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Volume 3. Issue 11. December 2014. Rs 50

ALL ABOUT HOTELS & HOSPITALITY

Chandigarh â&#x20AC;&#x201C; developing as a business destination Ă&#x2013;disha tourism needs big promotional push Future trends in Indian food business Industry pleads with FSSAI to be more accommodative Finest quality, best pricing top priority for hotels; feel vendors

MICE and leisure travel continue to be top draws in attracting Forex

Visa on Arrival brings new hope to tourism industry

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EDITORIAL

Volume 3 Issue 11 DECEMBER 2014

EDITOR’S NOTE

a cross section publication

Volume 3. Issue 11. December 2014. Rs 50

ALL ABOUT HOTELS & HOSPITALITY

Chandigarh – developing as a business destination Ödisha tourism needs big promotional push Future trends in Indian food business Industry pleads with FSSAI to be more accommodative Finest quality, best pricing top priority for hotels; feel vendors

MICE and leisure travel continue to be top draws in attracting Forex

Visa on Arrival brings new hope to tourism industry

ALL ABOUT HOTELS & HOSPITALITY

Editor: Navin Berry

Managing Editor: Priyaanka Berry priyaanka@crosssectionmedia.com

Features Desk: Shashank Shekhar shashank@crosssectionmedia.com Advertising: Saurabh Shukla saurabh@crosssectionmedia.com

Design: Ashok Saxena, Neelam Aswani Circulation: Chandra Tamang HotelScapes is published and printed by Navin Berry, printed at Anupam Art Printers, B-52, Naraina Industrial Area, Phase II, New Delhi - 110 028 and published from 36-37, 3rd Floor, Indra Palace, H-Block, Connaught Place, New Delhi - 110001. Editor: Navin Berry, Tel: 91-11-43784444; Fax: 91-11-41001627. E-mail: info@crosssectionmedia.com This issue of HotelScapes contains 56 pages

These are interesting times for the industry. The lull in the market is, finally, paving way to some visibility of green shoots – thanks to a, mix of, international circumstances and some initiatives by the government. From the announcement of Electronic Travel Authorization (ETA) for a number of countries to the ‘Make in India’ and ‘Swachha Bharat’ campaign, India is generating a new found interest and optimism. This optimism is shared by the newly appointed Chairman, WTTCI, who speaks with us on the trends and possibilities in tourism in the days to come. Incidentally, Manav Thadani is also the chairman of HVS Asia. While, Raj Rana, CEO, Cartzon Rezdor Hotel Group, delves on the evolving status of hospitality and gives us a better understanding on how the mid-segment markets will lead the consolidation in the times ahead. We focus on Chandigarh, which is fast gaining popularity as a MICE destination and engage with industry insiders to get a bird’s eye view of the progress on the city’s hospitality scene. Another destination that we cover this month is Odisha, where there has been progress but there is so much more to accomplish to make tourism a viable industry. Observers have often complained about Odisha, not being aggressively promoting its tourism offerings and here having an annual travel mart could be the possible game changer. We also speak with a number of hoteliers on how the recently announced ETA has the potential to, not only, increase the tourist inflows but also help hotels gain a better footing in newer territories. Forex, too, is integral to tourist inflows and remains an important indicator of hotel’s reach in the international markets. We bring you the strategies that come to play for hotels in their pursuit for forex earnings. It’s fashionable, these days, to try new recipes, tweak old ones and create fusion. However, are we going overboard with our efforts to create new and in the process deviating from the norms? This question was posed to an esteemed panel of chefs seeking their views on the same, at a recent culinary forum meet in the city. Continuing on food, we also raise the issue of food-adulteration and FSSAI’s role and effectiveness in its regulation. While, we may debate food and beverages, service and pricing from an hotelier’s perspective but giving a thought to the supplier’s perspective on the business remains essential for a holistic understanding of the economics of the industry – we bring you a story on this aspect with a number of regular features and new information. We trust you find this issue interesting, thought-provoking and an informative one. Happy Reading

December 2014 • HOTELSCAPES 3

this issue In the news

8 ARK – the new lounge-bar

at Courtyard by Marriott Mumbai International Airport

10 Bird Group launches “Above Ground Level Lounges” at Kempegowda International Airport, Bangalore

Economics

26 MICE and leisure travel

continue to be top draws in attracting Forex

Destination India

30 Industry upbeat on ETA,

expects better tourist inflows and business ahead

12 Fortune Park Hotels unveils Moksha at McLeod Ganj

34 Ödisha tourism needs big

12 India’s first Hard Rock Hotel to come up in Goa

Food

In Conversation

14 ‘Value for Money’ with high level product remains the key to success

Interview of the Month

16 India poised to become top choice destination

One-on-one

18 Upturn round the corner in the hospitality business

promotional push

36 Possible Future Trends in Indian Food Business

38 Leading chefs discuss

the importance of recipe standardization

40 Industry pleads with FSSAI

to be more accommodative

Corporate Travel

20 Chandigarh – developing as a business destination

GM Speak

24 Accor debuts in North Goan market with Grand Mercure Sherm Resort

4 HOTELSCAPES • December 2014

Supplier Perspectives

42 Finest quality, best pricing top priority for hotels; feel vendors

46 Products 48 Events 50 Movements in the

industry

Hospitality in the news 53 Hospitality industry breathes a sigh of relief as HC postpones liquor ban

Last Page

54 SC quashes ban on

smoking Hookah, relieved industry hopes for better business

IN THE NEWS

ARK – the new lounge-bar at Courtyard by Marriott Mumbai International Airport

ourtyard by Marriott h a s , n o w, a l a t e s t addition to its F & B outlets and come forth with a concept of a n exclusive bar. The 70 seat high energy bar with distinctive elixirs, exhilarating music and a wide array of wonderful cuisines in a vibrant setting, provide a fantastic experience. Elaborating further on the launch of ARK, Vikas Kapai, General Manager, Courtyard by Marriott Mumbai International Airport said, "Keeping in mind the versatile audience that Mumbai houses, we decided to introduce an exclusive Bar at our hotel. Our aim is to give Mumbai a nightlife destination located in the heart of the city that caters to party goers as well as transit passengers as we are located in close proximity to the International Airport. The city enjoys a great nightlife and ARK with its launch looks at upping

the ante as far as bars in the city are concerned."

F&B

ARK houses a rack of collector edition wine and happens to be the only bar in North Mumbai to serve delectable craft beer. The signature beverages include a col le c t ion of mole c u la r cocktails and ARK signatures. Bar specialty snacks from across the world like the beer brat, fish and chips and Philadelphia stuffed mushrooms are a part of the AR K's menu and are the perfect accompaniment to be savored with the signature cocktails.

Ambience and Design

Nestled on the ground floor of the hotel, ARK spells class and is an architectural delight. With a 70 seater high energy bar, it provides an unparalleled experience to its guests. The design is a fusion of colonial

8 HOTELSCAPES • December 2014

styles and contemporary décor with the focal point being a dramatic media wall consisting of 9 LCD television sets and a collector's edition wine rack. The color palette comprises of deep browns and flaming gold with a brick wall at the bar section- which gives the bar a rustic look. The bar interiors are made up of Italian marble finishes, rustic wooden floors, and sleek textured fabric sofas. While, the lighting of AR K plays off the walls and ceiling to accentuate the space. Cove lighting has been used in the private dining area as well as raised areas to enhance the experience.

Music

The music played at ARK is planned by a designated music stylist, ranging from EDM, commercial and trance to new age and current music. The central portion of the bar, also,

MEET THE TEAM GENERAL MANAGER

Vikas Kapai

EXECUTIVE CHEF

Chef Suresh Thampy

doubles to a dance floor as the evening progresses. The bar will also host weekly nights every Monday, Wednesday & T hu r s d ay de d ic a te d t o different genres of music and live events. The service style at ARK is transitional keeping in mind the lounge to high energ y transition that will take place. An enticing ambience along with a well-stocked bar thus, makes it an ideal venue for living it up or a place where you can lighten up with a few drinks over a conversation with your friends. Daily Hours: 7:00 PM- 1:00AM For Reservations, Contact: +91-22-61369999. HS

IN THE NEWS

Bird Group launches “Above Ground Level Lounges” at Kempegowda International Airport, Bangalore

Highlights of Above Ground Level ◗ Easy access to the lounges. Pay & use facility available. ◗ Wide selection of buffet depending on the hour of the day. ◗ Beautifully crafted interiors based on the historic Vijaynagar Empire (Hampi) in domestic and the twinkling sky dome in international lounge ◗ Three separate dining experience at the domestic lounge

he The Bird Group has announced their foray into airport lounges under the brand name “Above Ground Level”. The first two lounges are situated in the international and domestic terminals of Kempegowda International Airport (KIAL), Bangalore. As the name suggests, Above Ground Level signifies the sensuality of feeling free representing young, eccentric and hip lounge-where you are guaranteed to experience a feeling of peace, while indulging in the various comforts of the lounge. Spread across over 13,000 square feet, with over 250 comfortable seats at domestic terminal and 4,445 square feet at international terminal, Above Ground Level Lounges will play host to around 1415 million passengers passing KIAL annually. Located on the mezzanine level of domestic terminal and level 1 of the international terminal, it is designed to combine elegance and comfort with quality and innovation--With comfortable and plush seating bringing forth an unparalleled premium airport experience including a fully equipped business centre. The domestic lounge features three separate dining experiences with an array for the guest, of choices of specific cuisines for each meal and one does have to be content with a set menu for the whole day. To cater to the needs of the travellers on the go, take away meal concept will also be introduced shortly. The presence of a glass façade to the kitchen gives the patrons a sense of confidence and comfort about the way their food is being

10 HOTELSCAPES • December 2014

cooked. Rajat Maharishi Chief Operating Officer Bird Catering and Lounges Pvt. Ltd. says, "Our lounges in Bangalore will definitely bring a whole new level of comfort and convenience to travellers. Improving passenger experience has always been the key driver of Bird Group. The lounge is designed with seamless flexibility to allow guests to revitalize their mind, body, and spirit, as they relax in the plush comfort of an especially designed seating systems and beautifully fashioned interiors”. Above Ground Level Lounges are amongst the unique genre of airport lounges being a pay and use proposition. The lounges provide amenities and services to rejuvenate your senses with, both, the lounges equipped with magnificent bar and re-charging stations for laptops, mobiles, iPads & gaming consoles at most seating point. The domestic lounge blends cutting-edge interactive design and art in a contemporary interpretation of the Ramachandra Temple and the Mahanavami Platform, Hampi, state of Karnataka a part of the historic Vijaynagar Empire. The lounge also boasts of an array of foreign liquor brands suitable for everyone’s palate. So when you are flying out of Bangalore on your next visit, make sure to visit the unique lounges at domestic and international terminals for an enchanting experience. Spectacular food and beverages, serene environment and best in class hospitality will leave you with a remarkable experience for sure. HS

IN THE NEWS

Fortune Park Hotels unveils Moksha at McLeod Ganj

ortune Park Hotels Ltd., has expanded its bouquet of hotels with the opening of the brand’s 43rd hotel, ‘Fortune Park Moksha’ in McLeod Ganj. Nestled in the scenic Strawberry Hills and surrounded by a thick cover of pine trees with beautiful v iew of the snow- capped

Dhauladhar mountain range, it is conveniently located just 6 km from the town’s main square. O w ne d by M/s Mok sha Health Resorts, Fortune Park Moksha provides an ideal retreat to travellers looking for leisure and peace. The hotel offers easy access to all main tourist attractions in

and around McLeod Ganj, the picturesque Himalayan town known for its natural abundance, forming a perfect backdrop to a stay in the lap of nature. Commenting on the launch, Suresh Kumar, Chief Executive Officer, Fortune Park Hotels Ltd., said, “We are extremely happy to announce our 43rd property, Fortune Park Moksha in McLeod G a nj . S i nc e i t s i nc e p t i o n , the For tune Hotels cha in has provided contemporary accommodation and great value for business and leisure travellers. With the launch of this hotel, For tune Hotels has fur ther strengthened its position in the leisure segment.” The guest rooms at Fortune Park Moksha are spread across three blocks, each with its own charm. 59 well-appointed rooms include 36 Standard Rooms, 20 Fortune Club Rooms and 3 Suites. All the rooms have been done up in contemporary design and are equipped with a range

of modern amenities. Amenities include room service, Satellite LCD TV, Hi-speed Wi-Fi internet connectivity, Working desk, Direct dial STD/ ISD, Electronic safe, Mini bar, Tea/ coffee maker, Iron and ironing board, Hair dryer and Daily newspaper. The hotel also offers stateof-the-art meeting and banquet facilities that can accommodate up to 175 guests. The dining options at the hotel include Orchid – a multicuisine restaura nt of fer ing 3-meal buffets and all day dining, Neptune bar that serves some of the finest premium spirits in a relaxed atmosphere and Fortune Deli featur ing light snacks and sumptuous confectionery. Other offerings at the hotel include a Wellness Centre with a Swimming Pool, Spa and a well-equipped Gymnasium and Champion’s Zone that offers a range of recreational facilities. For more information visit www.fortunehotels.in HS

India’s first Hard Rock Hotel to come up in Goa

ard Rock International has announced Hard Rock Hotel Goa, the first of its kind in India. Projected to open in March 2015, the 135-room property will offer worldclass entertainment, stylish design, unparalleled service and Hard Rock’s differentiator – music. The hotel is in close proximity to the area’s famed beach that attracts an influx of international and domestic travelers year-round. Boasting a central location, just 22 miles from Goa International Airport, and the property is easily accessible for travelers visiting the region. The hotel will entice locals and worldly travelers with unparalleled live music performances and unique amenities, such as The Sound of Your Stay®, the brand’s all-encompassing music amenity program. The boutique property will feature traditional offerings, including a premium three-meal restaurant, room service, openair pool and outdoor courtyard area, complemented by a poolside bar and grill. “The Hard Rock Hotel Goa will be located in a destination rich in culture and entertainment, and sharing the same vibrant, free spirit of the Hard Rock brand,” said Hamish Dodds, chief executive officer of Hard Rock International. For more information or to book a stay at any of the Hard Rock Hotels, visit www.hardrockhotels.com HS

12 HOTELSCAPES • December 2014

IN CONVERSATION

‘Value for Money’ with high level product remains the key to success

We speak to Rohit Vij, MD, Staywell Group to understand from him, about the group's strategy, expansion plans and how he intends to make the most of a rapidly expanding Indian market.

Q &A Rohit Vig

Managing Director,

StayWell Hospitality Group in India

hat is your branding strategy and what does StayWell stand for? How is it different from others in the market place in terms of service and quality?

Australia based StayWell Hospitality Group (SWHG) is one of the largest independently owned hotel management groups in AsiaPacific and is based in Sydney, Australia. SWHG has a network of 34 properties in the Asia Pacific Region with locations including Sydney, Melbourne, Brisbane, Cairns, Townsville, Hobart, Launceston and international hotels in Singapore, Dubai, Indonesia, India and New Zealand with hotels in India, UK and China currently in development. The company operates two hotel brands – Leisure Inn and Park Regis. Leisure Inn is a mid scale brand and Park Regis upper scale. We as a group specialize running hotels efficiently maximizing returns for the owning board. With StayWell we also offer established systems and hotel networks supported by comprehensive staff training, something that is lacking in the Indian Market. At StayWell we will offer ‘value for money’ with high level of product and service standard with emphasis on customer satisfaction and loyalty. Branding strategy….

hat opportunities do you see coming into the Indian Market? What is your take on the economics of the market? How do you see a new brand making its way deal with the existing competition?

India is a growing economy and will become one of the largest economies in the world over the next 15 to 20 years. The country has domestic growing annual travelling population of 650 million travellers, representing enormous growth opportunities for accommodation providers which are very apparent to all the hotel operators. In addition, low cost carrier airlines with 14 HOTELSCAPES • December 2014

increasing passenger’s capacities provide unprecedented travel opportunities within India, further creating higher demand, with at present, limited good quality supply of hotel accommodation for the mid-scale market. Our expansion plans are realistic and reflect the potential growth in India particularly in Tier II and Tier III cities which has higher and faster growth potential as there is a big gap in supply and demand ratio for branded hotels.

ow ideal it is to invest in India?

The expansion into India compliments StayWell’s growth in Southern Asia and China as well as leveraging off its established Leisure Inn and Park Regis properties in Australia, Singapore, Dubai and UK. India offers a great growth opportunity for accommodation. The country provides enormous growth opportunities in all segments and StayWell has accordingly structured its growth chart in this market.

hat are your plans for further expansion and are you concentrating on a specific region? If yes, why?

