Creating a history of sorts by hosting it for the first time in a Tier-II city of the east, the golden jubilee convention of the Federation of Hotel & Restaurant Associations of India (FHRAI), recently concluded at the Mayfair Lagoon and Mayfair Convention in the temple city of Bhubaneswar in Odisha. The theme of this year’s convention was ‘Atithi Devo Bhava’ By Joy Roy Choudhury
Blowing of conch shells and beating of drums’ by drummers in traditional gear – showcasing the rich cultural heritage of Odisha marked the inauguration of the three-day annual convention of FHRAI. The chief minister of Odisha, Naveen Patnaik formally inaugurated the convention in the presence of union minister for tribal affairs Jual Oram; union minister of state (I/C) for culture and tourism Dr Mahesh Sharma; union minister for skill development and entrepreneurship Rajiv Pratap Rudy, Odisha industries, school and mass education minister Debi Prasad Mishra, chief patron of the event and Odisha’s tourism and culture minister Ashok Chandra Panda, Karnataka’s tourism and heavy industries minister RV Deshpande; FHRAI president TS Walia; union tourism secretary Vinod Zutshi, convention organising committee chairman Dilip Ray, treasurer FHRAI and president of HRAEI (Hotel & Restaurant Association of Eastern India) Sudesh Poddar and host of other dignitaries and delegates.
Extending a warm welcome to the who’s who of the hospitality industry, Patnaik said, “Odisha is a fascinating state with old world charm and modern world glamour. Odisha offers tremendous scope for tourism development and my government will provide all facilities to promote and market Odisha as a preferred destination for tourists.” Asserting that Odisha has immense tourism potential which needs to be explored, he urged the hospitality sector representatives to take advantage of this and exploit the opportunities.
The state has an attractive industry friendly tourism policy and the state government has launched a New Industrial Policy Resolution 2015 which will give a boost to the industry and thrust to tourism, he added. He also stated that for speedy clearance of tourism projects on fast track basis the government has set up a single window clearance committee at different levels. The tourism department is participating at major tourism events and organising road shows to showcase Odisha as a preferred tourist destination, he added.
Sharma said “You are taking the dream of the Prime Minister forward as he is the greatest ambassador of tourism in India. He has already talked about the tourism potential of India at different forums in the country and abroad. We want the hospitality industry stakeholders and the government to make it a win-win situation for all. We believe that promoting tourism cannot be the government job only, although we have the vision to do it.”
He also informed the stakeholders from the hospitality industry that the government is actively considering the proposal of FHRAI towards according infrastructure status to the hospitality industry and the tourism ministry has put up a note in this regard to the government of India which is now with the Cabinet Committee on Economic Affairs (CCEA). It proposes to bring down the present infrastructure lending limits on building hotels from Rs 200 crore to Rs 25 crore and in case of convetion centres to Rs 50 crore. He emphasised on developing connectivity with the north east states. “We need to improve the connectivity to the remote areas, Himalayan states, and North East states to explore the tourism potential there,” he added.
“The government is focussing on three main themes: cleanliness, security and safety, and hospitality for development of the tourism sector in India. Medical tourism and wellness tourism will be the two prime focus areas in the coming years. Employment generation, Hunar Se Rozgar and women empowerment are other major areas the ministry would focus upon,” he added.
Sharma said, “We need at least two lakh standard hotel rooms in the next five years to increase the flow of foreign tourists to the country. We need the partnership of stakeholders, along with the support of new technical innovations. We want to make it the most happening industry today, as it is one of the highest foreign exchange generators and employment generators too. The government promises to address any neglected or delayed issue within a proper time frame so that we can reach the target of sharing one per cent of the world tourism market.”
Walia said, “It is a proud moment for FHRAI that for the first time the convention is being held in a Tier-II city in eastern India. Besides the regional growth perspective, the three-day convention will provide the opportunity to discus, debate and deliberate upon the growth opportunities along with major issues concerning the industry in terms of policies, multiple taxation and possible impact of GST on the industry, inordinate delay in approvals and licensing conditions, etc. The long standing demand on the industry to be accorded infrastructure status is also expected to gain prominence at this event. The 13-states and a union territory comprising the eastern region have immense tourism potential and we are confident that this event will be a catalyst for the growth of tourism in the region.”
While Panda added that Odisha is bestowed with immense diversities and huge untapped potential for development of the hospitality and tourism sector. He also unveiled the Odisha 3D Map at Biju Patnaik International Airport. A special handicraft exhibition – ‘Pipili Bazaar’ showcasing rich handicraft products of Odisha was also inaugurated at the convention centre.
Serious discussions
The first technical session of the convention ‘Atithi Devo Bhava: The legacy continues’ was moderated by veteran actor Victor Banerjee. Bollywood actors Gulshan Grover and Mahima Chaudhury participated in the session. The second technical session of the day deliberated upon the crucial aspect of ‘Taxation in the Indian Hospitality Industry – Challenges and Solutions’. Moderating the session, Vivek Nair, chairman and managing director, Hotel Leela Venture and former president, FHRAI, demanded that the Centre caps the proposed GST at eight per cent for the hotel industry. “At present the taxes are high and we have not been able to attract tourists unlike our neighbouring countries, where the tax burden on tourists is low. In South-East Asian countries tourists pay between six and eight per cent,” Nair said. The other panelists were unanimous in the view that taxes on the hospitality industry are high in the country.
The second day of the convention also witnessed several other technical sessions covering crucial aspects of the hospitality industry. Addressing the delegates on the importance of skill development, Rudy reiterated on the increased focus and importance given to skill development by the Centre stating that the present government has created a separate ministry for skill development. Indicating the reality that around 17 per cent of the engineering graduates and 15 per cent of management graduates continue to be unemployed in India, Rudy stressed that vocational education should have been a part of primary education; reasoning that 12 years of primary education for the children could never do what 12 days of skill education can.
