’ trade, the MVAT implication on all assesses and the TDS levied on immovable properties, will all have a negative impact on the Indian travel trade which will get dearer. Whereas all this will have an effect on the FTAs, as our destination will become more costly compared to our neighbouring countries.

Post budget strategy: The service tax increase will surely impact the mainstay of our industry. While we were fighting the Rupee devaluation and the global recession, this move would hit the hotels and restaurants in its growth cycle. Also, hoteliers and restaurateurs need to counter the present scenario and continue to serve customers smartly. They should quickly update their Corporate Guarantee Rates (CVGRs) and Long Staying Guest (LSG) and charter rates to offset the effect of this increase.

Aggressive marketing: Hotels will also have to get more aggressive in their marketing promotions. They will have to use OTAs more effectively and also will need to use the dynamics of their own websites to drive more revenues. More effective F&B promotions would be required to drive F&B revenues. Also more value additions would entice guests leading to an incremental business.

FHRAI Magazine April 2012 11

[Cover Story] T. Banambar Patra

Founder & MD Toshali Resorts International The direct effect: The Union Budget 2012 has not given attention and importance to hospitality, travel and tourism industry. The industry is the largest job creator in the country. Still the Hon’ble Finance Minister did not give the infrastructure status which was proposed by the various hospitality and travel and tourism associations for many years now.

By increasing 2 per cent additional service tax may affect to the tourism industry and also affect the inbound tourism, which would directly affect hospitality industry.

National benefit: On one hand, we are trying to promote tourism, and on another hand, we impose high taxes to discourage business and holiday travellers within domestic and inbound tourism and also affect to consumer demand. However, overall the budget 2012 brings some happiness and also some reforms for the benefit of the nation.

12 FHRAI Magazine April 2012

SM Shervani Vice President FHRAI

Lackadaisical approach: Our Finance Ministry is lousy. They only imagine hospitality sector as five star luxury hotels, which have been demanding infrastructure status for long. Now, India is attracting business class to come and do business here. We need good roads, railways and air carriers to address the rising concerns of economy. Then, what about the stay factor of the people who look for quality accommodations? By giving infrastructure status, interest on loans will become tax free and this will address the concerns of room shortage in the country which is tipped at 86,000. If we take an average cost of construction of a single room i.e. `40 lacs, it would means around `36,000 crore is required to fill the room shortage. Further, 70 per cent of the hotels rooms in India belong to 1, 2, 3 star categories. In this context, smaller chains need far more support from the government to grow further this industry.

Not an elitist industry: It is sad that when it comes to staying in hotels, cabinet ministers and secretaries would stay at luxury and business hotels. Ideally they should be asked to stay at lower category hotels to know the real industry and hardship it takes to run hospitality business units. The service tax implication that this budget has offered is only going to escalate the issue of constraints for all small hotels and restaurants making their sustenance challenging. Hospitality industry faces the burden of being perceived as an elitist sector, and therefore, it is hard to convince the ministers that it isn’t so.

Visit FHRAI Website: www.fhrai.com

[Cover Story] Jyotsna Suri

Chairperson FICCI Tourism Committee Nothing for tourism: The Union Budget has not brought anything for the tourism industry apart from the relief to the ailing aviation sector. We were overlooked till now and we have been overlooked yet again. On top of this, we have been slapped with a 12 per cent service tax.

Cost to the consumer: The Union Budget announced

by Hon’ble Finance Minister is not a growth budget but a populist budget. The hospitality & tourism industry has been once again completely overlooked. Our industry is heavily burdened with multiple taxes like Luxury Tax, VAT and different states levying different taxes. And now there is further increase in Service Tax by 2 per cent and the Excise Duty has been hiked too. This would adversely affect the growth prospects of the industry and result in higher cost to the consumer.

Nakul Anand

President Hotel Association of India (HAI) Limited impact: The Union Budget 2012-2013 presented in Parliament appears to have limited impact on the hospitality sector. The Hotel Industry was hopeful that it would be accorded the status of infrastructure industry in the Budget. This would have created a liberal financial environment, enabling it to achieve the target of more than doubling its hotel room inventory and providing around 25 million new jobs in the tourism sector as envisaged in the 12th Five Year Plan period. This, however, has not happened. On the other hand, hikes in excise duty and service tax would make the hospitality and travel services more expensive.

Sandip Somany

President PHD Chamber of Commerce and Industry Disappointing approach: The Union Budget 2012-13 has no ‘big-bang’ reforms as expected considering the present situation of economic volatility in the domestic and international market. The Union Budget for 2012-13 was in line with the industry expectations and no major breakthrough has been noted. However, the move to enhance the excise duty and service tax is disappointing. The move to raise the standard rate of excise duty from 10 per cent to 12 per cent, especially in view of the present slowdown in industry segment would escalate the cost of production and stoke inflation which is already showing signs of re-emergence.

Sudhir Sinha

President & COO Best Western India Lack of attention: The proposals announced in the Union Budget 2012-13 once again completely failed to give the due attention to the hospitality sector. We have, once again lost the opportunity to support this industry. This is ironical that the service sector which had the highest growth of 9.4 per cent in the last fiscal and a major contributor to the growth of GDP has been given no advantage.

Making hospitality expensive: The industry for long has been demanding abolishment of Service Tax from the Government but by increasing it on hotel stays and dining out, the Finance Minister has ensured that staying and dining out is more expensive now. This will bring a negative impact on the demand.

The budget is also negative for the Indian Rupee, because high twin deficits and high inflation (augured by large government spending) may discourage some foreign investors. Though the industry contributes in a large way to foreign exchange earnings and employment generation and GDP, the hospitality industry’s expectations and demands for Industry status and tax rationalisation, besides others, remain unattended.

Positive we can take: The only silver lining is the exemption from excise duty on specified food items prepared in hotels, restaurants and the modification in abatement on supply of food in restaurant, outdoor catering service, hotel accommodation and convention services with selective CENVAT credit benefit. Reduction on tax rate on interest payments for foreign currency loans from 20 per cent to 5 per cent may provide some relief to limited number of beneficiaries.

Way forward: It was also nice to see the increase in the allocation of fund by 9 per cent in the ‘Incredible India’ campaign fund. However, its impact on the overall growth of the industry needs to be measured. The Government should focus more on supporting the private players in this segment and earnestly declare tourism as a priority sector. The countries which have taken this route are reaping rich dividends and for some their entire economy is depending on this industry. India has immense potential in this sector, but it needs Governments attention and support. Budget, being one of the key financial action plans for the Government, must have greater attention for this industry that it deserves.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 13

[Cover Story]

Travel industry’s take on Budget Subhash Goyal President IATO

Tax over tax: The increase in service tax to 12 per cent from 10 per cent will negatively impact the tourism industry as the package costs will go up due to tax on all components of tourism, i.e., air rail ticket, hotel booking, transport, etc., and will be detrimental to tourism.

We pleaded for withdrawal of service tax to boost tourism growth but are shocked to see that more areas have been included for service tax which has bearing on tourism. It is unfortunate, that tourism is always taxed. How much can you tax one industry year after year which is already burdened with taxes – Luxury Tax, Service Tax, Value Added Tax… literally speaking Tax on Tax.

Vikram Madhok Chairperson WTTCII

A mixed bag: The budget has some positives, a much needed balm to the ailing aviation sector. On 1st March 2012, the Cabinet Committee on Infrastructure had approved the Harmonised List of Infrastructure subsectors, in which three-star or higher category classified hotels located outside cities with population greater than 1 million has been included. This should be a major push for the much required hotel rooms in our country.

On the other hand, the increase in Service Taxes translates into higher Air Fares, Taxes on Hotel rooms and expensive eating outs.

Considering the current scenario, this is a mixed bag.

Arjun Sharma

Managing Director Select World Tours India Disregard to demands: The industry is completely disappointed with the union budget, which shows complete disregard to the demand and requests of the travel and tourism industry.

The Ministry of Tourism and our industry had made many efforts to ensure that looking at the target set by the Ministry of Tourism, our industry will get the required fillip to attain the 12 million inbound mark in the 12th plan period. The only silver lining that this budget has to offer is the announcement of the roadmap to GST. But, it also remains a grey area. The budget doesn’t have initiatives that will promote growth in the industry.

Raja Natesan COO TUI India

Against the hope: The budget from a travel industry point of view did not deliver on what I was hoping for. I personally feel that the travel and tourism sector can grow by leaps and bounds given the right impetus.

For India, we have a target to double the arrivals in five years. While the target in itself is ambitious and laudable, I think we could look at the approach top down and not bottom up. Then we go all out to remove every obstacle that prevents us from getting there. This is where I think we are missing out. The budget speech hardly had any mention of travel and tourism.

Instead of saying that we double tourists in 5 years (based on a YOY growth target) we look at where we think India should be on the world map in terms of percentage of tourist arrivals given that India is relatively safe, has a fantastic mix of things to offer and the Dollar and Euro give the tourist great value for money.

So we take say a percentage figure and say that is where we need to be in five years in terms of our share of tourist arrivals.

Ajay Prakash President TAFI

India becoming expensive: On one side, the government has reduced tax on aircraft leasing and on another, it has increased tax on air travel. Additionally, it has increased tax on hotel stay and restaurants. The Union Budget has made India a more expensive destination as compared to its counterparts in the region.

Taxed heavily: Travel and tourism industry is one of the top industries for employment generation and foreign exchange earnings. Yet, we are the ones taxed heavily with no rationalisation of taxes. Government says that it’s a perfect budget, but there needs to be something positive in the budget for the industry. Why is the government hoping that the industry will continue to grow in profits despite hitting us with taxes?

14 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Cover Story] Sarab Jit Singh

Senior VP, IATO & President, ITTA Totally contrasting stance: The Ministry of Tourism has set a target of 100 per cent increase in the size of inbound and domestic travel market in the next five year plan. We have had detailed meetings even with the Planning Commission and in one of such interactions with the Prime Minister’s Office, it was proposed that the inbound sector should target 20 million tourists by 2015. But, the Finance Ministry in the Union Budget has taken a totally contrasting stance, which definitely is detrimental to growth of tourism in the country.

Madhavan Menon Managing Director Thomas Cook (India)

Infrastructural investments: The announcement of an increase in infrastructural investments, especially via the National Highway Development Project 2012-13 is a welcome move, after all roadways form the arterial network for both inbound and domestic tourism. However, the condition of our highways today is far from satisfactory and damaging to our vibrant ‘Incredible India’ campaign. We would urge the government to prioritise and invest on the lines of the Greater Noida - Agra expressway.

Aviation facing turbulence: Our aviation industry is facing turbulent weather, and we, hence, welcome the announcement of $1 billion ECBs (External Commercial Borrowing) for airlines to fund their working capital requirements.

This would ease pressure in short term, while paving the way for FDI in aviation sector at a later stage.

Cascading effect: We expect tour prices to increase due to the cascading effect of the service tax increase resulting in an adverse impact on the Travel and Tourism industry as a whole.

The Inbound segment, already reeling under the impact of global slowdown in key source markets, would be further impacted, with a drop in FTAs (Foreign Tourist Arrivals) and a further dampener on the growth rate in FEE (foreign exchange earnings) already estimated to be down to 16.7 per cent in 2011 from 24.6 per cent in 2010.

16 FHRAI Magazine April 2012

Tourism has the highest employment creation potential than any other sector. But, be it the opening of skies, or commissioning of the new airports, the needs of tourism sector is always neglected and all it gets is enhanced tax burden every passing year. The stakeholders in the tourism sectors needs to raise their voice and ask, as to why the tourism sector is overlooked? Why its genuine demands are overlooked?

Dipak Deva

CEO Destination Management (India and South Asia) Kuoni Travel India Not on economic agenda: It’s yet another budget from which it is loud and clear that the government does not consider tourism an important part of economic growth. Over the past few budgets, the trend has been to neglect the medium and long-term need of attracting more tourists to destination India.

Maybe we, in the industry, are to blame for not having made a good case for tourism.

Guldeep Singh Sahni

President Outbound Tour Operators Association of India Taxing travel further: Increase of service tax on international tickets will add to already burdened industry. Approx 60 per cent cost of outbound package is air fare and existing tax on air fare is anywhere between 50 to 65 per cent. So 40 per cent of cost of package in tax only. Taxing it further will make outbound travel expensive. Probably it is like killing the golden hen.

Contributing to GDP: If we look at overall outbound tourism from India, additional tax may impact low budget passengers and their families. But medium and high-end will not be impacted much. Looking into the number of people who are travelling overseas, government is not looking at this industry from the point of view that it produces jobs not only in metros but even in twotier and three-tier cities. Time has come that the government starts to look at tourism industry that can make a huge impact on GDP.

Visit FHRAI Website: www.fhrai.com

[News Updates]

Hospitality sector job index shows new hiring trends The hiring activity in the hospitality sectors in India is showing a strong growth. The Naukri Hiring Outlook Survey revealed that 72 per cent of recruiters had said that new jobs will be created in the first half of 2012 in this sector. According to the portal, the hiring activity has rebounded in February 2012 with the job index at 1496, being the highest ever since the index was introduced.

Hitesh Oberoi

In the same month, the hiring activity for the sector moved up by only 2 per cent in comparison to the previous month and by 5 per cent vis-à-vis December 2011. Hitesh Oberoi, MD and CEO, Info Edge India, said, “A look at the job indices for the last few months shows high volatility with the index swinging between highs and lows every successive month. The index for February should be seen in that light. One interpretation is of cautious optimism and a case for selective hiring.”