India offers a great opportunity for expansion and it is one of the major growing economies in the world along with China. StayWell has already signed nine hotel projects in India, with two hotels already operational – one in Jaipur and another one in Gurgaon in Delhi/NCR. More importantly we have lined up at least 5 more hotel openings in places like Goa, Hyderabad, Greater Noida, Thane and Raipur in 2015 which is going to be a very exciting year for us. In our next development cycle we will be exploring cities like Bangalore, Chennai and Trivandrum. We will strive to increase our portfolio in India to a total of 25 hotels by 2014 and 50 hotels by 2017. We are targeting middle segment domestic travellers in India. With rapidly growing middle class with disposable income the market is very huge. HS by SHASHANK SHEKHAR

INTERVIEW OF THE MONTH

India poised to become top choice destination

Manav Thadani, the newly appointed Chairman of World Travel & Tourism Council (India Initiative) strongly believes that with some recent path-breaking initiatives, the fortune of Indian tourism business could well dramatically change in not so distant future. Excerpts from an exclusive conversation.

Q &A Manav Thadani

Chairman, WTTC (India Initiative) & Chairman, HVS, South Asia

here is India's tourism positioned, at this juncture, in our history as a country?

Facility of ETA being extended to 43 countries – is a landmark moment for the industry in India. India’s prevalent visa system was a challenge for many potential visitors. So it’s great to see the government committed to reforming it. The Government of India has prioritized travel and tourism through its various polices for the sector. A successful implementation of these polices, such as the “Clean India Campaign – the Swachh Bharat Abhiyan”, the “Make in India” programme will see Indian tourism poised for spontaneous

growth. Along with this, a successful marketing campaign or the Incredible India 2.0 version as we call it, which the Government is working on, will poise India as a destination of top choice and priority. At this juncture, travel and tourism in India is significantly positioned to contribute dependably to jobs, employment, GDP and overall social development.

hat could be the contribution of WTTC to tourism development?

WTTCII (Indian Initiative) as an apex industry council since its inception in 2000 has been working with the Government – both at the centre and state to advocate and raise the awareness of travel and tourism as one of the India’s largest industries that can act and contribute as a driver of economic growth and employment. Be it the “Open Sky Policy” or the “EVisa regime”, we have been working with the Government in national interest to develop polices which contribute to a profitable, sustainable and long term growth of the industry. In June 2014, we had launched the report ‘Tourism Action Plan – Unleashing India’s Potential’ which outlines the key initiatives the new Government and Ministry of Tourism must implement for a better tourism environment in India. This report also summaries and timelines priority action plans for the above initiatives as short term (1- 6 Months), medium term (6-12 Months) and long term (12-24 Months) for key areas of concern like the EVISAs, safety & security, connectivity – air, rail & roads, convergence – both at central & state level, launch of Incredible India 2.0, skill development & domestic tourism. We are happy to say that the Government and WTTCII are collaborating with earnest and vigor to implement this action plan.

here do you see hotels adding/ contributing to the tourism effort?

For the first time, India has crossed the 100,000 branded room supply category as per the recent HVS ‘Trends and Opportunity’ report. The good part of the story is that much of this growth is

16 HOTELSCAPES • December 2014

INTERVIEW OF THE MONTH

taking place in the budget and mid-market segments, thereby enabling all types of tourist to come to India. This growing segment has also encouraged domestic tourism in a very big way and, in fact, this has been the biggest driver of tourist revenue to the country and has generated employment and taxes for the government. On the luxury side, India has some of the best hotels which include the Vilas’s from the Oberoi and the palace hotels from Taj and Leela amongst others.

e understand the demand is slow and supply more than adequate – many hotels are reeling to pay off their debts and business sentiment is low. Your views on this?

We are at the bottom of the cycle. The supply – demand equilibrium will continue to change and in a few years you will once again ask as to why there is a shortage of room supply in the country. While I agree there is debt pressure on new hotels but I think this is partially man-made as promoters took too much debt to begin with and the only way out now is to lower the leverage. While banks may be ignoring the sector currently — for good projects and promoters we find they are still willing to talk and do business. We hope to see reduced interest cost next year and also

wish to continue to see a longer tenure than the ones currently available.

ow can hotels work together for a better future? The industry appears very disjointed with inadequate leadership?

Unfortunately in India we have not been able to build a strong unified lobby for tourism. New groups like FAITH are a start but lets see where we get with them. WTTC II too is a collection of some very strong members who actually control 80 – 85% of the hotel, tour operator market in terms if pure revenue. I think at the end of the day we all mean well. We just need to focus on a few key issues and try and resolve them one at a time. The E-visas was a good success story as there were many organisations pushing for it including WTTC which was at the forefront for a while on this issue.

hat do you feel is India's potential for tourism? Is the numbers game important, and how much?

UNWTO & WTTC forecast mentions international tourist arrivals worldwide exceeded the 1 billion mark for the first time ever in 2012, and is expected to increase by 3.3% a year to reach 1.8 billion by 2030.WTTC

predicts that the tourism sector is expected to generate around 346,901,000 jobs in 2024. The WTTC Travel & Tourism Economic Impact 2014, states that the total contribution of travel and tourism to GDP was INR 6,631.6 bn (USD$ 106.1 BN) (6.2% of GDP) in 2013, and is forecast to rise by 7.3% in 2014, and to rise by 7.0% pa to INR 13,983.0 bn (USD$ 223.76 BN) (6.8% of GDP) in 2024. This is almost doubling of the present performance. With the Electronic Travel Authorization (ETA) in place, this figure may be further enhanced. In terms of employment in 2013, the total contribution of travel and tourism to employment, including jobs indirectly supported by the industry, was 7.7% of total employment (35,438,500 jobs). This is expected to rise by 2.7% in 2014 to 36,409,000 jobs and rise by 1.9% pa to 43,837,000 jobs in 2024 (7.9% of total). The potential of travel and tourism to contribute to jobs, employment and GDP is proven world over. Numbers just embellish the fact. We are happy that the Government recognizes and endorses the long-standing WTTCII view that travel and tourism is not elitist, but, in fact contributes to greater all round social inclusiveness and development in India. HS by NAVIN BERRY

December 2014 • HOTELSCAPES 17

ONE-ON-ONE

Upturn round the corner in the hospitality business

We engage with Raj Rana to understand what lies ahead for the hospitality industry. Propelled by a growing domesic demand, market for mid-segment hotels will continue to expand, he forsees.

Q &A Raj Rana

CEO, Carlson Rezidor Hotel Group, South Asia

ow is the ache din rolling out for the hotels? If you feel so, what makes you feel so? On what factors are you hinging your response?

Hotel, tourism and travel industry being a major contributor to GDP has to be a beneficiary of Ache din. Post elections, all things seem to point to a politically stable and economically prosperous future ahead. Hotel business is cyclical in nature and we are confident that an upswing is round the corner. The government’s renewed focus on infrastructure, push for urbanization and creating smart cities, improved connectivity with new airports and modernization of railway network are all favorable for the hospitality

industry. India, with its rich cultural heritage has an abundance of tourism potential and expansion of the visa on arrival scheme is bound to help. We are no doubt hearing the Ache din drumbeats for hospitality and are confident this positive trend will help the industry regain its full momentum.

o you see the first green shoots in the business, and where and how strong?

Indeed we are witnessing green shoots and hoping that these take sustainable routes. The second half of 2014 has picked up momentum as our hotels witness a surge in bookings from corporate travel apart from the usual leisure business. We are seeing confidence return with an upswing in business enquiries from companies, on both domestic and international front. Usually, once occupancy gains its footing, growth in room rate follows. Strength is seen in the banquet business driven by MICE and social events where Carlson Rezidor hotels such as Radisson Blu Dwarka and Radisson Blu Ghaziabad have some of the best meetings spaces in town.

here have been the bottlenecks, so to say?

From a development perspective, the cost of land and debt still remain as the biggest constraints, both affecting the return on investment. From a process perspective, requirement of multiple permits and lack of a single window clearance for licenses is a challenge. We hope that 100% Foreign Direct Investment (FDI) and relaxation in lending norms, particularly in rates and loan and funding options through RIETS, would ease liquidity for hotel developers. The longer term prospects of the hospitality business in India is still strong due to solid fundamentals, as such the business remains attractive. We at Carlson Rezidor have established our business over the past 15 years and to our investors, we are a one stop shop with expertise from feasibility, development and construction to hotel opening and business stabilization.

e are told that costs are also going up, and how are these across the country, are these same across or different to different markets?

When it comes to developing hotels, land and 18 HOTELSCAPES • December 2014

ONE-ON-ONE currently below 7 million, we are hopeful that the government’s renewed focus on tourism will positively impact this number.

hat sort of connect do you have with the Tourism Ministry? Is there room for a meaningful dialogue between the industry and government, and where and why?

Radisson Blu Dwarka

construction costs have increased substantially, slowing the pace of development. From a hotel operations perspective, hotels need to deal with rising labor costs and high cost of energy (heat, light power) and this is where smart management tools and green initiatives are key in managing this.

ow is the business progressing in terms of domestic and international, between business and leisure?

The hospitality sector in India overall is driven by domestic demand from both corporate and leisure segments although we are confident that international business will increase. Large city hotels such as Radisson Blu Plaza New Delhi and Country Inns & Suites Udyog Vihar have a larger ratio of international business versus that of hotels in secondary and tertiary cities. Hotels serving religious destinations such as Country Inns & Suites Katra and Radisson Varanasi largely witness domestic tourists. We are also seeing an increase in advance bookings through international channels and an immediate rise in domestic bookings for this festive season. There has been a surge in domestic numbers and hotels such as Radisson Shimla, Radisson Blu Resort & Spa Udaipur, Radisson Blu Resor t Mammalapuram, Radisson Cavelosim Beach Goa and Country Inns & Suites Mussoorie are benefiting.

ow is the supply side growing? Is finally, the 3 star and the midmarket coming to rule new supply? How has this happened?

Supply side has seen a rather sharp increase in the last 3-4 years but the new influx appears to be slowing down which will allow the demandsupply equilibrium to re-establish. Various reports point to the pipeline being dominated

by three star and mid-market brands. Our brands Country Inns & Suites by Carlson, a market leader in the segment, and Park Inn by Radisson are perfectly positioned to capture the growing demand in the mid-market segment. Propelled by the increase in domestic travel largely by the strong middle class in India, the surge in mid segment is a natural progression of India’s hospitality business. Hotel brands, after gaining presence in metro and tier I cities, are now entering tier II & III cities where land prices and average rate projections are supportive of a midscale segment versus upper upscale. This year, we have opened hotels such as Country Inns & Suites Bhiwadi, Park Inn by Radisson I.P. Extension and Country Inns & Suites Bathinda and have signed hotels in cities like Gandhinagar, Guwahati, Karjat, and Salem.

s there competition in the market, and is this bringing price down? Or, have you realised that cutting into each other does not really help?

Demand has steadily grown but has not been able to keep up with the pace of supply; in certain markets, this has caused downward pressure on average rates. Competing on rate alone is a commodity approach but hospitality is not a commodity, it is about creating memorable experiences. Prices are dynamic and guests now have better price visibility. Our pricing strategy is value-based giving guests a rewarding stay that leads to loyalty.

ith so much mid-market and budget supply coming, how is tourism being pursued, or is it still elitist?

World over, people love to travel and Indians are no different. The urge to explore and experience the vast offerings of India is alluring. While our country’s share of international visitors is

We are appreciative of the larger vision of the Ministry of Tourism under the new government and applaud new steps that have been announced, be it making arrival into India easier or the focused intent on tourism. Carlson Rezidor engages the Tourism Ministry directly and through other tourism and hospitality forums. Both the Ministry and the industry are well apprised of the issues it jointly faces; the attention now needs to shift on how to resolve these to drive tourism into India, contribute to its economy and world image.

here do you place the relevance of Incredible India slogan in the prevailing context?

This slogan/campaign was first unveiled in 2002 and since then has worked wonders in promoting India as a high-end tourist destination. This slogan over the past 10 years has showcased a new India to the world and continues to attract new international and domestic travelers looking for memorable experiences through travel. We hope Ache din ahead will breathe new life into the Incredible India story.

e have always said that tourism needs a lobby? Do hotels also need a lobby? What work is FAITH as an organization doing?

Tourism demand is largely driven by the perception of a country and India is on most travelers’ aspirational list. The issue lies in getting the right message about travel to India to the international arena and facilitating tourism growth. The Indian hotel industry should be applauded for being at the forefront with entrepreneurs putting in their own funds and taking the initiative for making worldclass hotels in destinations across the country that give travelers a home away from home. Forums like FAITH put their best foot forward to create awareness and seek solutions to the challenges waiting to be converted into opportunities for the country. HS by NAVIN BERRY

December 2014 • HOTELSCAPES 19

CORPORATE TRAVEL

Imit Arora

General Manager, The Lalit Chandigarh

CHANDIGARH developing as a business destination

In the last couple of years, Chandigarh has become a hot spot for the hospitality industry as some of the major brands made inroads in the city. It is a major transit destination for people travelling to the hills for their weekend getaways, who prefer staying in Chandigarh for a night’s halt before proceeding further. The city also has some lovely parks and other tourism spots for the travellers to discover. With development in the hospitality as well as the corporate industry, it is now becoming a major destination for MICE as well.

ourism in Chandigarh

The tourism of the city has seen a number of changes in last few years, as earlier it was a transit city to the North India, now it is also being treated as a major MICE destination with various companies setting up their base here. Talking about the tourism in the city, Imit Arora, General Manager, The Lalit Chandigarh, says, “The travel & tourism influx into Chandigarh has witnessed steady growth over the last few years. Apart from being credited as the hub of north India, Chandigarh is an important transit destination for most of

Punjab, NCR & other northern states. The city also witnesses a healthy number of tourists coming in through the year. Also, due to its modern infrastructure & connectivity, Chandigarh sees many large scale MICE events through the year in Pharma, Steel, Automobiles & Textiles sector. SEZ’s in Mohali & Chandigarh like the Rajiv Gandhi IT Park have also seen development, thereby inducing corporate movement into the city.” Being very well connected to Delhi, Chandigarh is also known to be a preferred weekend destination for the travellers from the capital. “Travel and Tourism

20 HOTELSCAPES • December 2014

in Chandigarh is doing fairly good unlike many places where it’s declining. Chandigarh itself is a beautiful city with many attractions; it’s the corporate base for many large companies in Punjab. Chandigarh is surrounded by industrial belts and is also the base for tourist travelling to Himachal and many parts of Punjab. Chandigarh attracts a lot of corporate as well as FIT’s for these reasons. It’s also the best place for a short weekend break,” says Puneet Saigal, General Manager Park Plaza, Zirakpur (Chandigarh). Along with being a major travel destination for people from Delhi, various travellers

The travel & tourism influx into Chandigarh has witnessed steady growth over the last few years. It is an important transit destination for the northern states.

from other parts of the country also visit the city for leisure as well as business. Adding on to the same, Vaibhav Mittal, General Manager, Hometel Chandigarh, says, “The last few years have witnessed a lot of changes in the hotel industry in Chandigarh. The travellers are coming from a ll pa r ts of t he countr y in addition to Delhi NCR, including, Hyderabad, Gujarat, Himachal Pradesh, Mumbai, Chennai, and

CORPORATE TRAVEL

Vaibhav Mittal

General Manager, Hometel Chandigarh

more, for work as well as leisure.” There are different kinds of travellers coming to the city but there is a majority of corporate travellers that can be seen prominently. This is due to the development of IT sector in Mohali. Shubhanshu Sharma, General Manager, Lemon Tree Hotel, Chandigarh comments on the same, saying that, “In terms of corporate travellers, the city has seen a jump of 9% in comparison to last year. We hope that this will increase further next year to around 14% as we feel that there are lot many companies which are coming up in the city and Mohali is still not developed where more and more companies are coming up but

doesn’t has a fair share of hotels. So, that traffic will definitely be coming to Chandigarh till the time Mohali doesn’t develop its own hotels.” Talking about the same, with a different viewpoint, Sanjay Wadhwa, General Manager, Park Plaza, Chandigarh, says, “City is at bottleneck of growth at this time. Since there is no further expansion in business, therefore, ARRs are falling. Overall revenue is not showing growth, but competition

Puneet Saigal

General Manager Park Plaza, Zirakpur (Chandigarh)

The supply has gone up tremendously and in comparison the market hasn’t grown as much, but this is a sign that the future looks bright.

is increasing. This trend is going to be in 2015 also.” With a hope of development and growth, Saigal disagrees w it h t he above a nd says, “Chandigarh will be soon seen on the international map with the International airport commencing its operations early 2015. Many domestic & international airlines h ave a l r e a dy s ig ne d MOU with the airport authority to commence their operations, providing direct connectivity with all the major cities of the world. It is equally a Business and Tourist destination. As business destination, Chandigarh and the surrounding areas are having loads of development in infrastructure, realty & investments from big industry wigs.” Adding on to the argument, Su n ny G h a ie e, Director of Sales & Marketing, JW Marriott Cha nd iga rh says, “ Wit h a n international airport on the cards, and a lot of big hotel chains investing in the city, Chandigarh is set to consolidate its position as the Gateway to the Punjab. The hospitality demand drivers here a re the libera l government policies, economic reforms, and the interest from the IT sector, which have largely supported economic growth in the city. Chandigarh continues

With increased inventory and intense competition the occupancy percent has been under pressure for some time and is likely to remain same for another year.

to grow as an important center of government, business, and education center. And thus, holds on to its reputation as one of the places most frequented by tourists in north India. The tourists are primarily coming in from New Delhi & NCR region, other parts of Northern India followed by Mumbai. US, Canada and UK are predominant international source markets for tourists in the city.”

