Interview

'Budget segment is the prime focus'

Manbeer Choudhary, president of Federation of Hotel and Restaurant Associations of India (FHRAI), has been firm in his stance of providing justice to the budget category hotels, in terms of incentives, subsidies, and clearances. With his vibrant approach, he plans to make the forthcoming FHRAI Convention, (November 10-12) at Chandigarh, a platform for highest announcements in terms of incentives and concessions for the hospitality sector by the Minister for Tourism as well as chief ministers of several states. He shares his vision for the hospitality industry in an exclusive interview with Praveen K Singh

Manbeer Choudhary President FHRAI

What are the critical issues hospitality industry is facing at this moment?

Some of the issues that are looming large are: First, the high degree of taxation on the hotel sector, be it state centric or central. Secondly, the efforts to bring the hotelier under every possible ambit of regulating authority like PFA, pollution board, electricity, bylaws, foreign exchange of the PFA etc. These regulating authorities notify, how we can control this industry in whatever manner.

The hospitality industry is to witness a spurt of international as well as domestic hotel chains entering India, do you believe the boom in the sector is here to stay?

This is a catch 22 situation. As of today, we are facing a shortage of hotels all over the country. We do require 1,00,000 rooms in the next five-six years but the way every entrepreneur is entering into the industry, it seems we will see a situation where supply exceeds the demand. Everybody is in the rat race for building hotels. During the lean season, the situation will be similar to what we see in the states of Kashmir, Himachal Pradesh, Uttaranchal and many others where touts reach railway stations, bus terminals and try to sell hotel rooms at as much as 60 per cent lower than the peak season rate. The situation is going to worsen once all projects are completed in the next five years or so.

Everyday we get calls asking about the norms and requirements to set-up five star hotels. One way it is good for end consumers but the boom is sure to vanish five years down the line. On the other hand we also require hotel projects in Dharamshala, Kurukshetra, Haridwar, Shirdi and such places in a planned manner.

How is FHRAI geared up to face challenges faced in the hospitality industry?

The biggest challenge is getting infrastructure status for the tourism industry, which has become critically essential for a developing country like India. It should also be extended to the hospitality industry. Secondly, we need to educate the policy makers, ministers at the helm of urban development, commerce, finance, excise and all departments, which are inter linked to the tourism ministry. Although the tourism and hospitality industry is the biggest source of revenue, employment and an agency that reflects the image of our country it has been overtly neglected by the policy makers.

In the forthcoming convention of FHRAI in November this year, what are the main issues to be discussed?

The time has now come when only government should not be responsible for running of hotels, motels, clubs, or the hospitality sector at large. Public Private Partnership is the need of the day. Privatisation is going to be the language hospitality will speak in future. State of Punjab has already taken a lead. They have identified all the tourist complexes for privatisation for better value-based services. This is one area of focus in the forthcoming convention. We will look on the investment opportunities in India.

We are planning to take a separate session on emerging women entrepreneurs, who are in the forefront of hospitality business like Apeejay Group's Priya Paul, who is also President of HAI. Going ahead with this we have introduced FHRAI category award for young women entrepreneur below the age of 45 years. We also have 15 different awards for the industry.

With the advent of low-cost airlines, new tourism circuits developing in the states like MP, Chattisgarh and Haryana, which never had a focus on tourism are now realising their potential. Such other subjects will be dealt in the Convention.

We have invited four chief ministers: Bhoopinder Singh Hooda (Haryana), Capt Amarinder Singh (Punjab), Raja Veer Bhadra Singh (Himachal Pradesh) and Vasundhra Raje Scindhia (Rajasthan), as we want certain concessions to be announced at the convention, and thus has been clearly mentioned to Minister for Tourism, Ambika Soni and she has promised to help. Also Minister of state for finance, Pawan Bansal will be there on the first day of convention, where he would announce some relief measures for the industry or some incentives/encouragement for the new entrepreneurs and the existing ones. Soni will be present on the third day for the valedictory session and will present FHRAI awards.