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Association
To serve and to protect
With the Indian hospitality industry growing at the rate
of 15 per cent annually, it makes it imperative for the industry to have a body
like the Hotel & Restaurant Association (Western India) to ensure that the
running is smooth
The
current economic liberalisation coupled with a huge figure of the growing expat
community within India, a rising number of international flights in and out
of the country, a growing disposable income, flourishing businesses among most
cities and the government's efforts to promote tourism have all contributed
in giving a new impetus to the hospitality industry of India. Today, many leading
domestic and international hotels, restaurant chains and realty developers have
recognised India as the hotspot for hospitality and foodservice investment.
The economic boom has in turn resulted in the advent of corporate incentive
travel and the multinational companies entering India have boosted the prospects
of tourism. India's easy visa rules and attraction as an ancient civilisation
make tourism development easier in comparison to other countries. Several international
hotel chains like Sheraton, Holiday Inn, Intercontinental, Hyatt, Hilton, Marriott
International, Four Seasons, etc are either entering or expanding their network
in India. The Indian hospitality industry and Indian tourism are on a roll today,
driven by a huge surge in both business and leisure travel by domestic and foreign
tourists.
The importance of the hospitality and tourism industry for the Indian economy
is evident from the fact that:
- The growth of the tourist inflows in India is much
above the world average leading to a rise in India's share in world arrivals
from 0.37 per cent in 2001 to 0.53 per cent in 2006.
- It contributed to 5.9 per cent of the GDP and provided
employment to 41.8 million people.
- The cumulative FDI into the hotel and tourism sector
from 1991 to March 2007 has been US$ 517.83 million, representing 1.18 per
cent of the total FDI into the country.
These facts and figures clearly state that tourism and hospitality are complementary
to each other. Today, even cities like Jaipur, Gurgaon, Hyderabad, Pune and
Bangalore are seeing growth both in occupancy and room rates. While occupancy
is around 75-80 per cent, room rates are up by 15-20 per cent in these markets.
In a scenario like this, bodies like HRAWI play an important role as they are
working towards the betterment of not only their own members but also the entire
hospitality industry.
The Hotel & Restaurant Association (Western India), or HRAWI, was incorporated
on February 3, 1951 as a company limited by guarantee and not having share capital.
The primary objective of the association is to serve the interest of the hotel
and restaurant industry. It has over the last several years taken major steps
to encourage, promote and protect the interest of member establishments.
- Rationalisation of hotel taxation with
respect to VAT, Luxury Tax, Entertainment Duty, Prohibition & Excise
License Fees, Stamp Duties, Police License Fees, etc
- Grant of a NA permission and rationalised
NA Tax for hotel projects with effective renewal of land leases at hill
stations
- Introduction of DC Rules on a uniform
basis through out the state ensuring parity in corporation areas to
provide for additional accommodation for the tourists and rationalisation
of procedures under the said rules.
- Charging of electricity tariff and duty
at industrial rates instead of commercial rates.
- Charging of water charges and property
taxes by municipal corporations at industry rate instead of commercial
rates with single window licensing system for obtaining/renewing licenses.
- Promotion of specified travel circuits
with inter-regional connectivity.
- Creation of a task force to oversee the
implementation of the tourism promotion policy.
- Modifying Police License Regulations in
tune with times, especially for licensing procedures and timings.
- Interaction with the Technical Education
Department to better qualified students to ensure a competent manpower.
- Rationalisation of dry days and procedures
under the licensing system for permit rooms/bars in hotels and restaurants.
- Rationalisation of property taxation system
by Municipal Corporation.
- Relaxation in timings under the Shops
& Establishments Act (1948).
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It is now time that HRAWI is looked upon as a cohesive body of professionals
who can be extremely effective in implementing national level projects. It is
an association which is taking an initiative to give national recognition to
the Indian hospitality industry. With members such as Dinesh Khanna of The Club
(Andheri) on board who is also the president of FHRAI, HRAWI is now working
towards expanding its members list by bringing in small players on board leading
to development of the entire industry from the roots.
The hospitality industry is facing a lot of problems today and issues due to
lack of co-operation and support from the government. To improve the current
scenario, HRAWI will be addressing state IAS officials, and will be presenting
them with a memorandum of demands and issues, appealing to the government to
cooperate with them in changing the present scenario of the Indian hospitality
industry. A change in the present situation will definitely result in the betterment
of the hospitality industry on the whole.
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