Hospitality Business in the city on the rise

The city has seen tremendous growth in terms of Indian and International brands making their entry into the city. Some of them are already in operation and many others under development. Talking about the overall growth in hospitality industry of the city, Sharma says, “There are all Indian hotels here apart from the JW Marriott. All have been doing really well; the city’s average occupancy is currently 78%, which is on a very good side. The hotels within the city are doing exceptionally well. Till November end, we have been averaging 86% for the year

December 2014 • HOTELSCAPES 21

CORPORATE TRAVEL

Shubhanshu Sharma

General Manager, Lemon Tree Hotel, Chandigarh

at Lemon Tree. From Monday to Thursday it is all corporate travellers and from Friday onwards transit travellers come in.” On the other hand, Vaibhav Mittal believes that the occupancy and ARR have been there where it was two years back. “With increased inventory and intense competition the occupancy percent has been under pressure for some time and is likely to remain same for another year. The operating cost is increasing but the guest is paying the same tariff as it was two years back because of the various new options that are available in the city. Guest expectations are increasing and we sincerely feel that guest delight is most important and that will result in better RevPAR in the long run. ROI has been consistent and we are able to meet the expectations of our investors. It also largely depends on the satisfaction level of guests and service standards maintained by the hotel which contributes to the success and hotel’s performance in terms of turnover. This is part of the chain ‘Happy customers = More business = Happy investors’,” he adds. Wit h t he i nc r ea si ng competition and development of more hotels around the city, they are finding it difficult to

increase their profits for the year. Wadhwa says that hotels are sustaining themselves in a competitive environment. Next year will further see increase in room count in city with the opening of Hyatt Regency in the Industrial Area. Business has been more into corporate bookings with year around occupancy of 55% . Focusing on their vision of offering unique luxury The Lalit is trying to redefine the standard of luxury hospitality with a unique property in the city. “The last few years has seen many hospitality players coming to Chandigarh keeping with growth of the city. The Lalit Chandigarh has seen the hotel doing upwards of 60% occupancy. We have reinstated our focus on better ARR by providing the best in terms of luxury,” says Arora. Gha ie e s ay s t ha t i n t he category of five star hotels, Chandiga rh is a highly competitive market and with the opening of more 5-star hotels in the pipeline, it is definitely going to further fuel the competition. “ If we consider the current scenario, the supply and demand are not in sync, as a result the city is facing oversupply crisis. So, for sustaining in this market, the five star properties are concentrating on efficiencies. In last few years

22 HOTELSCAPES • December 2014

no major project has come to city which has resulted in stagnancy i n g r ow t h . H owe ve r, we anticipate that the accomplished traveler will continue to come here for the Chandigarh story is far from over. This is beyond doubt that there is oversupply in the market with an average occupancy rate of 55-60% in the category of five star hotels. There are too many rooms available and that means that there is pressure on ADR, however, with Chandigarh becoming popular for destination weddings, offsite MICE and as a gateway for all hill stations in its catchment areas, and with the upcoming International Airpor t at Chandigarh we anticipate a surge in demand in the near future resulting in more stabilized rates,” he further explains. Wi t h i n f r a s t r uc t u r a l development and arrival of bigger companies and MICE options, Saigal believes that the city has a bright future ahead. Explaining the same, he says, “Hotels are growing year on year. For sure the supply has gone up tremendously and in comparison the market hasn’t grown as much, but the supply growing is a sign that the future looks bright and surely once the infrastructure is in place it will create a demand. The city is getting

An increase of 9% has been seen in corporate travellers than last year and we hope that this will increase to around 14% next year..

some great infrastructure in terms of large banquet halls which can cater to larger social or corporate get-togethers than the city has ever seen in the past. Grand Ballroom at Pa rk Pla za Zira kpur ca n accommodate 1700 to 1800 guest at one time. This is giving confidence to people that large conferences and exhibitions are also possible in Chandigarh. Business has been growing since we opened. The hotel is now 10 months old and month on month we are doing better. We see similar growth in the future as well. We are looking

CORPORATE TRAVEL

Sunny Ghaiee

Director of Sales & Mktg. JW Marriott Chandigarh

at 6-7 years for breakeven at the pace we are growing.”

Challenges

There are a number of challenges t h a t a ny g r o w i n g c i t y o r industry faces and same is with the hospita lit y industr y in Chandigarh. Listing down the major challenges of the industry in the city, Wadhwa points out that high attrition, competitive pricing, tra ined ma npower, tough regulations and business environment and lack of good sales resources are the major issues that need to be focused on. Talking further about Marketing being a challenging area, Saigal a d d s s ay i n g , “ G e t t i n g t he information across to the world

that we are the largest MICE center of Punjab and Chandigarh is a tough job. Once people all across know, they can plan events accordingly. More companies or more social events for the city will help everyone in the business as it creates additional demand for everyone.” On the other hand Mittal says that the demand supply situation in the city is bit unbalanced as the industries growth is not

mee ting t he pace of hotels opening and the inventory is increasing almost every quarter. “There are about 500 more rooms under development in Tri-city, which will further intensify the demand supply situation. As a solution, firstly, intense and unique marketing strategy is required for hotels to be on top of the mind recall of the customers and secondly strong relationship building will definitely help present hotels to hold on to the clients,” he adds.

Manpower

Sanjay Wadhwa

General Manager, Park Plaza, Chandigarh

Hotels are sustaining themselves in a competitive environment. Next year will further see increase in room count in city with opening of Hyatt Regency.

With new hotels coming up in different parts of the city, finding the right manpower for the right job has become an issue and the hotels have to hire people from other cities around the country. According to Sharma this is one of the major challenges for the hotels, he says, “The only issue is the availability of skilled manpower in the area because Chandigarh has a couple of colleges but the quality of students there is unfortunately not that great so we have to rely on colleges which are based out of Delhi and other metro cities. It is always preferable that the manpower is based out of Chandigarh and lives in close vicinity of the hotel as it is more cost effective that sourcing people

With an international airport on the cards, and a lot of big hotel chains investing here, Chandigarh is set to be the Gateway to the Punjab.

from other cities, also attrition is less. Like all industries, in hospitality too the demand for skilled and trained manpower is high, thus retaining talent is a constant challenge. This has really taken up the payroll of the hotel, we had to increase our salaries to hold on the talent and make sure that the people won’t leave.” Agreeing to the same, Wadhwa says, “Human resource development in city is challenging due to lack of quality manpower. C o s t of go o d p r ofe s s ion a l manpower is almost 20% of doing business in Chandigarh.” “This is one of the challenges we encounter as the number of hotels are increasing, experienced manpower are limited and hence are becoming more and more expensive. It is imperative for hotels to retain the old employee which is always better than getting replacement. We focus strongly on various HR activities to ensure employees job satisfaction and create a culture where they feel important and attached to company,” says Mittal. HS by NIKITA CHOPRA

December 2014 • HOTELSCAPES 23

GM SPEAK

Accor debuts in North Goan market with Grand Mercure Sherm Resort Accor recently made its debut in the competitive North Goan market by opening a Grand Mercure brand and the management is exuding confidence of making its mark thanks to its numerous offerings and quintessential representation of Goan culture.

Q &A Manish Dayya

General Manager, Grand Mercure Goa Shrem Resort

ow do you position Grand Mercure entry into North Goa?

Grand Mercure Goa Shrem Resort is nestled in the lap of lush greenery with a view of the beautiful paddy fields. This property reveals the lesser known side of Goa which is so close yet so far from the bustling nightlife that North Goa is so famous for. The resort features 121 rooms and suites elegant in detail, each room at the resort is designed with comfort in mind, offering the finest combination of elegance, indulgence, and upscale hospitality service under one umbrella with a Glocal touch. The resort revolves around the four brand pillars: Sense of Welcome, Sense of Food & Beverage, Sense of Wellness and Sense of Culture and Discovery which one can experience entwined throughout our resort.

ow is the demand and supply position for North Goa hotels and which hotels would be competing with you? What is your selling proposition against them? At what rate do you hope to sell in the season, and then the coming year?

While Goa has continued to surprise everyone with its stable occupancies, ARR’s, REVPAR’s, North Goa is currently witnessing a stable occupancy of 74% with supply increase by 3% across the city and demand growth by 5% . We would be competing amongst the brands like Vivanta by Taj, Marriott, Alila and Hyatt between a mix for various business segments. The Grand Mercure Goa in its first year is targeting an occupancy of 65% and the ARR target is close to INR 7,000. While having said the above, I must admit that the charters have been always considered to be the key contributors during the season time, this 24 HOTELSCAPES • December 2014

year the charter story hasn’t really been very positive; the tourism industry’s major backbone – Russian travelers – has been hit by falling rouble and sanctions on Russia due to Ukraine conflict and this has really caused a panic situation around the festive season while the domestic tourists have continued to fill this gap to sustain the occupancies.

ow is North Goa progressing as a whole?

North Goa has been the highlight for many tourists visiting Goa and our location advantage does give us the upper hand to be their first choice for their stays.

ow much does Grand Mercure Goa embody the spirit of the brand? How typical is your hotel of the brand as a whole?

Accor, the world’s leading hotel operator with more than 3,600 hotels and 470,000 rooms operates a network of seven distinctive brands underpinned by operational excellence, while embracing its European heritage. Grand Mercure has established itself as a distinctive upscale collection of hotels and apartment hotels in key business and resort locations. Grand Mercure brand has operated in Asia Pacific for almost 20 years, anchoring itself around “Discover a new authentic” with hotels and resort closely connected to their local areas through design, character and flavour combined with the upscale hospitality service. Goa is the most sought leisure destination and with this brand coming into Goa offers a new experience with its dramatic architecture conceptualized as a charming Indo Portuguese destination. The interiors are designed to capture the Goan ethos through modest furniture’s and clean lines to the travellers through all the touch

GM SPEAK and communication technology the meeting rooms are sized from 500 sq.ft. to 1500 sq.ft. The resort also offers a 8000 sq.ft Marquee or Hanger, an outdoor air conditioned convention space that can easily accommodate 800 persons in a variety of flexible settings ideal for business meetings, trainings, seminars, social gatherings and not to forget a perfect venue for picturesque weddings.

ow do you view the combined strength of Novotel, Grand Mercure and your new to open restaurant on the beach? Can you give details?

points in form of its 4 brand pillars and this reflects across the entire resort.

hat do you see the strengths of Grand Mercure as a property?

Our Spa at Grand Mercure Goa Shrem Resort is called Balae, derived from the Sanskrit word Bala which means ‘young and powerful’. Balae reflects tropical Balinese style design and houses four chalets having two treatment rooms each and one couple chalet with a Jacuzzi. The treatments range from Western and Eastern Asian treatments, to Indian Ayurveda. Balae also offers age defying facials from the world’s leading skin care range Dermalogica. It is the first Spa in India to introduce the world famous Raindrop treatment therapy. The Spa reveals the beauty secrets with its Hamam chalet with the Roman style bath used as a method of cleansing and relaxation. Relax with the Balae yoga sessions at the open yoga deck by the pool overlooking the lush green paddy fields. Enjoy a unique experience, from the relaxing vitality pool overlooking the beautiful view to the watering experience and spa’s exclusive rituals. A true rejuvenation in a destination where we reveal things apart from sun and sand. Grand Mercure Goa Shrem Resort is a reflection of the authenticity of Goan culture. Right from its architecture and design to its food and beverage offerings, the resort revolves around everything that is essentially Goan. The resort has four F&B outlets: ‘Festa’, ‘Junho Bar’ , ‘Chy’ and Sunken Bar. ◗ Festa is a 100 seating all day dining restaurant, serving Global cuisine with a local twist. The

Al fresco dining area offers a courtyard like ambiance and overlooks the vitality pool, banyan tree and lush green paddy fields. With a breakfast, lunch and dinner buffet as well as A la Carte options, Festa showcases an array of international flavors and local favorites ◗ Chy, is a 45 seating deli that is located in the grand lobby and has a wide selection of delectable chocolates, cookies, scrumptious cakes, waffle sandwiches and petit fours. A variety of teas, coffee, smoothies and local inspired beverages offer thirst quenching options to the guests. Fresh sugarcane juice and drinks in Bantewali bottles, Shikanjvi and Masala chai are all local inspired drinks that are available here. The delectable Goan Menu comprises Bhajiya platter, Vindaloo puff and freshly baked cookies. ◗ Junho Bar offers an exclusive selection of the finest wines, single malts, scotches and an array of international and local spirits. Our wine library boasts of a collection of wines ranging from traditional vintages to new age wines. Our Echanson helps guests to savour and discover the real pleasures and excitement behind the exquisite aroma of the wines. ◗ Sunken Bar, the pool bar serves refreshing cocktails and light snacks The MICE segment would find a new destination that is geared to cater to all the requirements tailor made to suit the needs of today’s travellers and the location is just right to mix business with leisure for those looking to party hard late after a good days conference. The facilities include a business centre with 3 board rooms, 4 meeting rooms well equipped with the latest audio visual

With these two distinctive brands and the offerings between Grand Mercure Goa Shrem Resort and Novotel Goa Shrem Resort; the travellers across all segments that include upscale and midscale, domestic and international, FITs, Honeymooners, Spa enthusiasts, Families, Leisure Groups, Charters, MICE, Weddings get to stay and experience the brands managed by Accor, known for its hospitality globally in North Goa. Both our resorts in Goa are ideally located on the arterial Candolim road amidst the bustling nightlife and a short drive away from the beautiful beaches of North Goa. This resort is the perfect destination for a holiday where you can switch between a relaxed and an active day with ease. Indulge in a heartfelt experience coupled with world class hospitality and experience the perfect balance of luxury, family spirit and wellness La Brise by Novotel, our Beach restaurant opens its doors this December. Come… Experience sunset fine dining like never before at Candolim. La Brise is a 150 seater restaurant with a great view coupled with 1400 sq.ft. of meeting space and 5000 sq.ft. of open lawn space. This will truly be a means to affiliate both our resorts to the Beaches of Goa, something that all travellers look forward to.

ow do you see the ROI at Grand Mercure, as a business?

