30 Minute Interview

'The government should give serious thought to increasing FAR'

Harish Sud, who has recently been inducted as the secretary general of FHRAI, wants to bring dynamism to the association. By Praveen K Singh

Harish Sud CMD Secretary General of FHRAI

What are your priorities as the newly-appointed secretary general?

One of my priority objectives is to increase the visibility of FHRAI and build its image as a dynamic association. I want FHRAI to become a facilitator and a catalyst to ensure that the Tourism Policy 2002 is put to good use and the country retains a competitive edge. It is my primary aim to see that FHRAI has a marketing presence in the secure markets.

I want to ensure that FHRAI is party to all the important policies being formulated and decisions being taken on behalf of the hospitality and tourism industries. Being the world's third largest Hotel & Restaurant Association, representing almost 3,300 members, FHRAI is the voice and the face of the industry.

All trade associations are submitting their proposals to the government separately. I wish that all the decision-makers of all associations should come together on a common platform to discuss and take forward the issues pertinent to the hospitality and tourism industry to the government of India. The main aim is that this common forum should be duly consulted and should be a part of all the decision and policy-making by the government.

How will the federation evolve in the coming times?

The evolution of FHRAI started when it was sponsored by the four regional associations in 1955 and the doyens of the industry signed the MoU. I feel that FHRAI's main aim in the coming years should be to take forward what the Tourism Policy 2002 states as the main products of tourism. The federation should work towards promoting elements like adventure tourism, village tourism and rural tourism among others.

What according to you are the critical issues facing the industry?

First and foremost is the accommodation shortage. Keeping in view the Commonwealth Games 2010, the current shortage of rooms in Delhi-NCR is 30,000 and in the rest of India it is close to 1,10,000. Yes, the shortage is bound to increase for the simple reason that the number of foreign tourists arriving in India has increased manifold. In addition to that, even domestic tourism has gone up. We can cover up the shortage only if the government gives a go-ahead to build more budget hotels.

Shortage of manpower is another major impediment and this can only be changed with the establishment of IHMs. We have just submitted a proposal in our pre-budget memorandum to increase the existing FAR for hotels of all star categories. Also, there is a need to increase the FSI of the existing hotels especially in Delhi and NCR. Unless the hotels are allowed to expand vertically, it's impossible to increase the number of rooms.

What role can the government play?

The one thing that can happen is to grant us infrastructure status. We have recently presented the pre-budget memorandum to the Finance Ministry, wherein we have asked that the five-year tax holiday be given to the three and four-star hotels too. We are hoping that our suggestions will be included in the Union Budget 2008. As I said earlier, increase in FAR is also a point, which we would like the government to give a serious thought to.