fhraimagazine

magazine Volume-12 Issue-2 • `50 • February 2012

The 47th Annual FHRAI Convention To be held in Goa from September 6-8, 2012

Establishing ‘FAITH’

Hospitality & Travel associations join hands

Re-creating Mughal Hospitality Various facets of Wyndham Grand Agra

FHRAI Magazine

february 2012 1

[Contents] Editor Deepa Sethi Assistant Editor Sanjeev Bhar Sub Editor Divya Goyal Advertising Gunjan Sabikhi Harshal Ashar Shovan Kanungo Prem Sagar Dheeraj Mangla 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

February 2012 8

President’s Message

52

Money Mantra Eventful Seasons

54

Guest Column Rates Rebound

56

F&B Singapore Lures Delhi Gourmet

36 Report Bengaluru on the Rise

58

Dine Out Daniell’s Tavern The Imperial New Delhi

38 GM Canvas Dilawar S. Nindra Wyndham Grand Agra

62

Chef Talk Michael Swamy Michelin-starred Chef

64

Taxation

66

Movements

68

Events

10 Main Story The Money Spinner 16 News Updates 30 FHRAI

42 Products & Services 44 Culture Pattachitra 48 Outbound Resort World Manila

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 february 2012

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 picture: Hospitality & Travel Associations joined hands on a common platform to form the Federation of Associations in Indian Tourism & Hospitality (FAITH). The event took place on February 9, 2012 in New Delhi.

Visit FHRAI Website: www.fhrai.com

President’s Message

[Message]

8 FHRAI Magazine february 2012

Dear Readers, February 9, 2012 was a historic day when ten national tourism industry Association’s Presidents signed the FAITH formation. FHRAI is core member of FAITH. My colleagues from the executive committee, Vice-President Mr. Ratan Marothia, Mr. Rajindera Kumar, Mr. Bharat Malkani and Mr. Garish Oberoi also signed for FAITH with me, in presence of our Secretary General, Mr. M.D. Kapoor.

Now as a FAITH co-core member, may I request you to attend the TAAI Convention which is going to take place in Istanbul, from March 11-14, 2012.

I am delighted to share with you that our 47th Annual FHRAI Convention will be held in Goa from September 6-8, 2012. This is the first time that six months before our FHRAI convention, we already have confirmations for synergy from International Hotel Associations like, AH&LA; IH&RA and SATAS (South Africa Tourism); logistics churn commitment from FAITH, to begin with.

Good news from the Sub-committees, just formed: The FSSAI seminar date has been announced for March 16, 2012 in New Delhi, along with NRAI & HRANI, by our dynamic Chairmen of Seminars and FSSAI Sub-committee Mr. Dinesh Advani and Mr. Pradeep Shetty, respectively. We are working towards compiling our submissions to the public notice by the FSSAI, way before the 31st March deadline, this year.

We are preparing for our proposals on the Government’s Foreign Trade Policy 2011 – 2012, the Star Hotels Classification HRACC norms as well as the last minute PreBudget re-submissions for Taxation. Good news on Infrastructure announcement is round the block!

In the next issue I will mention about my recent visit to the FHRAI Institute (FIHM) and the Ministry of Tourism (MOT).

Cornell School of Hotel Administration held its first Hospitality Summit in Mumbai in January, this year. The program was attended by more than 175 delegates including HR professionals. I am pleased to announce that FHRAI was one of the Principal Sponsors.

I welcome the new office-bearers, Mr. Dinesh Advani as the Joint Honorary Secretary of FHRAI and Mr. SM Shervani as the Vice-President of FHRAI. Friends, join me in congratulating our fraternity member Ms. Priya Paul, Chairperson of Park Hotels, Apeejay Surrendra Group, on being conferred with the Padma Shree as well as our professional associate Mr. Pravin Parekh, too for the Padma Shree.

With warm wishes,

Kamlesh Barot President

kamleshbarot@revivalhotel.com (facebook.com/kamlesh.barot; twitter:@KamleshBarot)

Visit FHRAI Website: www.fhrai.com

[Main Story]

The Money Spinner

10 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Main Story]

It is a great idea to include a casino in a hotel property to add glamour and zing and attract guests. But restrictive state policies in India have ensured that this lucrative proposition is confined to a few states only. Nonetheless, within this restriction, casino hotels have proved to be a great idea with the potential to increase the rate of revenue by manifold and would provide opportunities wherever possible.

I

f the report of PriceWaterhouseCoopers (PwC) Global Gaming Outlook Report for 2011 is to be believed then Asia will leave the US market behind as the largest market for casinos. Also, interestingly, countries in Southeast Asia are attracting tourists in huge numbers by promoting their gambling avenues, often clubbed with hotels. In India, gambling norms stay restrictive as only Sikkim and Goa allow casinos as a part of entertainment option in addition to the Union Territory, Daman.

Visit FHRAI Website: www.fhrai.com

Hotel-Casino Relationship

Casinos in the Southeast Asia market like Macau and Singapore have caught the frenzy of the hospitality industry in a big way. In India, the restrictive laws have not only hindered the partnership between the two but also the possibility of flourishing stand-alone casinos. However, despite the restrictive scope, the relationship between them has been blossoming and reaping mutual benefits.

For example in Goa, known for its number of floating and off-shore casinos, the latter has paved way to

FHRAI Magazine

Pic: The Zuri White Sands, Goa Resort & Casino

Sanjeev Bhar

february 2012 11

[Main Story] become successful ventures. The State Government has issued a licence for operating gaming entertainment, which not only attracts domestic travellers but also a huge number of international visitors. In the hotels, casinos are trying to make their mark as an added incentive to remain in the property and splurge on various entertaining games with live gaming tables and slot machines.

The vastness of any casino is measured on the basis of the number of gaming positions one can boast of. Further, the casinos are vying for the top position by incorporating live music, amphitheatre, separate locations dedicated to VIPs, bars and even crèches. One such example is

Caravela, a live casino which offers 190 gaming positions (20 live gaming tables and 10 slot machines) with 2 operational decks with level 1 being the gaming area and level 2 being the F&B area.

Cidade de Goa, one of the prominent hotels in Goa, is not a casino hotel. Anju Timblo, Managing Director of the hotel says, “Our hotel has a small casino, which does not really depict the impact of casinos and gaming on tourism. A large number of tourists visit some of the offshore casinos in Goa where table gaming is allowed. In fact, hotels on-shore can only have slot machines. A number of hotels that have upgraded themselves to 5-star standards so that they can run

casinos, as only 5-star hotels are allowed to do so.”

The question that arises is, if there are provisions for off-shore and on-shore casinos then why does the hospitality need to get into this? Priti Chand, VP, Communications, Zuri Group Global says, “Our casino in The Zuri White Sands, Goa Resort & Casino has been leased out to a casino operator. The revenue is ours but the running of the casino is done by the operator and they also pay a monthly rental. This is an attractive proposition for us which adds a new dimension to the property without us worrying about the operational part.” This in turn keeps the guests happy as they don’t need to venture outside for a casino.

Casinos In-house

The proposition of a casino in the hotel does make sense as it gives another dimension to the hotel or resort.

Tashi Wangyal, Director - Casino Sikkim at The Royal Plaza Gangtok feels that casinos in hotels, in Sikkim is quite a new concept and people are just getting to know about them now. According to him, casino revenue like any other private company revenue is an internal matter. Similarly, talking about the Gangtok casino environment, Pradipta Mohapatra, GM – Sales & Marketing, Mayfair Hotels & Resorts says, “Mayfair

12 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Main Story] Spa Resort & Casino Gangtok happens to be the first live casino hotel that has been built on a massive scale in this state. The casino is built on an area of 10,000 sq ft. Our resort has 68 units consisting of rooms, cottages and villas that have been built on 48 acres of land.”

According to him, the Government has been supportive, which has allowed easy clearance of licence.

At Zuri, there is a commitment to offer customised services to each of its guests – each of them is unique with distinct needs, informs Chand. She says, “We offer our guests six convenient restaurants with a variety of cuisine so that the guests can select the best dining option according their preference.

Similarly, we have leisure options for business travellers; we ensure to entertain them with live gaming experience - Dunes. This 24x7 casino, located inside the hotel makes a convenient and comfortable recreation choice for our guests.” Further, Mohapatra lends support to casino hotels in terms of the business it draws for the hotel operator.

“There is a definite lure that a casino creates for a hotel property which is reflected in the revenue we earn. For example, our Darjeeling property has a turnover of Rs 10 crore and the Gangtok resort with the casino just doubles the score. With a casino in the hotel, business certainly increases,” he says.

Adding Lure to Luxury

In contrast to the belief that adding an in-house casino is a hassle with respect to the licencing procedure; Zuri, which has rented its casino to casino operators, had nothing to do with the licence obtaining procedure. It is completely taken care of by the operators. As an operator, Wangyal shares some insights on the revenue earned through a casino and details of taxes paid to the Government for operating it. He informed, “As for the taxes, we pay an annual amount of `1 crore or 10 per cent of Gross Gaming Yield whichever is higher.

Also, to obtain a casino license one has to operate in a 5-star hotel and pay a one-time fee of `5 crore to receive a 5-year licence.”

While the technical aspects of operating the casino is well taken care of by an external agency or in other words, a management tie-up is established with a firm to operate casinos, rest of the challenges remain intact i.e. giving the best to the customers staying in the hotel or in the vicinity so that they wish to explore the casino. Chand says, “A casino is an added facility that we like to offer to our guests. We believe we need to

Visit FHRAI Website: www.fhrai.com

give guests what they desire because each guest is unique with his or her distinctive requirement.” This customised approach adds zing to the experience of the travellers or guests.

Over the years, hotels have grown optimistic with the performance of casinos, which is reflected in the performance of their hotels. Wangyal says, “We are quite

optimistic about this proposition. The future is great and that’s what I can say for now because organised gaming industry as such is at a nascent stage in Sikkim. So, it’s entirely upto the people involved to take it in the direction that would benefit all.”

Casinos have certainly added a new dimension to the hotels. Mohapatra says, “Since only 5-star hotels are allowed

FHRAI Magazine

february 2012 13

[Main Story]

Priti Chand

Pradipta Mohapatra

Tashi Wangyal

14 FHRAI Magazine february 2012

to have casinos, it also addresses the aspirations of the people staying in the properties. The State Government wants us to offer an infrastructure that would be at par what the casino. Casinos are a luring factor for the property, as travellers these days are quite demanding about their choices from rooms to F&B options and the right casino within the hotel.”

Chand says that a casino, as an added facility for the guests, surely attracts both domestic and foreign casino aficionados, adding that it thereby eventually becomes a convenient and comfortable choice for guests to entertain themselves.

While drawing comparison in the domestic and international scenario, Wangyal says that theirs is a land-based live gaming casino and they are definitely growing and learning with time. “Casinos definitely add value to the hotel and draw a new segment of clients altogether, which is yet to be tapped. We will definitely be rubbing shoulders with the best casinos in Southeast Asia.” Meanwhile, Zuri’s Dunes as an off-shore casino engages casino enthusiasts in the live gaming thrill without stepping out of the property.

Chand adds, “During the heavy Goan

monsoon, the scope is very high for us to engage guests in the casino.”

Those who have tasted success with the casino hotels in India are definitely itching to get more of it. Zuri, for having catered to this segment where 30-40 per cent of in-house guests visit the casino, is looking for other hotel options as well.

“Our casino being located inside the premises allows the revenue to go up.

We plan to manage 10 to 12 hotels and own five more hotels in the next five years across the world. We will accordingly plan for casinos in relevant properties and destinations. Casino is a very delicate topic in each state or country. So it depends entirely on the situation, even if we are prepared to invest in a casino oriented property.”

Mohapatra adds that Mayfair Resorts is on the verge of acquisition for a plot of land in Goa nearby the sea, “Where we plan to build a small property in comparison to our Gangtok resort but it will also offer a casino to the customers.

The hotel will be built on 1.5 acre of land having 30 keys and we would expect this property to give us an edge just like the Sikkim property,” he sums.

Visit FHRAI Website: www.fhrai.com

[News Updates]

MOT identifies 45 mega destinations and tourist circuits The Ministry of Tourism (MOT) has identified 45 mega tourist destinations/circuits in consultation with the concerned state governments and union territories (UTs) administrations on the basis of footfall and their future tourism potential. Out of the 45 identified projects, 30 have already been sanctioned.

For each identified mega tourist destination and circuit, the contribution of MOT as central financial assistance is capped at `25 crore and `50 crore respectively, under the scheme of ‘Product/Infrastructure Development for Destinations and Circuits’.

Identification and sanctioning of mega tourism projects is a continuous process.

Proposals submitted by the states and UTs for mega tourist destinations/circuits, are sanctioned based on prioritisation meetings held with the state governments and UT administrations, subject to availability of funds, priority and adherence to scheme guidelines.

Some of the prestigious projects cleared lately are National Park Mega Circuit covering Manas, Orang, Nameri, Kaziranga, Jorhat, Sibsagar and Majouli in Assam; development of Dilli Haat and Janakpuri in Delhi and Shuklatirth-KabirvadMangleshwar-Angareshwar circuit in Gujarat.

Subodh Kant Sahai

In addition to this, development in Mubarak Mandi Heritage Complex in Jammu and Naagar Nagar circuit (Watlab via Hazratbal, Tulmullah, Mansbal and Wullar Lake) in Srinagar is also anticipated.

Development of a mega circuit in Leh is also on the cards. Mega destination at Deoghar in Jharkhand has been included in the list. Also, Muziris Heritage circuit connecting historically and archaeologically important places of Kodungalloor in Kerala has also joined the list.

Other destinations are Bundelkhand comprising of Tikamgarh, Damoh, Sagar, Chhatarpur and Panna as mega circuit in Madhya Pradesh; Mahaur- Nanded Vishnupuri- Back Water Kandhar Fort as mega circuit in Maharashtra and the development of Mathura-Vrindavan including renovation of Vishramghat as mega destination in Uttar Pradesh.

India to extend Visa-on-Arrival facility to more countries Extending Visa-on-Arrival (VoA) facilities to more countries and increasing VoA facilities at four more international airports was one of the major decision taken in the meeting which was presided by Pulok Chatterji, Principal Secretary to Prime Minister and attended by secretaries of concerned ministries of the Union Government, recently.

The Indian government is planning to extend VoA facilities to at least 13 countries from Europe, Southeast Asia and Central Asia. The Home Ministry has been asked to work on the details of the proposed visa regime that factors of security concerns by utilising information-sharing agreements with ASEAN and European Union, while ensuring that travel to India becomes hassle-free. A decision to form a coordination committee consisting of joint secretaries of home, external affairs and tourism ministries was taken to resolve day-to-day visa-related complaints. Currently, VoA is extended to 11 countries including Japan, Singapore, New Zealand, Vietnam, Finland and the Philippines. So far, VoA scheme has registered modest success with over 12,761 visas issued last year.

Another related decision taken was to extend VoA facilities to Kochi, Goa, Hyderabad and Bengaluru airports. Earlier, it was restricted to the airports of Delhi, Kolkata, Mumbai and Chennai. From the beginning, the demand was to introduce this service to popular foreign tourist hubs like Goa and Kerala. Finally at the request of state governments, MOT has pushed their case to the Prime Minister’s office. The decision to extend the facility at four more airports was taken in the first inter-ministerial coordination committee for the tourism sector. The Government has set-up an inter-ministerial coordination committee for tourism sector under the chairmanship of the Principal Secretary to Prime Minister to resolve inter-ministerial and industry issues and to promote tourism. Secretaries of 14 departments including tourism, urban development, transport, home, external affairs and railways also attended the meeting. It was decided that the Home Ministry will take steps to facilitate the extension of VoA to Goa, Hyderabad, Kochi and Bengaluru airports within a year.

16 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

Religious tourism to be promoted by creating seven circuits Seven tourist circuits will be developed across India by the Ministry of Tourism to promote religious tourism. “India is home to a number of religions and there is a huge scope in terms of boosting tourism in religious places,” informed Subodh Kant Sahai, Union minister for Tourism. The ministry, he said, is preparing a detailed project report to identify religious places where people can visit and stay for spiritual nourishment.

The aim of the project, he added, is to facilitate a packaged tour-like experience for people who visit religious places. “We have already engaged consultants to work on these circuits and hope to engage various state governments in the project,” he added. The ministry will identify Buddhist, Christian, Hindu, Jain, Sikh, Sufi and Sarva Dharma places.

While the Christian circuit will have the churches of Goa, Kerala and Tamil Nadu, the Sufi circuit will include places in Delhi, Haryana, Jammu and Kashmir, Madhya Pradesh, Maharashtra, Uttarakhand and Uttar Pradesh. The Sarv Dharma Circuit, to promote national integration, will be aligned along Tirupathi-Chennai-Velankanni-Nagoor and Vaishnodevi-Golden TempleSacred Heart Church (Delhi)-Nizamuddin.