We expect the ROI to be in line with the trends of Goa. At a time when our industry is undergoing extensive transformation, more than ever, we will continue to evolve, learn and grow while remaining true to our commitments. This sets us apart from the competition and make us attractive. HS by NAVIN BERRY

December 2014 • HOTELSCAPES 25

ECONOMICS

MICE and leisure travel continue to be top draws in attracting Forex Foreign exchange earnings not only help hotels maintain a healthy balance-sheet but also ensures its presence in international market. Hotels, now, are using innovative ways ranging from attending trade fairs, ramping up its online presence to liaisioning with domestic and international tourism boards to shore up their presence and bring more patrons on-board. We speak to hotels to understand how they rake up forex.

oreign exchange reserves remains a vital indicator of nation’s economic health and according to the latest figures released by the Reserve Bank of India- India’s total net reserves stand at a comfortable 316 billion dollars. Indeed, a major chunk of it comes from agricultural and service exports, however tourism, and consequently hospitality industry too, is a major contributor to the foreign exchange earnings of the nation. So, it remains important for hotels as well to ensure a healthy mix

26 HOTELSCAPES • December 2014

of domestic and international clientèle--which not only provides a brand recognition but also keeps the balance-sheet healthy. “We have a dedicated sales team and tie-ups with travel agents for inbound travellers that helps us in generating forex. We also participate in international travel marts and do road shows in Europe and America. Udaipur being a favoured destination by international tourists we get them in good numbers at our resort,” tells Ashish Kaul – General Manager, The Lalit Laxmi Vilas Palace Udaipur. He says that the hotel’s

ECONOMICS

PROPERTIES WITH A MORE DOMINANT BUSINESS TRAVELER CLIENTELE HAVE ROPED IN MNC’S ENGAGED IN INDIA FOR LONGTERM PROJECTS, WHICH PROVIDE FOR A MORE SUSTAINED SOURCE OF FOREX. THESE NUMBERS WILL ONLY SWELL AS BUSINESS AND INVESTMENT OPPORTUNITIES CONTINUE TO INCREASE UNDER THE NEW GOVERNMENT. location has made it a favoured destination for foreign visitors, “The location and the personalized service we offer is a big draw for overseas visitors,” he says. While, Anand Nair, General Manager, Vasundhara Sarovar premiere (VSP), Vayalar, Kerala, tells us that they have used trade fairs, both international and local, to beef-up their presence in international markets. “VSP has been participating in all major International trade fairs like ATM, Dubai, and WTM, London as well as the important domestic trade fairs like GITB & KTM, where we get to meet a high number of FTOs. In addition to this, we have also been part of various International road shows conducted by Kerala Tourism. All these were primarily focused on increasing the inbound business to VSP,” says Anand. Other properties with a more dominant business traveller clientele have roped in MNC’s engaged in India, for long-term projects, which provide for a more sustained source of forex. Manisha Sharma, Director of Rooms, Courtyard by Marriott, Gurgaon tells us that, “The hotel has put conscious efforts to scale up its presence in the digital world. It is an ongoing process and we use various platforms for promoting our product. Our website is the biggest contributor to our business helping us generate online reservations. We have been in agreement with global MNC’s like Google, IBM and Microsoft, some of them are, incidentally, based in Gurgaon,” she says. Hotels are also arranging for forex without charging for any brokerage making it easy for foreign visitors to arrange for cash. She says that, “The hotel associates notify the guests upon check-in about the forex exchange facility which is available in the hotel. This motivates them to opt for the services offered within the hotel instead of approaching other agencies. The rate for the day is offered to guests which is regulated by our service provider. This furthermore benefits the hotel in attracting forex earnings and is feasible for guests in terms of travel safety.” Shul Ambwani, front office manager, at Hyatt Pune Kalyani Nagar shares that the credit card transactions have given them indirect currency flow and much of the transaction is being carried out by credit cards. “Since we are a business hotel most of our guest are dependent on plastic money thus the opportunity of forex is reduced to minimum. However as a facility a forex exchange is provide at the

Ashish Kaul

Anand Nair

General Manager, The Lalit Laxmi Vilas Palace Udaipur

General Manager, Vasundhara Sarovar premiere (VSP), Vayalar, Kerala

We have a dedicated sales team and tie-ups with travel agents for inbound travellers that helps us in generating forex. We also participate in international travel marts and do road shows in Europe and America. Udaipur being a favoured destination by international tourists we get them in good numbers at our resort.

VSP has been participating in all major International trade fairs like ATM, Dubai, and WTM, London as well as the important domestic trade fairs like GITB & KTM, where we get to meet a high number of FTOs. In addition to this, we have also been part of various International road shows conducted by Kerala Tourism.

front desk for easy access. Now the credit cards have introduced ‘dynamic currency conversion’ which is indirect inflow of forex and also gives an option for the guest to swipe it in their home currency,” he tells us.

Forex figures in the past 3-4 years

Geographical location and business environment often dictate the nature of clientele that the hotel caters to. A tourist destination has more leisure travellers, while business districts like Gurgaon and Navi Mumbai cater to a lion’s share of business travelers. Ashish tells us that the hotel has been bettering its forex earnings, thanks to a steady stream of foreign visitors and now “Over the past 3-4 years we have seen a steady rise in our Forex earnings which in the last financial year stood at 22% of the total revenue,” he shares with us. He tells us that because his hotel caters, predominantly, to the leisure travellers, most of their clientele is dominated by the western countries. “Udaipur caters only to leisure travellers. The geographical location that are bringing in the Forex earnings is led by USA, followed by European Union, Australia, Canada and Singapore,” he shares. However, both the segments are significant contributors to forex for the hotels, in their own right. Shul shares that, “I have had the opportunity to work in two destinations – Goa and December 2014 • HOTELSCAPES 27

ECONOMICS

GEOGRAPHICAL LOCATION AND BUSINESS ENVIRONMENT OFTEN DICTATE THE NATURE OF CLIENTELE THAT A HOTEL CATERS TO. A TOURIST DESTINATION HAS MORE LEISURE TRAVELERS, WHILE BUSINESS DISTRICTS LIKE GURGAON AND NAVI MUMBAI CATER TO A LION’S SHARE OF BUSINESS TRAVELERS. Hyderabad. Both cities address different segments, Leisure and MICE and both segments can generate significant forex. Talking about leisure and Goa the major forex contribution come from European guests. A leisure traveller carries cash as they don’t want to be dependent on plastic money,” he says. The forex earnings in his hotel “at a leisure destination can be around 10-15% and in a business hotel hovers around 5-7%,” he tells us. He maintains that seminars and conferences also play a vital role in garnering forex and finds it difficult to pin-point a specific country or a region that dominate their clientèle. “When it comes to MICE, it purely depends on what kind of conference it is. Usually an International medical conference or an International summit contributes to a major forex exchange. Delegates carry forex as per their travel allowance which includes room, food and registration fees which is usually paid in cash to the organizer. These conventions have participants from various countries thus pointing out couple of them would be difficult,” he argues. Manisha tells us that their majority of clientèle are driven by strong domestic business travel and the hotel gets visitors, apart from European countries, from Asian continent as well. “We are based in

Facts and Figures ◗ India ranks 9th in the list of countries, in terms of

total foreign reserves, behind Hong Kong, Saudi Arabia and Switzerland. ◗ Growing at a compounded annual growth rate

of 13 per cent, foreign exchange earnings from the tourism sector is likely to reach US $26 billion in 2015, according to ASSOCHAM estimates. ◗ Against the world’s average of 4.2%, India’s hospitality

industry contributes 7.8% of the nation’s GDP.

◗ According to the figures of department of tourism,

6.97 million tourists visited India in 2013 with an annual growth rate of 5.9%.

28 HOTELSCAPES • December 2014

Manisha Sharma

Director of Rooms Courtyard by Marriott, Gurgaon

The hotel has put conscious efforts to scale up its presence in the digital world. It is an ongoing process and we use various platforms for promoting our product. We have been in agreement with global MNC’s like Google, IBM and Microsoft, some of them are, incidentally, based in Gurgaon.

Shul Ambwani

Front Office Manager, Hyatt Pune Kalyani Nagar

Since we are a business hotel most of our guest are dependent on plastic money thus the opportunity of forex is reduced to minimum. Now the credit cards have introduced ‘dynamic currency conversion’ which is indirect inflow of forex and also gives an option for the guest to swipe it in their home currency.

the business district of Gurgaon. Therefore, our business is primarily driven by domestic business travel ranging upto 80% of our total business, while the rest 20% comprise of international leisure,” says Manisha. “Mostly US nationalities are bringing in the forex and our consumer base mainly consists of business travellers coming from Spain, Italy and far-east Asia,” she further adds. She explains, though, that many of their visitors prefer tie-ups with travel companies, eliminating the need for recurring payments. “They do not necessarily spend foreign exchange because they already have tie-ups with travel companies that take care of their payments,” she says. She also shares with us that the “forex has accounted for a healthy 68% of the total revenue in the past 3-4 years.” Anand, meanwhile, tells us that VSP being a recent property has been able to fetch forex worth amounting to 12% of total revenues. “Vasundhara Sarovar Premiere is a relatively new property as this is the 3rd year of our operations. Last year our Forex was 12% of total revenues and this year we hope to attain at least 18% of our revenues through Forex.” He informs us that a majority of their customers came from the leisure segment. “Forex is being carried by European & American guests, who are typically here for a longer duration stay. Leisure travel brings in majority of our Forex as opposed to MICE,” he concludes. HS by SHASHANK SHEKHAR

DE S TIN ATION INDI A

Industry upbeat on ETA, expects better tourist inflows and business ahead Government has given a go ahead to the ETA (Electronic travel authorization) in phases, covering nine major airports and 43 countries in the first phase – providing visa-on-arrival to the tourists. The move has brought cheer to the hospitality industry, which hopes that increased tourist inflow will subsequently lead to better business opportunities and a more geographically diversified clientele.

A master-stroke to improve tourist inflow

India currently accounts for a paltry 0.8% of foreign tourist arrivals in the world, or just under 7 million people in 2013. While, it remains no secret that tourism remains high in the list of priorities for the new government. Thus, in a bid to increase the number of tourists

visiting Indian shores and brand India as a 365 day destination, government has announced its ambitious electronic travel authorization (ETA) ensuring visa-on-arrival for the residents of 43 nations. This facility, to be implemented in phases, is initially available at nine international airports in the country – which are Delhi, Mumbai, Chennai,

Vivek Shukla

Siddharth Savkur

The scheme introduced by the government is a very welcome step. It will definitely help in getting more leisure travellers into the country.

I think this is a major development with huge potential for the tourism industry in the country. Better numbers are a matter of time now

General Manager, The Lalit New Delhi

General Manager, Alila Diwa Goa

30 HOTELSCAPES • December 2014

Kolkata, Hyderabad, Bengaluru, Thiruvananthapuram, Kochi and Goa. The scheme, right now, facilitates nationals of 43 countries including Australia, Brazil, Cambodia, Fiji, Finland, Germany, Indonesia, Israel, Japan, Jordan, Kenya, Luxembourg, Mauritius, Mexico, Myanmar, New Zealand, Norway, Oman, Papua & New Guinea, Philippines, Republic of Korea (i.e. South Korea), Republic of Marshall Islands, Russia, Samoa, Singapore, Thailand, Tuvalu, UAE, Ukraine, USA, and Vietnam to name a few. T h i s move i s b ou nd to improve travel sentiments about a nation, which has a reputation of being high on paperwork and bureaucratic hurdles, and thus improving business opportunities for the hospitality industry. There is a general consensus on the fact that this move will bring in

more tourists and bolster inflows in every category of tourists visiting India. “The scheme introduced by the government is a very welcome step. It will definitely help in getting more leisure travellers into the country. The scheme will also encourage last minute leisure travellers to come to India since it saves the hassle of applying for Visa in advance,” feels Vivek Shukla – General Manager, The Lalit New Delhi. While, Siddharth Savkur, General Manager, Alila Diwa Goa, feels that the biggest hurdle to inbound tourist inflow has been addressed and better numbers are a matter of time now. “My understanding is that the visaon-arrival scheme significantly reduces processing time for incoming travellers. International tourists can now apply online just three days prior to arrival

DESTINATION INDIA

RAJNATH SINGH, Home Minister “We have launched this system for 43 countries, because so far the contribution of tourism industry in GDP has been approximately seven percent; we want to double this contribution. Our effort is that except the very high risk countries we include all the rest of the countries for 'Visa on Arrival’.

Saurabh Bharara

Ram Shetty

Director of Sales, Pullman Gurgaon Central Park

Associate Director of rooms, Marriott, Jaipur

With VOA scheme, we will see rise in number of entrepreneurs and big structured business giants as it will become easy for them to do business in India.

E-visa scheme is a game changer for the tourism industry in India, making it easy for tourist to plan a holiday in India now. It can double the tourist inflows.

and submit their biometrics when they land in India. I think this is a major development with huge potential for the tourism industry in the country. One of the roadblocks to driving inbound travel was the difficulty in getting an Indian tourist visa, and this step goes a long way in addressing that,” he says. Saurabh Bharara, Director of Sales, Pullman Gurgaon Central Park, echoes similar sentiments. Expressing his happiness over the latest development, he told us that, “The notoriously difficult Indian visa application process is now apparently a thing of the past. Easing visa processes has proved to be a popular and effective strategy for increasing foreign tourism, by making it faster and cheaper for tourists to enter the country once or several times per year.” He also argues that this will lead to a healthier entrepreneurial environment boosting business in India , especia lly helping i n creat i ng ea sie r busi ness environment. “With Visa on arrival scheme getting applicable in India, we will see rise in number of entrepreneurs and big structured business giants as it will become easy for them to do business in India. Also tourism industry will get a boost because lot of tourists plan their itinerary last minute and choose

destinations where visa norms are easy. This will eventually lead to more inflow of travellers towards India and creating big demand for hotel rooms in respective cities which in turn will enable hotels to do higher occupancies.” Ram Shetty, Associate Director of rooms, Marriott, Jaipur, hails it as a game-changer and believes that it has the potential to double the number of tourists coming to India in a very short span of time. “E-visa scheme is a game changer for the tourism industry in India, making it easy for tourist to plan a holiday in India now. This can even double the number of tourist visiting India in another 2-3 years,” he says.

Tangible gains will come, it’s just positive sentiments for now

However, the general feeling, in the hospitality community, remains that the gains will only materialize once the effect of the policy is visible on the ground in terms of better numbers in tourist inflows and better room occupancy. “Since the VOA facility was only introduced recently, it’s too early to comment. But we k now f rom regu la r international guests that they are very happy and would definitely use this option when they come to India next,” says Siddharth.

December 2014 • HOTELSCAPES 31

DESTINATION INDIA

LAJPAT RAI, MD, Lotus Nikko Hotels I think as an hotelier it brings enormous advantage to those who want to visit India. Previously, one needed to go to a travel agent and follow-up with a flurry of paper-work. All of that is set to change now. This scheme is going to bring a lot of tourists. All though, changing perceptions about India will take time. When India started VOA for Japan, the response was, initially, lukewarm. However, that has changed and, now, Japanese have a significant presence in India. The scheme will have more business and leisure travellers coming to India, but tangible change will only be seen after a year. Even if we are able to achieve a 10% increment in the tourist inflows, we would have done extremely well. Vive k , a l s o, h a s s i m i la r sentiments and feels that, “It is too early to analyze that I am sure we will see incremental growth due to the implementation of visa-on-arrival scheme. While, Saurabh says that there has already been a healthy growth in numbers indicating that things are on the right track. He backs his assessment with figures saying that, “During the month of October 2014, a total of 2,705 Visa on Arrival (VoAs) were issued as compared to 1,911 VoAs during the month of October 2013, registering a growth of 41.5. This is obviously a very positive indicator and with more countries due to be covered, we should see a further jump in volume of overseas visitors.”

Hotels hope for a more geographically diversified clientele

We also enquired whether the scheme benefits these hotels in

HOMA MISTRY, CEO, Trail Blazer Tours India Pvt. Ltd. “It is a very positive move which signals the intent that India is open to tourism and business. It is a process which will yield results in due course of time. More so, when other important source countries like the UK and other European countries come under the ambit of ETA. It is certainly beneficial for business travellers, however there are certain issues that still need to be addressed. The Visa that is given is a single-entry visa and not multiple-entry visa, moreover neighbouring countries like Sri Lanka have not been included. As the tourists generally like to visit the entire circuit ranging from Sri Lanka to Nepal through India, including neighbouring countries in this framework will enhance the effect of the policy. The government is moving in the right direction and has been working on the shortcomings and bringing the systems at par with the global standards. It is a fine start and let us be hopeful of better days ahead.”

expanding their clientele base and where their existing clientele came from? Saurabh tells us that, “We primarily cater to the European, CIS & Scandinavian markets and our major clientele is from Germany. The sentiments in Germany at present are not in favour of India. Due to the series of incidents that have been highlighted in the past have left them perceiving India as a very unsafe destination primarily for women.” He also cautions against being over-enthusiastic about the scheme and feels that there is a lot more that needs to be done to improve over-all perception about the nation. “There is a wider picture we have to look at since Visas on arrival and e-visas are mere tools, however not the governing factor for a traveller to consider travelling to India. Our overall reputation is at stake and till the time the nation does not come out together and address this concern, the

32 HOTELSCAPES • December 2014

challenge is going to remain,” he argues. Siddharth feels that with this initiative the hotel will gain on the number of tourists coming from the middle-east and Dubai, especially after the commencement of direct flights to Goa. “Our International guests come in from UK, Germany, Russia, the CIS nations and Iran mainly. With the VOA facility, I believe that we will see more guests from the UAE now that we have more direct flights from there to Goa,” he tells us. Vivek shares that there has been some resentment for leaving out popular market segments like the UK and Canada-which hold tremendous potential for Indian market, with a huge Indian diaspora and strong business relations. He, also, is optimistic about the initiative and tells us that “Our clientele dominantly consists of the US, UK, Australia, Canada & Singapore markets. But Visa-on-arrival scheme has

not been permitted for UK & Canada which would have been really helpful for our market. We are expecting an increased inflow of consumers from permitted markets as the time-window for visa-on-arrival is 72 hours, which makes it very convenient for travellers.” The move, indeed, has the potential to bring India at par w it h t he mo s t f r e que nte d destinations of the world, once more nat ion s , i mp or t a nt ly source markets are added in the ambit of the policy. What remains important though is to improve related infrastructure and quality of manpower dealing with the tourists. After all, they are the first interface a tourist has with our country. It is a bold move, one filled with intent and opportunities, let us hope it offers us more business prospects and makes India a destination for all seasons. HS by SHASHANK SHEKHAR

DESTINATION INDIA

Ödisha tourism needs big promotional push

J K Mohanty, MD of Swosti Group of Hotels is a tourism sector veteran from Odisha. Donning additional hats- Chairman, Hotel & Restaurant Association of Odisha (HRAO) and Chairman, IATO, Odisha Chapter – Mohanty has been in the forefront of voicing the concerns of the local industry and has been a strong votary of aggressive campaigning. Speaking with HotelScapes, Mohanty explains why high-pitched promotion is a must for the state tourism…

Q &A J K Mohanty

MD Swosti Group of Hotels

ow was the trend in Odisha in 2014 from the standpoint of domestic and international tourist inflow?