Odisha tourism secretary, LN Gupta made a presentation to the hospitality sector delegates highlighting the tourism potential of Odisha and initiatives of the state government to promote investment opportunities in the state. Gupta also informed that leading hoteliers like Lemon Tree, Brahmaputra, Newport, Fortune Hotels and others have shown keen interest to set up new hotels in Odisha.
In the engrossing ‘Heart Talk: Dil Se‘, one-to-one session Rakesh Sarna, managing director and CEO, Indian Hotels Company, the parent company of Taj Group of Hotels threw light on the challenges and opportunities facing the hospitality industry in the country.
Speaking at the technical session on ‘Iconic Hospitality Properties creating Tourism Destinations – Is it lack of government support or absence of entrepreneurship’, Subash Goyal, president, Indian Association of Tour Operators (IATO) said that the government is announcing policies without checking for implementation of the previous policies and the support is only piecemeal. He advised that instead of depending on government support, the hoteliers need to come together and build infrastructure needed to bring the tourists into the state. Mandeep Lamba, managing director – India (Hotels & Hospitality Group) Jones Lang LaSalle moderated a session of the general managers titled the ‘View from The Top’. The speakers focused upon the changing trends in the hospitality industry in terms of design of rooms, cuisine, service standards, etc. The delegates also witnessed a unique wine tasting and education session curated by renowned professionals and specialists, who elaborated on over 40 different kinds of wines available across the globe.
The concluding day witnessed the ‘Heritage Walk’ & ‘World Tourism Day Carnival’, jointly organised by Odisha Tourism and FHRAI. Later in the day, the technical session on ‘Social Media and Technology – Influence on Hospitality Business’ focused on the new opportunities created with the advent of digital technology and the challenges it poses to the industry.
Participating in the session Mike Kistner, CEO, RezNext Global Solutions said that, “For hospitality business, social media is a very strong marketing tool, which is a collaboration of socio benchmarking and wikis.”
Binu Mathews, CEO, IDS Next Business Solutions said the next level of connectivity is the social connectivity what we have. It is very important to analyse social media responses and action has to be taken immediately.
Nikhil Ganju, country manager, TripAdvisor India said, “Travel or OTAs websites attract travellers and this is the way we are making revenues. More number of booking sites will make for more number of shoppers and hence more revenue for us as well as hoteliers. If you are not connected with internet and social media these days, then you will not get exposed to a large segment of customers. Social media is a bridge between the hospitality and travel industries and the customers.”
Ritesh Agarwal, founder and CEO, OyoRooms.com said, “Social media and technology are the key aspects in hospitality business and is in fact the next generation of hospitality. We connect with various hotels through this technology easily. We are able to get different sources, feedbacks and reviews of millions of people. If technology is used in a right manner then everything will be more organised. Our business needs a digital medium as all of us are running for consumers. Managing a hotel in the country is very tough and if you have a good technology, good management, good social medium then you will not be at risk.”
Explaining the business model of Oyo Rooms, he further added that long term sustainable business has kept the hospitality sector away from the common mass and through OyoRooms.com, general people will get all types of hotel facilities easily even through digital and social media. Upender Jit Singh, managing director, Webel also spoke at the session. In the next technical session – ‘Restaurants of Future’, celebrity chefs threw light on the changing trends in the restaurant business and customer preferences. Moderating the session, Professor David Foskett from University of West London, UK asserted that research and development also plays a vital role in the restaurant sector. Shorab Sitaram, founder, Balance Restaurant and F&B Consultancy, opined that there isa requirement for more skilled manpower in the restaurant business. Encouragement from the school level will motivate more youngsters to come into this sector, he added.
Celebrity Chef Aditya Bal said, “It’s a new age and things are changing so fast. While thinking of setting a restaurant, one should be aware of the global changing perception.” He said, social media is a game changer. You can find a food critic, blogger and much more on social media sites.
As far as cuisines are concerned, chefs are now celebrating regional flavours and many traditional cuisines are being repackaged suiting customer needs and preferences.
Chef Sharad Dewan, director of food production, The Park, Kolkata said that restaurant design is not the work of engineers alone. Today chefs are also involved in the design of a restaurant. Chef Y B Mathur, founder director – Culinary Design and Application Group and a hospitality and tourism consultant focused on the rich variety of Indian cuisines.
The final technical session of the day ‘Online Portals – Boon or Bane’ deliberated upon the opportunities and challenges in the hospitality business with the increasing space grab by online portals in getting business and creating customers.
Elaborating on the importance of online portals in the hospitality sector, Avijit Arya, social media and online reputation management expert said in the present day scenario internet or online portals and social media play a very crucial role in getting business for the hospitality industry. “Now-a-days you cannot even think of running a hospitality business without having a website or presence in social media as you will lack presence in the dominating space,” he added.
Summing up the three day convention and the way forward, FHRAI’s vice president, Bharat Malkani said, “It was a wonderful three days at the Golden Jubilee convention of FHRAI and the hospitality industry looks forward for rapid growth in the coming days with policy support from government. The existing level of taxes on the hospitality industry in India is very high as compared to neighbouring countries like Singapore, Thailand etc. This is affecting overall tourist inflow into the country. If the tax percentage on the industry is lowered, then we can expect more tourist inflow into the country which will result in increased revenues for the government.”
He also informed that FHRAI will prepare a charter in the coming days which will be submitted in the pre-budget notes to the Government of India.