“However, when we compare hiring levels on a year-onyear basis then there has been a 22 per cent increase in overall hiring trends. Thus, a look at the index for the past one year shows ever increasing index, indicating the vibrancy in the hiring environment for the sector,” he added.

Pic: Grand Resort Bad Ragaz

The Naukri job speak index indicates hiring trends across industry sectors, geography and functional areas

The Naukri Job Speak index has come to this conclusion on the basis of job listings added to the site every month.

It shows hiring trends across industry sectors, geography and functional areas. According to the portal, there might be high volatility for certain fringe cases like smaller cities, niche industries, etc., owing to a small base, but more than 42,000 clients using Naukri.com leads to high reliability of the data.

18 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

METRO Cash & Carry opens its 10th outlet in Delhi In February, METRO Cash & Carry India opened its first wholesale centre in the Capital in East Delhi.

This is the company’s 10th wholesale centre in India and has another one opening shortly in Jaipur. In order to promote extensively, the company aims to connect with the chef community. For this, it organised the first ever customer connect programme – Chef-o-logy – for the Hotels, Restaurants and Caterers (HoReCa) of Delhi at the 27th AAHAR International Food and Hospitality Shaun Kenworthy Fair during March 12-16, 2012. The programme is an interactive platform where renowned chefs from different parts of the world along with food consultants, provide value-added services to the hospitality industry on areas like thematic cuisine creation, food festivals, menu merchandising and knowledge sharing discussions.

Speaking to FHRAI Magazine, Shaun Kenworthy, consultant chef, informed, “We offer flexibility as a one stop solution of products where one reduces the hurdle of procuring imported products. Earlier, there were some apprehensions about procuring products from this company but now institutional segment is realising the convenience of procurement process where the pricing structure and stringent HACCP quality assures them to ease out their process of buying.”

METRO Cash & Carry, which is known for its B2B wholesale approach, is consistently targeting the chef community to promote its repertoire of fresh products and now with its store in Delhi, it is trying to bring the Delhi hotels and restaurants into its radar. “We work closely with local producers, suppliers and small and medium enterprises,” informed Chef Kenworthy. Moreover, each wholesale centre creates 300 job (150 direct and 150 indirect) opportunities for local citizens, which also highlights its importance in hospitality sector from employability point of view.

In case of hotels and restaurants, he added, “My emphasis is on telling chefs that they should connect with us and buy products. We are approaching the road of our growth in a localised manner. The plan is to have stores that would have selective products in a few cities. The market in India is growing up, especially for the institutional segment in hospitality,” he summed.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 19

[News Updates]

Clarks Inn Group launches a new brand The hotel management company - Clarks Inn Group of Hotels - has recently announced the launch of its newest hotel brand – Clarks Inn Suites. The first hotel is an upscale business hotel branded as Clarks Inn Suites – Delhi/NCR. Speaking of the latest addition, S. N. Srivastava, Vice President, Clarks Inn Group of Hotels said, “We are extremely delighted to open our first Clarks Inn Suites hotel. The hotel’s strategic location and all-encompassing luxurious facilities will provide guests a perfect hideaway after a hectic day of business. With this property, we also bring one of the largest banquet and meeting facilities in the NCR with capacity to host up to 7,000 guests at a time.”

S. N. Srivastava

The hotel is strategically located at the confluence of Delhi-Ghaziabad border, close to the bustling business hubs of Central, South and East Delhi, Ghaziabad and Noida. It has 151 luxurious guestrooms well-equipped with all modern day facilities addressing the needs of MICE market and with position to access it from different parts of the city viz. city downtown, railway stations, airports, etc.

The group is lined up with more properties scheduled to open this year. It has plans to open hotels in Lucknow, Haldwani, Pune, Gadag and Patna within April this year. “The latest addition is a big shot in the arm of the company as it now eyes to establish a leadership position in economy and mid-segment market and a significant presence in the upscale segment. We now have a network of 15 operational hotels spread across India. We are looking at a year of massive growth in 2012 with plans to add 25 hotels to our portfolio this year,” Srivastava concluded.

Shervani nominated for IHM’s Board of Governor S. M. Shervani, Vice President, FHRAI and President, Hotel & Restaurant Association of Northern India has been nominated on the Board of Governor of the Institute of Hotel Management, Catering Technology & Applied Nutrition, Pusa (Delhi).

He is the Managing Director of Shervani Hospitalities Ltd., New Delhi. He is an Alumni of Pusa Institute of Hotel Management, New Delhi and a member of Hotel & Catering International Management Association (HCIMA), U.K. He has been in the hospitality industry for the last 25 years and running successfully restaurants and hotels in Delhi and Uttarakhand under the brand name of Rodeo and Shervani, respectively.

20 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

AFEHC promotes Spanish manufacturers in India The Spanish Exporting Manufacturers Association for the Hospitality Industry (AFEHC) promoted nine member companies at the 27th AAHAR International Food and Hospitality Fair in Delhi during March 12-16, 2012, with support from the Spanish Institute for Foreign Trade (ICEX) and the European Regional Development Fund (ERDF). Speaking to the FHRAI Magazine, Rosa M. Mendez, Manager of the association, said, “This happens to be for the first time that so many Spanish companies from the exporting industry in hospitality equipment have participated in the show under the aegis of AFEHC. Though, we visited this show four years back on a study mission to India Rosa M. Mendez with the aim of assessing the possibility of attending this show as exhibitor in the future. This time, there was an interest among the nine companies who came together to showcase their product excellence in the India market. India is a growing place for hospitality industry.”

The Spanish groups that attended the AAHAR International Food and Hospitality Fair as exhibitors were: Asber, Caff, Comersa, Fagor Industrial, Jemi, Quality Espresso, Salva, Sammic and Zummo. The equipment companies came with expertise in manufacturing from a range of products like cooking, dishwashing equipment to accessories and components of refrigeration equipment, laundry, espresso machine, food preparation equipment to ovens for bakery, pastry and catering needs. “We have received quite a good response here and the primary objective of our participation was to find distributor for the companies in India. Industrial equipment manufacturing is our forte as 50 per cent of the sales comes from export,” she informed.

The association is targeting high-end market and institutional market in India promoting the HoReCa equipment from Spain having quality manufacturing capabilities as its USP. AFEHC is made up of more than 80 companies, including the leading Spanish manufacturers of equipment for the catering and hospitality industry.

Clay Craft launches ‘Crayon Series’ Jaipur-based Clay Crafts (India), known for its range of fine bone china products for the hospitality sector, is now positioning itself to cater to the upscale hotels and restaurants segments. Deepak Agarwal, Director of the company told FHRAI Magazine that it has 26-30 new items added up to its repertoire which have been introduced this year covering continental servings dishes and two main serving dinnerware ranges. He informed, “We have launched ‘Crayon Series’ at AAHAR Fair in the capital which is our new offering with a new design and approach, where we focused on the shapes and manufactured it in bright and colourful format. Till now, we have been focusing on 3-star properties but now, with the launch of this new product segment, we are venturing into five star categories.”

The company has been strongly working out its strategies in the platter, accessories and bowls segments with the domain of fine bone china and ceramic wares and now it has started the production of the new series for 2012. According to Agarwal, the first volume of the new series will be available in the market from the month of April. Further, the company has been performing strongly.

“In the last 2½ years, our turnover has tripled to `36-40 cr. Our sister concern ‘Crown Craft’ which started in April 2010 has also grown very well with its turnover touching `12-13 cr,” he revealed. At the moment, Clay Craft’s hotelware segment comprises of 30 per cent of its total sales and its target is to make it reach 40-45 per cent. “Our strategy for the booming hospitality industry is to outperform ourselves consistently in future. It is the only performing industry doubling itself. We are going to put more emphasis on R&D and it is our USP to bring about new products,” Agarwal added.

The company has 80 distributors in India and 50 of them are specifically addressing the hotelware segment. “We have tied up with big retail chains like Carrefour, Big Reliance, Spencers, Bharati WalMart, etc., to market our product. New venues are also being created to market our products in the online domain like snapdeal.com,” he summed.

22 FHRAI Magazine April 2012

Deepak Agarwal

Visit FHRAI Website: www.fhrai.com

[News Updates]

HPMF raises the issue of eco-friendly procurement policy In its support for the environment initiative, the Hospitality Purchase Managers Forum (HPMF) has called for all hospitality units through their respective purchase managers to imbibe ‘green procurement’ policy in their organisation. Following this, the association has been proactively requesting all exhibitions pertaining to hospitality sector to reserve 10 per cent of total floor space for green products.

To highlight the importance of green procurement, a total of four new green practices were agreed upon at the HPMF seminar titled ‘Green Supply - Making Procurement Matter’ which was organised in association with the HOTREMAI and ITPO. It was the second successive year when HPMF hosted a seminar at AAHAR International Food and Hospitality Fair. According to HPMF officials, products must have their green details highlighted, publishers of hotel & restaurant supplier directories must dedicate a section to green products, 10 per cent of expo floor space should be reserved for eco products; and purchase mangers will purchase more green products in areas that are under their direct control such as the back office.

HPMF – a community of hotel & restaurant purchase managers in India – issued a statement at its seminar on green procurement during the AAHAR International Food and Hospitality Fair 2012 in Delhi. Sanjay Verghese, Director, Materials, The Imperial, New Delhi, said, “We are always looking to add new green products to our supply chain. A section reserved for green products will increase their visibility and also give us single point access. It is the need of the hour and definitely a USP for the expo organisers.”

“We would like the suppliers to tell us of their eco progress. Please make this info prominent and display a green logo because this is what we are looking for,” said Jaswinder Singh, Director of Supply Chain & Business Development at La Tagliatella, an international restaurant chain.

The HPMF seminar on greening the hotel supply chain was very well received. Moderated by Alan D’Mello, Associate Director, Marketing & Communication, Daman Hospitality (Delta Corp), the session included panelists - Asheme Mehta, Materials Manager, The Oberoi, New Delhi; Basil C Massey, Director, Procurement, Duet India Hotels; Mukesh Mittal, Corporate Materials Manager, Radisson Blu MBD Hotel, Noida; Sanjay Verghese and Jaswinder Singh.

Staying focussed on green. L-R: Alan D’Mello, Jaswinder Singh, Sanjay Verghese, Mukesh Mittal, Asheme Mehta, Bassil C Massey

24 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

IFCA organises fifth edition of National Culinary Congress Organised by the Indian Federation of Culinary Association (IFCA) 2012, the first day of the National Culinary Congress saw around 650 culinary experts under one roof sharing culinary skills and techniques. It provided with an opportunity for all the delegates present at the event to connect with top chefs, restaurateurs, food writers, wine producers, photographers, food stylists, marketers, nutritionists, academics and technocrats from hospitality and tourism. The Congress offered a platform to advance their professional development by enhancing their culinary skills through informative seminars, forums and cuttingedge demonstrations.

Chef Manjit Singh Gill inaugurating the fifth IFCA National Culinary Congress held in Bengaluru from March 22-24, 2012

The day started with a welcome speech by Chef Vijay Bhaskaran, from Le Meridian followed by a presidential address by Manjit Singh Gill, Corporate Chef, ITC Hotels. Chef Lata Krishna Rau was the guest of honour for the event. Chef Rau presented a brief on the local Karnataka cuisine in lieu of Ugadi, the festival of Kannadigas. She also threw light on the importance of culinary education in Bangalore thus making the city, a culinary city. Chef Gissur Gudmundson, WACS President, shared his views on future trends and addressed the way forward of the Global Culinary Industry.

In a keynote speech, former WACS President, Chef Ferdinand Metz, addressed the innovation in food ingredients. The audience was also briefed on new age culinary techniques and the evolution of culinary art. Next was a cooking demonstration on the new age culinary techniques by Chef Abhijit Saha. Commenting on the evolution of culinary art, Ferdinand Metz said, “Non-traditional culinary education is important with professionalism and quality of life.”

The second half of the event was inspiring as it kicked off with a panel discussion on what one expects from a chef. The panel included big names in the hospitality and media industry like Vir Sangvi, Rohit Khattar and Nakul Anand. The discussion emphasised on the importance of talent in culinary art and not certification. The chefs of the panel stressed on the fact that real hospitality is a blend of both culinary skills and business management. Gloating about the versatility of Indian Chefs, Khattar said, “There is hardly a difference between trained and traditions as young chefs today are hungry for knowledge.”

This was followed by another discussion on ‘Food in India in the next decade’. The panelists again were renowned names from the hospitality industry like Chef Manjit Gill, Vikram Kotta and Chef Abhijit Saha. Sangvi was the moderator for the discussion.

The discussion stressed on the introduction of Indian flavours in foreign food. Commenting on the creative additions, Sangvi said, “Guide to food is your palate. One needs to go out and taste before any innovation to imbibe the originality.” Another important emphasis was on the commercialisation of homemade food. During the debate, Chef Gill emphasised on respecting classic dishes while bringing a fresh change with fusion ingredients.

26 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

FHCL targets HoReCa for total coffee solutions In order to cater a complete end-to-end coffee solutions, Fresh & Honest Café (FHCL) is aggressively looking to increase its share in the segments of hotel, restaurant and café across India. In a conversation with FHRAI Magazine, Sivakumar Krishnamurthi, Sivakumar Krishnamurthi COO of the company, informed that the domestic market of coffee related solutions is growing at 15 per cent. “There has been around 20 per cent growth being registered in the five star, high end cafés. In order to tap this growth, FHCL is offering a complete solution related to coffee, starting from machine to serving the finest brew.” At the moment, FHCL, having registered a turnover of `200 crores, claims to have more than 70 per cent share in the top end HoReCa segment.