In last five years, the tourists arrival in the state has shown a consistent increasing trend and the scene was no different in 2014 as well. Going ahead, the prospects for Odisha tourism will continue to remain bright and with little initiative on publicity, adoption of high hygienic standards on the beaches and near the temples and enhancement in accommodation capacity; Odisha can become one of the most important tourist destinations in the country. Despite having great

potential for spiritual, natural, heritage and tribal tourism, the state has not managed to capitalise on them because of inadequate marketing campaign, low air connectivity, etc. Odisha is perhaps the only state in the country that can boast of a very expansive offering portfolio comprising mountains, beaches, forest, mangroves, georges, eco-sensitive forest areas, tribal life, the rich cultural dances, temples, stone crafts, etc. The state is pollution free, peaceful and people are tourists friendly.

e are told that the Odisha government has released a new Tourism Policy. Has it really benefitted the industry?

The government has clearly brought out a very advanced tourism policy. The broader objective is to develop Odisha as one of the most preferred tourist destinations and to place it prominently on the domestic as well as international tourism map. Incentives never heard before have been incorporated into the new tourism policy which, we are confident, would result in huge inflow of investment in the tourism sector.

s chairman of Hotel & Restaurant Association of Odisha(HRAO) & IATO, Odisha Chapter, what are the new initiatives being taken by your association particularly for safety tourism?

As Chairman IATO, Odisha Chapter and Chairman HRAO, I have been sincerely working with the state and central government towards a better understanding and coordination between the industry and the government towards a balanced growth in the inbound tourism. The HRAO and the State Tourism Department have jointly started the ‘Visit Odisha’ campaign within India and abroad. In the year 2013, we had successfully conducted the Visit Odisha campaign road-shows in Varanasi, Hyderabad, Goa and this year, we staged similar promotional events in Raipur & Chennai. Now we are planning to organize road-shows in every state in the country to create awareness of the tourism potential, art, craft, culture and cuisine of Odisha. 34 HOTELSCAPES • December 2014

DESTINATION INDIA As far as safety of tourists is concerned, the Odisha government had started the Tourist Police at Puri sea beach few years back but this has been discontinued. In view of the growing problems specially in Puri sea beach and other temple areas, we have proposed to the government to start a specially trained Tourist Police Wing to ensure friendly behaviour with tourists and stop anykind of harassment at railway stations, taxi stands, temples, etc.

hat is the status of the Odisha Government’s plan to hold Odisha Travel Mart?

Taking lead from the success of Kerala tourism, many states have started their own travel marts. We are in favour of Odisha also starting its own annual Travel Mart and invite tour operators, travel writers, international photographers, etc to get a first hand experience of our potential and capabilities. With the approval of our chief minister, the HRAO had invited the Indian Association of Tour Operators (IATO) in the year 2008. The end result was quite satisfactory: since then most of the leading tour operators in the country have begun putting Odisha in their promotional literature. We from the travel trade are in constant touch with the Odisha Government to start the Odisha Travel Mart jointly with the State Tourism Department to promote Odisha directly and aggressively. Recently on 12th December 2014, Chief Secretary, Govt. of Odisha, called a meeting with travel trade and assured the industry to start the Odisha Travel Mart soon.

as Odisha with its rich forests, beaches, lakes etc developed any eco-tourism spot or resorts?

Odisha has tremendous potential for ecotourism enthusiasts. The eco- tourism sector of Odisha has been well protected by the government and the Forest Department and presently limited tourism is permitted. It would not be an exaggeration to say that Odisha is the richest eco-tourism state in the country. Some prominent eco-tourism locations in the state are: Similipal, Satkosia G orge, Tika r pada , Ga hir mat h Tur t le Sanctuary, Chilika Lake, Debrigarh, etc. Additionally, Bhitarkanika, an eco- tourist destination is called a mini Amazon. This is the only place in India which guarantees tourists to see the largest population of giant salt water crocodiles, eight species of Kingfishers, the nesting of Olive Redly turtles,

WE FROM THE TRAVEL TRADE ARE IN CONSTANT TOUCH WITH THE ODISHA GOVERNMENT TO START THE ODISHA TRAVEL MART JOINTLY WITH THE STATE TOURISM DEPARTMENT TO PROMOTE ODISHA DIRECTLY AND AGGRESSIVELY. RECENTLY ON 12TH DECEMBER 2014, CHIEF SECRETARY, GOVT. OF ODISHA, CALLED A MEETING WITH TRAVEL TRADE AND ASSURED THE INDUSTRY TO START THE ODISHA TRAVEL MART SOON. Mangroves and other terrestrial wildlife. But due to lack of publicity, this amazing spot remains lesser known.

hat is the status of Swosti Group’s eco-friendly Resort at Chilika lake?

It was quite difficult to get a CRZ (Coastal Regulatory Zone) clearance from the Ministry of Environment. But the project is now being handled by one of the well known architects from Thailand. The project will have huge landscaping area with residential villas, pool villas and cottages all overlooking the 1100 sq km Chilika Lake. The project would also have very modern SPA, yoga centre, herbal gardens, large water bodies in the campus, water sports for the youngsters and high-end houseboats with facilities for conferencing. Smaller boats are being imported to take the tourists around the 26 islands situated in Chilika Lake. This would be one of the most action packed resorts of India. Further, the process is also on for a luxurious eco-forest lodge at Bhitarkanika, the largest mangrove forest in Eastern India which is the house of a tremendous variety of wildlife and crocodiles. We are also in the process of getting the CRZ approvals for our resorts in Puri and Satpada lake which is the home for India’s largest collection of Irrawaddy Dolphins.

hat are the new areas and ventures promoted by Swosti Travels as an inbound tour operating company?

Our mission is to spread the message about the unique offerings of Odisha tourism across the globe and our motto has been: ‘Once our Guest, forever our Friend’. Swosti Travels, established since 1987, has emerged as a leading tour company in the state of Odisha promoting both inbound and outbound tours having regional

offices in Kolkata, Delhi, Raipur and Jharsuguda. Swosti Travels has recently launched exciting and memorable tour packages in absolutely new destinations in the state. Some of them are: beach tours, tribal tours, heritage & cultural tours, adventure & wildlife tours, monuments & temples tours, Bbuddhist India tours, textile & handicraft tours, special interest tours, pilgrimage tours, medical value tours, spiritual tours and eco-tours. Known for its quality of services, most of the national and international tour operators have joined hands with Swosti Travels in promoting Odisha.

s Swosti Group is planning to join hands with any National or International chain of hotels?

We have been considering the same and are in dialogue with some of the chain hotels.

ow has Swosti Group of Hotels done in Bhubaneswar and Gopalpur and what about your new hotel projects?

Swosti Group has been in the hospitality industry in the state of Odisha for last 31 years. Swosti Grand (formerly known as Hotel Swosti) at Janpath, established since 1982 is a government classified 3 star hotel. This hotel has now been completely renovated into a Boutique Hotel. In the year 2000 Swosti Group established “Swosti Premium,” the largest convention hotel in Eastern India which has successfully handled some of the mega medical conferences, national and international meetings, exhibitions and conferences. It is also government classified 3 star hotel and would soon be applying for reclassification as a 5-star property. In the year 2004, Swosti Group entered into Gopalpur-onSea and opened “Swosti Palm Resort”, which is the only luxury resort in that location. HS by NAVIN BERRY

December 2014 • HOTELSCAPES 35

FOOD

Possible Future Trends in Indian Food Business At the recently held India Culinary Forum in New Delhi, one of the subjects debated was the future trend in Indian Food Business. Here are excerpts:

Anil Bhandari

Chef Sabyasachi Gorai

Samir Kuckreja

Everybody in the business know that if you have marketed your cuisine well, it could well set a trend.

To create new trends, you have to ensure that the food is interesting and it can be kept alive.

Regional cuisine is an under-penetrated segment and we may see a lot of action in this space.

examples of the new trends emerg ing in t he developed markets. Logbar in Tokyo issues customers with iPad Minis where menu is enlisted. It facilitates you to have a view of what other drinkers are liking. A new concept is evolving in Europe called Holographic Chefs and a new robotic machine is about to hit the market which will churn out 360 gourmet burgers in an hour. Turning conventional wisdom upside down, French food market is inundated today with ‘Healthy Chocolates’ and here comes the ultimate: alcohol-aware ice cubes. Keep one of these in your glass and it will warn you when you’re guzzling more than it is required. If you ignore the warning, it will send a text message to a close

friend. These are, of course, the new top of the line trends driven by technology over and above the endeavours to broaden the cuisine offering portfolio. That brings us to the core issue. How are dynamics shaping i n t he I nd ia n fo o d ma rke t which has taken a gigantic shape though it remains fragmented to a large extent? What are the possible future trends which will define the food business here? Going by the industry insiders, Indian market too is assuming a dynamic mien and several critical churnings lie ahead. But first, let’s take a look at the size and existing equations in the food business. According to an industry estimate, the total worth of the annual food & beverage

Chairman AB Smart Concepts

n a business where you can’t afford the risk of slipping even a wee bit from that unstated promise of ‘deliciously yours,’ innovations and experimentations are bound to be a permanent feature. Food business world over is believed to be one such s e g me nt whe r e c on s i s t e nt improvement in all respects is a perennial rule since a larger part of your credibility may hinge on individual subjectivism rather than collective objectivism. And, therefore, players in the fray are at their toes to keep their business dynamic – not only in terms of catering you with new dishes but also in areas like marketing, packaging, bringing in new technological applications, etc. Here are some interesting

Mentor, Olive Culinary Academy

36 HOTELSCAPES • December 2014

Former President, NRAI

(F&B) business currently stands at a whopping R s 2, 50, 0 0 0 crore (over $ 40 billion) which is slated to nearly double in next five years. The share of the organized segment in the Indian food business is 30 percent and remaining 70 percent is mostly controlled by what is popularly known as roadside vendors. But the good news is: the share of the organized segment is growing steadily and by 2018, it may well mount up to 45 percent. The food business currently provides employment to 5 million and another 3 million would be added to the service pool in the medium run. Casual dining and QSRs dominate the organised food market and its young Indian consumers (primarily in the age group of 21-30) who are driving the business of restaurants in the country. To encash the huge business opportunity emerging from rapidly expanding market, about 3000 foreign QSR brands have ta ken the position on Indian turf whereas the number of home-grown entities is close to 200. W h i le obser ver s b el ieve

FOOD

that the picture is only slated to get bigger, new trends would also emerge as necessary offshoots of the growth. More emphasis on marketing, for instance, would be one such trend. “There would clearly be more focus on marketing because everybody in the business know that if you have marketed your cuisine well, it could well set a trend. Chinese and Italians have done it exceptionally well and now we need to develop capabilities on this front,” says Anil Bhandari, Chairman, AB Smart Concepts. He is, however, quick to point out that aggressive marketing alone will not necessarily translate into an effective strategy. “Players in the food business will have to ensure that whatever they create find buyers. And for this, equally important will be to have a better sense of demographic equations and the paying capacity of the targeted consumers,” he advises. According to award winning Chef Sabyasachi Gorai, creation of new trends would depend on the conjunction of some critical factors. “Trends is something you can create provided you have the right balance between new

technology, equipments and the demand in the market. To create new trends, you have to ensure that the food is interesting and it can be kept alive,” he says. While anticipating that some serious innovation can be witnessed on the basic technological platforms of grilling and boiling, Gorai also believes that the back-end management process will get more modernized. “Cold Chains, so important for our business, have been a challenge. There is no gain saying that our back-end base is not that strong. But I feel these areas will get stronger because without them you are literally asking a chef to perform like a magician,” he points out. S a m i r K u c k r e j a , For me r President, NRAI points out another interesting trend which may come out of the closet. And that pertains to the broadening of cuisine portfolio. “In my view, regional cuisine is an under-penetrated segment and we may see a lot of action in this space,” he predicts. Another critical trend he anticipates is in the big-ticket arrival of Indian QSRs, a segment which is largely dominated by foreign brands. “Indian driven QSRs have to grow big and they will be taking a serious shot at it in the near to medium-run.” The rapid expansion of the organized segment is also believed to be a possible distinctive trend and here, as Bhandari points out, the interesting fact would be many large scale dhabas upgrading themselves. According to Gorai, pop up kitchens and ayurvedic foods too stand the chance to become defining trends. In terms of location rooting, Kuckreja believes the highways could be the new hotspot of new QSB units. “Highways would offer huge opportunity for the food business, particularly those stretches which report rapid transit,” he says. All in all, the wheels of the Indian food business seem to be all set to cover new distance. HS by RITWIK SINHA

December 2014 • HOTELSCAPES 37

FOOD

Leading chefs discuss the importance of recipe standardization

The most leading chefs in the business of Indian food have different takes on the importance of standardization in recipes and formulations. Here is a forum debate in brief.

t could well be equated with that perennial tiff between catholics and protestants. W h i le bot h t he pa r t ies believe in the same god and the holy trinity, the difference lies in the ways which have been devised to approach the divinity. There is a similar undercurrent in the world of cuisines too – there are those who believe that recipe standardization is a must and tweaking the grammar is a serious mistake if exactly not a crime or a sin. But there seems to be an equally strong quarter which holds this view that no innovation would be possible till you deviate from the codified decrees. To derive something new, the perceived boundaries will have to be penetrated. Period! As the restaurant business in India skips from one scale to another thanks to the emergence of an aspirational class backed by a young demographic, the issue of standardization of Indian recipes too has begun to get more explicit than ever before. In the name of catering new dishes, how much of experimentation should be allowed? Does it make sense to disturb the basic cuisine equilibrium? To preserve our cuisine heritage, isn’t it time that a serious cuisine standardization exercise should be set afoot? The questions abound and particularly the fraternity of Indian chefs is asking for clear answers to ensure clarity going ahead. Those who are pitching for standardization clearly underline that a ‘kichdi’ mindset will not work here. But before coming to the

Chef Arvind Sarswat

Chef Manjit Gill

Chef Devinder Kumar

In the name of experimentation, some Indian chefs are deviating from regular practices and are degrading the profession.

Indian food is the most creative food and beyond recipe. Therefore, it can’t be standardized.

While we need to document yesteryear cuisines, the same rule may not be applicable for modern cuisines since there is too much of confusion.