The ministry has taken up the matter with industry stakeholders and has identified 35 destinations for Phase I and will cover another 89 places in Phase II.

Best Western to set-up 66 hotels in next 5 years Global hotel chain Best Western International is focused on the expansion of its presence in India and is confident about India playing a prominent role in the global growth of the company. Going forward, the company plans to raise `1,600 crore from various franchisees to set-up 66 new hotels in India over the next five years. David Kong, President and CEO, Best Western International informed, “Return on investment is high in Tier-II cities. We will focus on growth opportunity beyond the metros, where quality hospitality is just emerging, especially in Tier-II and Tier-III cities.”

Talking about the investment plans of the hotel chain, Sudhir Sinha, President and Chief Operating Officer, Best Western India informed, “We are expecting an investment in the range of `55-60 lakh per hotel room in the 5-star hotel category, `40-45 lakh in the 4-star category and `20-25 lakh in the 3-star hotel category, excluding the price of land.”

Sudhir Sinha

Kong added, “Best Western sees this as an opportunity across different segments in India and is equipped to meet the market needs with its three ranges of hotels - Best Western, Best Western Plus and Best Western Premier. The renewed focus is a part of its commitment to understanding and fulfilling the growing needs of the customers here.”

The new focus areas of growth will be the 4-star hotel categories with Best Western Plus and 5-star hotel categories with Best Western Premier properties — 60 per cent will be in the 4-star and 5-star categories and the remaining will be 3-star hotels.

Betting big on Tier-II and Tier-III cities he remarked, “Discerning high-end travellers who stay in 5-star hotels are unable to find suitable accommodation in Tier-II and Tier-III cities in India at the moment. With Best Western Plus we endeavour to fill this gap in the market.”

Regarding the group’s commitment to India, Devang Amin, Chairman, Best Western International commented, “Hotels need solutions that enable them to grow their earnings and drive more traffic and build loyalty. Best Western addresses these needs and redefines hospitality partnership by providing the broadest portfolio of proven, integrated and adaptive solutions.”

The company is now looking at adding 66 hotels in its India portfolio within the next five years. Currently Best Western India has 34 properties in operation. The hotel will unveil eight properties in the country in this financial year. Starting from the Aurangabad property, which will be launched in July this year, the hotel group will unveil its second property in Kolkata. The rest of the hotels would be unveiled in Hyderabad, Bhubaneshwar, Kodaikanal, Bengaluru, Mumbai and Goa. Sudhir Sinha shares that The Best Western India is on the verge of finalising a deal with a Madhya Pradesh-based realtor for 30 hotels adding, “The plan to ink a deal with the MP-based realtor will be finalised in another month’s time. It will be a partnership for 30 hotels where investment for 10 hotels will come from the developer while the other 20 hotels would be leased properties.” The company is also in talks with a Thailand-based company to invest in India.

18 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

Chatwal Hotels & Resorts aims 52 hotels in five years in India The US-based hospitality company, Hampshire Hotels & Resorts, promoted by Sant Singh Chatwal, which is the management arm of Chatwal Hotels & Resorts, announced in the Capital last month its aggressive plan for the India market. The expansion has planned 52 hotels under management and franchise models in the next five years. The plan is to set-up 40 night hotels and 12 dream hotels which are the group’s lifestyle luxury brand and mid-scale boutique hotel brand, respectively. The company announced its initial plans where it would come up with the first ‘Dream’ property in Goa and first ‘Night’ property in Chennai.

The company has finalised contracts for 18 properties with different developers in India.

According to the details shared by the company, it is going to invest ` 1,000 crore in the next five years apart from same amount already invested in the market. The 18 properties outlined would come up in Delhi, Jaipur, Ahmedabad, Kochi, Goa, Pune, Dehradun, Kolkata, Mumbai, Raipur and Hyderabad. Out of these properties, JMJ Group has committed 10 hotels.

Chatwal Hotels & Resorts will have equity participation from 26 per cent to 39 per cent in six of the upcoming properties. The company will keep the option to invest open, if needed; else it would continue to delve in the management operations and franchise opportunities.

Vikram Chatwal, Founder, Chatwal Hotels & Resorts added, “Our two brands - ‘Dream’ and ‘Night’ – offer a lifestyle approach and would emphasise on the concepts of stimulating imagination, entertainment and engaging the senses of our guests.” By increasing the spread of these two brands, the company hopes to be significantly unique in comparison to others in addressing the needs of Indian customers. He said that the company plans to set-up around 80-100 ‘Dream’ hotels and about 200 ‘Night’ hotels across the world in next ten years.

Vikram Chatwal

Hampshire Hotels & Resorts already owns and manages a ‘Dream’ hotel in Kochi in Kerala since 2008. Recently, Chatwal Hotels & Resorts had announced a tie-up with the Wyndham Group, giving them the exclusive rights to franchise and manage its ‘Dream’ and ‘Night’ boutique hotel brands. Chatwal Hotels & Resorts also has an exclusive tie-up with Wyndham Hotels for ‘Dream’ and ‘Night’ brands, which gives them access to the global reservation system of Wyndham and also allows the latter to find suitable franchise partners.

Uttarakhand hotels feel tax jitters Due to the heavy tax burden, the tourism and hotel industry in Uttarakhand has taken a hit.

The occupancies in the hotels in Dehradun, Mussoorie and Nainital are not showing any upward trend. Commenting on the ill-timed situation, SP Kochar, President, Doon Valley Hotel and Restaurant Association of Uttarakhand complained, “The State Government has increased taxes by almost 300 to 400 per cent within the last four years. Hence the hotels in this region have not met their expenses due to the hefty increase in taxes and this has affected their business.”

Regarding the uphill task faced by the hotels when it comes to bearing the brunt of the heavy taxes, Kochar said, “Any hotel which charges a tariff of over `1,000 has to impose a tax of 15.5 per cent on the travellers, where 10 per cent constitutes the luxury tax and 5.5 per cent is charged as service tax. On top of this, in case they attend any event, an SP Kochar additional entertainment tax of 30 per cent is levied, which is exceedingly high. This has resulted in low occupancies in the region.”

Talking about the connectivity problems in the region, Kochar who is also the CMD of the Madhuban Group of Hotels and Co-Chairman of PHD Chamber Delhi and Uttarakhand revealed, “The dearth of good connectivity in terms of roads, enhancement of rail capacity and reasonable airfares have been roadblocks in achieving our expected targets.” In addition to this, currently Mussoorie is witnessing shortage of parking facilities and this is posing as a major threat to the tourism prospects of the hill station.

The association is urging the State Government to safeguard the interests of the hospitality industry. “We have been applying our energies in the promotion of our destinations, manpower development and seeking ways to rationalise the taxation to make the experience attractive,” he said.

20 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

Aamod Resorts opens Golden Turtle Farm After establishing resorts with distinctive themes in Shimla and Dalhousie, Aamod Resorts launched Golden Turtle Farm (near Manesar) on the outskirts of Delhi-NCR on January 22, 2012. According to Gaurav Jain, MD of the company, family getaway places are becoming an interesting option for holiday during weekends. “Therefore, we have taken this property as a management partner on long term. Our focus is to offer exclusive properties with high end options for weekend holidays,” he added.

The resort has 10 villas and is a 45-minute drive from Gurgaon’s IIFCO Chowk. It has swimming pool, golf course and various activity opportunities for in-house guests like foosball and other indoor games apart from the proposition of soft adventure that is being devised for the guests. The company is targeting family and corporate groups. “The resort would primarily target families to come in groups. We are also targeting corporate travellers holding designation in senior management. The resort will also be a proposition for hosting events, parties, etc. The idea is to offer Delhi a nearby option for secluded holiday Gaurav Jain than in off places like Neermrana or Pataudi.” The company is marketing the property to reach out to travel agents and tour operators and essentially, event managers.

With this new property, Aamod Resorts also enters into management domain to grow faster. “Our approach would be to grow both in organic and inorganic forms and in the next five years, we wish to have 3-4 properties on the outskirts of Delhi-NCR giving a unique proposition for weekend getaways. We have also shortlisted two locations in Himachal Pradesh and have a plot of land in MP, which we wish to develop into resort later,” informed Jain.

Keys Hotel signs a management contract with Shraddha Resorts Shraddha Resorts and Keys Hotel, mid-market brand of Berggruen Hotels, have jointly announced the signing of a management contract, to operate ‘Keys Hotel Shirdi’ consisting of 80 well furnished rooms. The hotel will have a restaurant, lounge, board rooms, business centre, activity zone and gymnasium. It is scheduled to open by December 2012. The Hotel will cater to devotees visiting the pilgrim place, giving guests an opportunity to stay in a state-of-the-art facility at affordable rates. It is estimated that on any given day around 25,000 devotees visit Shirdi on pilgrim. The number reaches to about half a million people on holidays. Shani-Shingnapur of Lord Shani & hill station Bhandardara are other popular destinations around Shirdi.

The hotel is located close to the proposed airport at Shirdi. Sangram Deshmukh, CMD, Shraddha Resorts said, “We are delighted to be associated with ‘Keys Hotel’ management, a national chain, with hotels operational across the country, and look forward to a long-standing association.” Sanjay Sethi, Managing Director and CEO, Berggruen Hotels added, “This is our first venture in the pilgrim market and we are glad to be associated with Shraddha Resorts, hospitality arm of Sangram Realty, one of the leading property developers from Pune. We are positive that through our services, our esteemed guests will not only have a rewarding spiritual experience but a truly pleasing hospitality experience as well.”

Modern and stylish yet in budget makes Keys hotel a trend-setter in the hospitality industry particularly due to consumer demand for value for money and quality accommodation in the country. Apart from Shirdi, Keys Hotels is also looking for opportunities in other pilgrim markets like, Tirupati, Puri, Haridwar, Ajmer, Bodh Gaya, Katra, Rameshwaram, etc.

22 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

ONYX Hospitality Group to manage its first Indian property in Ludhiana Thailand-based hotel management company ONYX Hospitality Group has been appointed by Apna Punjab Resorts to operate a new 127-suite Amari hotel in Ludhiana in Punjab. Marking the entry of the Amari brand into India, the hotel Amari Ludhiana will open in the second half of 2012.

Talking about the debut venture in India and the significance of the India market for the hotel group, Peter Henley, President and Chief Executive Officer of ONYX Hospitality Group informed, “ONYX Hospitality Group looks at India from two strategic points, firstly, as a source market and secondly, as a market for potential development.” He added, “India is one of the key source markets for ONYX’s cornerstone brand - Amari. Amari hotels and resorts in Bangkok, Phuket, Pattaya and Koh Samui are immensely popular for business and leisure travellers from India to Thailand and Peter Henley those working for this brand have strong on-going relationships with the travel trade fraternity in India.”

Betting big on the business hub of Ludhiana, Henley said, “Ludhiana is a thriving city and we look forward to working with Apna Punjab Resorts to make Amari Ludhiana, the city’s leading hotel both in terms of its accommodation as well as its extensive catering facilities.”

Regarding the USP of the brand new development and the first upscale all-suite hotel in the Punjab, Henley revealed, “In terms of area, Amari Ludhiana will be the largest hotel in the Punjab.” Located on Canal Road, a major bypass road in the city, the hotel will feature 127 guestrooms, a courtyard lobby, reception area and lounge, located within a grand atrium space of approximately 1,400 sqm. It will offer banqueting facilities for upto 2,000 people. Other facilities will include a large multi-cuisine all day dining restaurant, a spa & gymnasium and retail spaces.

The ONYX Hospitality Group operates four hotel brands – Saffron, Amari, Shama and Ozo and manages a portfolio of independently owned or franchised properties throughout Thailand. The group is also exploring opportunities for growth both within India as well as in the Asia Pacific region. It is targeting a management portfolio of 51 properties by 2018.

Somany Ceramics enters into a partnership with the Fiandre Group Somany Ceramics, the Indian ceramics tile major, has entered in a manufacturing and distribution arrangement with the best ceramic tile manufacturers from Italy, IRIS Ceramiche and FMG (Fiorano ModeneseMO) of GranitiFiandre Group (Castellarano-RE). Consequently, Somany will market products manufactured under the Active technology across India.

According to this venture, Fiandre will look at a distribution arrangement with Somany Ceramics to sell ACTIVE Clean Air (L-R) Shreekant Somany, Valentino Capucci and & Antibacterial Ceramic™ products in India, riding on Somany Abhishek Somany at the Somany IRIS Active Launch Ceramics’1,400 strong distribution network & brand equity. Abhishek Somany, JMD Somany Ceramics said, “This association with IRIS Ceramiche & GranitiFiandre Group further strengthens our motto of innovation and leadership which Somany Ceramics stands for. After VC 50, we bring to you ACTIVE as a result of our commitment to bringing world class products to the Indian customers. We look forward to working with these Italian brands and strengthening this alliance.”He further added, “Through this partnership, Somany looks at enhancing its commitment to build green technology in the ceramic space. ACTIVE is not simply a product, but a real green innovation. If you put 1,000 sqm of these tiles, it is equivalent to planting 20 trees. “ Valentino Capucci, R&D Head, Fiandre Group, on the occasion said, “I am very delighted to enter into a co- operation with Somany Ceramics in India. As a company, we share the vision to cater the Indian market with the best. We are bringing our international brands, expertise in ceramics and innovation on products, while Somany Ceramics is bringing their strengths of strong brand presence & robust distribution network in India. It is one of the very few companies who has a perfect structure and balance of capabilities to introduce the ACTIVE range in the Indian market.”The creations are born by combining the latest technological innovation and knowledge of the craft tradition, always in full compliance with the most stringent standards of sustainability, both for the process and for the products. All products will be made available in Somany Stores in all major cities like Delhi, Ludhiana, Jaipur, Kolkata, Ahmedabad, Mumbai, Hyderabad, Chennai, Bangaluru, Kochi, Coimbatore, Chandigarh, Indore, Surat.

24 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

Hi-Aim Hospitality Summit is scheduled for March 22-23 in New Delhi Hi-Aim, one of the foremost hospitality summit addressing areas of design, interiors and management is to be organised from March 22-23, in the Capital at Le Meridien. In its debut edition, Hi-Aim will try to showcase itself as the mega event presenting an elaborate exposition, featuring as many as 50 niche brands, showcasing state-of-the-art products, which are a part of the hospitality industry.

This was notified at a curtain-raiser event of the summit, which showcased its approach as India’s first hospitality summit and exposition based on interiors, design and management.

Hi-Aim is the brainchild of Neeraj Kodesia (Proprietor, Premier Magazine), Anil Sharma (Architect and Proprietor, ASA) and Romesh Kaul (Director, Naaz Hotel Consultants). At the curtain raiser event, the agenda Hi-Aim was declared through a presentation. Kaul outlined the list of confirmed panellists, which includes some of the top names from the global hospitality, design and architecture scenario. Up for discussion during the 2-day event will be issues like the future hotel, designs that are eco-friendly and contain a business-related realism and other technical know-how for entrepreneurs and operation-related personnel. “Every industry requires brand ambassadors and the hospitality industry is no different. With Hi-Aim, we want to create that kind of brand value and create a product that attracts discussions, initiatives and charts the road ahead,” said Kaul.

Romesh Kaul

In their debut year, Hi-Aim looks to become an annual event on the global hospitality calendar and become a forum for discussions on the present technicalities of design and operations, as well as pre-empting future trends, all within the perspective of current and expected economic uncertainty. “This kind of conference will bring to the table people involved in Developing Design, Construction of a Hotel, Project Managers and Chief Engineers for the first time on a hospitality forum.

They can evaluate present and future technical requirements,” remarked Anil Sharma, Director, Hi-Aim.

26 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[News Updates]

Starbucks Cafés to open 2 stores in India in 2012 Tata Global Beverages and Starbucks Coffee Company recently announced a joint venture between the iconic international coffee brand and the 2nd largest branded tea company in the world. The 50-50 joint venture, named TATA Starbucks, will own and operate Starbucks cafés which will be branded as Starbucks Coffee ‘A Tata Alliance’. The retail stores will be developed in cities across the country, beginning with stores in Delhi and Mumbai in calendar year 2012.