It is catering to the HoReCa segment which is divided into three categories, i.e., room, lounge and café. “The Fresh & Honest brand gives complete coffee solution that includes machine, coffee beans and a range of blends. Further, we impart training to use the machine to our clienteles in addition to providing back-up services, which distinguishes us from rest of the companies in the segment,” Krishnamurthi informed.

FHCL, under the brand Lavazza, focuses on HoReCa, Corporates and public places where the demand for quality coffee machines is growing. Renowned coffee machines brands have been brought to India like Swiss Egro, Thermoplan Black & White, Nuova Simonelli, Saeco and Delonghi in both fully-automatic and semi-automatic versions. He added, “We have brought in a new coffee machine WMF from Germany to India this year. This equipment is exclusively available through us. We are going to advise the clients for using appropriate machines for their choice of quality to provide good quality of coffee.”

Further, FHCL has also introduced one touch button espresso makers called Lavazza BLUE with unique single serving coffee capsules and has been patented. It is claimed to be a product that has been launched for the first time in India. “The convenience factor has been addressed where the machines as well as the coffee capsules are accepted by the HoReCa segment. It provides the best Italian coffee experience,” he said.

In addition to all these, the company has also extended its services. With demand for coffee solutions increasing with growth of hotel rooms and restaurants, manpower training has become a major issue. “A perfect blend comes when there is a right hand to maneouver complete solution for service. Therefore, we also impart training in this area having set up a training centre in Chennai,” Krishnamurthi informed.

28 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[FHRAI]

Budget Exports Domestic Tourism I am very glad to present you the April issue of FHRAI Magazine. Since the time I have been looking after the work of the magazine, this is the first time that I have received genuine interest through emails from member readers. I am thankful to my fellow industry professionals and respect their views, comments and suggestions.

In this April issue, we have tried to incorporate notes, views and articles on various issues of relevance to tourism/hotel and economic scenario. These are mainly articles on hospitality, tourism, service tax implications, areas of importance in the present scenario and the future scope.

FHRAI is organising seminars on FSSA (Food Safety & Standards Act) in your regions and has already successfully organised in Delhi and Kochi. I request all members to attend these seminars. This will help you to understand and implement the Act in a better way.

The month of March has always been an important month for the Indian economy as the financial year draws to a close. The industries always await with expectations while guessing on what is going to be on offer in the Annual Budget for the entrepreneurs and public, in general. Like each year, this time again the Budget has disappointed us. We were waiting for certain relaxations, incentives for the hotel industry, which is directly connected with tourism sector that attract huge FOREX. Surprisingly, no such incentives have been announced. Rather, additional taxes have been imposed on people who have not yet overcome the losses incurred due to Commonwealth Games 2010 held in the Capital. Due to increase in taxes, our domestic tourists are moving to foreign countries. By doing this, our Honorable Finance Minister has exported Indian domestic tourists to foreign countries. The government needs to reconsider this strategy for the good of India.

Greetings for a healthy summer business!

Vijai Pande Chairman FHRAI Publications Sub-committee vijaipandit@yahoo.co.in

Looking for a Meaningful Benefit Vivek Nair, Hon. Secretary, FHRAI The Federation of Hotel & Restaurant Associations of India (FHRAI), founded in the year 1955, is an Apex body of the Hospitality Industry in India. It represents about 3,500 Members, comprising of 2,160 Hotels (with nearly 1,20,000 classified rooms) and 1,064 Restaurants. The union budget of 2012-13 disappointed FHRAI as it did not offer much to the hospitality and tourism Industry.

Speaking in one voice, the entire tourism & hotel industry had presented to the Ministry of Finance, a comprehensive set of recommendations, including several specific proposals on direct and indirect taxes to promote tourism in the country.

While ignoring these proposals, the Government has instead proposed a hike in the rate of Service tax from 10 per cent to 12 per cent, which further led to an increase in the Service Tax on rooms from 5.1 per cent to 6.18 per cent and on Restaurants from 3.1 per cent to 3.71 per cent. Our plea to include Hotels and Restaurants in the negative list for service tax has also not been accepted. We wish to emphasize that in the incremental revenue generated by the Government from the Service Tax will be relatively insignificant in comparison to the detrimental impact that the burden will have on India’s attractiveness as an international tourist destination.

Also, with the multiplicity of taxes India will soon become the most heavily taxed country in the world for tourists. We strongly urge the Hon’ble Minister of Finance to consider our Industry’s request to put Restaurants in the Negative List and at least exempt Service Tax to Hotels who render services to foreigners who pay in foreign exchange as is done in the case of Exporters.

We are also dismayed that the budgetary allocation for tourism has been only marginally increased to `1,282 crore from `1,170 crore though it was expected to be raised after deliberations with the Planning Commission due to the huge employment generation potential of hotels and the tourism sector. It is ironical, especially when the Government’s Economic Survey, spoke glowingly of Tourism’s vast potential as an employment generator and a key catalyst for promoting inclusive growth.

Also, the Harmonized Master List of Infrastructure which has been approved by the Government on 1st March 2012 has also been a great disappointment as Hotels with only 3-star and above category and located outside city limits with a population of 10 lakhs (1 million) have been included in it. This would exclude the 90 per cent of the total number of Hotels being set up in the country. It is, therefore, requested that as in section 2-star and above throughout the country (the Budget of 2010-2011) all Hotels be included in the aforesaid list.

However, FHRAI welcomes the abolition of Excise duty, under Section 9 on preparations made in hotels, whether served in the hotel or taken outside. This has been a long-pending request of the industry and the abolition would help to eliminate one of the many cumbersome taxes imposed on the industry.

Excise duty on bakery products in hotels:

i) T he food preparations (such as breads, biscuits, chocolates, pastries, ice-creams, fruit juices, etc.) in Hotels or Restaurants, which are basically for captive consumption by its guest, as a part of Food & Beverage Service and not as sale, be exempted from levy of Central Excise duty.

Continued on page 35...

30 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[FHRAI]

FAITH Sub-committee – FHRAI Kamlesh Barot Chairman The proposed common body FAITH (Federation of Associations in Indian Tourism & Hospitality) shall be a non-government, not-for-profit, industry-led and industry-managed organisation for being a catalyst for the growth and development of the Travel, Tourism, Hospitality and Convention Industry. The associations who have signed on to this effort are – • ADTOI – Association of Domestic Tour Operators of India

• ICPB – India Convention Promotion Bureau

• ATOAI – Adventure Tour Operators Association of India

• IHHA – India Heritage Hotels Association

• FHRAI – Federation of Hotel & Restaurant Association of India

• ITTA – Indian Tourist Transport Association

• HAI – Hotel Association of India

• TAAI – Travel Agents Association of India

• IATO – Indian Association of Tour Operators

• TAFI – Travel Agents Federation of India

This sub-committee was formed to represent FHRAI as the core member with the other nine National Tourism Industry Association’s Presidents that were formed on the February 9, 2012. The members of this sub-committee are: Mr. Saeed Shervani, Mr. Ajay Prakash, Mr. Iqbal Mulla, Mr. Jose Dominic, Mr. Sushil Gupta, Mr. Subhash Goyal and Mr. Rajiv Kohli. Since January 2011, various national level travel industry associations from the above list had several meetings in Delhi to discuss the need, time and opportunities of creating one large umbrella organisation to bind individual associations in their common needs. I formed this FAITH sub-committee in FHRAI as FHRAI President, since I had the confidence that came from my past one year’s experience as the President of the HRA - Western India of (having launched and headed WITO from February 5, 2011 to December 12, 2011) the Western India Tourism Organisation. We, the like-minded Presidents, put up a united front for the first time in India, where all existing hospitality and travel associations in western part of the country, came together to form this WITO confederation.

The mission and accomplishments of FAITH & WITO are to raise issues which ail the tourism industry as a whole, not just amongst us, but getting heard at the ministry level, because of their sheer size of membership strength. FAITH being just a magnification of the same inputs and outputs of WITO, this sub-committee is now on a National platform and has FHRAI’s FAITHfulness in FAITH.

Secretariat Office, HRD & Info Sub-committee – FHRAI S. M. Shervani Chairman The function of this Sub-committee is to bring a more responsive approach to the way FHRAI functions. We are in the process of upgrading our website to ensure better flow of information among the members and industry.

In addition to the efficient billing process, we are upgrading the software further where information, photographs, etc. of members will be incorporated. It will take all information on record required for official verification of signatory concerned. We are going through a lot of changes in the way information and various tasks undertaken are filed with the FHRAI Secretariat. Also, it will take into account the various meetings that we convene with the different departments of the Department of Tourism. The entire process of aligning this plan is on the pipeline and we expect to get this functional by the month of May or June. Now, with this streamline approach, the next President will be able to access details of the work done in past and can take the initiatives forward. This will impart a more effective and productive way to approach the functions. The Sub-committee aims to move FHRAI functioning towards further efficiency.

If the Secretariat is strengthened, then we will achieve the meticulous work environment in the association for better and swifter decision making process.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 31

[FHRAI]

Sustainable Tourism Criteria for India The Ministry of Tourism (MOT) has recently released the Sustainable Tourism Criteria for implementation by the industry. Excerpts from the report:

T

ourism is one economic sector in India that has the potential to grow at a high rate and ensure the development of infrastructure at the destinations. It has the capacity to capitalise on the country’s success in the services sector and provide sustainable models of growth.

In India, the travel and tourism sector is estimated to create 78 jobs per million rupees of investment compared to 45 jobs in the manufacturing sector for similar investment. Along with construction, it is one of the largest sectors of the service industry in India. Apart from providing employment to a wide spectrum of job seekers from the unskilled to the specialised, a higher proportion of tourism benefits (jobs, MSME trade opportunities) accrue to women. Moreover, emphasis would increasingly be given to organising more short-term courses for the unskilled workforce as well as unemployed youth on the pattern of ‘Hunar-se-Rozgar’ and ‘skill certification of service providers’. Besides, strategies followed during the 11th Plan may have to be suitably recalibrated to take care of the challenges from competing countries and to harness the full potential of Indian tourism.

Awareness Campaign

There are other concerns as well. A study conducted by Ministry of Tourism, Government of India, at important tourist destinations reveals that lack of hygiene and sanitation is a major irritant for foreign and domestic tourists. Therefore, creation of awareness as well as making available the requisite facilities will be given high importance during 12th Five Year Plan through the following measures: • Major social awareness campaign under the ‘Atithi Devo Bhavah’ initiative • Involving schools, NGOs, industry associations, etc., in carrying out sustained cleanliness drives at important tourist destinations. Suitable incentives and awards will be provided to all the organisations and individuals involved in this initiative • Topmost priority will be given for sanctioning Central Financial Assistance for setting up of wayside amenities, bio-degradable toilets, etc.

Sustainable Tourism Growth

While making efforts for the targeted 12th Five Year Plan growth in foreign and domestic tourists, the Ministry will endeavour to make the growth sustainable. This is proposed to be achieved through the following measures:

• Sustainable Tourism Criteria for India (STCI) and indicators for hotels & tour operators have been finalised.

Similarly, the criteria and indicators for rural tourism and home-stays are being evolved. Action will be initiated for tourism industry constituents not yet covered.

• The scope of Market Development Assistance scheme would be enlarged to cover participation of representatives of recognised national associations in workshops/ seminars on sustainable tourism organised by reputed organisations in India or overseas.

• Training of various stakeholders under the existing plan schemes of the Ministry.

Sustainable tourism development will include advancing some of the following niche tourism products or developing additional niche products such as (h) and (i) given below: a) b) c) d) e) f) g) h) i) j)

Adventure Medical Wellness Golf Polo Cruise Meetings Incentives Conferences & Exhibitions (MICE) Pilgrimage/Spiritual Travel Film Tourism Eco/ Wildlife/ Caravan Tourism

As tourism is a multi-sectoral activity, active convergence in the resources of various sectors involved in promotion of tourism at Central and State level is necessary for achieving the optimum results.

It is the intention that the countrywide experiential tourism attractions get developed for the socio-economic benefit of local communities, especially in order to strengthen inclusive economic growth. It is equally important to ensure that increased socioeconomic well-being does not cause permanent or long-term damage to the country’s physical, cultural and environmental heritage. The use of existing resources, both tangible and intangible, has to be undertaken judiciously for the well-being of the present generation but not at the cost of depriving future generations of any part of our inheritance.

The Planning Commission in the Approach Paper to the 12th Five Year Plan has mentioned that tourism and hospitality sector has a key role to play in promoting faster, sustainable and more inclusive economic growth.

(Source: MOT. The complete report has been uploaded on FHRAI website for reference.)

32 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[FHRAI]

Service Tax Implications The Union Budget for 2012-13 led to rise in the Service Tax/benefits to hospitality industry. FHRAI gives a lowdown on the subject.

A

s the members are aware, in the Finance Bill 2012-13, the rate of Service Tax has been increased from 10 per cent to 12 per cent. The net rate of Service Tax would be 12.36 per cent, i.e., 12 per cent Service Tax plus 3 per cent Cess (2 per cent Education Cess and 1 per cent Higher Education Cess) effective from 1st April, 2012.