India specific issues, here is what some leading global agencies related with food and cuisines have said about standardization. The United States Department of Agriculture (USDA) defines a standardized recipe as one that “has been tried, adapted, and retried several times for use by a given food service operation and has been found to produce the same good results and yield every time when the exact procedures are used with the same type of equipment and the same quantity and quality of ingredients in the manual.” National Food Service Management Institute, US had published a detailed report in 2008 defining many elements of cuisine standardization and its benefits and many believe the

paper to be quite comprehensive. The paper classifies over half a dozen benefits which cuisine standardization accrue to all concerned parties in the value chain. These include: consistent food quality (producing best possible food items every time); predictable yield (knowing how much of an item the recipe will produce helps prevent food waste and shor tages on the serving line); accurate nutrient conte nt ; fo o d co s t cont rol (when the same ingredients and quantities are used each time, the cost per serving remains the same); efficient purchasing (the quantity of ingredients needed for production can be easily calculated based on the information provided on the

recipe); inventory control (the quantity of food inventory used each time can be estimated); labour cost control (procedures clarity ensure efficient output from the workers), etc. Going by the points mentionedabove, recipe standardization can deliver multi-pronged benefits to everyone – ranging from the ultimate consumers vis-à-vis food quality to the restaurant owners and managers in terms of cost benefits. Now to the moot question: where does Indian cuisine market fare today vis-à-vis standardization? Additionally, in a culturally diverse country like India where cuisine may change every 100 kms, is standardization possible? Chef Arvind Sarswat strongly responds focusing

Director, Food Production, TajSats

38 HOTELSCAPES • December 2014

Corporate Chef, ITC

President, Indian Culinary Forum

FOOD more on the imperativeness of this exercise. “In the name of experimentation, some Indian chefs are deviating from regular practices and are degrading the profession. So the time has come for the authentic documentation of recipes.” Sarswat is pressing for the evolution of an authentic code – something on the lines of Larus Gastronomy which is treated as a bible for French cuisine. Any commoner would say that in this internet age, there are dime a dozen recipes available just at the click of the mouse. Are they not meant to be taken seriously? “ Prima facie, there are plenty of recipe books available in the market,” points out Navin B e r r y, Chief E ditor, Cross Section Media (publisher of this magazine). Sarswat believes the deluge of information available on the internet add more to the confusion than anything

else. “Information is plenty on internet but they are scattered and their authenticity is doubtful. We need a serious agency to undertake this standardization exercise. Maybe, even Ministry of Tourism can pitch in and share some responsibility,” he exhorts. However, within the top rung of Indian chefs’ ladder, there are those who have equally strong sentiment underlining that recipe standardization in India is not possible since most of the culinary evolved in yore. Chef Manjit Gill belongs to this school of thought and here is how he puts forth his argument. “Most of the countries treat food as a commodity whereas there are a select few which look at it as a cultural asset. We fall in the latter category. Indian food is the most creative food and beyond recipe. Therefore, it can’t be standardized. The quintessential

THE MOOT QUESTION IS – IN THE NAME OF CATERING NEW DISHES, HOW MUCH OF EXPERIMENTATION SHOULD BE ALLOWED? Indian foods have been mentioned in Vedas and they are deeply grounded in five elements, nine feelings and we cater to six kinds of taste. What we basically have is a system wherein a base is given and then you have the leeway to play around a fixed theme.” Gill believes in preservation of the recipe especially the vast gamut of regional cuisines more by practice than anything else. “I always tell my fellow chefs to first master the cuisine of your region,” he says. Che f D ev i nde r Ku ma r, however, somewhat offers a middle path categorizing the broader Indian cuisine palate in two distinctive parts – yesteryear

cuisines and modern cuisine. And his submission is simple: in the yesteryear cuisines there was more orderliness. “While we need to document yesteryear cuisines, the same rule may not be applicable for modern cuisines since there is too much of confusion. There is no boundary today in what we call contemporary cuisine,” he says. Like Sarswat, he too strongly advocates that where standardization is needed, the initiative should be set rolling on an urgent basis. “Let’s protect our culinary heritage – this issue should not be taken lightly any longer.” HS by RITWIK SINHA

December 2014 • HOTELSCAPES 39

FOOD

Industry pleads with FSSAI to be more accommodative In its zeal to clear the augean stables in the food industry, is the Food Safety and Standards Authority of India (FSSAI) going too far? This seems to be the larger impression prevailing in the QSR circles and the basic grudge is – the authority does not bother to hear out their concerns.

s it yet another case of honourable intentions going awry? Or should the voices of criticism be seen resulting from transitional pangs wherein the players are finding themselves being forced to comply with new set of rules? Stricter ones, of course. In terms of reputation and credibility, the Food Safety and Standards Authority of India (FSSAI) today precisely finds itself at this crossroad. Forget the baton carriers of Indian food business, even within the government circles the feeling is FSSAI’s moves often turn out to be unwarranted hurdles. “Systems should not be arbitrary. While maintaining the food safety standards, it should also encourage the industry. So, if industry is having some issues

that need to be addressed,” Food Processing Minister Harsimrat Kaur Badal had recently commented while expressing concerns over increasing cases related with imported food items getting stuck in customs, thanks to the norms set by FSSAI. Representatives of food industry have their own long litany of woes ranging from the authority often unleashing an inspector raj to formulating rules without much research and consultation with those who fall under the ambit of its guidelines. But before coming to industry’s plight, here is what FSSAI exactly stands for. The authority, which functions under Ministry of Health, was established under

REPRESENTATIVES OF FOOD INDUSTRY HAVE THEIR OWN LONG LITANY OF WOES RANGING FROM THE AUTHORITY OFTEN UNLEASHING AN INSPECTOR RAJ TO FORMULATING RULES WITHOUT MUCH RESEARCH AND CONSULTATION WITH THOSE WHO FALL UNDER THE AMBIT OF ITS GUIDELINES.

40 HOTELSCAPES • December 2014

Food Safety and Standards Act, 2006 after consolidation of several existing acts related with food related issues. “FSSAI was created for laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption,”

FOOD says a mission objective paper of the agency. And the definition itself makes clear that it was supposed to play an all-pervasive role in regulating the food value chain at all stages. On a broader basis, FSSAI was entrusted with the responsibilities that included: laying down mechanisms and guidelines for accreditation of certification bodies and laboratories; collect and collate data regarding food consumption, incidence and prevalence of biological risk; creating an information network across the country so that the public, consumers, Panchayats, etc receive rapid, reliable and objective information about food safety; contribute to the development of international technical standards for food, sanitary and phyto-sanitary standards, etc. The authority had started functioning in 2010 and has been in news quite often because of some startling revelations. One of its recent and first-of-itskind surveys had stated that 70 per cent milk samples collected across the country did not conform to standards. And the agency is credited with registering (with the assistance of state governments) nearly 30 lakh food business operators in the country since its inception. “FSSAI was formed with a very noble objective- safe food for consumers which will result in a healthy India,” says a leading figure of food and beverage industry. And this is not a lone voice. In fact, nobody is disputing that FSSAI’s role has paramount importance in an era where rising consumerism needs the support base of regulations which ensure that food and beverage business stays in the fine fettle in qualitative terms. The grudge

THE ENORMITY OF TASK IN WEEDING OUT THE ROT IN THE GIGANTIC FOOD AND BEVERAGE BUSINESS IN THE COUNTRY TOO SEEMS TO HAVE AFFECTED FSSAI IN TERMS OF NOT SETTING AFOOT MOVES WHICH CAN BE DUBBED AS PRAGMATIC- SOMETHING THAT ENCOMPASSES THE CONCERNS OF ALL STAKEHOLDER. is on implementation of measures which are not practical; the bone of contention is in what could be called authority’s non-chalant attitude in hearing out the stakeholders’ concerns. “Many measures of FSSAI are not practical. For instance, the law framed by them will determine how the kitchen of restaurants will be judged. We should have been involved in making the draft. In 2012, FHRAI had submitted a 700 page memorandum which contained recommendations from our side. But we got no response,” says Saeed Sherwani, Former President, FHRAI. “One general impression is that FSSAI has laid out ruled without doing proper research,” adds NS Bhule. “ If pesticide is found in the rice supplied to us by an outside vendor, how can you blame the restaurant? At times, FSSAI inspectors behave very rudely,” points out a restaurant owner. According to Food Auditor Sumit Saxena, food operators are engulfed with the feeling today that FSSAI norms are very stringent. “Previously, hotels and restaurants were facing problems on several fronts because of the absence of standards. But ones imposed by FSSAI are now considered to be very stringent.

For instance, the norms for catering which also include street foods. The authority is now also working on setting out norms for kitchen management,” he says. There are broader hints that some of the measures were enforced suddenly which have resulted in serious adjustment issues. Points out Saxena, “In one of its rulings, the authority asked milk industry to upgrade to stainless steel silo. They were not ready for it and, therefore, their response was slow.” The enormity of task in weeding out the rot in the gigantic food and beverage business in the country, too, seems to have affected FSSAI in terms of not setting afoot moves which can be dubbed as pragmatic- something that encompasses the concerns of all stakeholder. Explains Seema Atreya who has been a senior official with a front-ranking Indian QSR, “FSSAI has two prime responsibilities. Firstly, licensing and registration of all food business operators in the country including street vendors like it is in Thailand. And you can well understand how big this task is in a country as large as ours. There has been a deluge of applications with FSSAI in recent times. Second part is regulatory, wherein it has to pave way for the upgradation of a lot of standards,” she says. According to Atreya, FSSAI is working to new specification for as many as 350 food ingredients which manufacturers will have t comply. This also includes such long-pending changes as doing away with the previous norm wherein the presence of insects’leg in Maida was not found to be objectionable. Nudging notes from F & B industry notwithstanding, the possibility of things finding a more stable ground in the future can’t be ruled out. And this is primarily rooted in the larger realisation that FSSAI is meant to undertake something which is vital for all and sundry. Probably, the authority needs to smoothen a bit what is believed to be its rough edges – something it may have ignored in the rush of things. HS by RITWIK SINHA

December 2014 • HOTELSCAPES 41

SUPPLIER PERSPECTIVES

Finest quality, best pricing top priority for hotels; feel vendors Hoteliers in India are trying their best to serve an excellent international experience to their guests in every sector ranging from entertainment facilities to interiors and more. With the rapid evolution in each sector, the technology is changing for better and new products are coming up offering enhanced services and better experiences. Hotelscapes talks to suppliers, in different segments, of the hospitality industry about latest trends in procurement vis-a-vis cost and quality.

he trends of buying

W hen it comes to serving their guests, hotels look for the best offerings amongst the brands and wish to beat their competitors with the latest technology in their hotel. A nkush Agar wal, Director, Marketing, Harman India tells us that Sound is one element which forms the most essential part of any hotel’s ambience. Indian hospitality sector today is witnessing changing trends in entertainment with sound system in hotels. “Innovation in audio products is the cornerstone to capture the market share and cater to the growing needs of the customers. With a dedicated team for catering hospitality sector globally, HARMAN works closely

with major hospitality chains with the aim of understanding the changing demands catalysed by new trends on technology, like Bluetooth, Blu Ray, AVB, Cloud IT etc. Harman with a firm belief in setting trends in innovation delivers audio solutions – which with their innovation result in minimal maintenance and ease of operation. One such cutting edge technology which Harman is creating waves in hospitality world over is multi zone paging system along with convergence with Data and Video. IDX is an answer to Audio Consultant’s multi zone paging system issues. There has been an increasing demand in defining multiple zones in hotels to cater to zone wise paging. IDX not only provides the most advanced technology for this but also allow

42 HOTELSCAPES • December 2014

infinite zone creation and multiple zones programming,” he adds. On the other hand, choosing the right mattress for the guests is also essential as it promises a good night’s sleep for them. Sleepwell is one of the leading brands in this sector, Manoj Sharma, Marketing Head, Sleepwell says that in the hospitality segment, primarily spring mattresses are used. Further explaining about the reason he says, “These give a luxurious and plush feel to the customer while sleeping. The spring mattresses are quite durable and add value to the customer. These mattresses are made of Fire Retardant (FR) fabric which acts as a dampener to the spreading of fire, in case of a fire hazard. Some premium hotels also opt for state-of-the-art Impressions range of mattresses. These are

made of NASA’s Visco Elastic Temperature Sensitive Material and “Responsive Profiling”. Closely following the contours of the body, the Visco Elastic Temperature Sensitive layer significantly reduces stress. The Responsive Profiling on Latex Plus perfectly supports your body by distributing body weight evenly and also enhances air circulation keeping the mattress fresh and ventilated.” The current trends in terms of faucets and fittings used at the hotels seem to be for the ones which combine both luxury and sophistication. Hotels are also looking forward to using products which are environment friendly and help in saving water. Ramesh Kaushik, Marketing Head, Grohe India elaborately pinpoints the trends that he has seen in the past

SUPPLIER PERSPECTIVES

TODAY THE MID AND LUXURY SEGMENT HOTELS ARE LOOKING AT BUYING ENGINEERED AND SOLID WOOD WHEREAS SMALLER CHAINS ARE GOING FOR LAMINATE.

year and believes that the same will continue further as well. He says, “Shower cubicles will surpass bathtubs in both economy and luxury segments for the hospitality sector. Many hotels are opting for smart showers because they not only promote reduced water consumption and space utilization but are also preferred by most business travellers who don’t have the time for long leisurely baths. In the light of the growing popularity of shower enclosures, shower trays are fast catching up as the most sought-after product in India. As the concept of dry showers gets more appealing, shower trays are seeing a huge spurt in demand, especially the synthetic kind as they are more cost-effective and long-lasting.” Adding further, he says, “As far as water closets go, the wallhung type is getting a preference over sta nding models . In the hospitality sector specifically, these closets are being favoured on the basis of their superior aesthetic, design value and also their compact sizes which allow for easy housekeeping. Urinals are mostly bought for public places in India and bidets are still a growing segment in the country, a trend that is likely to continue for a while. The one or two head

Ankush Agarwal

Ramesh Kaushik

Innovation in audio products is the cornerstone to capture the market share and cater to the growing needs of the customers.

The hotels in India have always been qualityconscious. They are constantly innovating to stay abreast of luxury trends across the globe.

mixer taps will be the most frequently bought variety as has been the case for a few years now. Earlier, pillar taps were purchased the most but now the buying patterns have altered even in the economy segment. Concealed plastic cisterns, framed concealed cisterns and vanity washbasins are areas that have seen limited scope till now because of their considerably high price but the demand for them is bourgeoning

everyday as emphasis on worldclass, luxurious bathrooms grows.” The hotels have a set hierarchy system which takes forward the buying process for different segments of the hotels after researching all around the market and looking for the best offer. Rajeev S Kumar, CEO, Wasmaatic tells us about the usual process of how the buying is done at the hotels. He says, “It is usually the BOH consultants ( or

Director, Marketing, Harman India

Marketing Head, Grohe

the project team of buyer group), who would design the laundry , assist in budgetary estimations for laundry, suggest a few brands, design the tender, assist in calling offers, do technical evaluations and buyers will negotiate with couple of vendors and select the final vendor to supply, install the laundry. For replacement sales, usually the Laundry Manager would prepa re a budgeta r y estimation of new machines required for each yea r a nd put forward to management with supporting reasons, for approval and as and when these are approved, multiple offers are called for, approved for negotiation and purchased.” The process of buying in the flooring sector depends on the usage of the flooring in different parts of the hotel. Pergo is a brand which is known for laminate floorings and has their own range of products to meet the different requirements of the hotels. Naresh Maheshwari, CEO, Pergo India says, “We have introduced Wood Parquet and Luxury Vinyl Planks & Tiles to suffice the different requirement of flooring in different parts of the hotel. So customers have choice to choose the flooring which best suits their requirement based on the usage of flooring. Selecting and installing the right flooring for right area enables you to meet the expectations of your customer’s requirement. A hotel has different area of usage like guest rooms (residential usage), public areas (restaurants, lobbies etc.) To overcome these challenges Pergo offers a wide variety of flooring range to its customers depending upon the usage and footfall.”

December 2014 • HOTELSCAPES 43

SUPPLIER PERSPECTIVES SquareFoot is another flooring brand which offers its products to some of the leading chains in the hospitality industry, Abhishek Saraf, Jt. Managing Director, SquareFoot talks about the trends in buying in this sector and says, “Today the mid and luxury segment hotels are looking at buying engineered and solid wood for their hotels. The smaller chains and low to mid segment buy laminate. We see an influx of oaks, walnuts and some designer ranges. Also there are a lot of boutique hotels coming up in India. People are also concentrating on the outdoor and we see an influx of outdoor products also today.”