In a separate sourcing and roasting agreement between Starbucks Coffee Company and Tata Coffee, the latter will roast coffee to supply Tata Starbucks and to export to Starbucks Coffee Company. This agreement has paved way for consumers in India to enjoy the premium ‘Starbucks Experience’, while further discovering the unique taste of high-quality. “The joint venture with Starbucks is in line with Tata Global Beverages’ strategy of growing through inorganic growth focussing on strategic alliances in addition to organic growth,” stated RK Krishnakumar, Vice Chairman, Tata Global Beverages. “It opens up exciting business opportunities and new formats for Tata Global Beverages. Starbucks brings unique retail expertise as well as a shared sense of business values. We are excited about the opportunities the alliance presents to innovate in the retail space and bring new beverage experiences to more consumers in India, leveraging the global in-home expertise of Tata Global Beverages and the global out-of-home expertise of Starbucks,” he added.

“We’re very pleased to have found the best partner for Starbucks in Tata – a company that shares so many values for conducting business in a way that earns the trust and respect of our customers and partners (employees),” said John Culver, President, Starbucks China and Asia Pacific. “We look forward to bringing the ‘Starbucks Experience’ to customers in India by offering high quality ‘Arabica’ coffee, handcrafted beverages, locally relevant food and legendary service,” Culver added.

The TATA Starbucks joint venture will operate cafés under the Quick Service Restaurant category. This partnership will enable the introduction of the unique ‘Starbucks Experience’ to the Indian consumers. Through a separate coffee sourcing and roasting agreement, Starbucks and Tata Coffee will work towards developing and improving the profile of Indian-grown ‘Arabica’ coffee around the world by elevating the stature of Indian coffee through joint marketing efforts, as well as improving the quality of coffee through sustainable practices and advanced agronomy solutions.

(L-R) R. Krishnakumar and John Culver

28 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[FHRAI] Dear Members The 47th FHRAI Annual Convention will be held in Goa from September 6-8, 2012.

Under the able leadership of our President, Kamlesh Barot, we are all set to finalise the theme and various business sessions that would take place. The convention chairman is our Secretary, Vivek Nair. The dynamic personality from HRAWI Sunit Kothari will co-chair the convention. This convention is expected to create new records.

FHRAI has also taken key initiatives to form various sub-committees. In this issue we are featuring two critical sub-committees with their respective chairmen talking about their ideas to take the work forward. The seminars and FSSAI Sub-Committees will take critical measures to empower the hospitality members and make them sound in their operations.

The Chairmen of the sub-committees have outlined the critical aspects of the same, highlighting their plans for the year that will immensely help FHRAI members and other hospitality professionals at large.

I also take this opportunity to put forth certain issues that FHRAI members need to know. In this issue we have pondered over the Payment Card Industry Data Security Standards and its relevance for you in the hospitality industry. Further, we are reproducing some of the critical pointers as excerpts from the budget recommendations that FHRAI presented to the Ministry of Finance, Government of India for consideration, in the Annual Budget of the FY 2012-13. We, as always, remain hopeful about this Annual Budget session for the hospitality industry.

Vijai Pande Chairman FHRAI Publications Committee vijaipandit@yahoo.co.in

The 47 Annual FHRAI Convention to be held in Goa th

The 47th Annual FHRAI Convention will be held in Goa from September 6-8, 2012. This year, the Executive Committee of the FHRAI, has made a special effort to finalise and announce the confirmed dates for our convention, considerably well in advance, so as to enable our valued members and colleagues in the media to conveniently plan their schedules accordingly. The theme chosen and an impressive list of our key speakers will also be unveiled shortly.

Blessed with pristine natural beauty, a proud and distinctive cultural heritage and mesmerizing tradition of warm hospitality, Goa is deservedly counted among the world’s top tourist destinations. FHRAI is confident that it will serve as an idyllic setting and spectacular backdrop for this prestigious event.

The FHRAI Convention has always been one of the most anticipated and widely attended events of our industry’s calendar. Each year, hundreds of delegates, comprising a veritable who’s who of the hospitality and tourism sector, congregate on this vibrant platform for vivid and enriching deliberations on the myriad strategic and competitive dynamics

30 FHRAI Magazine february 2012

shaping the industry. Our members are offered an unparalleled opportunity to engage with a multitude of stakeholders including political dignitaries, top policymakers, technocrats, global entrepreneurs, business icons as well as representatives from civil society and the media. For the first time this year, International and National Associations of eminence shall synergize with FHRAI on the convention. In addition to benefitting from carefully structured and stimulating business sessions, they also enjoy ample occasions to network and bond with their peers, in a leisurely and congenial atmosphere.

The organising committee for the 47th FHRAI Convention is being chaired by Vivek Nair. FHRAI is indeed fortunate to be able to leverage Nair’s outstanding leadership, vision and rich experience as one of Asia’s most admired hoteliers and accomplished entrepreneurs. Under his dynamic stewardship, our forthcoming Convention promises to set new benchmarks of excellence and innovation and will certainly prove to be an agenda-setting event for the whole industry. He shall be ably assisted by co-chairman, Sunit Kothari.

Visit FHRAI Website: www.fhrai.com

[FHRAI]

FY 2012-13: Pre-Budget Recommendations FHRAI has presented a detailed report as its budget recommendations. Below are some of the excerpts from the memorandum presented to the Ministry of Finance, Government of India.

Inclusion of Hotels in the Infrastructure Lending List of the RBI

FHRAI Voice: In the list of infrastructure projects, hotels may be included just like airports, seaports, railways, power, etc.

In fact, earlier for several years under Section 10(23) g of the Income Tax Act, hotels were added to the infrastructure list so that interest received by financial institutions and banks for loans extended to hotels were tax exempted. However the section itself was discontinued with effective from April 1, 2007.

Recommendation: We understand that the matter is being reviewed at the level of the Cabinet Secretary and a committee of secretaries is expected to be convened shortly to examine the matter further. We request that the inclusion of hotels in RBI’s Infrastructure Lending List be done immediately so that the various benefits accorded to the sector will apply to the hotel sector as well and will facilitate immediate investment in the hotel sector.

FHRAI’s request is pending with the Ministry of Finance, Government of India, Planning Commission of India and RBI with respect to the inclusion of hotels in the Infrastructure Lending List of RBI as published in RBI Circular No. RBI/2009/10/151 DBOD-BP.BC No.42/08-12-015/2009-10 dated September 9, 2009.

With the extension of Section 35 AD to hotels, which was given only for priority sectors like cross country pipeline carrying oil and gas, cold storages and warehouses, FHRAI has been requesting the Department of Economic Affairs, Ministry of Finance, Government of India, Planning Commission and RBI to include hotels in the list of Infrastructure Lending issued by RBI vide Circular No.DBOD. BP.BC.52/21.04.048/2007-08 dated November 30, 2007. After the inclusion of hotels in the Infrastructure Lending list, specialised financial institutions like IDFC, IIFCL and IL&FS, etc. can extend financial assistance to hotels with a higher debt-equity ratio of 1:4 instead of the present ratio of 1:1.5 which was prescribed by Commercial Banks and Institutions when it was part of the Commercial Real Estate (CRE).

Also as hotels have become capital intensive specially due to the very high cost of land in metros, it is necessary that the hotels be given financial assistance like infrastructure projects with repayment schedule extended to 15 years with a moratorium of 3 years for construction and 4 years for the final stabilisation period.

As almost 80,000 guestrooms are still required to be constructed to meet the present shortage of hotel rooms in the country at an average cost of `40 lakh per room a mammoth amount of `32,000 crore is required to be invested in hotels. As airports are included in the CRE, it is only justifiable that the two arms of tourism – airports and hotels – be both accorded infrastructure status and that would only be achieved if hotels are included in the Infrastructure Lending list of RBI.

Visit FHRAI Website: www.fhrai.com

Approval of take-out finance for hotels:

As has been approved recently for infrastructure projects, Rupee Term Loans extended to infrastructure projects by Commercial Banks and Financial Institutions have been granted approval to have them replaced by Foreign Currency Term Loans (as per extant RBI norms on ECBs) so that these infrastructure projects are able to avail loans at lower rate of interest which is typically charged for foreign currency loan. This scheme of take-out finance has been requested to be extended to hotels by infrastructure lending institutions and other commercial banks who can arrange foreign currency loans in lieu of Rupee term loan already sanctioned and availed of by infrastructure projects.

Such grant of approval of ECBs for hotel projects would render them more economically viable and reduce the cost of interest during the construction period which, in typical hotel projects constitute a large amount, especially given the high rate of interest charged by commercial banks and financial institutions for Rupee term loan.

Thus with lower cost per room, hotels would be able to charge lower room tariffs a point which has raised by both the Ministry of Tourism, Government of India as well as foreign travel agents/tour operators. The high capital cost of setting-up of hotels in India including the escalating cost of land have led to high room tariffs which could be reduced once the interest rate during construction period is brought down.

Hotels in India could thus have comparatively priced tariffs whilst a competing destinations such as Malaysia, Indonesia, Thailand, Sri Lanka, etc.

Indirect Taxes Service-tax

Recommendation: The exemption with respect to foreign travel agent commission should be introduced with retrospective effect.

The deputation of employee should not be treated at par with manpower supply as it’s the way large multinational companies operate and one can not provide services to oneself. It is not correct to treat it as manpower supply. It should not be subject to service tax.

There is a need for clarity on the procedure that has to be followed to avail service tax credit. There should be a FAQ to avoid ambiguous interpretations while availing the credit. Proper clarification is required for abatement and credit mechanism.

Duplication of tax levies should be avoided. The valuation rules should provide for proper apportionment of transaction value towards goods sold and services provided.

It should be provided that liability should be on the service provider alternatively if main portion of the services are executed outside India, then the scope should not be extended to cover those

FHRAI Magazine

february 2012 31

[FHRAI] services. There is no mechanism to settle international double consumption tax disputes. Further, this may also result in procuring services from local markets rather than international markets and thereby reduce international expertise and subsequently lead to a situation of competitive disadvantage in international operations.

A clarification should be issued for proper interpretation of Cenvat Credit Rules.

The opening balance of the Cenvat credit should be allowed to be utilised fully.

Advance rulings should be made available for residents also.

Valuation rules should be simplified for reimbursement portion and certain terms should be properly clarified so that there are no diverse interpretations.

Refund of service tax paid on export of the services should be given on the receipt of payment in foreign currency from associated enterprise. Similar provisions are enacted in the Cenvat Credit Rules 2011 in case of payment of invoice after 3 months or more. Also, interest should be charged from the date of expiry of the stipulated period to the date of payment.

Entertainment Tax

Recommendation: To scale down the rate and rationalise it across the states.

The definition of entertainment varies from state to state.

This should be rationalised. This will enable uniformity for ascertaining the assessable value on which the tax has to be paid.

Deletion from the ambit of Service Tax

Recommendation: The newly introduced tax of 5 per cent on room revenue and 3 per cent on F & Be revenue in the Budget of F.Y. 2010-2011 is unfair. In the view of the huge burden of multiple taxes imposed on guest-rooms accommodation as well as on F&B charges, the total cost of the package for foreign tourists, including these multiple taxes, amounts to a very high figure and it is difficult to compete with our neighbouring destinations who in comparison charge very low taxes as under –

S. No.

Country

Taxes on Hotels

1

China

5%

2

Japan

5%

3

Malaysia

6%

4

Singapore

7%

5

Hong Kong

Nil

6

Thailand

7%

We therefore request that pending introduction of the GST, levy of the Service Tax on rooms and F&B of 5 per cent and 3 per cent respectively be withdrawn and when GST is introduced the percentage should not exceed 10 per cent in totality.

Excise Duty

Recommendation: This Central Excise levy on hotels and restaurants, which is a service industry activity that 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 requested that hotels and restaurants are exempted from the levy of Central Excise duty on the products produced and consumed within the premises and be given on turnover of the value of the production of the aforesaid food preparations as is given to small scale units which at present is `1.50 crore per year.

32 FHRAI Magazine february 2012

Exemption from Para 63, Service Tax Act, 1994 like Exporters who earn in convertible foreign exchange

Recommendation: Exporters who earn in convertible foreign exchange are exempted from Service Tax vide Notification No.17/2009 – Service Tax dated July 7, 2009, copy enclosed, which covers service provided by an agent located outside India and enters into an agreement with the exporter for which service commission is paid to the agent abroad. Apart from this service, the Service Tax paid on various other specified services, utilised for the export of various goods/products, which has been paid by an exporter, would be refunded back to the exporter by way of duty draw back. Such taxable services are as follows: (i) General insurance charges provided by an insurer for export of goods/products (ii) Services provided by an airport in respect of export of said goods/products (iii) Services provided by a technical testing and analysing agency or an inspection and certification agency in respect of goods/products (iv) Services provided for transportation of such goods/ products to the port of export (v) Services provided for purchase or sale of foreign currency including money changing provided to an exporter in relation to export of goods/products, etc.

Hotels and other tourism related service providers who earn foreign exchange have been included in the 13th sector in the Service Export Promotion Council (SEPC) set-up by the Ministry of Commerce Government of India recently. However, no benefits have been extended to them like other service exporters who earn foreign exchange. As such, they may please be granted exemption to the extent of foreign exchange earned by them in convertible foreign exchange for the following services to foreign tourists: 1. Health club or fitness centres 2. Dry cleaning services 3. Beauty parlour services 4. Internet services 5. Rent a cab/hire of private taxis in hotels 6. Banquet rentals/business centre support services 7. Management consultant services, etc.

8. Commission paid to foreign travel agents/tour operators/ destination management companies based in India for bookings made by them for foreign tourists, for which payments are received in convertible foreign exchange Service tax is now levied on services rendered by hotels i.e. commission remitted to foreign tour agents/tour operators/ destination management companies for bookings made for foreign tourists and for which payments are also made in convertible foreign exchange.

Thus, it is requested that for payments received by hotels in convertible foreign exchange from foreign tourists who stay in these hotels and avail of the aforesaid services, these payments, which are clearly delineated be exempted from Service Tax. The concept of Zero-Rating applied by the Department of Revenue can be applied to these services.

It is pertinent to note that this exemption was accorded till 2007 for hotels that have received payments from tourists in convertible foreign exchange but was changed after that date.

This exemption from Service Tax is already granted by the Department of Revenue, Ministry of Finance and the DGFT,

Visit FHRAI Website: www.fhrai.com

[FHRAI] Ministry of Commerce, Government of India for exporters who earn foreign exchange.

Rationalisation of VAT/Sales Tax and Other Taxes under GST

Recommendation: The country earns over `50,000 crore in foreign exchange through about 5.8 million foreign tourists who currently visit India. It is projected that tourist arrivals will reach

10 million by 2010-11 provided the requisite inventory of hotel rooms could be made available. As far as domestic travellers are concerned the present demand will soar to 500 million in the years ahead. There is at present only about 90,000 guestrooms in the organised sector and hence the shortage of 80,000 guestrooms prevalent at present. This gap needs to be bridged for which an investment of over `32,000 crore is required immediately.

PCI DSS and its Relevance in the Hospitality Industry What is PCI DSS?

In the year 2006 leading credit card companies came together and formed the Payment Card Industry Data Security Standards commonly referred as PCI DSS or PCI. The objective was to protect the customer by eliminating the fraud usage and the risk of misuse of payment card data. It is the obligation of all business operations accepting payment cards to comply with PCI and protect customer payment information.

PCI compliance is ever an evolving subject and impacts various businesses, from banks to online marketplace and even retail merchants.

The PCI Security Standards Council is the governing body which offers framework for developing standards and secure processes for protecting payment card data https://www. pcisecuritystandards.org/

Why PCI DSS in our business?

In the past, commercial crime was limited to theft, burglary and shop lifting. Cyber theft is an addition to this list. Cyber thieves are capable of doing more harm to the business than just stealing money from the front desk or restaurant cash registers.

The negative impact on the hotel or restaurants reputation is beyond an estimate. Hotels have traditionally been a vulnerable target for cyber crime and stealing credit card information.

What are the implications of PCI NonCompliance?

All business operations accepting credit and debit cards must comply with PCI and adopt systems and processes to protect sensitive customer payment information. Non-compliance puts the operation at great risk, leaving the business and its customers/guests vulnerable. Some implications could be monetary penalties, increased card processing fees, loss of the ability to accept payment cards, legal liabilities, bad publicity and brand devaluation. The consequences are serious and far flung, from monetary to business-ceasing.

What our businesses need to do for compliance?

The onus of PCI compliance lies with the business i.e. the hotels or restaurants. It is the responsibility of the business to investigate if the software and systems deployed are in conformance with PCI DSS. Also, the business should conduct periodic audits of all business processes to ensure PCI compliance Below is a simplified list of requirements for compliance by

Visit FHRAI Website: www.fhrai.com

PCI Security Council also known as ‘control objectives’ -  Build and maintain a secure network › Install and maintain a firewall configuration to protect cardholder data › Do not use vendor-supplied defaults for system passwords and other security parameters  Protect cardholder data › Protect stored cardholder data › Encrypt transmission of cardholder data across open, public networks  Maintain a vulnerability management programme › Use and regularly update anti-virus software › Develop and maintain secure systems and applications  Implement strong access control measures › Restrict access to cardholder data by business need-toknow › Assign a unique ID to each person with computer access › Restrict physical access to cardholder data  Regularly monitor and test networks › Track and monitor all access to network resources and cardholder data › Regularly test security systems and processes  Maintain an information security policy › Maintain a policy that addresses information security

Some Conclusions

It is our duty to protect our customer’s/guest’s sensitive data.