Abatement

The abatement available for hotels (room) is 50 per cent and Restaurants (A/c Restaurant having licence to serve the liquor) 70 per cent. It means the hotels having room Tariff of `1000 and above have to pay the Service Tax on 50 per cent of Room Tariff @ 12.36 per cent (the net rate of Service Tax comes to 6.18 per cent), effective from 1st April, 2012.

For A/c restaurants (having licence to serve the liquor), the Service Tax is applicable on 30 per cent of the Bill @ 12.36 per cent (the net rate of Service Tax comes to 3.708 per cent), effective from 1st April, 2012.

Members may please recall that Hotels/Restaurants/clubs are covered under Mandap Keepers for holding social functions such as marriages, conferences and seminars where substantial food is served. It attracts the Service Tax @ 12.36 per cent.

There is abatement of 40 per cent. It means the Service Tax is applicable on the 60 per cent of the total bill or the net rate of Service Tax comes to 7.416 per cent.

Please note that the abatement for hotels/restaurants/ Mandap Keepers has been proposed to reduce in the Union Budget 2012-13, as per details given in the table.

Pursuant to the efforts of FHRAI, the Government has agreed to our proposal and has allowed benefit U/s 35AD as below:-

Service Description

1. Currently, the investment-linked deduction under section 35AD is allowed to an assessee engaged in the business of building and operating a hotel whereby the deduction can only be granted to the owner of a hotel if he himself operates it.

In service industry like hotels, a franchisee (management contract) business system exists where the hotel owner may get the hotel operated through an outsourcing arrangement. Therefore, it is proposed to provide a suitable clarification so that a hotel owner continues to be eligible for the investment-linked deduction under section 35AD if (the hotel owner), while continuing to own the hotel, transfers the operation of such hotel to another person. Accordingly, a new sub-section (1A) is proposed to be inserted in section 35AD to provide that where the assessee builds a hotel of two-star or above category as classified by the Central Government and subsequently, while continuing to own the hotel, transfers the operation thereof to another person, the assessee shall be deemed to be carrying on the specified business of building and operating hotel.

This amendment, effective from 1st April, 2011, will, accordingly, apply in relation to the assessment year 2011-12 and subsequent assessment years.

2. The Hon’ble Finance Minister in his budget speech had stated that a harmonised master list of infrastructure has been approved by the Government with the objective of removing ambiguity in the policy and regulatory domain and encourage investment in the infrastructure sector. Accordingly, inclusion of hotels in the harmonised master list of infrastructure subsector has been included for three-star or higher category classified hotels located outside cities with population of more than one million.

Applicable w.e.f.

1st April 2012

Proposed abatement (reduced) in the Union Budget 2012-13 (would not be effective till the Finance Bill 2012 is passed)

Present Abatement

Service Tax @12.36 per cent

Proposed Abatement

Service Tax @12.36 per cent

Hotels-Room Rent (Having tariff of `1000 and above)

50 per cent

6.18 per cent

40 per cent

7.416 per cent

A/c Restaurants (Having licence to serve the liquor)

70 per cent

3.708 per cent

60 per cent

4.944 per cent

Mandap Keeper

40 per cent

7.416 per cent

30 per cent

8.65 per cent

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 33

[FHRAI]

Glimpses of FHRAI EC Meeting at Casino Hotel Kochi on 21st March 2012

34 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

...Continued from page 30 ii) This Central Excise levy on Hotels and Restaurants which is a service industry activity, does not get the benefit of small scale industrial activity, since no State Government recognises the activity as an Industrial activity and issues SSI registration. It is, therefore, all the more necessary that Hotels and Restaurants are exempted from levy of Central Excise duty on the products produced and consumed within the premises as requested above or an exemption can be given on turnover as is given to small scale units which at present is `1.5 crore.

We, therefore, trust that the Finance Minister will kindly heed the request of the Hotel Industry in respect of the Service Tax and amendment of the description of Hotels in the Harmonized Master List of Infrastructure for a meaningful benefit to be extended to the Industry which, at over 52 million, is the country’s largest employment generator with 9.2 per cent of the total workforce employed in the tourism sector.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 35

[Seminar]

Deliberations on New FSSA 2006 The Food Safety and Standards Act (FSSA) – 2006 aims to consolidate various food safety related Acts in one. The hospitality associations of FHRAI, HRANI and NRAI organised a seminar to deliberate on the imminent challenges that the Act brings to fore. A similar seminar was held at Kochi as well.

MD Kapoor, Secretary General, FHRAI

(L-R) Garish Oberoi, Hony. Secretary-HRANI, S.M. Shervani, VP - FHRAI and President-HRANI handing over a representation to K. Chandramouli, Chairperson-FSSAI

Group photo of the office bearers of FHRAI, HRANI and NRAI with FSSAI Chairperson

36 FHRAI Magazine April 2012

The Federation of Hotel & Restaurant Associations of India (FHRAI) in association with Hotel and Restaurant Association of Northern India (HRANI) and National Restaurant Association of India (NRAI) had organised one day summit on Food Safety & Standards Act (Licensing & Registration) on March 16, 2012 at PHD House, New Delhi.

The Chief Guest, Mr. K. Chandramouli, Chairperson - FSSAI, and Guest of honour, Mr. S. K. Saxena, Commissioner of Food Safety were present at the Inaugural Ceremony amidst the galaxy of dignitaries, officials of FSSAI and senior office bearers of FHRAI, HRANI and NRAI. The event witnessed an impressive participation of more than 250 delegates.

Mr. S. M. Shervani, Vice President, FHRAI, submitted a letter to the Chairman FSSAI containing suggestions for review of Standards on behalf of FHRAI. A similar workshop was organised by FHRAI in association with South India Hotels & Restaurants Association (SIHRA) at Kochi on 20th March, 2012. More than 70 delegates got benefited from the interactive programme conducted by Dr. Pasupathy, an eminent food scientist and one of India’s foremost experts on the subject.

The Sub-Committee: Seminars of FHRAI plans a nationwide rollout of the FSSAI seminars in association with our regional Associations. With the Hotel & Restaurant Association of Western India (HRAWI) at Ahmedabad, Bhopal, Indore and Raipur; with the Hotel and Restaurant Association of Eastern

Visit FHRAI Website: www.fhrai.com

[Seminar] India (HRAEI) at Kolkata; with Hotel & Restaurant Association of Northern India at Chandigarh and Lucknow; and, with the South India Hotels & Restaurants Association (SIHRA) at Bengaluru, Chennai and Vishakhapatnam.

Mr. R.H. Khwaja, Secretary, Tourism, had convened an interactive meeting with the representatives of Industry Trade Associations on 30th March, 2012 at Vigyan Bhawan to keep industry abreast of various policy initiatives of the ministry of Tourism undertaken in close co-operation and co-ordination with the office of Hon’ble Prime Minister, Ministry of Finance, Planning Commission, Ministry of Home Affairs, Ministry of External Affairs, Ministry of Urban Development and all State Governments. During the meeting, Mr. Shervani, Vice President, FHRAI, sought an opportunity to inform the high profile gathering about the wide ranging implications of Food Safety and Standards (FSS) Act for all segments of the Hospitality Industry.

Mr. Shervani and I as Secretary General of FHRAI also presented to Mr. Khwaja a copy of FHRAI’s comprehensive memorandum, which has been submitted to the Chairman, FSSAI on 16th March, 2012. FHRAI requested the Secretary, Tourism, to kindly use his influence to ensure that our proposal is carefully examined and considered in the ongoing review of the Standards of Food Products and Additives under Food Safety and Standards (FPS&FAJ, Regulations, 2011). We are sincerely grateful and encouraged by his positive response and kind assurance.

FSSA Seminar Held at Kochi

FSS Act at a Glance

• Food Safety and Standards (FSS) Act, 2006, which came into effect throughout the country on 5th August, 2011, repeals other Acts viz. Prevention of Food Adulteration Act, 1954; Fruit Products Order (FPO), 1955; (SODEF) Solvent Extracted Oil, De-Oiled Meal and Edible Flour (Control) order, 1967; Meat Food Products Order (MFPO), 1973; Edible Oils Packaging, 1998; Vegetable Oil Product Order, 1998; and Milk and Milk Product Regulations, 2009.

• With the implementation of this Act, it becomes obligatory on all Food Business Operators (FBO) to acquire license under this Act either before the expiry of their existing licenses or by 5th August, 2012, whichever is earlier.

The processing of license takes 60 days. Therefore, the license should be applied by 5th June, 2012 (60 days prior to the due date of obtaining the license/renewal of license).

• The Food Safety & Standards Authority of India (FSSAI) has been established under Food Safety & Standards Act, 2006 which consolidates various Acts & Orders that have hitherto handled food-related issues in various Ministries & Departments. FSSAI has been created for laying down scientific and logical standards for articles of Food and to regulate their manufacture, storage, distribution and sale to ensure availability of safe & healthy food for Human consumption across the nation.

FSSAI has invited all stakeholders to give their suggestions and proposals before 31st March, 2012, for review of Standards.

The new regulation lays emphasis on ensuring corrective action through self regulation. Premises where public is admitted for consumption of any food & drink or any place where cooked food is sold or prepared for sale come under the gamut of this Act.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 37

[Technology]

What’s IN, What’s OUT! Technological developments help to bring something new in and move something old out. To ensure functionality of an organisation and avoid the stage of stagnation, technological innovations help tremendously.

Mentioned here are some interesting technological changes that you may expect in 2012 in hospitality arena.

Ravish Jhala

S

ome new forces are at the forefront of IT spending that are not easily controlled by Information Technology (IT). Specifically, the forces of cloud computing, social media and social networking, mobility and information management are all evolving at a rapid pace. Growing use

of technology and energy consumption around the globe have led to an increased emphasis on green technologies and power conservation within IT industries.

As per some recent survey and prediction by some big research and development organisations, technological transformation will not desist, and it

demands that IT leaders reconsider and (potentially) rebuild the capabilities and approach to the consumption of IT to enable business.

Leveraging Technologies

The Indian hospitality industry is all set to leverage major technological innovations taking place in 2012 to their advantages.

These key technologies are becoming strategy-oriented to move up the overall value chain in 2012!

Some technologies that will have an impact on business cycle, operations, way of handling our internal and external customers, etc., are mentioned in the box.

The Trends in Command

Some of the key technological trends expected in 2012 are: Boom in Table PCs, Increase in Cloud-based service, BYOD (Bring Your Own Device), Mobile applications and Increasing use of Flash devices. The survey has revealed that 66% of Indian subscribers are urban traveller who prefer Mobility as the key driver.

In the field of hospitality and travel industry, ERP has transitioned into e-commerce, enabling business to draw blueprint to leverage services to their own customers on the move and provide information anytime, anywhere, any place. The IAMAI (Internet & Mobile Association of India) report indicates that almost 80 per cent market share of current online commerce is dominated by hospitality and travel business and remaining 20 per cent of market is constituted of non-travel business.

38 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Technology] The business in 2012 will go through the ups and downs and industry will focus on business priorities to increase enterprise growth, attracting/retaining new customers and reducing enterprise cost. The IT leaders have to observe and plot the technologies in road map which are in-line with business opportunities and support conflicting signals toward adoption of new technologies.

Some of the IT leaders will extend support to the following functions in 2012: • Business Consulting • Finance and Accounting • Engineering • HR and Administration • Marketing and Sales • Customer Service • R&D Education is also a key focus for the IT leaders in 2012. Overall 52 per cent IT leaders will be focusing on MBA and 39 per cent of them will focus on Finance Management. The rest will be focusing on other areas like Cyber Law and Forensics, IT Certifications, Quality certification, etc.

The year 2012 is posing both the challenges and opportunities for most

Visit FHRAI Website: www.fhrai.com

of the IT leaders. The top business challenges in 2012 are: • Managing supply chain and risk • Handling growing security concerns • Privacy of information across groups • Managing new regulatory challenges with new technological innovations • Improve business performance and ensure competitive edge • Streamline and automation in business processes As the relationship between ‘technology means’ and ‘technology outcomes’ becomes ever clearer, all kinds of stakeholders are gaining a sharper understanding of how technology decisions will impact the business, and are raising the bar in terms of expectations for success.

(Sources: Gartner website and IT Next) (The writer is Systems Manager, Trident, Bandra Kurla, Mumbai. Views expressed by the author are personal.)

Technologies for 2012 Some major innovations predicted for 2012 in Technology are: • Touch computing • Social Networking • Business Intelligence • NFC (Near Field Communication) and Mobile Payment • Interactive Television over IP / Coaxial media • Voice and Data – more convergence in network topologies • Enterprise applications like Mobile apps, Resource Planning, etc.

• Adaption of Green Technologies • Big Data - As data coming from multiple federated sources and in structured and unstructured forms must now be stored / analyzed using new methodologies • In-memory computing

FHRAI Magazine April 2012 39

[Dine Out]

Frozen Delights

40 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Dine Out]

The selling of the delectable frozen yoghurts at Red Mango is matched not only by quality standards but also with a unique hook that would make customers return back for more. It has a unique proposition where buyers can simply self serve to make their concoction from menu choices and buy them by weight.

Sanjeev Bhar

A

s summer is approaching, the competition in one of the coolest segments is definitely heating up i.e. frozen foods that are retailed through attractive outlets. Many frozen yoghurt chains have come up to test waters in the Indian market knowing it is a profitable proposition. In January this year, the US chain – Red Mango – known for its frozen yoghurt (also yogurt) and smoothie marked its entry too with its first outlet opening in the Ambience Mall at Vasant Kunj of the Capital.

