‘We need more support from the government’

Sudesh K Khullar, the newly re-elected president of Hotel & Restaurant Association of Eastern India (HRAEI) and former president of FHRAI, speaks to Joy Roy Choudhury about his expectations from the 43rd Annual Convention of the federation

Sudesh K Khullar

How is the hospitality industry poised to grow in this zone?

I am glad to say that almost all luxury hotels in the region are doing good business. The average occupancy rate in city hotels is hovering at around 75 per cent, against 55-60 per cent a few years ago. The market today is very vibrant.

There is a steady increase in demand for rooms and it is likely to go up in the years to come. So the challenge is to cope with the current rate. Eyeing these huge possibilities, several international and national hospitality giants have confirmed plans to enter the city's hospitality arena. Big names like Emaar-MGF, DLF-Hilton, InterContinental, Unitech Group and others have lined up their luxury projects in the city.

What are the major bottlenecks that the industry is facing?

Paucity of land and taxation are the major issues for the industry in the region. In Kolkata, there's an immediate need for 2,000 rooms in the budget category segment. By 2009-10, this demand is likely to double. At present, only 500-odd budget rooms are currently available in the city. The crisis will deepen with hardly any major additions lined up in the high-demand budget category.

This is due to the fact that there is a severe land crunch and the cost of available land is spiraling day by day. Acquiring land is a problem as the government goes for the highest bidder. Therefore, land use laws need to be changed to make way for hospitality projects. The industry is comfortable with the 51-year lease.

The hotel and the restaurant industry in the state has been further grounded by imposition of several taxes by the state government. Besides, enterpreneurs willing to set up a hotel or a restaurant in the city have to run around for a dozen licenses like the Bar License, Crooner's License, Kolkata Municipal Corporation's license, etc. So we urge the state government to work out a single-window licensing policy.

Also, with so many luxury hotels coming up in the city there will be a huge requirement for trained and quality manpower.

How pro-active is the state government in terms of developing the hospitality industry?

We have informed the state administration about the present crisis of the industry but no steps have been taken so far. The state government should put greater thrust on development of tourism and understand the importance of the sector as a revenue-earner.

What are your expectations from the forthcoming 43rd Annual Convention of FHRAI?

Till date, all the earlier conventions hosted in Kolkata have been a huge success. We expect at least 500-550 delegates to attend the three-day event this year. The organising committee has invited experts, successful entrepreneurs and hospitality professionals to speak on different subjects pertaining to the industry. We believe that these sessions will be extremely educative for young hoteliers.