This reinforces the trust and confidence that our customers/ guests hold in us. It is in the larger interest of our business operation. We can conclude that  PCI compliance is critical and compliance should be accorded highest priority  Business processes and guidelines concerning customer data and information should be implemented and audited periodically  Engage technology vendors to ensure all software systems and infrastructure are PCI DSS compliant  Ensure all future solutions deployed are current with PCI DSS requirements Similar to serving food, beverage or providing clean guest rooms, PCI compliance is also an integral part of the hotel and restaurant business!

FHRAI Magazine

february 2012 33

[FHRAI]

Seminars Sub-committee - FHRAI Dinesh S.Advani Chairman The whole idea behind a Seminars Sub-committee at FHRAI is to disseminate information on topics of interest and relevance to hotels and restaurants.

At HRAWI we have been conducting seminars for over 10 years. In a year we cover about 6-9 seminars in various cities of Western India. Till date we have done seminars in Mumbai, Pune, Baroda, Ahmedabad, Indore, Goa and Loonavala.

The topics we have covered are of daily operations such as front office operations, F&B controls, sales & marketing, bartending, housekeeping operations, human resources, social media & internet marketing, security management to name just a few. We have also conducted seminars on some out of the box topics like stress management. We bring in speakers from the fraternity who are more than happy to share their knowledge with the members. Normally in the month of March we have a seminar on the budget and its implications and for the last several years we have Anil Harish speaking on this topic. Often we have covered topics on burning issues which involve government laws and their implications.

Kamlesh Barot, FHRAI President, mooted the idea of having these seminars pan-India. Hence, we are proposing to conduct 2-3 seminars in every region over the year. We have shortlisted several topics which we would like to cover this year such as the FSSAI Act, managing hotel and restaurant operations, etc. Members are more than welcome to send their suggestions to the Secretary General of FHRAI. The Seminars Sub-committee will consist of 5 members from the different regions namely, Chetan Mehta, Rajiv Gogia, Rakesh Roy, Gurvinder Singh Juneja and T. Nataraajan. I am banking on the support of my able committee members as well as the regional associations to take this forward.

Our first seminar is in New Delhi on the Food Safety Act which we are conducting along with the HRANI and NRAI, on March 16.

FSSAI Sub-committee - FHRAI Pradeep Shetty Chairman The Food Safety and Standards Act of India (FSSAI) is a new act that has come into place to regulate storage, manufacture and sales of food to ensure availability of safe and wholesome food for public consumption. FSSAI was implemented from August 2011. Under FSSAI, all food related laws have been converged to present a holistic comprehensive law.

The law that has been introduced is an ambitious one and FHRAI welcomes the same. We believe that the industry representation is needed on the following counts (a) Practical difficulties involved, (b) need for relaxation of penalties and (c) such other rules which may have to be altered based on the ground realities such as the economic scenario and cultural dynamics of the industry prevalent in India. We suspect that problems will start arising when new standards will be implemented and members are likely to be caught unaware.

Moreover, presumably the new standards may also lead to rise in cost of operations thereby making our end products costlier for the customers. Needless to mention that greatest challenge would lie in engaging skilled/trained workforce to adopt this new food law.

FHRAI’s initiative to have a FSSAI Sub-committee is directed towards: • Studying this law in greater details to understand its finer nuances by constituting a core committee where expertise would be drawn from legal, food science, food consultants to key knowledge areas in the food industry. This core committee plans to submit a comprehensive document taking into account constructive suggestions, valid objections and suitable recommendations on various aspects of this new law. This report will be presented to the FSSAI Chairperson and expect to do it by March 31, 2012. Furthermore, this core-committee would also engage itself with the authority on a regular basis to keep the authorities updated as the new law evolves.

• Creating awareness among the members with regard to the various facets of the new law viz., licencing, rules & regulations, etc. framed under this law and standards prescribed etc. The objective being that of ensuring sufficient dissemination of information to all members so as to enable them to be prepared for the incoming change. We, accordingly, plan to conduct seminars and workshops pan-India, may be four – one in each region – where core committee will take the issue forward and combine with F&B professionals, chefs & owner/operators who will be our target audience in this context. We also wish that the essence of the law with great details to percolate to the lowest level of our industry workforce by enabling ‘Train the Trainer’ module and synergise a movement wherein our regional set of trainers will be able to train others in the industry, wherever needed.

34 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[FHRAI]

Hospitality & Travel Associations join hands to establish ‘FAITH’ On February 9, 2012, various associations of the hospitality and travel trade joined their hands to form the Federation of Associations in Indian Tourism & Hospitality (FAITH). The association formed at a national level aims to address its voice through a common platform to stay ahead of the curve by meeting challenges jointly.

FAITH comprises 10 travel and hospitality industry associations, which are the Federation of Hotel and Restaurant Association of India (FHRAI), Adventure Tour Operators Association of India (ATOAI), India Heritage Hotels Association (IHHA), Indian Tourist Transport Association (ITTA), India Convention Promotion Bureau (ICPB), Hotel Association of India (HAI), Indian Association of Tour Operators (IATO), Association of Domestic Tour Operators of India (ADTOI), Travel Agents Association of India (TAAI) and Travel Agent Federation of India (TAFI).

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 35

[Report]

Bengaluru on the Rise 6 Hotel Intelligence • India, Bengaluru • January 2012 6 Hotel Intelligence • India, Bengaluru • January 2012

Bengaluru’s hotel market has been evolving since the last decade, which has changed the landscape of the Cyber City. The status of India’s Silicon Valley has definitely had an impact on the hospitality business which is evident from Lodging Demand the resultsDrivers of the recently released Jones Lang LaSalle Hotels report which Lodging Demand Drivers As an established commercial city with a significant of years in terms of incremental Grade A commercial stock. discusses the presence growing Bengaluru hospitality market. Excerpts from the report…

As an established commercial city with a significant presence of years in terms of incremental Grade A commercial stock. domestic and international companies, the nature of lodging demand

domestic and international companies, the nature of lodging demand Chart 1 below presents the historical and future estimated total Chart 1 below presents the historical and future estimated total in Bengaluru tends to be dominated by commercial demand which Grade A commercial stock and vacancy for the Bengaluru market. in Bengaluru tends to be dominated by commercial demand which Grade A commercial stock and vacancy for the Bengaluru market. contribute close to 75-80% of the city’s overall lodging demand and contribute close to 75-80% of the city’s overall lodging demand and verall, witnessedSupply a double digit Distribution across Micro Markets the remaining from a mix of leisure (5-10%) and Bengaluru (MICE) Meetings,has Commercial Commercial Supply Distribution across Micro Markets the remaining from a mix of leisure (5-10%) and (MICE) Meetings, • Central Compound Rate (CAGR) for both Incentives, Conferences and Exhibitions (10-15%). Annual Growth In terms of micro-markets, both SBD and PBD have surpassed Business District (CBD): This micro-market Incentives, Conferences and Exhibitions (10-15%).

In terms of micro-markets, both SBD and PBD have surpassed comprises international and domestic passenger traffic, during the amount of commercial office stock available in the CBD area. offices of major companies along the MG Road, Commercial Segment amount of commercial office stock available in the CBD area. Road, Richmond Town and Brigade Road. The the eight year period the from Financial Year Commercial Segment With the availability of larger land(FY) parcels suitable forResidency built-to-suit With the availability of larger land parcels suitable forCBD built-to-suit Commercial real estate development has played a pivotal role in area 2003-04 through 2010-11. requirements of the IT sector, SBD is the market leader in terms of comprises primarily high end developments across Commercial real estate development has played a pivotal role in requirements offrom the IT sector, SBD is the market leader incategories terms of shaping Bengaluru’s hotel markets. The citypassenger leads amongsttraffic all all of real estate.

International has increased 0.5 million total Grade A stock in Bengaluru with a total supply of 2.9 million shaping Bengaluru’s hotel markets. The city leads amongst all total Grade A stock in in Bengaluru with a total supply ofSecondary 2.9 million Indian metropolitanpassengers cities in terms ofinoccupied office stockto and2.2 has million • Business District (SBD): SBD of Bengaluru FY 2003-04 passengers FY 2010square meters (as on June 30, 2011).

The PBD follows with a supply Indian metropolitan cities in terms of occupied office stock and has meters (as on Junedomestic 30, 2011). The PBD follows with a supplyareas along the Outer Ring Road, Old Airport a total commercial Grade A stock of 6.1 million square meters (asthan square comprises 11, an absolute growth of more 340 per cent.

The of 2.3 million square meters with Whitefield alone contributing almost a total commercial Grade A stock of 6.1 million square meters (as of 2.3from million square meters with alone contributing almost Madras Road, Hosur Road, Intermediate Ring of December 31, 2011).

Bengalurutraffic has witnessed a Compounded Road, passenger in Bengaluru has risen 2.7 million inWhitefield 80% of the total stock in the PBD. InFY contrast, Bengaluru CBD Old has a of December 31, 2011). Bengaluru has witnessed a Compounded 80%recording of the total stock in theper PBD.cent In contrast, Bengaluru CBD has a Annual Growth Rate2003-04 (CAGR) of around 26% over the in last FY seven2010-11 Road, Indiranagar and Koramangala. This micro-market to 9.4 million a 23 total stock of only 0.6 million square meters.

Annual Growth Rate (CAGR) of around 26% over the last seven total stock of only 0.6 million square meters. features larger projects in comparison to the CBD due to CAGR. Also, the passenger movement has revived after a decline

O

Micro Markets in Bengaluru

Commercial Commercial Stock Stock (in (in million million sq.sq. meters) meters)

Chart 1: Grade A commercial Stock and Vacancy in Bengaluru Chart 1: Grade A commercial Stock and Vacancy in Bengaluru 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0

2005 2005

2006 2006

2007 2007

2008 2008

2009 2009

Stock Stock

2010 2010

2011 2011

lower land prices and well developed infrastructure facilities.

• Peripheral Business District (PBD): This micro-market comprises of Whitefield, Devanahalli and the Electronic City. These areas are characterised by large scale built-to-suit IT techno parks or campuses.

16.0% While the Electronic City is a well developed 16.0% 14.0% electronics industrial hub located in the south of 14.0% 12.0% 12.0% Bengaluru, on the eastern side, Whitefield gained 10.0% 10.0% 8.0% importance because of the IT/ITeS development 8.0% 6.0% accompanied by improved connectivity.

6.0%

2012E 2012E

4.0% 4.0% 2.0% 2.0% 0.0% 0.0%

Vacancy Vacancy

Source: Jones Lang LaSalle REIS, India Source: Jones Lang LaSalle REIS, India

3,500,000 3,500,000 3,000,000 3,000,000 2,500,000 2,500,000 2,000,000 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 500,000 CBD CBD

SBD SBD Stock Stock

Source: Jones Lang LaSalle REIS, India Source: Jones Langstock LaSalle REIS,total India * PBD commercial includes stock of Whitefield and Electronic City * PBD commercial stock includes total stock of Whitefield and Electronic City

36 FHRAI Magazine february 2012

PBD* PBD* Vacancy Vacancy

35.0% 35.0% 30.0% 30.0% 25.0% 25.0% 20.0% 20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0%

vacancy vacancy (%)(%)

Commercial Commercial Stock Stock (sq.(sq. meters) meters)

Chart 2: Commercial Supply Distribution across Micro Markets (1H 2011) Chart 2: Commercial Supply Distribution across Micro Markets (1H 2011)

vacancy vacancy (%)(%)

in domestic passenger traffic and retarded annual growth in international passenger traffic in FY 2008-09 due to the economic recession

Lodging Demand Drivers

As an established commercial city with a significant presence of both domestic and international companies, the nature of lodging demand in Bengaluru tend to be dominated by commercial demand which contributes close to 75-80 per cent of the city’s overall lodging demand and the remaining from a mix of leisure (5-10 per cent) and (MICE) Meetings, Incentives, Conferences and Exhibitions (10-15 per cent).

Commercial Segment: Commercial real estate development has played a pivotal role in shaping Bengaluru’s hotel markets. The city leads amongst all Indian metropolitan cities in terms of occupied office stock and has a total commercial Grade-A stock of 6.1 million sq mtr (as of December 31, 2011). Bengaluru has witnessed a CAGR of around 26 per cent

Visit FHRAI Website: www.fhrai.com

734 ent 734 r 34 ent ent r x

x e

%. er %. %. nter er

nt t od

od d

over the last seven years in terms of incremental Grade-A commercial stock.

Chart 1 below presents the historical and future estimated total Grade-A commercial stock and vacancy for the Bengaluru market.

Commercial Supply Distribution across Micro Markets: In terms of micro-markets, both SBD and PBD have surpassed the amount of commercial office stock available in the CBD area. With the availability of larger land parcels suitable for built-to-suit requirements of the IT sector, SBD is the market leader in terms of total Grade-A stock in Bengaluru with a total supply of 2.9 million sqm (as on June 30, 2011). The PBD follows with a supply of 2.3 million sq mtr with Whitefield alone contributing almost 80 per cent of the total stock in the PBD. In contrast, Bengaluru CBD has a total stock of only 0.6 million sq mtr.

Supply Distribution

According to the research, Bengaluru has 48 branded hotels with 7,734 rooms spread across various star categories. Some of the prominent international operators in Bengaluru include IHG, Starwood, Accor and Wyndham.

Chart 3 indicates the city’s room inventory distribution among six categories as of date based on the research. As highlighted in chart, 5-star deluxe hotels represent 15 per cent of the total Hotel Intelligence • India, Bengaluru • January 2012 9 supply while 5-star hotels dominate with 33 per cent of the total inventory. The 4-star hotels contribute 21 per cent whereas the 3-star category contributes 24 per cent. In• the the serviced Hotel Intelligence India,past, Bengaluru • January 2012 9 apartment segment was categorised under the local unbranded Hotel Intelligence • India, Bengaluru • January 2012 9 sector. However, with the recent accelerated growth in extended stay demand in the city, the serviced apartment segment has been attracting the attention of major international lodging brands. Serviced apartments in Bengaluru are currently offered by four properties in the branded segment namely Oakwood Premier Prestige, Royal Orchid Suites, Mercure Residences and Ascott Group’s recently opened Citadines collectively contributing 6 per cent to the overall branded lodging supply.

Chart 3: Room Invetory Categorisation The 2-star category contributes only 1 per cent to the overall branded supply.

Chart 3: Room Invetory Categorisation Serivced Apartments Chart 3: Room Invetory Categorisation 2-star 6% 1% Serivced Apartments 5-star Deluxe 6% 15% 2-star Serivced Apartments 1% 6% 2-star 5-star Deluxe 1% 3-star 5-star15% Deluxe 24% 15% 3-star 24% 3-star 24%

5-star 33% 4-star 21% 4-star 21% 4-star Source: Jones Lang LaSalle Hotels Research, India 21%

5-star 33% 5-star 33%

Source: Jones Lang LaSalle Hotels Research, India Source: Jones Lang LaSalle Hotels Research, India Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 37

[GM Canvas]

Re-creating

Mughal Hospitality Claimed to be the only hotel designed in Mughal architectural theme in the city of Agra, Dilawar S. Nindra, General Manager of Wyndham Grand Agra talks about the various facets that this hotel brings forth; just as the city has charmed and has become one of the most coveted tourism destinations.

Dilawar S. Nindra

38 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[GM Canvas]

F

or a city like Agra which is world famous, it is a challenge to manage a property that offers what the city is known for, while simultaneously adding a unique twist to its offerings. Wyndham Grand Agra has tried every bit to be different in this respect and has approached the task aggressively. Dilawar S. Nindra, General Manager of the hotel developed and implemented standards for both style and quality and has put them to use in the hotel’s operations.

The property, which is spread over 18 acres of land has been positioned innovatively.

According to him, Wyndham Grand Agra is a masterpiece of architecture built on the ‘Mughal Theme’ with world class royal amenities.

“The property has a massive spread with a splendid display of terraced lawns, colourful musical fountains and antique interiors that will take the guests back to the era of Mughal emperors and royalty.

It is a hotel which will give cultural experience along with a true sense of hospitality. Our mission is to give our guests a true value-for-money stay and make ourselves a landmark in this city,” Nindra says.