The outlet is more like an island in the middle of the mall serving 100 per cent natural, non-fat and low fat, kosher and gluten-free frozen yoghurts. Claims Rahul Kumar, CEO and Principal Owner, Red Mango India, “The product Red Mango offers is completely healthy in all respect. In fact, the yoghurts are fortified with pro-biotic making it extremely nutritious suiting the palate of

[Dine Out] the Indians. Our flagship outlet has been received well in the market and we are definitely going to see a strong growth.”

The food products sold at the outlet are all imported from the US and Italy.

The global design plan is being the first self serve concept that we have opened up.

We also sell yoghurt by weight at a fixed price i.e. 99 paise per gram, which is a unique selling proposition where customers can come and go by their selection of yoghurt flavours, mixing and matching different options and they simply pay by the quantity they want to eat. Further, one gets to choose a variety of toppings which can also be paid by weight.

Healthy Option

Red Mango India comes to this country as a division of Maez One Retail & Food which holds the franchise rights for India market. Kumar says, “The fact that yoghurt, in the frozen segment, is liked by many here but gets limited healthy options is a positive factor for us. We are the only one to offer choices with natural pro-biotic ‘Ganeden BC30’ from the US. Our products are certified by the National Yogurt Association – a division of USFDA – with the Live & Active Cultures seal. We happen to be the first frozen yoghurt chain to be certified so.”

42 FHRAI Magazine April 2012

The brand has a presence in about 22 countries with over 300 outlets of which over 170 are alone in the US. It is being positioned in the Indian market as a health food café offering a wide product mix which adds up to its brand proposition. “It is to be projected as a one-stop-shop for low cal, low fat options.

We offer organic coffee and tea, low calorie sandwiches, parfaits, etc. to give a dimension to the outlet. Though, 80 per cent sale is that of yoghurt in its Delhi outlet,” Kumar says.

The differentiation has been brought about through products that are natural and are made up of natural ingredients with no artificial flavours being added up.

Future Plans

The Delhi outlet spreads over an area of 1,300 sq ft which has been elegantly designed as a bar set up. “We made an investment of `55-60 lakh for the Delhi outlet. Now we want to take it further and expand pan-India with 15 outlets by end of 2012. The outlet is apt for those quarters with high end streets, malls where footfall is high. We would even look for a presence in a hotel if the proposition suits well,” he informs.

The company expects to get at least 4-6 outlets in Delhi NCR. Also, it would

Rahul Kumar

go for different sizes of outlets depending up the proposition it received based on ownership and franchise. The outlet size could vary according to location and the cost could range between `18-20 lakh for smaller outlets with 150-250 sq ft of space. “The factor that goes in Red Mango’s favour is the selling of the frozen yoghurt that has never been experienced earlier. We see opportunity in cities of Mumbai, Bengaluru, Chandigarh and Jaipur to begin with where outlets to be based on ownership, corporate owned and selective franchising,” Kumar outlines. He aims to have 250 outlets in five years.

Visit FHRAI Website: www.fhrai.com

[Chef Talk]

Creating a Mesmerising Symphony The challenges are immense for a chef and it is vital that a chef keeps on inventing himself, feels Bakshish Dean, Corporate Chef, Lite Bite Foods.

He is of the opinion that apart from anything else, it is important to find out ‘whom are you catering to’.

Q. What is that particular lure factor in food that captures the present generation of customers?

Presentation or eye appeal has always been the initial attracting factor. A dish presented well always cheers the customer that also means half the battle is already won for the chef before the true taste test, especially with the current generation who is ready to pay the said amount just to experience something unique and innovative. The increasing number of eateries and cafes would vouch for this.

Q. Which concept is coming on to the forefront to make food more inviting?

Food Design as a subject is slowly developing and soon will be an innovative career option in India. Students are considering this as a subject apart from the usual degree in hospitality management.

Indian gourmet business has evolved manifolds as can be understood by many international restaurant chains like Wasabi, Le Cirque, Hakkasan, Megu, etc., coming to India and giving a tough competition to the Indian counterparts. Hence, the fight to lure the customers is also hard and only the specialists are hired to tap the visitors’ taste-buds. Restaurants such as Smoke House Room, Caperberry, Indigo, are Indian restaurants serving international cuisines and also maintaining the international standard of taste, ingredients and presentation of course. So, I believe the Indian food industry understands the significance of designing a delicacy to suit its origin as well as the price tag it comes with.

Q. What are the latest trends you foresee in international food design that would influence the Indian gourmet market?

Molecular gastronomy is a highly acclaimed method of cooking that seeks to make practical use of the physical and chemical transformations of ingredients that occur while

44 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Chef Talk] cooking. This also empowers the chefs to present the food in a unique manner without compromising the taste as well as the nutrition quotient, taking the cuisine to an altogether different level. It is more of an art than just be termed as food, wherein all the senses should be employed and dedicated to the master-piece presented before a guest.

Q. How hotels and restaurants can bring about profitability on their platter through innovative food design? How practical this would be as an approach to market the food outlets?

A nicely presented dish does win the heart of a guest but the true test lies in the proof of the pudding, how well the dish has been prepared, the right ingredients, the right recipe and the right taste. A beautiful presentation cannot overshadow a tasteless dish, therefore, presentation or innovative food design is not the right approach to market food outlets.

Q. Today, how does one can keep up with the changing trends with quality of food ingredients – raw or processed – sourced which may not be available locally? Can non-availability of ingredients be deemed as a roadblock to the creative approach of a chef?

A food presentation is all about creativity and is very personal.

I might need bare minimum or locally available products to create my designs whereas someone else might need a lot of assistance from special ingredients or tools. I would not say for the food design or presentation pertaining to high quality foreign cuisines to showcase one’s creativity. Here the role of the importers becomes extremely vital.

Q. How you go about food presentation with new food recipes and/or cuisines within the scope that it addresses the palate of customers?

What is utmost important is ‘who are you catering to’.

Is it an adventurous discerning group or a group which sticks to safe choices? Next comes the palate profile; is it a Gujarati group that loves sweet tones or a Punjabi group that loves the spicy notes. These two factors basically help the chef to decide which hat to wear ‘creative or classic’ and then he, with what is available in his pantry, can create a mesmerising symphony.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 45

[F&B]

Sake, Shochu and Japanese Cuisine The trade relations between Japan and India are growing stronger. And this was very well reflected in the confidence that Japan showed by launching the Japanese rice wine to take another key step to latch on to the craze for Japanese cuisine in India.

Neelam Singh

T

o popularise the Japanese beverages and cuisine in India, the Japanese embassy organised an event with a backdrop of Matsuri festival with a traditional Omikoshi, a portable shrine, in Delhi. The function was organised to commemorate the 60 years of diplomatic relations between Japan and India. Matsuri, a Japanese style spring festival, is a traditional form of celebration in every part of Japan.

The festival was showcased recently with six types of Sake, the Japanese rice wine, and two kinds of Shochu, a Japanese spirit made from sweet potatoes, along with Japanese cuisine.

The Rising Spirit

Introducing different varieties of Japanese Sake and Shochu to the Indian consumers

46 FHRAI Magazine April 2012

The Land of the Rising Sun is a country bursting with life. Despite the deadly earthquake and tsunami that wreaked havoc on the North Eastern coast of Japan in March 2011, the spirit of Japan and its people is intact and praiseworthy.

Among the dignitaries present during the function were, the Ambassador of Japan to India Akitaka Saiki, Union Minister of State for Tourism, Sultan Ahmed (the chief guest) and Katsuya Okihiro, President of Japan Chamber of Commerce and Industry in India (the guest of honour).

Visit FHRAI Website: www.fhrai.com

[F&B] In his opening remarks, the Japanese Ambassador said, “Despite India being the third largest market for alcohol and the demand increasing at 30 percent annually, Japanese liquors constitute only 0.07 percent of this market.” Sultan Ahmed, appreciating the event, asked the Japanese tourism to organise more such events in India.

The ambassador informed that post tsunami, Japan is 100 per cent ready to host Indian tourists. He hoped that in coming months more Indian tourist will visit to Japan and also mentioned that there are a lot of Indian restaurants in Japan to cater to the needs of Indian tourists. He asked Indian tourist to look beyond ASEAN countries for travel, because ‘beyond ASEAN there is Japan’.

(L-R): Katsuya Okihiro, Akitaka Saiki and Sultan Ahmed breaking the ceremonial barrel of Sake

A group of Japanese dancers lifting the Omikoshi

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 47

[Design]

Crafting a Strategy Design has become such a vital craft today that it can lend a meaning to a business strategy. Be it an office environment, public space or pure hospitality project, Zeppelin Design & Environments is keenly pursuing projects where it could offer a strategic edge to the growing enterprises.

Sanjeev Bhar

Zeppelin’s Take on Unique Trends • Foreseeing a movement from architecture-based to brand\people-based transition in hospitality design • Mapping of experiences of guests and the supporting community. Guest generated dynamic content will become the next big thing in hospitality • ‘Blue sky projects’ to generate completely different ideas are much desired. until then, all hospitality experiences will differ incrementally at best • We are working on a self-financed concept where we want the guests of a resort to share their experiences with others in real time

48 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Design]

Som Sengupta

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 49

[Design]

P

resenting a unique imagination for a structure that would lure not only the customers but also employees to motivate them is of vital relevance in hospitality design. Therefore, design element today has become far more challenging where a designer seeks to balance utility with aesthetics and customer friendliness with revenue-based approach. Therefore, as a service provider, Delhi-based Zeppelin Design & Environments is constantly striving to match the needs of planning process addressing the concerns of hospitality or otherwise. However, Director of the company, Som Sengupta, says that the struggle is to get involved at the early stages of decision making when most strategic calls are taken.

Starting early, Sengupta, a graduate from the National Institute of Design, Ahmedabad in 2002, ventured into exhibition industry for set design but felt the dire need to get involved into something more ‘strategy’ oriented projects. “I switched jobs to work with one of India’s most respected design companies as head of strategic design. Here I got an opportunity to work with start-ups and organisations that believed in design thinking,” Sengupta informs. He realised that small design startups can deliver the agility that many clients are seeking.

The Creative Edge

As a company, Zeppelin Design & Environments’ expertise is in the integration of brand thinking with creating inspiring spaces.

“We believe we can offer strategic consultancy to clients on a wider array of design issues because of our ability to think in both two and three dimension,” says Sengupta.

Love for hospitality projects is high on his mind. According to him, the choreography of experiences has always remained his firm’s central focus. “We believe in starting with the intangibility of experiences and then refine it down to aesthetically built forms. Distinctive branding and service level design intervention increments the final output. The interior design as well as the architecture must, therefore, be a product of the main experience

50 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

Relying on Strengths • Converting strong ideas into realised environments • Technical abilities at par with the best in the industry • A dvocate strong system design approach to create experiences • We are fun people to work with

and branding concept. It should never be the other way round,” he cautions.

Changing Concepts in Hospitality

The issue of shamelessly replicating the international designs and modulating it here to suit Indian style psyche is almost gone now. “The short cut route has a limited shelf life. And now, we can see increasing number of Indian design houses working towards creating their original ideas with success. India has a rich tradition of hospitality; good design will always be accepted and will eventually become a part of our culture,” optimistic Sengupta observes.

In the context of hospitality, the newness is the business of going green. He says, “It is nonetheless very complex and often full of smokescreens. In the absence of cradle-to-cradle analysis of projects, it is very difficult to ascertain the real impact a project may have on the environment. Design has to take into account the consumers’ understanding. Our suggestion has always been to try and do the simple things first and avoid sweeping claims.”

Yet, he adds, no matter what businesses want you to believe, more often than not profit considerations dictate the rules of the game.

Coming of Age

With lots of international influence coming to this shore, where do Indian design elements stand irrespective of the fact that some of the best design schools in India are well known in the world?

Sengupta says, “Today everyone is exposed to good designs in India and abroad. However, the missing link is the exposure to a structured design process. Good aesthetics is a factor of cultural observations and strong production values, which we, as Indians, can achieve naturally due to our lineage with arts and crafts. We are staring at future. We just need to look as much as into our past,” he sums up.

The Repertoire Left Behind • Dimsum Bros. Gurgaon (interiors) • Yo China (nationally, interiors + brand) • Chin Chin, Gurgaon (interiors) • Living room hotel, Goa (interiors + brand).

• Avenue hotel, Gurgaon (interiors + brand) • Jaquar(brand + retail) Defence Colony • Seasons Hotel, Gurgaon (brand) • Zaitoon (QSR brand + kiosk) • Hypfen (brand)

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 51

[Explore]

On Land, In Air

52 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Explore] Now flight delays, long layovers and erratic flight schedules related to Delhi’s International Airport have got a new connotation.

The long wait has been converted into an interesting hospitality proposition through India’s first airport transit hotel – Eaton Smart – at Terminal 3 of the Indira Gandhi International airport. The hotel is successfully establishing a new relationship between the Capital city and her passengers on air transit.

Sanjeev Bhar

E

aton Smart at the Delhi International Airport, commonly known as T3, has a distinction of having the fifth airport transit hotel of the world.

The first airport transit hotel came in Changi International Airport (Singapore) followed

by Schipol (Amsterdam), Heathrow (London) and Dubai International Airport, tells Raju Shahani, Executive Consultant – Development & Operations (India & Sri Lanka), Langham Hospitality Group. The Delhi property is positioned as a midscale accommodation.