Cost & Negotiations

While buying, the buyer has to stay in the set budget by the hotel for each segment. Sometimes budge t s do not ma tc h t he required costs and that is where buyers are forced to negotiate with the suppliers and look for the best deals. Elaborating on this issue Kumar further says, “The discrepancy that we have found at times is that the budget considerations and technical back up are not exactly what the operations would actually need. Also operational cost considerations are usually missing, there are hardly TCO’s being done i.e. Total cost of ownership and there are several reasons behind it, we consider lack of awareness as one. It is the standard industry practice that suppliers take lead in educating buyers but in India, suppliers usually are driven by closing the sales and offers what can be sold within the budget which is not always in best interest of client. What we have seen on a broader level is that there is either no inclusion of operational expenditure in buying considerations. What we try to do is assist our buyers take an informed decision. Every

operational cost is in other way a capital expenditure happening at small level every day.” The main reason why cost is an important consideration for hoteliers and developers while developing each segment of the hotel is the surging cost of land and infrastructure. It’s very critical that every investment laid in a hotel should be directly in sync with creating a world class experience for the guests along with ensuring the profitability. Talking about the negotiations and cost consideration in his segment, Agarwal says, “ W hile investing on sound systems and while negotiating for the best solution, hoteliers must keep in mind the service support which they should and would be expecting from the OEM. Service serves as a backbone of any system. While Indian Hospitality Industry is witnessing a considerable upsurge of room demand, justifying the cost incurred in the infrastructure is the key to achieve efficiency. Harman ensures same and so as to achieve the same it operates in Indian market via multiple System Integration partners ( who front end the project) like HCL, Siemens, Avaya Global etc, which not only give the Procurement managers flexibility to negotiate for the best deal but also ensure

44 HOTELSCAPES • December 2014

that they get best quality and after sales support.” On the other hand, Sharma from Sleepwell believes that cost versus value is an important consideration. But however, hotels have now realized that cheap is not always suitable in the long term and the mattress should give a value addition to the customer. “Hotels are now willing to pay more for value added properties like Health Fresh Technology, Fire Retardant properties. For a customer, the trust and security associated with the brand is now more important than the cost. Also the customer is now paying more emphasis on after sales service. The hotel business is highly competitive and price sensitive. However we do not compromise on the quality as far as our products are concerned,” he adds. Costs are a part of customer’s budget and the hotel buys keeping the same under consideration. Pergo offers a package to the hotels based on the quantity and product they choose. Negotiations are also an integral part of this whole process. Agreeing to the same, Maheshwari comments saying, “As like all segments it is general that negotiation happens in hospitality segment as well... We see some constraints

Rajeev S Kumar CEO, Wasmaatic

The discrepancy that we see is that the budget considerations and technical back up are not exactly what the operations would actually need.

when it comes to quality and design in hospitality as in most of the cases customer has to go with specifications as per the hotel brand norms, architects/ designer advice and ambience of the hotel, what best suits to their concept and design. However the product customization also exists in hospitality industry because of specific design of f looring they need to suit their hotel ambience/design.”

SUPPLIER PERSPECTIVES

COST VERSUS VALUE IS AN IMPORTANT CONSIDERATION BUT HOTELS HAVE NOW REALIZED THAT CHEAP IS NOT ALWAYS SUITABLE IN THE LONG TERM.

Naresh Maheshwari

Abhishek Saraf

CEO, Pergo India

Jt. Managing Director, SquareFoot

Naresh Maheshwari: Selecting and installing the right flooring for right area enables you to meet the expectations of your customer’s requirement.

Abhishek Saraf: Costs remain a huge consideration but today hotels are starting to understand why we have specialized range of hotel finishes.

Quality matters

Along with considering the cost, hotels cannot ignore the quality that is being offered by the suppliers as they cannot compromise on the quality of the service that they are offering to their guests. Saraf agrees to the same and says that is the reason why they have a special range of products specific to their needs. “Costs remain a huge consideration but today hotels are starting to understand

why we have a specialized range of hotel finishes with wear and tear tailored to hotels. We today explain to hoteliers about green products available if they need and also explain to them about how regular floorings in laminate or wood may not suffice in their hotels and you need a much tougher product. Some chains are receptive some not,” he says. Brands like HARMAN keep in mind to offer different range

of products to customers with different budgets. This is how they manage to keep the quality and cost matters in sync. Adding on to the same, Agarwal says, “While delivering most technically advanced sound system is an endeavor, quality needs to be considered in conjunction with the customizable requirements of the end customers. The fact that within the Harman’s portfolio we have budget, economy and premium range of solutions which blend in sync with the category of property. HARMAN, thus, is a firm belief in setting trends in innovation delivers quality audio solutions resulting in minimal maintenance and ease of operation.” If one offers good quality, then only the hotels consider continuing relations with them. With this vision Grohe has been maintaining relations with their clients, “GROHE has excellent relations with all its clients and the hospitality sector is no exception. Our relations are built on Grohe’s quality assurance and service promise. The hotels in India have always been qualityconscious. They are constantly innovating to stay abreast of luxury trends across the globe and we are happy to partner with them in their endeavour to consistently

set new benchmarks in providing indulgent experiences to their guests,” says Kaushik. Agreeing with the phenomena of maintaining good relations with the hotels by offering supreme quality, Kumar adds on, “Quality always matters and is always preferred but despite this it at times takes a beating. It is as simple as you get what you pay for! We think that there are gaps in operational-designtechnical and commercial aspects of buying laundry machinery in the hospitality industry and only by acting transparent advisers, we can truly become partners rather than just vendors for laundry technology and that is our philosophy – ‘Cost Effective Laundry Solutions’.” The quality is of utmost imp or ta nce for hospita l it y industry, as the flooring faces different users in a day, therefore, the quality products are always recommended to face these difficult challenges on daily basis. “Pergo offers some special features when it comes to flooring to face these challenges such as PerfectFold™ 3.0 for extremely ea sy insta llation, Tita n X ™ Advanced for unequalled wear resistance, and EndlessPlank™ for beauty that goes on and on forever. Finding the right floor is about finding a design you want to live with for many years to come. But Pergo laminate flooring offers more advantages than meets the eye. It’s easy to install, and incredibly durable, which means it can withstand years of use and still look beautiful,” says Maheshwari. HS by NIKITA CHOPRA

December 2014 • HOTELSCAPES 45

PRODUCTS Vetra unveils Sunbrella strap furniture and teak line

etra have come up with Sunbrella strap furniture and teak line. The strap and teak collection can comfortably be used indoors as well. Being a manufacturer, every particular desire and requirement can be customised and made according to your personal needs. The raw materials used are environment-friendly and recyclable. The USP of the furnitures are that they are maintenance free- just basic cleaning will keep it looking sharp for a lifetime. To add quality and glamour to furnitures, they have tied up with a leading US based company called SUNBRELLA – which manufacturers fabric made of acrylic fibre that is excellent for the outdoors, requiring minimum care and maintenance. The company offers years of carefree warranty for its product against fading.

Pergo presents engineered wood flooring collection

ergo unveils its latest Wood Parquet. Built for both living areas and commercial areas with normal wear, Pergo now launches Wood Parquet. With the launch, fourteen different designs with the new manufacturing technologies like Brushed Surface, Sawcut & Dutch Pattern designer look are introduced. It is easy to install and durable, which means it can withstand years of use and still look beautiful. The designs in this range are divided in 6 groups i.e. 2 decors in Svalbard, 2 decors in Gotland, 4 decors in Bornholm, 3 decors in Varmdo, 2 decors in Jomfruland and 1 decor in Dutch pattern. “With Pergo Wood Parquet, you don’t have to worry about bothersome maintenance, the parquet flooring is easy to care. It is the perfect combination of beautiful design and performance to revamp a place with the finest flooring”. Formats available in this range are: 2200 x 220 x 14 mm, 1820 x 190 x 14 mm, 1820 x 145 x 14 mm, 2200 x 190 x 14 mm.

Paramount introduces OrthoSleep Seat Cushion

aramount Surgimed Ltd. introduces the OrthoSleep range of Seat Cushion. The Seat Cushion has pressure relieving properties that make even long sitting hours pleasurable. It is an open cell viscous-elastic, temperature sensitive material that conforms to the exact contours of our body, providing optimum support and comfort leaving you with ultimate comfort and relaxation and can be used at home, office or during travel. It helps eliminate stress and fatigue anywhere anytime. For the hygiene conscious user, the soft cover is naturally hypo-allergenic and washable. The Seat Cushion is readily available across

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the country through the extensive distributor/dealer network of the Company. They are available in cream & blue color and in 40x39x8 cm size. The price range is `1,900 to `5,900.

IDUS launches latest collection of “Bar Unit”

he latest collection an ideal choice for connoisseurs, as they bring forth a collection that bypasses the ordinary, with exquisite designs for bar cabinets where one can store their preferred brands and accessories, and arouse conversations and admiring glances. Range will let you create your dream showplace – even in small rooms. Plus they’re versatile for everyday use, adding style and utility to any home”. The bars are crafted from wood, leather and synthetic materials. You can get styles that sit up against a wall and function more like a buffet server, or get a full-fledged bar. Another option is to pick home bars that open to reveal storage for liquor. Price on Request.

PRODUCTS Megalith maximum by GranitiFiandre

ranitiFiandre’s Megalith available in the 100x100 cm format comes in five intense, veined tones designed to model and coat any style of architecture. 100x100 Maximum is GranitiFiandre’s newest asset. With its considerable size, offset by its extreme manageability, the 100x100 cm format combines the qualities of Maximum technology with those of more traditional formats: the aesthetics of these products are maximised and they make any setting appear visibly larger, while the lower 6 mm thickness and the 100x100 cm format reduce the weight per square meter, thus ensuring the greatest ease of use. 100x100 Maximum: beautiful and possible.

Devon & Devon introduces Aurora Bijoux Bathtub

Ozone announces the launch of fire-rated Metal Doors

hese Metal Doors are manufactured in its newly established state-of-the-art manufacturing facility having world’s best brand machines installed such as CNC Laser, shearing & bending machines and automatic paint shop. Fire rated metal door keeps people safe and minimizes property damage during a fire emergency and prevents fire to spread in other compartments. The range of metal door includes Fire-Rated Metal Doors, Clean Room Doors, Industrial Doors, Special Doors and partition doors suiting to varied requirement. For more details: corpcomm@ozone-india.com or call +91 7503010509

urora Bijoux is a free-standing tub with double raised back, a unique tub that rests on four elegant aluminium spheres that not only provide support but are also a decorative element that accentuates the sophisticated excellence. The tub is made of White Tec, an exclusive, finely-crafted mix that, using a special pigmentation process, is proposed in a white and cream version. Polished nickel finished spheres also available in chrome, light gold and antique copper. Dimensions: cm 175 x 90 x 99 h.

“NOTION” introduces “Solid Outdoor Decking”

OTION have launched “Solid Outdoor Decking”, which are designed to meet the most individual requirements. “Tailor made size and pieces are produced at our lab on special request to materialize signature design creations. Staircases, swimming pool corners, facades and countless other possibilities make NOTION evoke the best compliment.” The Soft line system combines all requirements concerning both reliability and aesthetics. Afromosia, Green Ipe, Padauk, Merbau & Teak keeping in mind their technical properties for all weather conditions. The products are dried to average moisture of 13% and are perfectly rot-proof without any chemical treatment and very stable regardless of the external conditions. Price: on request December 2014 • HOTELSCAPES 47

EVENTS

‘World Toilet Day’ celebrated with a ‘world-record’ 750 kilo cake

Cleanliness drive has become an important topic of social discourse, thanks to the new governments’ initiatives on hygiene. Hospitality industry, too, is contributing in its way to raise awareness. On the occasion of World Toilet Day, faculty and students of International Institute of Culinary Arts baked a mammoth cake weighing 750 kilos for the Sulabh International. Apart from raising awareness, the event also aimed to create a world record for the world’s largest cake.

4 Chef Virender Singh Dutta Chairman, International Institute of Culinary Arts, New Delhi

We are delighted to be able to achieve this herculean task and what delights us all the more is the fact that it involved our students-who are merely six months into the programme.

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00 kilos of Cake mixture, 150 kilos of dark chocolate, 60 Kilos of white chocolate, and an army of 15 expert bakery chefs & 20 budding student of the International Institute of Culinary Arts, New Delhi, came together under the leadership of its Chairman, Chef Virender Singh Dutta, to achieve a remarkable feat by baking an eggless cake weighing an astounding 750 kilos. The cake was ordered by the Sulabh International, on the occasion of World Toilet Day on 19th November 2013--bidding for the Guinness Book of world records. The cake, which resembled a giant Indian style toilet, was enjoyed by a crowd of over 2,000 eagerly awaiting people at the event organized at the constitution club. The current record for the biggest cake is 600 kilos. “We are delighted to be able to achieve this herculean task and what delights us all the more is the fact that it involved our students-who are merely six months into the programme,” said Chef Virender Singh Datta, speaking exclusively to us. “A cake of this size was a mechanical engineering challenge for us. We had to keep in mind the

massive size and therefore finding the right proportion of Ingredients was a challenge,” said Dutta. He said that it was an endeavor which needed a lot of co-ordination and support and, therefore, he was thankful to the support of the industry. “Gurpal Wadhwa, VP, Hotel Select Village let us bake 400 Kg of Fruit cake in their bakery, while the management extended facilities for the students involved in the process. M/s Rich cream readily agreed to provide us with 200 Kg of their special cream needed for the cake making along with the services of their speciality chefs in decorating the cake. I want to thank them for their co-operation” he said. He also thanked Chef & General Manager Sushil Chug of Country Inn Suites by Carlson for providing the services of their Bakery chefs and Vijay Wancchoo, vice President & General Manager, Hotel Imperial, Janpath for extending support with his kitchen facility. The cake was assembled at the venue, owing to its size, and was completed in a span of 48 hours. HS by SHASHANK SHEKHAR

EVENTS

Accor brings ‘celebration of life’ with Beaujolais Nouveau event

ccor with partners Air France and Atout France under the high patronage of The Ambassador of France to India, Mr Francois Richier, at his residence, witnessed the celebration of life in utmost style and pomp with the uncorking of Le Beaujolais Nouveau wine. Beaujolais Nouveau is a six week old wine originating from the Rhone Alps region. As part of a grand French tradition its arrival is celebrated boisterously across all French regions. Catered by Accor Aerocity Delhi hotels Pullman, Novotel and Ibis, the event saw an elaborate spread of authentic French delicacies! Lamb Daube Nicoise, Chicken Pate, smoke salmon brulee, sweet potato croquettes

L-R: Tim Guillois- CEO The Links India, Rashmi Uday Singh, H.E. François Richier, Ambassador of France to India, Jean-Michel Casse Sr Vice President Operations, Accor India Catherine Oden, Director Atout France in India and Hicham Lahkim Bennani from Air France raising a toast at the Beaujolais Nouveau event

and Bao Noveau along with other French specialities formed a part of the elaborate menu. French music by accordionists specially flown from France set the perfect tone for the celebration.

Catered by Accor Aerocity Delhi hotels Pullman, Novotel and Ibis, the event saw an elaborate spread of authentic French delicacies! Le Beaujolais Nouveau turned out to be the perfect platform

for launching new measures to strengthen ties between India and France. The night turned out to be a remarkable success with over 600 guests in attendance across industry domains.

Vasundhara Sarovar Premiere awarded ‘Luxury Spa Hotel’ at World Luxury Hotel Awards 2014

asundhara Sarovar Premiere, the ultimate luxury backwaters resort in Vayalar-Kerala, was awarded the ‘Luxury Spa Hotel’ by World Luxury Hotel Awards 2014 at a glittering ceremony held in Cape Town, South Africa. Over 1,000 hotels from 145 countries were nominated to participate in the world’s most prestigious

awards initiative. Only two resorts from India grabbed the winners’ trophy, Vasundhara is one of them. The award was received by the resort's owner, Dr. Vasudevan. Commenting on this achievement, Anil Madhok, Managing Director, Sarovar Hotels & Resorts said, “It is really an honor to receive this award. In terms of outstanding achievement in service delivery

Dr. Vasudevan Parameshwarath and Geetha Vasudevan receiving the World Luxury Hotel Awards 2014

Vasundhara Sarovar Premiere outshined others. World Luxury Hotel Awards not only set standards of our industry but also recognize the commitment and passion that goes into setting this high standard of excellence.” The winners and finalists were selected by means of an annual voting process where thousands of spa guests from 100+ countries were given the opportunity to vote online based on service excellence. Dr. Vasudevan Parameshwarath, resort's promoter, said, “The World Spa Awards stands testimony to dedication, enthusiasm and leadership in the high demand luxury hotel industry. Open to luxury spas in the various categories, the World Luxury Spa Awards are recognized and respected on the global front by the public and media at large as the world's leading Spa Awards initiative. The Award truly puts the Award winning spas ahead of their peers from a marketing perspective whilst consumers gradually use the list of winners and finalists as a reliable guide when booking their spa visits.” December 2014 • HOTELSCAPES 49

PEOPLE SWARUP DATTA Regional Director-South, Sarovar Hotels Swarup Datta joins Sarovar Hotels as the Regional DirectorSouth India. Swarup brings with him a rich experience of 21 years in hospitality industry. His last assignment was as a General Manager with The Park, Navi Mumbai. While, his previous assignments include working with The Park, Chennai, Hyatt Regeny, Delhi, The Oberoi Amarvilas, Agra, The Oberoi Rajvilas , Jaipur and The Oberoi, Mumbai.