The property began its operations on November 19, 2010 under the name ‘Orient Taj’ and later on October 1,

Visit FHRAI Website: www.fhrai.com

2011 it tied-up with Wyndham Grand Agra to start its new journey. “Post our soft opening the business started coming in from day one as the inventory in Agra is small. We started attracting tourists with its palatial look which the guests crave for and wish to stay in,” he adds.

The property is consistently maintaining the standards of a leisure city while simultaneously positioning itself as a business hotel. He says, “Wyndham Grand Agra is primarily a leisure property and our approach will always be to make our guests enjoy their stay here.”

The Heritage City

Nindra says, “Agra is a very popular tourist destination. It is home to the Taj Mahal, one of the Seven Wonders of the World. The architectural splendours of the mausoleum, the fort and palaces contribute in making the city a leading destination for tourists. This helps the hotel to immediately connect to the tourists as well.”

The city is growing and taking its stature higher on the tourism map.

“Agra is experiencing huge footfall as it is a favourite sightseeing destination for foreigners. The hospitality industry in this heritage city is transforming itself by working towards improvement.

Rising competition and the fight to position itself at the top in terms of leading tourism numbers, is a new found energy. The leaders of this industry are discovering new ideas and innovative tactics for successful hospitality products and services that would take the dream ahead and also make every day for its guests memorable,” observes Nindra.

In order to reach the top, Agra has been taking numerous steps to become a sound tourism oriented city. He has taken note of a few things which will take the city in a completely different direction. He says, “Certain steps taken by the administration here will go a long way in making Agra even more beautiful.

There have been improvements in the infrastructure like the tourism police, which is one of the best ways to project that the job of securing tourists is taken very seriously; has given confidence to the tourists to explore Agra without any inhibitions and pre-conceived notions.

Further, cleanliness in and around Taj Mahal have been maintained well, which is a very good area with whatever limited resources are its disposal.”

Lastly, he says, I would add that the Tourism Guild of Agra as an active association helps in boosting new developments in tourism and hospitality of this city.

FHRAI Magazine

february 2012 39

[GM Canvas]

Contributing to the City

The city is being developed beyond the Taj Mahal. Even the hospitality industry is strongly promoting this aspect which will make tourists stay for a longer duration in the city. Nindra remarks, “Agra has more than the Taj Mahal to offer to its visitors. There are many excursions which cannot be covered in a day long trip alone. The city boasts of many cultural activities and shows, apart from theme plays which have

40 FHRAI Magazine february 2012

become very popular these days with the tourists.”

Now, as an added incentive for the visitors to stay longer in the city, the hotel has even built a helipad. This reduces the travel time from Delhi or other cities which gives ample time to relax in the hotel as well as explore the city beyond the Taj Mahal. “In fact, with this service, we have been able to curtail the travel time to 20 minutes from Delhi to Agra giving them more time to enjoy the city!”

Talking about the property, which is fairly new, he feels it has connected with the city and its tourism. “We are the only hotel in the city that is completely built in Mughal architectural style. Our ‘Presidential Suite’ is 4,000 sq ft and is the biggest hotel suite in Agra. One also gets to see the Mughal Garden and the colourful musical fountain in the middle of the hotel, which has been designed keeping ‘old times’ in mind,” Nindra sums up.

Visit FHRAI Website: www.fhrai.com

[Product & Services]

Turkish Airlines introduces its new Business Class Turkish Airlines, Europe’s fastest growing airline company and a Skytrax awardee for the ‘Best Airline Europe’, has come up with a high quality service in its new Business Class. The new Business Class cabin is laid out in a 2-3-2 configuration and offers fully reclinable 75 inch flat beds for sleeping space. A seat pitch of 61 inches is provided to ensure passenger’s comfort and mobility. Main Control unit, located in the centre console at the front end of the armrest, provides full control of the bed. A generous and ample legroom allows passengers that extra bit of stretch in the long haul flights.

The seat acts like a personal masseuse and relaxes the muscles to the hilt. Each Business Class seat comes with a PC power receptacle that supplies energy for the laptops and similar electrical devices. The centrally located table moves forward & backward and even swivels to offer more freedom.

It is the first carrier to offer live, inflight television on Trans-Atlantic flights. High speed internet access and Wi-Fi enable passengers to use their mobile devices such as, notebook, iPad, tablets, etc.

Equipped with personal touch-screen monitors and Planet digital system, the passengers can enjoy movies and music from the selection in more than 7 languages. Passengers can also watch the take-off and landing footage on their screen via the two cameras mounted at the front and back of the aircraft!

Turkish Airlines boasts of the world’s largest fleet of flying chefs on their new Business Class. Passengers are served a wide range of alcoholic and non-alcoholic drinks on-board. The breakfast options include a range of beverages, fresh fruits, cold cuts, cheese, fresh yoghurt and muesli.

Fine Grain Whisky Radico Khaitan, one of the largest liquor companies in India has nationally rolled out a new premium brand ‘After Dark’ Whisky. ‘After Dark’ is the finest grain spirits blended to offer perfect taste for the consumers. The brand name has various connotations attached to it. It’s set in the world where night unfolds and brings with it fun, adventure and excitement.

Super Soft Mattress Topper The Hush Super Soft Mattress Topper improves the quality of sleep by cushioning the bed surface and adding to the sleeper’s comfort level. As an added benefit, Topper also prolongs the life of the mattress. Filled generously with lush, slow-release, 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 the sleeper sublime comfort and lends a plush, sink-in feel to the mattress, ensuring comfort and sound sleep.

The brand plays the role of getting people together and adding energy & spontaneity to the evening. Currently available all across India, it targets the young and energetic people and is priced at Rs 450 for 750 ml. It comes in a canister pack, which is the first-of-its-kind in this segment.

42 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Product & Services]

FCML presents bathroom accessories FCML Luxurious Bathrooms launches PomD’Or’s ‘Kubic Collection’ that synergises beauty and design with utility and presents pieces of elegance suitable for modern bathrooms. These beautiful bathroom accessories are available at the FCML Luxurious Bathrooms stores in India.

The collection is created according to the modern concept of present day lifestyle based on the combination of apparently opposed elements, which when carefully blended not only produce innovative ideas at all levels, but also a new aesthetic concept of life. This beautiful accessories collection not only offers design and creativity, but also functionality and comfort.

New ‘Sweet Chilli’ flavour

by Wonderful Pistachios Wonderful Pistachios has launched its new ‘Sweet Chilli’ variety, a new flavour offering a mix of sweetness, crunch and tangy chilli peppers, perfect for any snack occasion. Grown in California, Wonderful Pistachios are sun-ripened and dry roasted to meet the highest quality standards of food aficionados. ‘Sweet Chilli’ variants are seasoned with all-natural ingredients and are offered in convenient packs of 15 gm (trial pack), 80 gm and 200 gm for `15, `90 and `200 respectively at all leading outlets across New Delhi-NCR, Mumbai, Bengaluru and other metropolitan cities. Wonderful Pistachios are also available in roasted salted, roasted no-salt and salt & pepper varieties, specifically suited for Indian palate.

Ebony Gautier launches its Valentine Collection Ebony Gautier paying a tribute to the Valentines Day launched an eccentric and enthralling range of lounge chairs and sofas. This new collection is contemporary in design, distinct in style, colour and contour, being the reflection of youth and aspiration of young fashion.

‘Chili’ is a relaxing lounge chair along with matching foot rest. The triangular shape in passion red and sunny yellow colour with stainless steel leg is a classy design to match you chic decor. ‘PACK UP-Revello Pink’ in suede feel, adds the third dimension of touch to bright colour and bold design of the PACK UP sofa.

Collection of carpets by Obsessions Xclusif Obsessions Xclusif has showcased a distinctive range of carpets - the ASOS range. The latest addition is a bacteria-free collection designed specifically with fine impressive lines. It makes any part of space look attractive with unique designs such as leopard patterns, abstract designs and geometric motifs. ASOS radiates with its brown, cream and golden colours and copper and silver texture.

This special cut and loop carpet is made from silver, wool touch acrylic and floss fibre. These carpets are absolutely ideal to go with wooden furniture used at any place.Lighted control knobs is the other innovative feature in the top-of-the-line Summit model which allows avid grillers to fine tune heat settings – even in the dark!

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 43

[ Culture]

Pattachitra:

A New Story on the Leaf of Hospitality Raghurajpur in Odisha known for its famous ‘Pattachitra’ (Leaf painting), shows how nature and eco-friendly approach are still very much part of India’s art tradition. And now after the State Institute for Development of Arts & Crafts, Bhubaneshwar; the hospitality industry of Odisha too is pulling all strings together to promote this exemplary art form and the village that houses it.

Sanjeev Bhar

T

here are certain creations in life that are best appreciated and given apt definition when they are made in front of you. Pattachitra is probably one of those myriad mystical art forms that lie hidden in India’s heartland. It is referred to as paintings that are etched on Patta or a dried palm leaf (also Tamra patra in Sanskrit).

The history of this art form goes back to the 5th century BC. Raghurajpur

44 FHRAI Magazine february 2012

is one of the most popular places of Odisha (erstwhile Orissa) that is known to have nurtured this craft. This fascinating village is situated at a distance of 14 km from the temple town of Puri and is a noted heritage crafts village, where the community has been formed by skilled artisans. The village is also quite popular because it is the birth place of Late Padma Vibhushan Guru Kelucharan Mahapatra, a doyen of the

Indian classical dance form – Odissi.

The State Institute for Development of Arts & Crafts, Bhubaneshwar promotes this village to create knowledge about the craft as well as to ensure that this art form survives.

An now the hospitality industry of Odisha is also making an effort to promote this par excellence cultural aspect by including a visit to this craft village in the itinerary of the tourists.

Visit FHRAI Website: www.fhrai.com

[Culture]

Harihar Patra, Director Marketing, Toshali Resorts International believes, hospitality has a strong role to play in evolving the craft by promoting it aptly. “We get a lot of international clientele. Therefore, we take them to key traditional points, like Raghurajpur that brings out the true essence of the culture of the state and also pushes it towards further enrichment by providing it with the required vital support system.

Tourism plays an important role and hospitality can definitely give a direction to it. Our aim is to sustain this craft which is being carried forward from one generation to another since ages.”

It is also an attractive journey for the travellers to witness the art of making Pattachitra at the village itself.

Travellers can enjoy the entire process of Pattachitra, from the art of preparing leaves, sketching and finally, the painting that is done on it. The use of organic colours also sends out a message revered by the world artists nowadays, which has remained the tradition of the craft since ages.

Visit FHRAI Website: www.fhrai.com

The pictures that come to life through Pattachitra go through a long process.

A number of small rectangular frames are carved and painted with colours and later joined together piece-by-piece to eventually bring a story to life. Once the painting is done, the palm leaf strips are joined with a metallic wire or thread to create a complete canvas. The process of applying colours comes much later.

An artist takes each of these strips and neatly engraves his imagination with a fine carving tool.

Watch an experienced artist like ‘Maga Nayak’, master craftsman who runs Krishna Arts & Crafts in Nayak Patna near Raghurajpur, go about etching his thought directly on the Patta strip without even making a rough sketch.

He directly applies his carving tool on to the Patta strip to carve a scene. At first, as he carves it, the picture does not seem to make any sense. However after applying a paste of soot and oil on the leaf, which is then allowed to settle for a minute, the black soot sinks into the finely engraved

lines and then is simply wiped off with a cotton cloth… His imagination suddenly comes alive on the leaf !

Once all the Patta strips are drawn on in this fashion and mellowed yellow, the canvas showcases a complete painting in black. It can then be enhanced with different earthy colours or can be left as it is. In this fashion, Nayak says, it can take a month or more to complete a painting where different Patta strips need to be articulately designed and correlated so that the painting appears perfect when small individual pieces are joined together.

In Pattachitra, stories about princes and princesses, kings and queens, various gods and mythological scenes are engraved conventionally, which are complimented through ornamentation of flowers, trees and animals, which are then painted to give a complete image.

Everything is so delicately carried out that the final image really commands attention. “This art form is greatly appreciated in Raghurajpur and all

FHRAI Magazine

february 2012 45

[ Culture]

homes follow this tradition,” Nayak adds.

As he shares and teaches the techniques of this craft, young children by his side practice this traditional form as they practice engraving the leaves to fine tune their creative skills.

A lot of change is taking place in this art form and creativity is being used towards newer horizons. Noted artist GK Maharana of Sun Crafts in Puri, who is known for his Pattachitra styled sarees says, “This craft has become extremely popular and we get international orders for sarees that take more than six months to make offering a distinct look based on this art form.”

Apart from Pattachitra, paintings on Tussar Silk are another attraction that is equally worked upon by the Pattachitra artists in Raghurajpur and otherwise. The paintings on silk usually showcase tribal and village lifestyle. There are some that simply use black ink and portray multidimension shapes for designs that look very attractive. According to Nayak, tribal paintings and mythology are usually the common themes chosen for Pattachitra.

There is a definitive style of this art form and artists bring in their creative inputs within that to give it a new direction. This way the art form is changing yet keeping the age old essence intact.”

46 FHRAI Magazine february 2012

Apart from such paintings, palm leaf engravings, paper masks, paintings on coconut and Supari (betel nut) also attract travellers allowing them to peep into the world of Pattachitra that is surviving with support from the Government. The Ministry of Tourism, Government of India and the United Nations Development Programme (UNDP) India recognise and thereby offer an intense art experience to discerning tourists by taking artists from this village to many cities to showcase their talents.

Though the art form of Pattachitra and Tussar paintings are in great demand all across the world and are being exported

by India, a visit to this secluded region is a different experience altogether. Raghurajpur in this respect has really evolved as a craft village in every sense. It becomes apparent the moment one steps down and enters this locality. A big billboard welcomes all and the houses elegantly decorated with these paintings showcase the talent that this village possesses.

Visit FHRAI Website: www.fhrai.com

[Culture] Reaching Raghurajpur The craft village of Raghurajpur can be reached from Bhubaneshwar (nearest airport) which is 50-km away. It is just 14-km from Puri and can be accessed through taxi and coach services available easily.

Lying on the coastal belt, it is advisable to avoid visiting the crafts village during Monsoons.

September-April is the best time to visit the village when the temperature falls down to a comfortable level averaging 26째C.

It is said that every single house in this village promotes this craft and is taking the heritage forward.

The village houses display the craft and entering these small homes gives a wider perspective on how the artists make incredible things using such basic

Visit FHRAI Website: www.fhrai.com

materials. Their painting style carved on wood, wooden dolls, even cowdung and papier mache (chewed paper) toys, etc. bring a new dimension to this handicraft.

This unique traditional craft of Odisha comes to life in this village and has been preserved for long. It is

heart-warming to see that children are also deft at this craft and join their parents in learning the tradition. This age old art form has not lost its sheen in the commercial dynamics of export opportunities it commands. Changes are welcomed to ensure that paintings last long, keeping the spirit of this craft at a high. This village undoubtedly ensures that the tradition remains alive as a craft, enjoyed by kinsman and tourists alike.

FHRAI Magazine

february 2012 47

[Outbound]

Filipino Style Entertainment@ Resort World Manila Now entertainment has a new address in The Philippines. Travel to Manila’s recent dining, entertainment, casino and shopping destination - Resorts World Manila (RWM) for a 360 degree entertainment.

Megha Paul

A

lifestyle compound that features world class casinos, cuisines, accommodation and acrobatic shows by performers from as far as Ukraine and Belarus, RWM is located in Newport City, opposite the Ninoy Aquino International Airport (NAIA) Terminal 3, in Manila, The Philippines. The resort is a joint venture between AGI and Genting Hong Kong. The project, occupying a part of the former military camp near Manila’s airport, has three hotels with 1,574 rooms, 30,000 sqm casino area and a 30,000 sqm shopping mall. The global leisure, entertainment and hospitality enterprise Genting Hong Kong also owns the leading cruise operator Star Cruises.

Personal Butler at Your Service

48 FHRAI Magazine february 2012

RWM is home to three hotels namely the 5-star Marriott Hotel Manila, the newly opened budget lodging Remington Hotel and its centrepiece, the luxury all-suite casino hotel, Maxims Tower. The first hotel of the complex, Maxims, is said to be the country’s first deluxe casino hotel.

Owned and developed by the Genting Group, Maxims has 172 all-suite rooms, each furnished with modern facilities and served by a personal butler. The hotel has three Royal Villas, each with an area of 535-548 sqm and with its own patio, garden, pool, kitchen, massage room and dining area. The hotel’s 600 sqm presidential suite features a jacuzzi, an audio-visual room, two pavilions and a garden, among other facilities.

The first 5-star international hotel to open in the complex is the Marriott Hotel, which has 342 rooms, three dining outlets (Velocity Entertainment Bar, Cru

Steakhouse and the Marriott Café), a ballroom, multiple meeting rooms, a spa and other amenities.

