India's Only Hospitality Business Weekly Issue dated - 24th November, 2003
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A Successful Meeting Of Minds

The 39th annual convention of FHRAI held a number of pleasant surprises and was productive on many counts

Capital View
Rabindra Seth

Delegates to the 39th annual convention of the Federation of Hotel and Restaurant Associations of India (FHRAI), especially those coming to the eastern metropolis after a long interval had several welcome surprises awaiting them. It started with a touchdown in Kolkata with a much improved airport, bypasses and flyovers which have added an incredible smoothness to the movement of traffic (could you imagine doing the airport to city hotels in 35 minutes flat?). More importantly, Kolkata has also emerged as a major convention destination. This was aptly demonstrated by the efficient and successful manner in which the FHRAI conference was held at Kolkata’s new address – the ITC Sonar Bangla – supported ably by the Hyatt Regency and Taj Bengal which hosted the social events. Across the road from ITC’s super deluxe hotel is the Science City which has an auditorium for 1,600 persons. And adjacent o Sonar Bangla is coming up Kolkata’s Pragati Maidan (the centre is being completed with assistance from ITPO (India Trade Promotion Organisation) which manages the Pragati Maidan in New Delhi). A new township at Rajerhat is coming up closeby and hoteliers are upbeat about the arrival of large companies and multinationals that will increase flows of corporate travellers. One of the tourist-specific mega projects undertaken by the West Bengal government is a unique floating hotel (25 per cent on land and 75 per cent in water) in the Sunderbans area, a world heritage site.

West Bengal’s tourism secretary, R K Tripathy speaking in the interactive session for states made a strong pitch for investments in his state. Among the many incentives, he said, is the one which exempts new projects from sales tax for seven years. Referring to complaints of lack of land for hotels and related ventures he gave the assurance that all an entrepreneur has to do is to choose a vacant piece of land. “If it is owned by the government it would be allotted forthwith and if it’s privately owned the government will acquire it for the promoter.”

He clarified that West Bengal is free of land use laws prevailing in other parts of the country which bar the construction of hotels in residential or other specified areas. For instance he pointed out that there are hotel plots allotted in Rajerhat.

Sikkim tourism chief, Karma Gyatso had his own bits of good news to share with the delegates. The future of tourism in his state, he told this writer, has significantly brightened up with the proposed revival of the silk route through Nathu La (the 14,400 feet pass into Tibet) following the recent agreement between India and China. The state government has set up a core group to draw up a blue print for the infrastructure required. Once the pass is opened to trade and travel, Gyatso said visitors would save huge amounts of time going to Lhasa or Mansarovar. The distance to Lhasa would be 500 km shorter than the route through Nepal. The proposal for an airport in Sikkim, he said, has finally been approved by the centre after overcoming environmental concerns. The site chosen is Pakyang, some 30 km from Gangtok and the project to be built by the Airport Authority of India will take two years. ATRs will be able to land there.

The Tourism Finance Corporation of India (TFCI) has been in existence for more than a decade but this was the first time TFCI was invited to make a presentation for FHRAI delegates. M Narayanan, the managing director, talked of the liberalised policies of the corporation and how it had extended its assistance to projects other than hotels. So far, he said, 460 hotel and other projects had been funded and in the current year as much as Rs 2,500 crore had been sanctioned.

The retiring president S K Khullar in passing the baton to the new president, Vivek Nair got a commitment from his successor that the initiative for the unity in the industry launched in Kolkata will be carried forward for implementation.

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