SHUBHAM CHANDRA Area Director - Sales and Mktg. Hyatt Hotels in Bangalore, Chennai, Hampi, Kathmandu and Kolkata Shubham has over 16 years of experience in business development, marketing and sales with reputed names in the Hospitality industry. In his new role, Shubham will be providing support and strategic oversight to Park Hyatt, Hyatt Regency, Hyatt Place and Hyatt brands in Bangalore, Chennai, Hampi, Kathmadu and Kolkata across functions of Sales, Marketing, Events and Revenue Management.

SAMIT KAZI Director of Sales - India, ACCOR India Hotels Samit joins in with over 11 years of experience in the hospitality industry across various roles. In his new role, Samit will be driving ‘One Accor One Sales’,a unique sales initiative by Accor India to generate incremental revenue by leveraging on existing sales resources at the unit hotels and drive cross promotional sale across all the Accor Hotels. Prior to this elemental role,he was responsible for strategically driving and managing Accor businesses in India as Director– Regional Sales, Accor Andhra Pradesh Hotels and later as Director of Sales for Novotel Hyderabad Convention Centre & Hyderabad International Convention Centre.

RITESH KUMAR CHOUDHARY Director F& B, JW Marriott Mumbai Ritesh has 10 years of experience in delivering and sustaining revenue targets in the hotel industry and is adept at planning, supervising and managing food and beverage operations. He has a record of planning and implementing effective control measures to reduce operating costs of the unit. Before making his way to JW Marriott Mumbai, he has been associated with various prestigious hotels like the Taj Group and the Leela Group.

SHASHI RAZDAN Area Director of Sales & Marketing South Asia, Golden Tulip Hotels A stalwart in the hospitality industry, Shashi brings with him over 23 years of rich experience from his previous stints at several renowned hotel groups including The Oberoi, The Imperial, Hampshire, and Uppal’s Orchid. Prior to joining Louvre Hotels, Shashi held the position of Director of Sales & Marketing – with InterContinental Hotels Group - Crowne Plaza, Delhi. A graduate from Delhi University, Shashi has extensive experience in Sales, Revenue Management, Food & Beverage Operations.

VISHRUT GUPTA Director, F&B, The Westin Koregaon Park With nearly 14 years of experience in the Food and Beverage, Vishrut has made an everlasting impression in the hospitality industry serving in various positions in leading Luxury Hotels. From his most recent stint at Reliance Industries Ltd. as Assistant VP & Head F&B, he has also served at The Leela, ITC Maratha, ITC Grand Central in Mumbai and ITC Mughal in Agra. Known for his restaurant, bar and event management skills he has been credited for some great achievements and accomplished grand tasks at the various hotels he has lent his expertise to.

50 HOTELSCAPES • December 2014

PEOPLE WORLD TRAVEL & TOURISM COUNCIL, INDIA INITIATIVE ELECTS NEW OFFICE BEARERS FOR THE YEAR 2015

Manav Thadani

Kapil Chopra

Manav Thadani, Chairman, HVS, South Asia has been appointed as the Chairman of World Travel & Tourism Council, India Initiative, taking over charge from Dipak Deva, CEO, Destination Management, India & South Asia, Kuoni Destination Management who completed his term at the recently held AGM in Delhi. While, Kapil Chopra, President, The Oberoi Group has been appointed as the Vice Chairman of WTTCII for the year 2015.

AHSAN SHERVANI Vice President, Shervani Hospitalities Ltd “I’m obliged to come onboard Shervani Hospitalities Ltd. officially and am looking forward to serving the brand and its guests enthusiastically in the coming time with the same consistency and dynamism as my father”, said Ahsan Shervani on his appointment. Ahsan had been assisting the management at Shervani Hospitalities before leaving for Switzerland to pursue his MBA. He had also worked with Bharti Airtel Limited, Gurgaon in 2010 as a Consumer Engagement Executive and further joined Lemon Tree Hotels, New Delhi as an Assistant Sales and Marketing Manager in September, 2011.

RAGHU MENON General Manager, The Ritz-Carlton, Bangalore With a career spanning over 16 years across Australia, Asia, Middle East and the United Kingdom with international hotel brands, he is enthusiastic about his impending arrival in the Silicon Valley of India, and shares his optimism over the rapid development of the high-end hospitality sector in India. “The dedication that The Ritz-Carlton devotes to its employees, guests and the community is exemplary,” commented Raghu. Coming from an F&B background, his most recent role was the General Manager of The Ritz-Carlton, Shenzhen, China.

VINOD VALSON General Manager, Vivanta by Taj, Yeshwantpur Vinod, who has previously worked in Vivanta by Taj, MG Road as General Manager, brings with him a wealth of hospitality operation and management experience and has been associated with the Taj Groups of Hotels for over 20 years holding key portfolios across hotels. He is an alumni of the Institute of hotel management and catering technology, Mumbai. Valson will replace Perpetua Kumar, who retires after a 20 year journey with the Taj Group.

SANJAY WADHWA General Manager, Park Plaza, Chandigarh Sanjay brings with himself over sixteen years of experience in the hospitality industry. Prior to this, he has been General Manager of The Manu Maharani, Nainital; General Manager, Sarovar Portico, Ahmedabad; F&B Manager, Taj Palace Hotel Delhi & Chandigarh; Assistant F&B Manager, Radisson Hotel Delhi ; and Assistant Restaurant Manager, The Leela Kempinski Hotel Mumbai.

December 2014 • HOTELSCAPES 51

PEOPLE IMIT ARORA Hotel Manager, The Lalit, Chandigarh Imit joins with over 14 years of experience in core hotel operations. Prior to this, he was the Resident Manager at The Lalit New Delhi. He began his career with The Leela Palaces, Hotels and Resorts as a management trainee, before joining Taj Hotels, Resorts and Palaces as Front Office Manager- after progressing to Accommodation Manager at Taj Exotica Goa. In his new role as Hotel Manager, Imit will lead the team at the 179-rooms The Lalit Chandigarh, with focus on hotel operations, business development and strategic planning.

GAURAV MALHOTRA Executive Chef, Novotel Pune Chef Gaurav Malhotra plays a key role being in the pre-opening teams of flagship properties like Holiday Inn Mumbai and Sofitel Mumbai BKC. Being with Accor for past four years, Chef brings over 13 years of wealthy experience to Novotel Pune. He started his career with Taj Palace & Towers hotel in Mumbai. Being a key member in achieving HACCP certification for Sofitel Macau; Chef Gaurav won a Level 2 award in Food Safety & Catering from Chartered Institute of Environmental health, London.

SRIJAN VADHERA Resident Manger, Shangri-La Hotel, Bengaluru Srijan Vadhera will work closely with the hotel’s General Manager to oversee the rooms and Food & Beverage divisions, as well as other operational departments, including spa and recreation. With over 16 years of experience in hospitality industry, he began his career in Food & Beverage and catering. He has held executive positions at some of the finest hospitality brands in major cities across India, including as executive assistant manager, group director of sales and marketing and regional director of sales with Starwood Hotels & Resorts, Zuri Hotels, and Hyatt Hotels & Resorts.

CHEF MARTIN BRACKER Executive Chef, Shangri-La’s - Eros Hotel, New Delhi Chef Martin brings with him more than two decades of hospitality experience from across the globe. Martin has been working behind the scenes with the culinary team to further define the hotel’s F&B operation. The culinary team under his supervision is artistically crafting dishes inspired by his classic culinary skills, use of seasonal regional ingredients and his global experience. Before moving to India, Martin served as Executive Chef for Mandarin Orchard Singapore taking care of their five restaurants.

CHEF ZHOU JIAN House of Ming, The Taj Mahal Hotel, New Delhi Chef Zhou has an experience of over two decades in the culinary industry and has lend his expertise in most type of cuisines of China. He has worked as a Master Chef at Shu GuoYanYi Restaurant, another Sichuan style restaurant chain in Beijing apart from his stint as Deputy Master Chef at Roast Goose Restaurant, a Cantonese style restaurant in the Jinan Shandong Province after which he also worked as an executive chef in a five star hotel called Cosmos Hotel located in Moscow, Russia.

CHEF RAHUL DHAVALE Executive Chef, The Westin Mumbai Garden Rahul Dhavale brings along an illustrious 15 years of professional experience in the industry. In his new role, he will be responsible for implementation of culinary concepts and processes across all Food and Beverage outlets of the hotel. With his expertise and vast culinary experience Chef Rahul aims to take the restaurants of The Westin Mumbai Garden City to newer heights.

52 HOTELSCAPES • December 2014

HOSPITALITY IN THE NEWS

Hospitality industry breathes a sigh of relief as HC postpones liquor ban Kerala tourism and hospitality stake-holders are happy with the HC verdict, for now, as they will salvage some of their clientèle in the holiday season. However, long term losses continue to stare as tourists throng to other destinations, leaving Kerala high and dry.

Kerala HC allows 312 bars to remain open till December 12

era la High Cour t on Tuesday allowed the 312 liquor bars to function until December 12 following a petition from the bar hotel owners. T he ba r hotel owners pleaded in the high court that as their petitions challenging the new liquor policy of the state government were pending in the high court, the bars should be allowed to function until the final hearing. The court granted their plea and allowed them to operate the bar hotels until December 12. Earlier, the high court had allowed the bar hotels to function until the end of November. Meanwhile, a division bench of the court did not allow the petition of the state government that the single bench’s directive to give liquor license for four star and heritage hotels be stayed. However, the court admitted the petition. The Indian Express

Tourism sector upbeat over High Court breather for liquor bars

lappuzha: The tour operators and houseboat owners here hope for a revival of their business with the High Court order allowing bars to remain open until January 20. The houseboat owners’ association had already sought a moratorium on the loans taken by its members saying that the new liquor policy had hit their business badly and that they were unable to repay the loans. A memorandum in this regard was submitted to Chief Minister Oommen Chandy last month and it was forwarded to the State Level Bankers’ Committee (SLBC). N. Sreekumar, general secretary of the association, said though the court verdict was a big relief to the industry, the government’s liquor policy was a spoiler for backwater tourism. The industry stays afloat with over `15 crore loans taken from banks, he said. The government has asked the tourism and labor department secretaries to submit an impact report on the liquor ban in a month giving hints of liquor relaxation to the industry. “Cocktail par ties are impor tant for companies which hold conferences in houseboats. The tourists seldom go to Bevco outlets. Therefore, the court verdict has brought in some relief to the sluggish industry,” said Tomi Pulikattil, a houseboat owner. Tour operators here observe that the Goa tourism will lure the tourists from Kerala. “Many tourists have switched their plans to Goa, which host several tourist-friendly programmes, including international shows and cultural events,” said Binu Joseph, a tour operator. Deccan Chronicle

MICE tourism on deathbed Deccan Chronicle

ochi: It was the deep desperation caused by the liquor policy which banned liquor on Sundays that forced the House Boat Owners Federation to move Chief Minister Oommen Chandy seeking a moratorium on their banks loans. “The total loan burden of the industry crosses `125 crore as of now, and the liquor ban has driven us into deep crisis,” said Jojy Mathew, president of the Federation told Deccan Chronicle. “Most of our members are small operators who own one or two houseboats each. Many of us have bought a second one with loans after the first one proved to be a success. But this decision has wrecked everything,” he said. “We have also demanded a provision for issuing permits for liquor consumption for tourists, so that we can continue with the business.” There are over 1000 houseboats in the State, which charge between `7,000 and `10,000 a day. “The occupancy rates are 100 per cent in the season and 60 to 70 per cent in the off season,” said Rajesh Gopinathan, a tour operator in Kochi. “It has been hit hard.” The houseboats which can accommodate up to 70 people used to be the mainstay of MICE (meetings, incentives, conferences and exhibitions) tourism in the State. “Most are three-day programmes, starting on Fridays and ending on Sundays. Now that Sundays have been declared dry days, several meetings have been cancelled.” The worst is yet to come as major operators have written off Kerala from their destination charts, said another operator. “Till now, we used to advise only Kerala destinations. Now, we have added Goa and Colombo to the list,” he said. “This is the only way to survive as clients no more consider Kerala a preferred destination.” Deccan Chronicle December 2014 • HOTELSCAPES 53

LAST PAGE

SC quashes ban on smoking Hookah, relieved industry hopes for better business The apex court has ruled in favor of quashing the ban on smoking Hookah in restaurants. The judgment has given a sigh of relief to thousands of stand-alone restaurants- which were finding it difficult to sustain business in a difficult market. The move has paved the way for hookah bars to open in the city again! But, is that enough?

A welcome judgement

In what has come as a reprieve for thousands of restaurants across the nation, the Supreme Court has crushed a ban on smoking hookah and providing tobacco to persons who are not minors in the states- where the prohibition was clamped through local laws. Justices Ranjan Gogoi and R oh i nton F Na r i ma n - who formed the SC bench- decided that authorities concerned could not issue orders of complete ban on tobacco and smoking hookah. “Cigarettes Act permits the sale of cigarettes and any other tobacco products, except to persons under 18 years of age and in an area within a radius of 100 yards of any educational institution. It is clear that any condition which prohibits the sale of cigarettes or any other tobacco products in premises l ice n s e d by t he Mu n ic ipa l Corporation would amount to adding another exception which would be impermissible in law,” the bench noted. While doing so, the SC has also overridden the judgments passed by three high courts three years ago which were brought in by the civic bodies and law enforcement depa r tments in Mumba i, Ahmedabad and Chennai. The industry insiders have expressed satisfaction, over the outcome and are relieved, as the curtain have finally drawn on a lengthy battle. “Even though the judgment is late as 800 parlors have shut down; but we happily welcome it. Justice delayed but not denied,” said Riyaz Amlani,

Licensing woes and tax regulation need to be addressed for smaller restaurants to do well: Riyaz Amlani, President, NRAI & CEO and MD Impresario Entertainment & Hospitality Pvt. Ltd. “The Restaurant Industry has been a significant contributor to the country’s overall economy – from employment to tax revenues, to being a buyer of goods and services from several other industries and sectors which are dependent on and are positively impacted by it. However, the industry is facing tough challenges in these difficult times. In an already heavily licensed and overtaxed industry, the extremely high food inflation, coupled with ever increasing taxations and various other operational factors, are significant burdens on those in the business. These factors are impeding the growth potential of this otherwise promising sector. Therefore, there is an urgent need for giving this industry the required impetus by unshackling it from the license/tax burden. The Government’s stimulus measures in the form of tax relaxations, license easing, regulatory changes required in keeping with the times, and helping in other operational factors, would offer this sector its full scope for growth.” P r e side nt , N R A I (na t iona l restaurant association of India). He further added that, “The judgment of the Honourable Supreme Court is a most welcome step for the Restaurant Industryin particular those restaurateurs who were affected due to the earlier high court orders.”

Restaurants have too much on their plate, already!

Stand-alone restaurants have been facing the double-whammy of intense competition from the bigger hotel chains, high inputcosts and multiple taxation. There are other problems too, ranging from dealing with municipal authorities, interpretation of

54 HOTELSCAPES • December 2014

laws, ensuring quality supply procurement at a financially viable rate, hiring and maintain staff without a larger management-a cushion which larger hotels enjoy. A stand-alone restaurant may not have the band-width to counter these challenges. It can also lead to a sense of harassment amongst the operators. These don’t even have a captive clientèle, which a traditional hotel, by the virtue of its room guests, enjoys. To cope up with these innate challenges, that have narrowed profits, managements have to look for innovative ways to expand clientèle and tap new patrons. Many of them have used innovative methods, expanding their service to ensure a healthy

flow of customers. A number of Hookah bars dotting the cities, before the ban, reflected to this growing change in the trend. These joints have been having a successful run thanks to a number of youngsters lapping up it up. Riyaz, however, feels that, “Each restaurant has to continuously evolve in terms of the experience it provides to its customers – be it the quality of food, ambience and service. Many standalone restaurants have thus a dedicated customer following.” The verdict, now, opens the doors again for restaurants and hoteliers alike to venture into the business of Hookah bar again. HS by SHASHANK SHEKHAR

RNI No. DELENG/2012/47318 Posting Dt. 16-21/12/2014 Licence No. U(C)-105/2013-2014 W.P.P. at NDPSO Postal Reg. No. DL(C) 01/1353/12-14

Date of Publication: 18/12/2014

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