There’s a place for everyone at RWM and that includes the budget-conscious travellers. The newly opened Remington Hotel is a budget hotel offering superb accommodation at affordable prices.

Visit FHRAI Website: www.fhrai.com

[Outbound]

Meetings Getaway

MICE will play an important role in helping the Genting group achieve its target of increasing arrivals to The Philippines. Talking about tapping the MICE segment, Michael Goh, Senior Vice President - Sales says, “The Philippines has enjoyed a steady increase in tourism. With an environment that is progressively becoming more conducive to business, the Philippines and Manila

Visit FHRAI Website: www.fhrai.com

in particular, are fast becoming a soughtafter MICE destination in Asia. Thus, RWM aims to cater to the ever-growing demands of corporate guests.”

According to Goh, being close to the airport is an added advantage for the new MICE destination. He feels, “RWM is located on the 25-hectare Newport City, just opposite the NAIA Terminal 3 in Newport City. This is expected to boost the arrivals of MICE and group travellers.”

FHRAI Magazine

february 2012 49

[Outbound]

Naresh Rawal

50 FHRAI Magazine february 2012

The group also aims to position RWM as the ultimate stopover for the group or corporate travellers who are planning to visit Manila and then move on to leisure destinations such as the islands of Boracay.

To attract the Indian clientele to RWM, Genting Hong Kong has already started promoting Manila as a destination among Indian travellers. Outlining the importance of the India market for RWM, Naresh Rawal, Vice President Sales – India & South Asia, Star Cruises, confirms, “We are targeting leisure, FIT and MICE segments from India. The group has already started promotional activities in the country. We have also organised the first familiarisation trip to Manila in January for the Indian travel trade to give them a first-hand experience of the destination and its offerings.”

Shop Till You Drop

RWM redefines shopping with the Newport Mall, the four-level shopping haven that is home to a dazzling array of high-fashion boutiques and world class dining outlets. Newport Mall is the place for shoppers with a taste for luxury brands in fashion and jewellery, world class cuisine and some of the most exciting entertainment in the metro. Its Mediterranean-themed, modern classic architecture transports you to another continent as you enter the vast open space of The Plaza at the Newport Mall, a charming indoor piazza naturally lit by a breathtaking glass skylight.

Entertainment Galore

The fun never stops at RWM with world class entertainment happening throughout the day, seven days a week.

Visit FHRAI Website: www.fhrai.com

[Outbound] Catch live acrobatic performances or musical acts on stage at Bar 360 or watch one of the grand productions at the Newport Performing Arts Theatre.

Four premium cinemas and the Newport Performing Arts Theatre are available.

And when the sun goes down, the excitement continues to pick up with the vibrant nightlife at the RepubliQ Bar, the newest superclub from the Embassy brand.

Exhilarating Gaming Experience

One special thing about RWM is its spacious gaming centre. You can try your luck at the gaming centre. The newest hotspot in the Philippines leisure and entertainment landscape also offers a world class gaming experience. With three floors of table games and slot machines, it offers a thrilling experience for both first-timers and seasoned high rollers. Excitement begins the moment you step onto our luxurious casino floors and continues to build up when you get into the action in the game of your choice.

The casino has become an attraction for both young and old people.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 51

[Money Mantra]

Eventful Seasons Hoteliers maximise their revenue vis-a-vis major events that take place in various cities. With the help of effective marketing and sales strategies which rely on sound technology solutions, this potential benefit market can be tapped and utilised to the fullest to generate maximum revenue.

Sivaprasad Gangadharan

M

ajor events provide a unique opportunity for Indian hoteliers – a chance to increase their revenue potential and improve their ongoing financial stability. An influx of new guests visiting a new city for a major event can not only provide short term revenue, but can also encourage repeat customers, providing a platform to grow a hotel’s brand.

Large scale events can have long lasting positive impact not just on the local hotel sector, but on the local business and community as a whole. Dhiraj Trivedi, Corporate Director of Revenue Management & Electronic Distribution, Royal Orchid Hotels India, highlighted, “Large scale events, like the recent Commonwealth Games, lead to the development of infrastructure used in the tourism sector, including the transportation system and communication network, which in turn means better opportunities to capture business. Better infrastructure also paved path for foreign investors – including hotel groups - who were previously hesitant to set their base in India.”

Given the recent attention to large scale events in India, it is somewhat surprising that many local hotel owners and managers still fail to recognise the need for ‘pre-event’ planning.

Without a proper level of planning prior to an actual event, Indian hoteliers may find themselves disappointed by the lack of patronage when the event takes place. Similarly, without effective marketing and sales strategies in place in the lead up to the actual event, hoteliers may find they do not reach their full patronage potential like they had originally hoped for.

Merwin Dawson, Group Revenue Manager, The Leela Palaces Hotels & Resorts highlighted how some large scale events do not live up to the expectations of the hoteliers when he said, “Expectations are often highly inflated, as in the case of the Commonwealth Games where 1,00,000 visitors were anticipated, yet in reality only 70,000 people actually turned up.”

While there is always a great deal of excitement and high expectations in the Indian hotel community when an event approaches, there is also a high degree of uncertainty around what strategies will be most effective. A major event, such as ‘Ardh Kumbh Mela’, can assist in delivering a hotel property financial stability for some time into the future. Therefore, preparing for the event period adequately should be a priority for all hoteliers.

By following the five methods (stated below), Indian hoteliers can be confident that during the period of a major event, they will be able to achieve their overall revenue potential and assist in the deliverance of a successful event.

Minimum Length of Stay

Over the course of the event period, hoteliers throughout the relevant city are encouraged to enforce minimum length of stay requirements. This will encourage longer booking periods and will have a positive impact on occupancy levels throughout the area.

The length of stay requirements imposed by hoteliers would need

52 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Money Mantra] to differ according to the event that will be held. For example, an event such as the Commonwealth Games, which lasted for nearly 2 weeks would present a very different scenario when compared to an event like the Formula One Grand Prix, which was for a few days only. This is due to the length of which they run and the amount of patronage they normally generate.

Find the Appropriate ‘Balance’

Paying careful attention to the balance between normal base business and the actual period of the major event will help guarantee that all long-term occupancy levels will be improved, while simultaneously maximising the patronage level during the event.

Research undertaken has shown that the initial days of the event will see an increase in the overall demand, but it has also shown that there is a potential for many customers to be hesitant due to pricing and logistical concerns.

A carefully planned strategy aimed at this segment of the market will be needed to maximise occupancy levels. This strategy should be developed between the hotel owner and hotel manager and also any relevant sales and marketing staff involved in the hotel.

Optimal Pricing Strategies

The pricing strategies in the lead up to the major event will have to be carefully managed by individual hotels. While an expected increase in demand on significant days will allow rates to be driven accordingly, this will not be the case in other less significant days.

It is recommended that a careful and direct marketing strategy should be put into place to entice visitors to arrive earlier than the significant periods of the event. This would mean hotels would need to pay significant attention to particular days.

For example, when considering the IPL T20 cricket tournament, each town that is hosting a match needs to focus not only on the day of the match, but also the preceeding days.

If the tournament final was to be held on a Saturday night in Mumbai, hotel owners and hotel managers in that city need to pay particular attention to days such as the Wednesday and Thursday by using optimal pricing strategies.

Pre-Payment Plans

To minimise the impact of costly last-minute cancellations, it is recommended that hotels implement a system of phased prepayment restrictions.

By clearly stating the terms and conditions of ‘no-shows’ and cancellations, hotels will be able to dramatically minimise any potential negative impact on revenue. If, as expected, there are a large number of cancellations over the course of an event, these pre-payment plans will allow hoteliers to recoup a large slice of their lost profits. These profits will then be complemented by last minute fill-ins.

Overbooking

Appropriate overbooking levels should be set to counteract the expected rise in cancellations. This will often be in the night leading up to the climax of an event; be that a Thursday before the Grand Prix weekend or a Friday before a Sunday Tennis final.

The implementation of these recommended strategies, combined with careful and detailed observation of the level of demand, will allow hoteliers to achieve the correct balance between price and demand.

Visit FHRAI Website: www.fhrai.com

Another area of the hospitality industry that must be understood when preparing for an event is the growing popularity of third party booking sites, which now means customers throughout the world can book their hotel visits round-the-clock. This also means they have access to the price on offer of numerous hotels in any city of any country simultaneously.

This second point is of particular importance when Indian hoteliers prepare for a major event. With all the hotels in an area competing for the same client base, particular attention needs to be paid to ensure a reasonable amount of rate parity is offered between hotels. While visitors will expect higher rates than normal, they will be sure to compare prices with different hotels to ensure a reasonable level of consistency.

A thorough market analysis prior to the event will also allow for a range of succinct marketing tactics to be developed, helping a hotel reach its full capacity for the duration of the event. Indian hoteliers should also not worry if their rooms are not filling up as quickly as they anticipated since the month prior to the event is usually the time when most visitors finalise their accommodation arrangements.

Indian hoteliers need to conduct their own detailed research into future major events. They need to know the scale at which the event will be executed, whether it is being marketed in the right way and if the expectations of the organisers match the reality. Hoteliers must consider wider issues when evaluating future major events and how actively their property should target potential visitors. Issues like security surrounding an event and how well the organisers have prepared for this and communicated a message of safety to potential tourists should be a key consideration for hoteliers. Nikhil Sharma, Assistant Vice President Operations, Lemon Tree Hotels said on this issue, “The adverse publicity associated with the preparedness for the recent Commonwealth Games had a negative impact on the demand. Overall, the terrorist threats associated with the event did not have a positive impact. According to a Commonwealth survey by TripAdvisor.com, 93.5 per cent of foreigners from the Commonwealth nations were not interested in coming to New Delhi. TripAdvisor.com did an online poll and found out that 93 per cent of them didn’t want to travel to India out of which 14 per cent declined due to security issues.”

If a hotelier can independently gauge how well they expect an event to run in the future (rather than taking it at face value from the organisers themselves) they will also have a better idea about the effort required (if any) to attract guests for a future large scale event.

It is of pivotal importance that while preparing for an increase in demand, especially due to a sporting or cultural event, hoteliers must adequately prepare their business. Hotels form a major part of the local tourism industry and can often play an important role in shaping the opinions of the tourists about the host city, rather than the event itself. This can have either a positive or negative effect on the long term financial stability of an entire market and is an important aspect to consider when planning for a major event.

By successfully achieving the balance required, Indian hotel owners and managers will be able to maximise their revenue potential during an increased period of patronage, whether that be in New Delhi for the Grand Prix or in cities like Bengaluru or Kolkata for IPL cricket tournaments.

(The writer is Regional Director Subcontinent Sales for IDeaS. The views expressed by the author are personal.)

FHRAI Magazine

february 2012 53

[Guest Column]

Rates Rebound Following the demands from various tourism segments, the room rates instead of going over the board, have sustained. Indian travel trade would benefit if this demand continue to rise with reservations coming in advance. Though, the challenge would be to balance additional room supply growth with projected growth.

Julie Parodi

I

n 2011, India’s December booking activity was substantial, but it could not measure upto the vigorous volume reached in the year 2010. The demand-inspired gains made in 2010 over 2009, set a high bar for 2011, particularly with a tepid global economy. However, December 2011 reservations did not fall far and stayed within 7 per cent of last year’s level. This is a commendable performance from two aspects. One being that while India certainly has a vibrant leisure market, much of its travel is business oriented. December is typically a slower month for business travel and it is difficult to gain additional ground during low-demand periods. The other aspect is that the consumers are keeping a taut

rein on leisure spending overall. This is especially in key feeder markets (such as Europe and USA), where uneasiness over the potential impact of sovereign debt issues hits closer to home.

India’s Hotels

India commands the attention of the travel industry with its strong performance and potential. With the population of over 1.2 billion people, rising middle-class and growing economy, hotel companies are vying to play a key role in India’s prosperous future. Because of this attraction, these can be both exciting and challenging times for India’s burgeoning travel industry. According to the Department of Tourism, nearly 80

per cent of India’s hotel sector is made up of independent, stand-alone properties.

Therefore, major hotel chains are filling the void between consumers and travel providers; for whom more standardised or widely recognisable offerings are preferred. Additional lodging options, whether independent or affiliated with a group or a chain, is also filling the void to suit different styles and needs across all segments. Even the growing religious tourism sector, for example, is creating a diverse demand. Formerly associated with rustic accommodations, religious travel has incited demand across midscale and high-end offerings as it attracts a growing number of affluent travellers and families.

It is this swelling demand that is sustaining room rates. Although reservations have not kept pace with prior year’s surge, however recently, ADR is holding firm. Aside from November, ADR has remained essentially equal to or just higher than prior year. December was no exception with its ADR back on track with prior year after slipping by -4.2 per cent in November.

Intriguing Trends

The challenge that India will face, however, is for this additional room supply growth to remain at par with its demand growth. Cities such as Delhi, where room inventory has risen more rapidly, are having a tougher time sustaining rates and revenue. Whereas cities such as Mumbai and Goa, with rising demand and more moderate supply growth, are experiencing greater ADR and revenue growth.

54 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Guest Column]

The overall trend for ADR to be faring better than reservations against prior year is being experienced globally, just in varying degrees based on local circumstances and influences.

Asia Pacific as a region, for example, is deriving additional benefits from above-average performances over prior year from countries such as China and Singapore.

India is also following the general trend of stays being equal-to or shorterthan last year while being booked a little further in advance. The average length of stay (LOS) for India in December was lower last year by -3.0 per cent.

Shorter trips reflect both consumers’ and companies’ desire to control their cost per trip, helping them to take the same or more trips than last year. Similar or slightly wider booking window indicates a stable degree of willingness to commit time and money for travel. Such is the case in India, with December 2011 bookings made 22.25 days ahead of travel versus 21.97 days in December 2010. These results indicate behavior that is favorable to sustain business and leisure travel in times of uncertainty and speak to travel’s resiliency.

Both business and leisure sectors highly value travel. Companies recognise it as being vital to build relationships with existing and new customers, increasing market share and profit. Consumers consider travel a necessary break from everyday routine for enjoying time with family and friends and enriching their lives with new experiences.

A country like India, which has so much to offer, each sector, is in an advantageous position to capitalise on and cater to both. It will be important for hotels and travel intermediaries to strategically target domestic audiences and the highest potential feeder markets.

China, Brazil and Russia are countries with active outbound travel markets and so are certain portions of Europe such as Germany and the Scandinavian countries. With portions of the Middle East and North Africa still experiencing unrest, travellers considering these areas may be more easily swayed to make India their next meeting or vacation destination.

The travel industry has the fortitude for many players but never underestimate its competitiveness – the savviest marketers of hotels and destinations will rise up to the top.

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.)

India GDS & ADS Channels Combined — Recent 6-Month Trend

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 55

[F&B]

Singapore Lures Delhi Gourmet Travelling pop-up kitchen, Singapore Takeout on a world tour recently, visited New Delhi. As a part of the Singapore International Culinary Exchange (SPICE), a Singapore Tourism Board initiative, an event was organised in an effort to bring together Singaporean and Indian cuisine in a complementary fashion vis-Ă -vis dishes prepared by celebrated chefs from Singapore and India Megha Paul

O

ne mobile kitchen, nine cities, 10 chefs and 14 food brands on a 365-days gastronomic journey! With a variety of hawker centres and abundant seafood and fine dining restaurants, Singapore is a top culinary destination. And now you don’t have to fly down to Singapore to enjoy the feast.

For those who were unfamiliar with the sumptuous dining experience and the world of flavours of this city-state, Singapore recently came to India in the form of a travelling pop-up kitchen, Singapore Takeout on a world tour in an event held at the ITC Maurya. The event, which started its journey from London in 2011, has already travelled to six cities around the world before coming

(L-R) Chef Manisha Bhasin, Chef Benjamin Seck & Chef Rajkamal Chopra Randall Tan

56 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[F&B]

to its Indian venue in New Delhi. Part of SPICE, a Singapore Tourism Board initiative, the event was an effort to bring together Singaporean and Indian cuisine in a complementary fashion as dishes prepared by celebrated chefs from Singapore and India were spread out on a single platter.

Talking about the USP of Singapore Takeout, Randall Tan, Regional Director, South Asia, Middle East and Africa, Singapore Tourism Board remarked, “The finishing and plating of the dish took place out of the mobile kitchen, which took about four hours to set-up in each venue.

Most of the preparations were done in the back kitchens.” According to Tan, food establishes an instant connection between Indians and Singaporeans. Indian spices have tremendous impact on some of the Singaporean cuisines. “Culinary promotion is one of the best ways to promote tourism,” he added.