It is Langham’s first project in India on a management basis and has a unique distinction.

It is group’s first airport transit hotel marking its entry in this market that it has been eyeing for many years. He says, “We are selective and distinguish ourselves in defining simplicity in our services. The services should touch the customers who come and stay with us. This

Visit FHRAI Website: www.fhrai.com

is a new concept not only for us but also for many Indians, and therefore, we have picked up confidence in servicing them slowly once they got used to this transit hotel concept. After all, it is an unknown concept in the Indian hospitality trade.”

International & Domestic

The hotel has been divided into two wings, i.e., international and domestic. Here, international refers to the air side of the airport and domestic signifies the land. The international wing of the hotel (having 57 rooms) opened in June last year and just three months back, the domestic wing (having 36 rooms) was made operational. “We have realised within these three months that the potential of the domestic wing, which is crossing over 100 per cent occupancy in comparison to around 55-60 per cent of that of international wing, is tremendous,” informs Shahani.

FHRAI Magazine April 2012 53

[Explore] The hotel primarily gets its customers as walk-ins, which comprise of 30-35 per cent of the total occupancy. Twenty five to thirty per cent bookings are made through GDS, website, travel agents, etc. “We have been active in social media marketing and promoting to those travelling to SAARC countries with connecting flights from New Delhi. We need to market to domestic feeder market like Lucknow, Raipur, Chandigarh, Dehradun, Chennai, etc.

Internationally, we are looking at the US and UK market,” informs Shahani.

A Challenging Proposition

Though the initial results may sound all rosy, but there are some issues that limit the hotel’s scope for potential optimum growth. For example, the stay option is limited to a maximum of 24 hours. Since it is primarily meant for air passengers, a day has been divided into five hours of slots for four times a day, which means the scope for customers get curtailed.

Shahani tells, “Restrictions are many for this hotel. Stay at the international wing is only allowed if a passenger is coming from an international destination and going to another one where Delhi happens to be a changeover point.”

In this context, the hotel is seeking if the time schedule to enter the airport

54 FHRAI Magazine April 2012

could be relaxed for passengers in certain cases. “People who are taking international flights from Delhi can’t avail this stay option, as the boarding pass is given only three hours in advance. It is not that important for Delhi-based traffic but it surely is for those coming from other cities by different mode of transport finding it difficult to lodge them,” Shahani explains. He is, in fact, taking a few suggestions forward with the authority for due consideration.

Passengers would be able to use this airport facility only if boarding passes could be issued 6-7 hours before an international flight takes off. Usually no one prefers to come to the airport before time and only those who wish to reach and

Room Tariff Smart Room Queen/ twin `3,000 (min. 5 hour block) Smart Room Queen/ twin `7,000 (overnight stay) Hourly Extension `750 per hour (max. up to 3 hours) Aqua Pods `500 per hour

Visit FHRAI Website: www.fhrai.com

[Explore]

relax would eventually use this proposition.

This, in all propositions, would not hurt the airport authorities about the concern of security. “Also, if domestic passengers are allowed to enter the airport from the existing 6 hours to 12 hours before the flight, they would be able to use the domestic wing services we offer, as many business travellers coming from smaller cities to Delhi at awkward hours find it difficult due to the existing norms. Also, one can use the domestic wing of the hotel before the security checks,” he explains.

Extending Comfort

Though it may sound simple, the fact that the hotel is right at the heart of the airport, the security issue will always remain a critical one. At every possible point, travellers are frisked to ensure that safety is at its peak. Shahani says, “In

order to ensure that travellers – who are anyway hassled by long flights – don’t face any trouble to check into the hotel, we have positioned ourselves through counters and help desk at various areas of both the sides of the immigration, at arrival as well as departure zones. Guests are personally escorted from a particular point and it is ensured that they smoothly pass through the entire tedious security checks. It is completely a ‘Meet & Greet’ service that we offer.”

Further, restrictions also take staff into its scope of scrutiny. A three month pass by the FRRO authority is issued to the hotel staff and a new one is issued after its expiry. He argues, “At times, it becomes difficult for them to work with so much of frisking but considering the issue of security, we go by the rulebook.”

Not only the guests, even the staff of

the hotel are frisked consistently by the airport authorities while their entry and exit making it a cumbersome process for all involved. “While we extend comfort to our customers, we hope to get a comfort zone as well to operate it even more easily.

We can’t blame authorities as this is a new concept for all, be it us, airports or the security agencies involved. We are at the initial stage of this concept and hopefully, everything will fall into place in due course of time,” expects Shahani.

The hotel, nonetheless, is extending its unique services to add a comforting touch to the airport giving it a dimension to be proud about. It has been priced nominally to suit the requirements of all sorts of passengers where they pay for what they avail. Hospitality concept in India is surely getting redefined with new products like this one.

Getting Rejuvenated Between Flights Aqua Pods: Just like any other busy airport’s lounge facilities, it is very relaxing to get an opportunity to refresh yourself with quick shower. But the options are always limited. Eaton Smart’s Aqua Pods is an answer to those travellers who want to freshen up pre- or post-flights. Just 9 sqm of space has been well-accepted by the passengers, the hotel informs.

Essentials Spa: Easily accessible, the Essentials Spa offers weary travellers a range of treatments for pre-and post-flight spa therapies. The option varies from individual treatment

Visit FHRAI Website: www.fhrai.com

rooms to massage chairs for complete rejuvenating experience. From relaxing head and foot massages to full body therapies, treatments are designed to ease jetlag, aid sleep and allow guests to treat themselves to a little therapeutic indulgence between flights.

Fitness Centre: The fitness centre helps those who don’t want to miss out on their fitness regime even when on transit. The centre is equipped with modern facilities in a compact atmosphere giving ample reason to get involved into cardio-machines to free weights, etc.

Eat & Drink: T Lounge - located on the lobby levels of both the International and Domestic wings - serves an all-day menu of freshly prepared favourites, from simple buffet breakfasts, to light snacks, hearty international cuisine and local specialties. Addressing every taste, there is a mix of continental and Indian which are light and apt for those who are scheduled for a flight journey. For those in need of liquid refreshments, it also serves a wide selection of signature teas and alcoholic beverages.

FHRAI Magazine April 2012 55

[Technology]

Room

Prices Up!

In March 2012, Hotels.com released a report titled ‘Hotel Price Index’ taking a wide angle perspective on the hospitality and travel market with trends registered in the year 2011 where room rates have risen not only in India but elsewhere in the world too. Excerpts from the report:

T

he year 2012 has started positively for travel enthusiasts, as Indian hotels showed only a modest rise in room rates in the second half of 2011, compared to the corresponding period in the previous year. According to the latest Hotel Price Index (HPI) Report

by Hotels.com, room rates in India have risen by just 2 per cent, while globally room rates have risen by 4 per cent.

room rates, with an average room rate of `10,496 per night. UK is next with a rise of 7 per cent to `8,965.

Speaking about the HPI report, Abhiram Chowdhry, Senior Marketing Director, Asia Pacific, Hotels.com, says, “Hotel room prices in India have shown only a marginal rise and Indian hotels continue to be attractive for both domestic and international travellers.

Organising the F1 race in India indicates that the country has the potential to host iconic international events and will continue to be one of the preferred destinations for travellers. Also, it is good for Indian travellers to venture out to other international destinations such as Germany, South Africa, Canada and Japan, given the significant fall in hotel room rates in these markets.”

Around the World

Overall, the HPI report found that hotel prices around the world have been volatile in the latter half of 2011, with some countries experiencing significant rises.

In Asia, Singapore is the most expensive Asian destination at `8,684 after a 5 per cent rise. The demand for hotels has remained strong in Singapore from long-haul air passengers on stop-over trips. The recent addition of new luxury developments has only helped to make this already attractive destination even more so. Sri Lanka also bounced back The HPI report is a regular survey of hotel prices in major travel destinations across the world. It is based on bookings made through the Hotels.com websites and prices shown are those actually paid by customers (rather than advertised rates) in 2011. The latest HPI features 27 countries including UK, USA, UAE, Canada, Singapore, Greece, Italy, Japan, Australia and others. Amongst these, India is the lowest priced country with an average room rate of `4,226 per night. Switzerland, with its currency remaining strong, is the most expensive country experiencing a 19 per cent rise in

56 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Technology] For Travellers from Overseas

The top five most popular Indian places for foreign visitors remained the same: New Delhi, Mumbai, Bengalaru, Chennai and Jaipur. Agra, home to the Taj Mahal, rose from eighth to sixth place and Goa was seventh.

Top Indian Destinations for Indian Travellers

from the end of its civil war with a 34 per cent rise in hotel prices to `8,518. The biggest rise in room rates is of 49 per cent witnessed at the casino resort destination of Macau.

In the Eurozone, Austria, Germany and Belgium experienced falls, down 10 per cent, 7 per cent and 4 per cent, respectively. South Africa saw the biggest drop of prices at 11 per cent, as the country’s hoteliers readjusted after the high demand for the football World Cup in 2010. Though, Indian hotel prices grew at a marginal rate, travellers faced price rises in nearly three quarters of the international destinations featured in the HPI. This is because the Indian Rupee value depreciated against many major currencies.

Price Changes in Global City Destinations

Indian travellers faced price rises in the Hotel Price Index after the Indian Rupee depreciated against major currencies as the economy struggled. The Indian Rupee was down almost 20 per cent against the US Dollar from April to December 2011, by 15 per cent against the Pound Sterling and by 9 per cent against the Euro. The steepest decline was against the Japanese Yen with the Indian Rupee losing around 30 per cent of its value during this period.

Focus on India

Many Indian destinations showed price rises as inflation rose but room rates remained among the lowest featured in the HPI. Among the major cities, New Delhi was up 9 per cent to `5,914 and prices in Mumbai went up 3 per cent to `6,539. However, Kolkata was down 20 per cent to `5,136 as hoteliers discounted to attract customers.

Visit FHRAI Website: www.fhrai.com

The average room rate increased in 14 of the 20 domestic destinations, surveyed according to the HPI, as inflation rose in the country. The most expensive place, above average rates, could be found in Kerala at `7,381 despite being one of the few places to register a fall in average room rates, down 9 per cent.

New Delhi held on to its place as the favourite Indian destination for domestic travellers. Calangute, the lowest priced Indian location in the HPI, moved up from third to second place with visitors attracted by its good value. Varca, renowned for its beaches, moved from sixth to fourth overtaking Goa, and Cochin moved up from 21st to 17th place.

Prices Paid at Home and Away

Indians parted with an average of `6,789 on foreign hotels but paid the least, among all the nationalities analysed in the HPI, for domestic rooms on `4,226.

The Japanese spent the most on their travels abroad, an average of `8,690 a night, followed by the Swiss on `8,339.

The Swiss also paid the most on rooms within their own borders, `10,257, underlining the country’s wealth and expense. The Australians, boosted by a strong economy, were the third-highest spenders abroad on `8,098 which was just ahead of travellers from the USA on `7,984. However, US citizens were among the savviest spenders at home on `5,622. The Mexicans paid the least abroad, just `5,372.

Top overseas destinations for Indian travellers

Singapore retained its place as the most popular overseas destination for Indian travellers ahead of Bangkok. The Thai capital took over as runner-up from Hong Kong, which slipped two places. There were nine Asian destinations in the Top 20.

The most popular European destination was London and the favourite American destination was New York. Tokyo fell from 19th in 2010 to 36th in 2011, after the earthquake in March 2011.

Local Focus • 94.4 per cent Indian respondents recalled the Hanging Gardens of Babylon as one of the wonders of the world • With respect to the new wonders of the world, Taj Mahal was recalled by all respondents • 90 per cent of Indians have visited the Taj Mahal and 44.4 per cent have visited the Great Wall of China.

• 22.2 per cent of the respondents chose the Grand Canyon, Mount Everest and Akshardham in Delhi as possible monuments to be part of the Wonders of the world • The survey also revealed that majority of Indians (77.8 per cent) would like to earn free accommodation nights from the hotel loyalty program they are a part of. The least favored reward in this category was ‘free hotel dining experience’.

FHRAI Magazine April 2012 57

[Guest Column]

Extra Boost to Bookings Even if an extra day of this leap year is curtailed off, 2012’s February month has given reason to be optimistic for Indian hospitality with reservations heading northwards.

Julie Parodi

H

aving an extra day in February 2012 is certainly advantageous when comparing February’s bookings against last year. Results reveal, however, that India’s reservations would have continued showing an upward trend of improvement over prior year even excluding February 29th’s transactions. December’s reservations fell short of last year’s active holiday season by -6.9 per cent. January then brought bookings to within -4.2 per cent of prior year, and although reservations wouldn’t have exceeded prior year by +1.6 per cent without the extra day, February’s bookings through the 28th would have come within -2.2 per cent of prior year.

Therefore, December’s gap against prior year is steadily closing, and India’s exceptional growth gains achieved through 2011 are being maintained.

India’s ADR (average daily rate) has been tracking near prior year levels, but has slipped to being less than last year by -5.9 per cent and -9.4 per cent in January and February, respectively.

Hoteliers’ willingness and strategy to raise rates is influenced by

58 FHRAI Magazine April 2012

many factors, with a main one being the ratio of demand and supply growth. As booking performance demonstrates, India’s travel demand remains robust; it simply isn’t growing as fast as it had been. Room supply, however, is being added at a faster pace than in past years as hotel developers worldwide are eager to tap into India’s powerful potential. ADR’s ability to continue to grow will hinge largely on keeping room demand and supply in balance.