In each city, Singapore-based chefs worked with local chefs to present dishes inspired by Singapore’s flavours and ingredients. In the Delhi event, Singapore’s Chef, Benjamin Seck from

True Blue Cuisine, an award-winning restaurant serving Peranakan cuisine teamed up with Chef Manisha Bhasin from ITC Maurya and Chef Rajkamal Chopra from WelcomHotel Sheraton to bring out a selection of Singaporeinspired dishes to the city.

Regarding the fusion of Singaporean and Indian cuisine, Chef Seck said, “I have always been proud of my Peranakan heritage and of the diverse cultures in Singapore. Singapore Takeout is the perfect opportunity for me to share my Peranakan dishes with India and to also show how Singapore-inspired flavours and local ingredients can be incorporated into various cuisines.

On teaming up with Chef Bhasin and Chef Chopra he said, “It has been an enriching experience and it was good to see a positive appreciation of the food served amongst the discerning crowd.” Chef Seck’s best-selling dish, Nyonya Prawn Curry with Roti Jalal (lacy pancakes) and his vegan rendition of Popiah Goreng (deep fried spring rolls) were a hit with Delhiites.Keeping in mind that vegetarians form a large part of the

Indian population, Chef Seck included Popiah Goreng (fried spring rolls) and Hun Kwee Jagong (coconut corn jelly) in the menu. His version of Popiah Goreng had deep-fried spring rolls with cabbage and carrot filling, served with a piquant vinegar and sugar-based chilli dip, while Hun Kwee Jagong was a chilled, coconut corn jelly dessert made from green bean flour and wrapped in fragrant banana leaves.

Besides this, Indian chefs Bhasin and Chopra also presented two fusion dishes.

Laksa, a popular street food dish, is a spicy coconut rice noodle soup but Chef Chopra reinterpreted this traditional dish by incorporating it into Pulao, using Basmati rice cooked with French beans, laksa paste and Indian spices. The Laksa Pulao was served with spiced yogurt.

Chef Bhasin showcased Duet of Asian Inspired Antipasti, a dish featuring Scampi and Lemongrass Ceviche presented in a traditional Methi Dhania Papdi shell.

Chef Chopra recreated Laksa Pulao, which he had earlier been showcased during the Singapore Takeout launch in Singapore in April 2011.

FHRAI Magazine

february 2012 57

[Dine Out]

Daniell’s New Curve

58 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Dine Out] The popular dining place in the heart of the Capital – Daniell’s Tavern – in The Imperial New Delhi has gone for a new look and feel. But the restaurant doesn’t compromise on its evergreen approach to connect the past with the present in a sumptuous manner, giving a unique edge to this old world hospitality.

Sanjeev Bhar

T

he Imperial New Delhi has brought back many memories to the city denizen vis-à-vis Daniell’s Tavern which now showcases a Live Kitchen and a menu that revisits India from the eyes of Thomas and William Daniells. Vijay Wanchoo, Senior Vice President & General Manager, The Imperial New Delhi, feels that the restaurant has a position of its own, showcasing the unique journey of Thomas and William Daniells, the two famous Bristish landscape artists who set about experiencing the rich culture and tradition of India’s landmark locations in 1786. “It is difficult to measure its growth, as the restaurant is an epitome of Indian Heritage and stands for the art and cuisine that is so well researched and is linked beautifully to the history of ‘Hindoostan’.”

Wanchoo remarks that customers are fascinated by the spread at the restaurant that connects them to the journey of yesteryears. “We have a trained Sutradhar at Daniell’s Tavern,

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 59

[Dine Out]

Vijay Wanchoo

who is proficient in conducting art tours that guests find extremely interesting. Also, the fact is that the lithograph of Jantar Mantar was painted from the exact spot where Daniell’s Tavern stands, connects the guests even more deeply to the intriguing history of India.”

The new avatar of the restaurant presents a perfect amalgamation of art and cuisine and promises to give a new vision of the Indian subcontinent through the eyes of the artist duo, to both the inbound as well as domestic travellers.

The Changed Look

The makeover of Daniell’s Tavern is like a sharp turn not many diners would like to take. Yet, the novelty of the restaurant aims to retain its popularity and the connection that it has effortlessly achieved with all the gourmet lovers. “I have always thought of

60 FHRAI Magazine february 2012

making this place as authentic as possible since the restaurant reflects Indian heritage beautifully. To make this dream come true and to trace the footsteps of Thomas and William Daniells, through their journey in the 18th century India, I actually travelled to many of those regions where the Daniells had visited and personally understood the original flavours of each dish they had penned down in their diaries,” explains Wanchoo. This gave birth to a well researched menu with authentic flavours and a Live Kitchen to showcase the artistic efforts which went behind in making each dish.

But will the perception towards the restaurant take a hit

Visit FHRAI Website: www.fhrai.com

[Dine Out] The menu also includes Nawab of Oudh’s Pride (Bhune Murgh ke Parche), Shamiana Prawns (Sunheri Jhinga) and Benaras Special (Tandoori Phool). Clive’s Order (Kasundi Paneer Tikka), Viceroy’s Favourite (Chicken Chettinad) and Chingri Malai Curry (Bengali Prawn Curry) are other favourites.

Shahi Tudka, the dessert from perhaps the Nizam of Hyderabad, is an absolute must!

Stretching Food Relations

The restaurant is also taking forward its relationship with its loyal customer group. Regular visitors look forward to an unparalleled experience with a calm approach. Preparing the menu has also gone through rounds of testing & tasting and original recipes were brought from multiple regions of India where the Daniell duo travelled, suiting the taste of all age groups. “The menu has been a labour of love bringing forth not only the taste of India but the deep rooted history which I believe everyone would like to relish,” Wanchoo adds. He further says, “Our guests from USA, UK and whole of Europe along with other parts of the world love dining at Daniell’s Tavern and now, with the change we expect them to relish an exclusive dining experience offering delights from various regions of India.”

The hotel looks forward to a whole new journey drawing food connoisseurs from across the world at it is a re-discovered restaurant. “Thomas and William Daniell may have returned to England in 1794 but they have left behind a valuable collection of art, some of which is on display at Daniell’s Tavern which is a gem apart from the taste that stays on with the guests who dine with us,” sums up Wanchoo. due to this change? Wanchoo believes the perception will only be enhanced with this move as, “We have tried to create the restaurant’s new look as the most authentic pan-Indian heritage restaurant, reflecting the history of India at its best. The charm of the bygone era, through the cuisine and the interiors, becomes an unforgettable experience and leaves an everlasting impression on the mind,” he articulates.

Added Attractions

The Live Kitchen and the new menu have been incorporated such that it links them to Thomas and William Daniell and captures their journey through food. The Live Kitchen will allow the guests to watch the preparation of some of the finest regional fares from the epic journey. Wanchoo explains, “The menu being well researched and well thought of, presents a wonderful feast with strategic names from the landmark locations of India. For example, the East India Soup (Jehangiri Shorba) or Mulligatawny Soup (for vegetarians), are excellent orders before the actual gastronomic journey begins!” Other delights being promoted are Angrezi Sahib’s Choice (Kosha Mangsho), Burra Memsahab’s Favourite (Pepper Mutton) and Barrackpore’s Favourite (Mochar Ghonto). The Imperial New Delhi offers an ode to this journey and presents this exceptional tour in the form of art and cuisine to the diners at the Daniell’s Tavern.

When asked whether the same cuisine and taste would appeal to the present generation, Wanchoo remarked that the menu is authentic Indian cuisine which will appeal to everyone as it offers a broad range of delicacies from northern and western regions capturing the true essence of India. In addition these delicacies introduce the guests to the culinary heritage of the country, just while dining at the restaurant. The recipes earlier were also inspired by Daniell’s journey but they did not have the delicacies which they preferred and noted while tracing ‘Hindoostan’.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 61

[Chef Talk]

Simplifying Food Michael Swamy, chef from Le Cordon Bleu is a culinary professional trained in London. He has been associated with some leading food establishments.

The Michelin-starred chef recently unveiled his book titled, ‘East Indian Kitchen: The Enduring Flavours of Maharashtrian-Portuguese Fusion Cuisine’. He talks to the FHRAI Magazine and shares the deeper side of his culinary journey.

Sanjeev Bhar What was the lure behind writing a book on food that aims at connecting with people in a distinct manner?

What makes a chef stand apart from a writer is when he gives the readers something more to read than just recipes. People want to read and learn more about food. Internet, Discovery Channel, etc. have opened up new areas of exploration.

However, unlike television, books are tangible and create an aura whereby a reader can refer to them again and again. The fact that it is the first published volume on the subject of a cuisine that is 400 years old, makes one want to share it with the rest of the world.

Tell us more about ‘East Indian Kitchen’. Why has it been named so when the description suggests insights on Maharashtra-Portuguese Fusion Cuisine?

The book is about the regional cuisine of the Christian community of Mumbai, mostly coastal in nature. It is a fusion of Portuguese, British and Maharashtrian cuisines. It is different from the Goan traditions, which uses dried masalas instead of freshly ground masalas. The book covers the basic history of the community and their food.

The name was taken from The East India Company when the Christians in Mumbai (then Bombay) wanted to associate themselves with the British and not the Portuguese. Being very typically Maharashtrian in origin, they wanted to differentiate themselves from the Goans.

What has been your learning in becoming Le Cordon Bleu chef?

At Le Cordon Bleu, I was lucky to have had a bunch of Michelin star chefs teaching us. They groomed us to think out of the box and in ways to step out and be more than just chefs.

It was in London that I was introduced to the world of styling and food media.

62 FHRAI Magazine february 2012

The fact that one is recognised by Michelin and Zagat - two international bodies - means that the chefs have attained a level of perfection. They instil a sense of dedication and perfection as they teach various budding chefs.

Tell us about your journey as a chef and the process of relating to the psyche of people who relish food?

Having had the luck of travelling almost all my life, the journey has been an exciting one; especially when moving into the world of food media and food styling. I have worked with my team with different cuisines and with international chefs. One gains firsthand knowledge of a diverse range of cuisines. It is while interacting with these chefs and seeing what they create on both national and international levels that one sees what the customer wants.

Most customers actually want clean honest food and not some variation. Good clean presentation and value for money services.

What are the key characteristics that make the tasks of a chef interesting and challenging according to you?

One of the main characteristics is to be true to oneself and put the customer first and give them their money’s worth.

The ability to change and adapt is another vital ingredient for achieving success. One has to continuously read and try out new dishes to create trends. Being a chef is not just about cooking, it’s about perfecting the environment around the food; be it about staff, the restaurant, kitchen and hygiene. Most chefs have forgotten what it is to shop! They want everything to be delivered to them. Going to the market and checking what is seasonal, trying out new foods is a characteristic that makes the whole exercise worthwhile in the making of a chef.

As a writer, how have you perceived the food world around you?

The food world is exciting and demanding. As a writer one can

Visit FHRAI Website: www.fhrai.com

[Chef Talk] bring to the readers a sense of excitement, belonging and discovery.

By trying not to be repetitive one can give readers a different perspective between great fare and regular mundane fare.

Which company are you associated with in India?

How would you describe your role as a corporate chef for a company vis-à-vis that of an executive chef in a hotel?

Currently I am associated with Masterchef India and Junoon Hospitality which is run by Chef Vikas Khanna and their Indian Projects. I used to be the Corporate Chef with The Bowl House which offers Asian food and has six restaurants across India. I am also associated with the Hyatt, Marriott Hotels, The Lalit and several food companies like Kellogg’s.

Being an Executive Chef of a hotel is no big deal. Those chefs have the managerial staff behind them as their backbone and in the end it is the hotel that stands out and not the chef.

The challenge is in stand-alone restaurants. Chefs from standalone restaurants have the freedom of creativity and control and most great chefs who have earned Michelin and Zagat status have come from stand-alone establishments.

As a corporate chef one is more involved in creativity and culinary branding rather than the daily operations of a hotel.

You had been associated with a TV show fairly recently. Do you think that food has really gone over the top as a business/commercial angle or has it retained its simplicity, even in this 24x7 media glare?

In Masterchef India, I and my team handled the entire food angle for Masterchef India for both the seasons. From ideating to conceptualising to grooming the judges and teaching them about international and regional cuisines, was an interesting experience. I believe, food has certainly gained in importance and new concepts like Molecular Gastronomy etc. have surfaced with time. It is simple food that will always remain as a mainstay.

How do you compare the standard of culinary excellence in the two worlds – India and the West?

India has a long way to go with respect to the culinary excellence.

In the west culinary training takes place in an institute or the chefs work their way to the top. Most of our graduates join the industry as Commis De Partie and so they don’t gain a thorough grounding in the basics. Another problem is that the staff in restaurants come from the working class, who are usually uneducated and don’t treat food with passion.

Chef’s Choice Duck Moile Ingredients: Duck 1 kg Ghee/oil 4-6 tbsp Onions 2 (sliced rings) Garlic flakes 12 (sliced in fine julienne) Ginger 1” piece (sliced in fine julienne) Green chillies 6 (sliced in fine julienne) Bottle masala 2 tbsp Chicken stock 750 ml Brown palm vinegar 60 ml Salt 1 tsp Black pepper powder 1 tsp Method: • Wash the duck and cut into 16 pieces • In a pan, heat oil and sauté onions over moderate heat, till golden brown • Add garlic, then ginger and chillies and sauté till fragrant • Mix in bottle masala and fry well, till ghee/oil separates from it. Sprinkle in a little water if required, to prevent burning • Add duck and fry on high heat to seal the pieces. Stir for 5 minutes before adding the stock • Bring to a boil, lower heat and allow it to simmer for 1 hour • Add vinegar, salt and pepper in the last 5 minutes of cooking • Serve hot with crusty bread or steamed rice • Variation: Use chicken in place of duck Serves: 4 – 6

What are the latest trends in global cuisine and how is India contributing to it?

It’s just a handful of chefs who are making a change. The best of chefs are going abroad and making changes and a name for themselves. Only a minor percentage are coming back to change the style of Indian food. In order to become a global need, Indian food must get a complete makeover. Indian chefs are now working with Molecular Gastronomy a concept that had dwindled away. In terms of trends, we are always a step behind. We need chefs to stand out and create trends and not just follow them.

Heston Blumenthal is now working on Victorian food.

Chefs should take a break to travel, discover new food trends and incorporate it in their style. This style however is again to present simple food. Chef Saby of the Olive Delhi and Chef Vikas Khanna are the two Indian chefs who are trend-setters in cooking in India as well as abroad.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 63

[Taxation]

IT Deduction from Salary Income Subhash Lakhotia Tax and Investment Consultant Director, M/s. R.N. Lakhotia & Associates & The Strategy Group

The importance of Circular No. 5 can guide through the various facets of tax deduction of Salary Income.

F

or salaried employees, every year the Government of India issues a detailed circular which gives salient features relating to tax deduction at source on Salary Income. Yet, there is a Circular No. 5 dated August 16, 2011, which has been issued by the Central Board of Direct Taxes. I would suggest that every salaried employee must have a detailed look at this circular, which will guide about all aspects connected to the taxation of Salary Income. For the benefit of all, I may inform here that some of the salient features contained in the said circular are with reference to employment with more than two employers during the year. For this purpose, the circular provides that the present employer may be given full details of the previous salary and the previous employer together with previous TDS. Then the new employer will add and accordingly deduct tax thereon.

Likewise, while claiming deduction of house property interest loss, the salaried employee should give a statement of computation of loss and a statement of verification. The ‘Form of Verification’ which is just one line has also been printed in the circular; it states – ‘I, …(name)..., do declare that what is stated above is true to the best of my information and belief ’. The employee can also ask the employer to deduct the tax on his other income.

64 FHRAI Magazine february 2012

The new Circular No. 5 issued by Central Board of Direct Taxes contains exhaustive details with respect to House Rent Allowance (HRA) for salaried employees and claiming it from the employer A question also arises whether a salaried employee is entitled to any tax deduction from his Salary Income or not?

Circular No. 5 of Central Board of Direct Taxes also clearly states that tax on employment or professional tax as we call

Visit FHRAI Website: www.fhrai.com

[Taxation] The Circular No. 5 speaks in greater details about the condition to claim deduction of interest on borrowed capital for computation of the income from house property it, will be allowed as a deduction in computing the income of the employee under the head - Salary Income. It may also be noted here that standard deduction, which was earlier available to the employees from their Salary Income is not allowed now, as the same has been discontinued.

The new Circular No. 5 issued by Central Board of Direct Taxes contains exhaustive details with respect to House Rent Allowance (HRA) for salaried employees and claiming it from the employer. According to the circular, HRA will be exempted on being minimum of the following cases:

1, 1999, the deduction with respect to interest on borrowed capital will be allowed as a deduction to the employee with respect to the residential house property to the extent of `1,50,000. The salaried employees will be happy to note that such loan for residential house property can be taken from any person and the details of the interest should be submitted to the employer to avail the tax benefit right from the employer. The various tax deductions which are permissible to the employee, like any other tax payer, will also be granted deduction by the employer. In regards to deduction under section 80G with respect to donation, etc. paid by the employee, according to the circular the deduction on the donations, which are admissible as a deduction as per section 80G of the Income Tax Act, will have to be claimed by the tax payer in return of income.

However, only in cases where donations are made to the Prime Minister’s National Relief Fund, Chief Minister’s Relief Fund, etc. the tax deduction may be granted by the employer.

Circular No. 5 issued by the Central Board of Direct Taxes is an exhaustive circular which speaks about the computation of different types of perquisites. It also speaks in clear terms about the various tax deductions and exemptions to be granted to the employee and as such the contents of this circular will be really very important to the employees as well as employers. If you desire to have a study in greater details the contents of this circular, then visit www. incometaxindia.gov.in

• Actual amount of HRA received • Excess of rent paid over 10 per cent of the salary • 50 per cent of the salary in Kolkata, Mumbai, Delhi and Chennai towns • 40 per cent of the salary in other towns of India Moreover, the circular states that if the employee is staying in his own house, in that event he will not get any deduction from HRA received by him. Likewise, it is clearly mentioned in this circular that the employer should be satisfied about the expenditure incurred on the payment of house rent by insisting on production of evidence of actual payment of the rent before granting deduction from HRA. The employees will be happy to note that according to this circular junior employees, where they draw HRA up to `3000 per month, may be exempted from production of the rent receipt. This has been done to do away with administrative problems.

Whenever the salaried employee receives salary in arrear or in advance, he is entitled to claim relief in terms of section 192 of the Income Tax Act, 1961. Circular No. 5 clearly states that to avail the benefit of tax relief in terms of section 89 the salaried employee may furnish to his employer, particulars in Form No. 10E with respect to arrear salary received, etc. for which the employee desires relief in terms of section 89 of the Income Tax Act, 1961. After receiving the filled up Form No. 10E the employer will grant the relief in respect of arrear salary, etc.

The Circular speaks in greater details about the condition to claim deduction of interest on borrowed capital for computation of the income from house property.

The details clearly help the salaried employees to go ahead and claim their tax deduction with respect to ‘interest on the borrowed capital from the employer’ itself. It may be mentioned here that only when the loan is taken after April

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 65

[Movements]

Movements Dr. Manjula Shettigar Spa Manager Goa Marriott Resort & Spa

Dr. Manjula Shettigar has been appointed as the Spa Manager at the Goa Marriott Resort & Spa. She has varied experiences as a Duty Doctor and a General Practitioner. Subsequently she joined the Park Hyatt Goa Resort and Spa as an Ayurvedic Doctor (Assistant Spa Manager), which was awarded ‘World’s No.1 Spa’ among other accolades. Her last assignment was that of Assistant Spa Manager at Hyatt Regency Pune in June 2010.

Anurag Bali Executive Chef Fairmont Jaipur

Jasmeet Chowdhary Director of Sales & Marketing Fairmont Jaipur

Jasmeet Chowdhary has been appointed as the Director of Sales and Marketing, Fairmont Jaipur. She has over 15 years of experience in the hospitality industry. In the launch phase of the present assignment, she is responsible for ensuring revenue management, targeted sales and marketing efforts towards achievement of specific objectives and operational goals for Fairmont Jaipur.

She is entrusted with a myriad scope of work in her current profile, from talent enhancement, selection of team members, training and guidance to pricing strategy by segments, sales process, fostering a co-operative work environment, maximising productivity and implementing brand initiatives.

Chowdhary, prior to joining Fairmont, has worked with The Leela Palace Kempinski, Udaipur as Director of Sales & Marketing. She began her career as Guest Relation Executive with Park Royal, New Delhi. She has also been associated with brands such as The Oberoi, New Delhi, The Claridges, New Delhi and The Bass Hotels & Resorts, New Delhi.

66 FHRAI Magazine february 2012

Anurag Bali has been appointed as the Executive Chef of Fairmont Jaipur. In his current role, he will be overseeing the culinary operations at the hotel. A graduate from the Institute of Hotel Management in New Delhi and an alumnus of Culinary Institute of America New York, he is a specialist in Italian and Spanish cuisines. Bali has a decade long professional experience in this field whereby he worked all across India including the Taj Group, The Claridges and Berggruen Hotels. Over a period of time he has set-up six restaurants across cities including two award-winning establishments.

In his previous assignment as Director F&B for Svenska Hospitalities - a Swedish boutique luxury hotels brand, he established and oversaw the F&B operations for two of the groups’ hotels. He was involved in developing the brands such as (Berggruen Hotels’ Keys Hotels and Svenska Hotels). He has been featured on the ‘FoodFood channel’ as one of the celebrity Indian chefs on their various shows. He is also the Anchor Chef for an Indian version of the popular television series ‘Ready Steady Cook’ a format owned by Endamol shot in over 17 countries.

Shrikant S Wakharkar General Manager The Grand New Delhi

The Grand New Delhi announced the appointment of Shrikant S Wakharkar as the GM of the property. Prior to joining The Grand, Wakharkar was the GM at InterContinental The Lalit Goa Resort, Goa. In his capacity as the GM, Wakharkar will be responsible for overseeing and implementing high operational standards at The Grand, which is situated in Vasant Kunj and is a sought-after property for organising conferences, seminars and social functions.

Wakharkar has more than 20 years of experience in operations and standards, business forecast and marketing, guest relations and community outreach, staffing and human resources. He has also worked as Resident Manager of Taj Samudra Hotel, Colombo, Sri Lanka, F&B Manager of the Taj President, Mumbai and Assistant F&B Manager of Taj Mahal Palace & Towers, Mumbai.

Visit FHRAI Website: www.fhrai.com

[Movements] Atul Lall General Manager Fairmont Jaipur, India

Atul Lall joined as the GM of Fairmont Jaipur which is the first property of Fairmont Hotels & Resorts in India. In his new role, Lall’s focus will be to manage the opening of this new hotel, which is being positioned as a gateway to the brand’s landmark in the Pink City of Rajasthan. He will oversee the entire operations and overall performance of Fairmont Jaipur.

Lall has worked at Gleneagles Hotel in Scotland and has held a series of progressive positions in the United Kingdom, Singapore, Maldives and India with brands including The Oberoi Hotels & Resorts, Taj Hotels, Palaces and Resorts and The Claridges, New Delhi. In his previous roles he has been responsible in the opening of luxury properties of The Oberoi and Taj Group. He joined Fairmont from his former position as the Director & COO of Keys Hotels.

Lall has a degree in Major in Economics & Commerce from Bombay University, Elphinstone College and went on to study Global Hoteliering at the Queens University Ulster, United Kingdom. He further attended the Executive Education Management Program at IIM – Bangalore and the Advance General Managers programme conducted by Cornell University School of Hotel Administration.

Scott Thomson General Manager Hilton New Delhi-Noida-Mayur Vihar and DoubleTree by Hilton New Delhi-Noida-Mayur Vihar, India

Scott Thomson has been appointed as the General Manager of Hilton New Delhi-Noida-Mayur Vihar and DoubleTree by Hilton-New Delhi-Noida-Mayur Vihar; two upscale full-service hotels operated by Hilton Worldwide, conveniently located in proximity to the industrial and commercial hubs of East Delhi and Noida in India.

Samir Sengupta Director of Security The Westin Gurgaon

Westin Hotels & Resorts announced the appointment of Samir Sengupta as Director of Security at The Westin Gurgaon. In this role, Sengupta will be responsible for developing and implementing security strategy to ensure compliance with hotel security initiatives for effective guest security.

Sengupta comes with over a decade’s experience of working with some of the best hospitality brands such as Taj Hotels, Resorts and Palaces and InterContinental Hotels Group.

He is an avid cricket and soccer fan and is also passionate about travelling and listening to music..

Thomson brings with him extensive experience with a career that spans more than two decades in the hospitality industry and includes positions in New Zealand, Australia, Hong Kong and India. He was previously the pre-opening General Manager of Langham Place, Koregaon Park, Pune, the company’s first property in India. Prior to that, he managed Langham Place in Mongkok, Hong Kong, for two years and The Langham Auckland inAuckland, New Zealand, for almost three years.

This was preceded by stints with Grand Hotels International, Park Royal Queenstown and Auckland, New Zealand and The George Christchurch, New Zealand.

Michael G. Singh General Manager Aditya Sarovar Premiere

Aditya Sarovar Premiere has recently announced the appointment of Michael G. Singh as the General Manager of the hotel. His responsibility will be to ensure efficient and effective operations in all areas of the property specially department goals, budgets and financial planning for the hotel.

Along with his team, Singh will ensure the maintenance of high quality standards, complete hospitality check, performance check and brand standard audit. He will be responsible for delivering strong business results through optimising profitability, cost control and increasing revenue. He has been appreciated and acknowledged for his strong acumen in budgeting and financial planning which is backed with proven records in increased efficiency of high hospitality standards and reduction of cost.

He has 13 years of experience across diverse areas in hospitality management ranging from F&B, rooms operations, systems installations and front office management.

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 67

[Events]

RCI hosts unique ‘Shared Ownership’ conference in Mumbai, India RCI, the global leader in vacation exchange and part of the Wyndham Worldwide family of companies, hosted the ‘Shared Ownership’ conference at JW Marriott, Mumbai. The primary objective of the conference was to help the audience discover the key to turning assets into opportunities as it delves into the ‘Shared Ownership’ industry in detail. The conference covered key topics including the benefits of ‘Shared Ownership’ and how it can be successfully integrated into leisure real estate developments.

Geoff Ballotti

Radhika Shashtry

The day-long conference received an overwhelming response and proved to be an essential forum for hoteliers, resort owners, real estate developers, investors and hospitality consultants to help them understand and explore the benefits of ‘Shared Ownership’. Emphasis was laid on the ways in which it can be successfully integrated into leisure real estate developments to maximise the revenue potential of available assets.

“RCI was early to advance the case for timeshare development in India,” said Geoff Ballotti, CEO, RCI. “And the tremendous success that RCI’s affiliates have experienced across the country over the past 20 years, confirm the opportunity for all developers of real estate to explore the many benefits that ‘Shared Ownership’ has to offer. Our operations, marketing and business development teams in our offices across India remain more committed than ever to help our developers capitalise on the significant demand for their vacation offerings and services that is growing in India today.”

The Imperial, New Delhi takes the trophy home in an interesting match against Viceroys XI After a successful victory at the Inter-hotel Cricket Tournament 2011, taking home the FAAR trophy, The Imperial partnered with the Viceroys XI team for yet another round of interesting batting. The Imperial batting first, won by 111 runs making 277 runs in total consuming 30 overs. With the captain of the team, Vijay Wanchoo, Sr. Vice President & General Manager at The Imperial taking 4 wickets, victory came running on the pitch, to The Imperial team. The match was played against Viceroys XI team which is a group of expatriate cricket enthusiasts in Delhi with an eclectic mix of the Australians, Englishmen, Americans, Irishmen and Scots and has a track record of giving their opponents a run for their money.

Wanchoo soulfully expressed his views post winning the match, “It’s an exhilarating moment for all of us. Our victory has re-established the potential of The Imperial team against such strong teams. I am overjoyed with this win and thank my team members for all their effort and dedication shown towards winning a rather difficult match and also feel extremely proud to lead a team which is full of achievers and aspirers.” He further added, “I am sure The Imperial would win many more of such matches in future with a winning team at hand.”

The Imperial showed one of its best performances on the pitch and gave a tough target to its counterpart and ultimately, trampled Viceroys XI team winning by 111 runs striking the cord in a jubilant way with one of the team members scoring 140 runs enabling to bag the trophy.

68 FHRAI Magazine february 2012

Visit FHRAI Website: www.fhrai.com

[Events]

JW Marriott Mumbai celebrates Republic Day JW Marriott Mumbai celebrated the fervour of Republic Day along with the decade of its inception in January 2002. Completing 10 years of a successful relationship with the city, JW Marriott Mumbai demonstrated their commitment to the community as associates from JW Marriott Mumbai organised a gala event for the young children from Cancer Patient Aid Association (CPAA) as a part of the deeply instilled Marriott ‘Spirit to Serve programme’.

The grand function was held at Enigma for children from the CPAA who were accompanied by their parents. To celebrate their childhood and innocence, associates from various departments of the hotel had come together to participate whole-heartedly in this initiative and engage the little ones in fun-filled activities. The children were kept engaged in various activities like singing songs from various Hindi movies, dancing to latest tunes, musical chairs, etc. followed by an interactive cupcake making competition where the kids adorned with chef caps, used their creative skills in decorating ready-made cupcakes with a variety of toppings.

The senior management team of the JW Marriott that participated in the event included, Thomas Guss, General Manager, JW Marriott Mumbai along with wife Anne Guss, Dharam Reshamwalla, Director of Finance, JW Marriott Mumbai, Divyangana Srivastava, Director of Human Resources, JW Marriott Mumbai, Hema Hariramani, Director of Sales & Marketing, JW Marriott Mumbai and Ravneet Arora, Director of Sales, JW Marriott Mumbai and Vineet Mishra, Director of Operations, JW Marriott Mumbai.

‘The East India Kitchen’ book by Le Cordon Bleu Chef Michael Swamy unveiled Food connoisseurs came together to celebrate the glory of Eastern cuisine at the launch of the book, ‘The East India Kitchen’ by Chef Michael Swamy’s of Le Cordon Bleu, in Zambar, New Delhi earlier this month. The book cites the fusion of Maharastrian and Portuguese cuisine, which when clubbed together results in a combination that is unique and delectable at the same time.

Chef Swamy said, “It was an honour to be in Delhi for the launch of the book. I was quite enamored by the turnout of people and had a wonderful time. The hospitality at Zambar was excellent and the food delivered by them was fantastic. It is my aim and goal to see Indian food reach an international level.”

Capturing the very best of the eccentric cuisine from the East Indian region, the book showcases a variety of rich and colourful recipes inspired from the fascinating culture. On unveiling the book, Amit Burman, Chairman, Lite Bite Foods said, “The release of this book is a moment of great pride for the Indian culinary circuit and we believe that the East Indian cuisine that has been under shadows until now would be elevated by this launch. It gives us immense pleasure to host an East Indian food festival at Zambar in lieu of celebrating this unique fusion cuisine.”

Visit FHRAI Website: www.fhrai.com

FHRAI Magazine

february 2012 69

[Events]

Taj Hotels Resorts and Palaces supports DEEDS by participating in the Standard Chartered Mumbai Marathon 2012 A 75-member contingent from the Indian Hotels Company ran for a cause for the third consecutive year. On January 15, 2012, Raymond Bickson, Managing Director of the company, commenced the dream run with the Taj team to support DEEDS (Development, Education, Empowerment of the Disadvantaged in Society) – an NGO that works with the hearing and speech-impaired patients, the Taj group has contributed over 6 lakhs to DEEDS. Hoshedar Batilwalla, Chambers Manager, The Taj Mahal Palace and Rustom Vesavevala, Vice President Learning & Development at Indian Hotels completed half marathon working towards volunteering for noble causes.

Speaking on the occasion, Bickson said, “Taj Hotels, Resorts and Palaces upholds the Tata ethos of giving back to the community through ‘Building Sustainable Livelihoods’ for less- (or under) privileged youth and women. Participating in the Standard Chartered Marathon was a matter of pride for us. Our causes include promoting employability of youth through hospitality skill Shekahar Bhargav, EVP, Royal Orchid Hotels receiving the trainings, reducing malnutrition, promoting indigenous artisans, award from the Union Power Minister Sushil Kumar Sinde craftsmen and local enterprise. Taj team’s participation in the Standard Chartered Mumbai Marathon to ‘Walk an Extra Mile’, was another one such initiative that focusses on giving back to the less fortunate.

DEEDS vision is to enrich and improve the quality of life of over 10,000 hearing impaired people by 2013, in an effort to make them financially self-reliant and proud contributors to society. In the last two years, Taj’s social responsibility theme of ‘Building Sustainable Livelihoods’ has reached out to more than 100 differently-abled candidates. Taj also helps youth from underprivileged and marginalised sections of society to gain employment in the hospitality industry by training and recruiting them in skills such as housekeeping, F&B service and bakery. Taj Hotels Resorts and Palaces is committed to this cause and continues to work towards reducing the impact of their daily operations on the environment by improving operational efficiencies, resource conservation and enhanced use of renewable resources.

70 FHRAI Magazine february 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 12-02-2012