Similar to India, reservations for Asia Pacific and globally would have improved over prior year since last month, just not by as much without February 29th’s contribution. Asia Pacific’s bookings would have seen an increase of +6.7 per cent rather than +11.6 per cent, and global reservations would have equalled last year instead of increasing by +4.5 per cent. With this perspective, it is evident that continuing to achieve year-over-year growth in this weak global economy is challenging for all.

As seen below, the average booking lead time and average length of stay show little change from last year. Trips tend to be longer in India, however, than for Asia Pacific as a whole or globally. Longer

Visit FHRAI Website: www.fhrai.com

[Guest Column] stays can be indicative of longer distances being travelled. Regular review of where your guests are coming from is important for recognizing and anticipating trends that will ensure your marketing efforts and money are spent targeting the right markets.

Determining where your target markets are is just the first step, though. Finding out about these travellers’ habits and what features, services and amenities they desire most is crucial for creating value.

The key to an effective marketing strategy, however, is reaching your target market and featuring your hotel and the attributes that make it a better value for the price than your competition.

In today’s world, consumers live online and that’s where they need to be reached. India’s online travel market is one of the fastest growing markets in the world. As PhoCusWright substantiates with its research, India’s total travel category traffic rose by +45 per cent year-over-year in the fourth quarter of 2010, whereas the total internet audience only grew by +13 per cent. Equally impressive is the role that travel industry is playing in Internet usage in India.

In the fourth quarter of 2009, one in three Internet users was reported having visited the travel category. In just one year, that share jumped to +42 per cent in the fourth quarter of 2010.

Since online is where consumers can be turned into your next hotel guests, your website needs to be your fundamental focus and prime tool for doing so. It is more than worth your time and effort to make sure youe website is living up to its potential – so your revenue can be, too.

NOTE: : The above analysis is based on over five billion monthly transactions processed by Pegasus Solutions, the world’s single largest global processor of hotel transactions. The data represents transactions from both the GDS (Global Distribution System) and ADS (Alternative Distribution System) channels, representing the business and leisure markets respectively for approximately 90,000 hotels worldwide. All data is on a date of booking basis unless otherwise stated. ADR (Average Daily Rate) and revenue percentage changes are calculated from values using a single constant exchange rate to eliminate the effects of currency exchange rate movements.

For more analysis on regional trends, visit www.pegs. com/thepegasusview, where you can also sign up for a free monthly subscription to The Pegasus View.

(The writer is the Senior Director of Strategic Planning and Editor, The Pegasus View. The views expressed by the author are personal.)

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 59

[Supplier Talk]

Boost Productivity Hardware is as important as the software part that helps in auguring the productivity of an organisation. Invariably, more emphasis is laid on to the latter while deciding for a sound and seamless function of hospitality IT Solutions, which is not fair.

Solomon James

A

hospitality property invests much time and attention when choosing a software. Once installed, a hotel needs to stay with a software for many years, and it is best to make this decision with thought and care.

Unfortunately, hardware in a hotel is just as important but does not attract as much attention - at least not in the initial phase of planning. Yet, hardware is a critical requirement for the seamless functioning of any hospitality software.

Its real complexity comes into play when the hotel realises how hardware requirements differ depending on the size and location of the hotel property, type of property, number of rooms, where the hardware is to be installed – indoor or outdoor, budget, whether the hotel has an internal IT team or will depend on an external vendor, etc. Resolving these issues can take weeks if not months as the hotel needs to interact with multiple vendors for different types of hardware, be it computer paraphernalia, cabling, phones, routers, hubs and the like. The next big task, of course, is assembling all the hardware, ensuring it works together and connecting it to the hotel’s ERP. This process can turn into an hotelier’s worst nightmare as it takes him away from his area of core expertise and throws him into the deep end of the technological pool, of which he knows little.

It is precisely to address this tangle of technological products needed in a hospitality property, their assembly, working, and integration with software that the ‘Total Technology Solutions’ offering was launched.

For long, our customers struggled with their hardware needs, haggled with multiple vendors to purchase solutions and then faced difficulties integrating all these disparate hardware with software. Many hoteliers strongly suggested we provide hardware too, so that they could save time and money interacting with just one trusted vendor. This was the real reason for the formation of IDS Networks Group and expansion of our bouquet of services to ‘Total Technology Solutions’.

60 FHRAI Magazine April 2012

Single Technology Vendor - Benefits

Working with a single technology vendor for all your hotel’s hardware and software needs has numerous advantages: • Time saving, as your hospitality property does not have to interact with 10 or more different vendors • Customised solutions developed for your niche needs • Pick and choose hardware depending on your budget • Access to trained professionals who guide your hardware decision keeping in mind your current property needs and growth plan • No integration issues as a single vendor addresses all your technology needs

What we provide?

Few organisations, other than IDS NEXT, have the depth and breadth of industry exposure to offer the comprehensive set of hardware, software, networking and manpower solutions. With over 25 years of domain expertise, the organisation provides 360 degree support for all your hotel’s hardware needs from selecting POS and computer terminals to iPads, tablet PCs, networking, Wi-Fi routers, PDAs, mediajacks, passport scanners and the like. Our other solutions include providing trained manpower and consultancy. Some of our newer solutions include cloud-based CRM tool, virtualisation solution and energy management solution.

We also offer consulting for new hospitality properties that may be desirous to better understand their hardware needs. In addition, our certified professionals provide technology audits for hotel properties trying to better leverage their hardware and software investments.

(The writer is VP, IDS NEXT Networks Group. Views expressed by the author are personal.)

Visit FHRAI Website: www.fhrai.com

[Conference]

Aiming High in Design, Architecture & Project Management At the inaugural edition of ‘Hi Aim’, an Indian hospitality Summit, the hospitality industry focussed on critical elements of interior design, architecture and project management that can bring about a change in the way hospitality is perceived.

F

or the first time, a summit was organised with a complete devotion to issues that linger on the minds of those hospitality professionals who delve in the areas of interior design, architecture and project management.

The summit titled – Hi Aim 2012 – was held during March 22-23, 2012 in New Delhi. Hi Aim 2012 has been projected as a B2B hospitality meet where opportunities, roadblocks and possible game changer characteristics/attributes were discussed in detail revolving around the subjects of architecture, interior design and management. The two-day event contained eight varied sessions to ponder on issues of ‘design’ in the light of hospitality growth in India.

The Summit witnessed the culmination of ideas of the trio Romesh Koul, Neeraj Kodesia and Anil Sharma. In his opening address, Romesh Koul, CEO, Naaz Hotel Consultants, put forward his views on the market environment, positive indicators for Indian tourism and hospitality growth and the need to bridge the supply gap between influx of tourists and the actual rooms available. As a co-founder of Hi Aim, he said, “As organisers, we’ve seen a lot of Summits. What I learnt from them is that any conference should give value-addition to a participant, beyond just being a mere network ground. And that’s what I’d like here – so if people have blue prints, designs, queries – we’re ready to look into specifics which can help them, and the sector per se.”

At the inaugural session, Dr. Shashi Tharoor, the Member of Parliament and former Minister of State for External Affairs, talked about the various facets of India that make it a splendour where

Romesh Koul

hospitality and tourism have a key role to play. In his inaugural speech, Tharoor said, “For those from the hotel and hospitality industry, it must be remembered that we are not just in the business of selling hotels or promoting cuisine, but of promoting the idea of India – and that role is one of great pride and responsibility.

The strength of the country lies in its culture and that can only be promoted through warm and responsible hospitality.”

(L-R): KB Kachru from Carlson Hotels, Shashi Tharoor, Shivendra Tomar - MD of TFCI, Anil Sharma, Co-founder of Hi-Aim, Romesh Koul, Co-founder and Neeraj Kodesia, Co-founder.

In his keynote address, Shivendra Tomar, Managing Director, Tourism Finance Corporation of India (TFCI) talked about the growing opportunities. He affirmed that hospitality with areas of the whole project touching upon interior, architecture, etc., is interesting. But, he said, hotel business is not an easy one. He further elaborated, “There are as much as 80 approvals needed for a hotel project, and therefore, it becomes a challenging task. Other challenges in a project are increasing land prices, architecture of the building, approvals, finding the right contractor, suitable agencies, labour, materials and so on.”

Further, Koul informed that the event aims to grow from strength to strength and will be formulated as an annual affair.

He announced the next edition to be held in 2013 during March 21-22 at Le Meridien, New Delhi. “I hope that Hi Aim evolves as a comprehensive trade show in Asia with conference and exposition where all stakeholders can share the key issues and discuss trends with a worldwide approach in hospitality design,” he remarked.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 61

[Products & Services]

Exclusive space for HarleyDavidson The Westin Gurgaon, New Delhi, and The Westin Sohna Resort and Spa, launch India’s first exclusive parking space for world’s quintessential motorcycle Harley-Davidson.

A distinct space was dedicated to celebrate the spirit of adventure and elevate the passion of biking enthusiasts. The space was inaugurated by Gaurav Gulati, Director, Capital Harley, India.

Located on the front porch, the parking area will provide an elite space to the guests to assemble their Harley motorcycles. In line with this initiative, the Harley-Davidson H.O.G (Harley Owners Group®), Delhi/ NCR chapter, will organise an epic bike ride between the two hotels, covering near proximity.

A seating innovation called Bounce Bounce Innovations has come up with a seating innovation as an experience in relaxation and comfort. It is contemporary and visually appealing. Bounce is manufactured by Mumbai-based One Group and marketed globally by Bounce Innovations Private Limited, a wholly-owned subsidiary.

The uniqueness of Bounce lies in the use of materials. Bounce has been created with high quality polycarbonate and silicone that is engineered with a unique proprietary process. In this product, silicone has been used in a nontraditional manner making the product vibrant, cheerful, relaxed, colourful and full of life.

In addition to its aesthetics and design, this seating innovation is lightweight and weatherproof: it weighs approximately 9 kilograms and is stackable.

Bounce provides a natural and comfortable ergonomic support to the back by design and by default.

Absolut Vodka’s new variants ELYX and Mode

Delhi Duty Free Services (DDFS), India’s largest duty free retail space at T3 at IGI Airport in Delhi has announced the availability of two new variants of Absolut Vodka – ELYX and Mode – at the duty free shops.

Absolut has now launched two new variants – the Super-premium Absolut ELYX and Mode at DDFS. Absolut ELYX has a clean and fresh taste with subtle floral and fruity tones, but its most defining quality lies in the texture. Absolut ELYX is elegant and increasingly soft and leaves ones with a silky feeling in mouth. The vodka is hand crafted in single batches. Absolut has also launched another limited edition vodka bottle ‘Mode Edition’ at DDFS. The Absolut Mode edition represents the spirit of the fashion universe - the bottle, which seems to be quite simple at first sight, embodies the true style and elegance with multiple facets and a silk dark blue string featuring text embroidery.

62 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Products & Services]

Signature skin care line ‘SUFI’ by The Imperial

The Imperial Spa and Salon launched the signature line of products called SUFI for body, mind and beauty signature treatments at the spa. The range consisted of six individual blends for massage oils and an Eau De Toilette. SUFI Eau de Toilette is inspired by the Sufi masters of mystery. SUFI Eau De Toilette is available for purchase at The Imperial Salon in 100 ml cylindrical bottles at `4000 and comes with signature embroidered bags. This exquisite scent is also available as Room Aroma oil in 100 ml red glass bottles.

The oils contain pure cold pressed base oils like Jojoba oil, Carrot Seed oil, Moroccan Argan oil, Sweet Almond and Apricot Kernal oil. These oils for ‘Bath and Body’ are also chosen to suit individual preferences and are available in 100 ml red glass bottles from `1200 onwards at The Imperial Salon.

The oil variants and their ingredients are as follows: Oil of Kabir - Frankincense & Neroli; Oil of Rumi - Chamomile, Sandalwood, Amber; Oil of Mirabai - Fig, Rose, Black Pepper; Oil of Kerala - Ginger, Cinnamon, Clove; Oil of Mahadeva - Rose Otto & Sandalwood; and, Oil of Jaipur - Grapefruit, Pettigrain, Juniper.

Aspri Spirits introduces Raventós i Blanc in India Keeping the summer flavours of mangoes

in mind, SOUL bAspri Spirits, one of India’s leading distributors and importers of fine beverage from across the world, has brought into India the exquisite range of Raventós i Blanc wines from Spain.

The new ranges of Raventós i Blanc that Aspri Spirits has introduced in India are Raventos i Blanc, L’Hereu Reserve Brut 2008/ Cava; Raventos i Blanc, De Nit/ Rose’ Cava; Raventos i Blanc, Perfum de Vi Blanc; and, Raventos i Blanc, Isabel Negra.

Super Soft Mattress Topper The Hush Super Soft Mattress Topper is specifically designed to improve the quality of sleep by cushioning the bed surface and adding to the sleeper’s comfort level. As an added benefit, the topper also prolongs the life of the mattress. Filled generously with lush, slowrelease, virgin microfiber, this product gives a soft and buttery feel.

Additionally, the inner fibers are pocketed to avoid uncomfortable lump formation. The outer casing is designed with specially-treated water-repellent fabric.

The Hush Super Soft Mattress Topper offers sublime comfort to the sleeper and lends a plush, sink-in feel to the mattress, ensuring a smooth journey to dreamland.

Josep Maria Raventós i Blanc founded the winery which now bears his name in the middle of a 90 hectare estate which had been in his family since 1492.

Today, the estate comprises 44 plots which produce a range of distinctive cavas. The experiences of 18 Generations cultivating the same Estate, plus the various studies that were commissioned, have led to divide it into five vineyards: Plana, Llac, Clos, del Serral and Barbera. The climate, soil, the grapes and the human influence make Raventós i Blanc Estate a unique Terroir.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 63

[FIHM]

Celebrating

Indian Colours Navin Kumar Nanchahal, Director, FIHM

64 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[FIHM]

F

HRAI – Institute of Hospitality Management (FIHM) on the auspicious occasion of Holi (the festival of colours) organised a theme event ‘Colours of Holi’ on March 2, 2012. Mr. Rajindera Kumar, President, FHRAI 2009 – 2010, graced the occasion by being the Chief Guest and Mr. M. D. Kapoor, Secretary General, FHRAI, was the Guest of Honour.

As Holi symbolises the mark of a new season and a stroke of fresh energy and heat, so was the event, which was colorful & vibrant in its appearance & fragrance. The guests were given the traditional Indian welcome with a refreshing welcome drink.

Mr. Rajindera Kumar appreciated the concept and the décor of the event. He even appreciated the special effects & props used to denote the customaries in a Holi festival.

Visit FHRAI Website: www.fhrai.com

Mr. Rajindera Kumar along with Mr. M. D. Kapoor had an interactive meeting with students, faculty & staff members. He along with Mr. Kapoor contributed to the efforts of FHRAI – IHM on keeping the environment ‘Green n Clean’ by planting the trees in the Institute.

Mr. Rajindera Kumar relished to have his lunch in the company of students, faculty and staff members at Sassafaras and appreciated the quality of food served at the buffet.

On his closing note, Mr. Rajindera Kumar appreciated and thanked everyone for their team effort with his valuable comments on the visitors’ book. He wrote: “Coming back to the FIHM after a gap was a great joy. I can see the IHM going on the great track achievement under the present Director, who should have in place many years ago. I wish the FIHM a great future with strong sustenance. Keep Up The Good Work!”

FHRAI Magazine April 2012 65

[Movements]

Movements Vinayak B. Vetekar National Sales Manager ADF Foods

Vinayak B Vetekar joins ADF Foods as National Sales Manager. In this role, he will be in charge of Sales, Marketing and Distribution activities of the company.

Prior to joining ADF Foods, Vetekar was associated with Parle Agro as the Business Head.

During his 19 years of experience in Dealer/Network Management, Strategy and Profit Accountability, Vetekar has worked with Lakme Lever, Kellogs India and Cargill India. His expertise lies in Beverages, OTC Products, Cosmetics, Breakfast Cereals, Biscuits, Edible Oil and Mobile Phones. He holds a postgraduate degree in Marketing Management from Welingkar Institute of Management. He is passionate about travelling to new destinations and exploring new places. His interests also include listening to good music and reading interesting books.

Pranay Verdia

Shantanu Jha

Director, Operations Jaipur Marriott

Jaipur Marriott announced the appointment of Pranay Verdia as the new Director of Operations. In his new role, he will be responsible for daily operations including rooms, housekeeping, front office, banqueting and F&B operation.

Verdia has over 13 years of experience in the industry, most of which were spent with the Marriott Group of Hotels. He possesses extensive operational knowledge, and is expected to bring enthusiasm to the new assignment. Verdia has a Diploma in Hotel Management from the Institute of Hotel Management Catering Technology and Applied Nutrition, Pusa, New Delhi, and describes himself as an innovative and diligent team leader possessing excellent communication, interpersonal, problem solving, presentation and training skills with sound management and marketing skills. He was nominated for the Marriott International’s ‘EDGE’ excellence award given to high performing Rooms Division personnel in 2009.

66 FHRAI Magazine April 2012

General Manager - Sales (West) Sarovar Hotels & Resorts

Shantanu Jha has been appointed General Manager - Sales (West) for Sarovar Hotels. He will be based at Company’s head office in Mumbai.

A Hotel Management graduate, Jha comes with a wide exposure and expertise in hotel sales and marketing with experience across brands like Radisson, Grand Hyatt and InterContinental Group. This is also his second inning with Sarovar, as he was earlier associated with the company over a period of two years until 2007.

At Sarovar, Jha will oversee Company’s sales offices in Pune, Ahmedabad, Surat and Vadodra.

Michael Salmon General Manager The Zuri Kumarakom, Kerala Resort & Spa

Michael Salmon has joined The Zuri Kumarakom, Kerala Resort & Spa as its new General Manager and Director of Spa operations. British-born Salmon, an expert in holistic wellness therapies (that includes Reiki) and medical tourism, has a vast experience over 30 years in Middle East, Europe and India in various prestigious hotels.

He began his career as a massage and stress consultant at Natural Therapy Centre, Sussex, UK, followed by stints at British Arthritic Association, UK and Therapy Centre, Spain. Among many of his achievements, he has introduced the use of Technogym equipment; he established a membership scheme for a five level package. The SpaSoft software was introduced with membership capabilities for the leisure centre at JW Marriott Guanacaste Resort & Spa.

Visit FHRAI Website: www.fhrai.com

[Movements] Leena Sengupta Rooms Division Manager JW Marriott Mumbai

Leena Sengupta is the newly appointed Rooms Division Manager at JW Marriott Mumbai.

She will head the operations for the Rooms Division, looking after the front office, housekeeping and spa functions of the hotel. She has spent nearly 16 years within the hospitality industry having worked with prestigious hotels like the Oberoi Group, The Grand, New Delhi, and The Taj Palace.

Sengupta, an alumnus of the reputed Oberoi Centre of Learning and Development (OCLD), first joined the JW Marriott Mumbai as Executive Housekeeper in 2005 and returned in 2008 as the Director of Services and has since been with the property. In the interim, she was working with The Taj Palace, New Delhi.

Apart from her passion for work, she enjoys singing, listening to music and solving the Sudoku.

Arti Raghava Director of Human Resource Goa Marriott Resort & Spa

Arti Raghava has been appointed as the Director of Human Resource at the Goa Marriott Resort & Spa. She started her career as Front Office Associate in Radisson Hotel Delhi, since preopening of the hotel. Afterwards, she completed her Masters Degree in Human Resources from the University of Technology, Sydney (Australia), in the year 2002. Her first hospitality assignment in Human Resources was at The Bristol Hotel, Gurgaon. She then moved to Park Plaza Gurgaon as Assistant Human Resource Manager.

Arti began her career with the Marriott at the pre-opening of the Courtyard by Marriott, Gurgaon, in August 2009, as Human Resources Manager.

Paul Rushton Regional Director of MICE Sales Asia Pacific Marriott International

Marriott International announced the appointment of Paul Rushton as Regional Director of MICE Sales Asia Pacific. Rushton is responsible for the design and implementation of sales and marketing strategies for capturing a profitable share of the emerging MICE business for all Marriott branded hotels in Asia Pacific. He is based in Singapore.

With 25 years of work experience in the hospitality industry, Rushton’s footsteps have covered leading hotels in Jakarta, Dubai, Bangkok, Sydney and Singapore.

James Reppuhn Executive Chef JW Marriott Mumbai

James Reppuhn joins the JW Marriott Mumbai as the new Executive Chef. Reppuhn has spent the past 12 years of his career working throughout Asia in such countries as China, Thailand and now India. Chef James will cater to the local tastes imbibing the best of both worlds. As Executive Chef, he will monitor the culinary aspect of the hotel and share his years of culinary knowledge and experience.

Born and raised in the United States, Reppuhn had his first job in a small cafĂŠ as a dishwasher and was guided by a young Sous Chef to start with by teaching him the basic skills and knowledge needed to pursue a career as a chef. Later, he went on to study and graduate at the prestigious Culinary Institute of America.

Prior to joining the JW Marriott Mumbai, Chef Reppuhn has worked for such notable hotel groups as Aman Resorts, Four Seasons, Ritz Carlton and with Celebrity Chef, Mark Miller. His interests include dining, travelling, reading and various sporting events.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 67

[Events]

National Tourism Awards honours hospitality The Le Meridien Kochi team celebrates winning The Best Hotel Based Five Star Convention Hotel at the National Tourism Awards for the year 2010-2011

P.S.Pandian, Chairman and Francis Mohanraj Pandian, Managing Director of Pandian Hotels Group receiving the award from Pratidbha Devi Singh Patil, the President of India on February 29, 2012 at Vigyan Bhavan, New Delhi

Le Meridien Kochi has been adjudged as the Best Hotel-based Five Star Convention Centre at the National Tourism Awards for the year 2010-2011.

The award was received by Dr. P Mohammed Ali, Chairman, Mfar Hotels and Rajesh K Madan, General Manager, Le Meridien Kochi. The national tourism award was held in February, 2012. Madan informed, “Our associates are our biggest assets and the award is the biggest acknowledgement for our efforts. It is a great motivation for us to continue delivering excellence in conducting conferences, weddings and great events at Le Meridien.” Le Meridien Kochi played a pivotal role in transforming Kochi from just a tourist destination to a dominant MICE destination, which has seen many national and international conferences & conventions propelling the city’s room occupancy levels to a new scale and also gave the city a purpose and reason for rapid infrastructural development.

On the other hand, Hotel Pandian, a unit of Harrington Hotels, flagship Company of the Pandian Group of Companies, has won the National Tourism Award in the Two Star Category for the year 2010-11. It has been adjudged the Best Two Star Hotel in India for the third time.

Patu Keswani donates Research Centre to IIT Delhi Patanjali G Keswani, CMD, Lemon Tree Hotels, commonly known as Patu, recently donated the ‘Golden Jubilee GH Keswani Research Centre’ to the Indian Institute of Technology, Delhi. Kapil Sibal, Hon. Minister of Human Resource Development and Minister of Communications and Information Technology, Government of India, laid the foundation stone at a ceremony attended by the Chairman, Board of Governors, IIT Delhi, Directors of IIT Delhi and Roorkee, deans, professors and dignitaries like M. Mangapati Pallam Raju, Minister of State for Defence, Government of India.

Speaking at the occasion, Keswani said, “As an alumnus of IIT Delhi, I am happy to support my institute. I hope future batches of young engineering students benefit from this research facility.” With a built-up area of 1,30,000 sq. ft. the ‘Golden Jubilee GH Keswani Research Centre’ will be spread over seven floors and offer a range of facilities to students.

68 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

[Events]

Promoting Indian Culture & Tourism Kingdom of Dreams, India’s biggest live entertainment destination and one-of-its-kind initiative by the Great Indian Nautanki Company, promotes Indian culture and tourism. Kingdom of Dreams was the official entertainment provider at ITB Berlin Trade.

The artists from Kingdom of Dreams performed at the inaugural dinner of the event which was held during 7 - 11 March, 2012 that was hosted by Subodh Kant Sahai, Union Minister for Tourism, Government of India.

Earth Hour Initiative

by Renaissance Mumbai Convention Centre Hotel

Candle Lit Indian Restaurant Emperor's Court during the Earth hour

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine April 2012 69

[Events]

ICF recognises culinary talents at Culinary Art India 2012 During the 27th AAHAR show at the Pragati Maidan held in New Delhi in March, 2012, the Indian Culinary Forum (ICF) in association with ITPO organised ‘Culinary Art India 2012’ and awarded the winners who showcased their culinary talents at the event. The chief guest was Rita Menon, Chairman ITPO. Other dignitaries who graced the occasion were, Chef Davinder Kumar, President of Indian Culinary Forum and Chef Nalin, Chairman of judging faculty. The chefs who showcased their culinary art skills at the challenge were bestowed with awards on 16th March 2012. People were in for a big treat as Culinary Art shined the spotlight on their brightest gourmet stars, sharing in their electric passion for good food and great beverages. Chef Davinder Kumar, informed, “The event was a big success and we got participation from all across India. Culinary Art India (CAI) 2012 gave youngsters an opportunity to come up with something new and innovative. Now we hope to make it even bigger and better next year.” Rita Menon, Chairman, ITPO, said, “Following much deliberation, a judging panel of leading industry representatives has selected chefs who are feted today at the prestigious awards ceremony. ITPO is very glad and elated to host such an event which involved every aspect of culinary enthusiasts and art aficionados to share a passion for food, art and entertainment.”

The first day categories included artistic pastry showpiece, butter or margarine sculpture, plated appetisers and live kitchen. On second day, the categories were artistic bakery showpiece, authentic regional cuisine, fruit and vegetable carving and live kitchen. The next two days included categories such as 3 Tier wedding cake, desserts, dress the cake (Live), Petit fours or Pralines; three courses set dinner menu and mock tails. The five day event got the participation of chef fraternity from India and abroad and two jury members from WACS (World Association of Chef Societies), a 93 nation body of Chefs.

Winners of the Culinary Art India with Chef Manjit Gill, Chef Davinder Kumar, President, Indian Culinary Forum and Chef Nalin in centre at the Culinary Art India 2012 Award Ceremony

70 FHRAI Magazine April 2012

Visit FHRAI Website: www.fhrai.com

RNI No. DELENG/2000/1230 Posting Date 15-21/08-2011 Postal Reg. No. DL-(C)-01/1294/2012-2014 at MBC-1 Date of Publication 12-04-2012