Session

Leaders panel: A view from the top

The discussion began with the notable US recession. The panel was asked to comment on how it would impact the hotel industry in India. Scott Woroch, executive VP - development worldwide, Four Seasons Hotels and Resorts reacting to the question said that the US recession has not directly impacted the India market but will have some impact on the hotel operations level which could extend from six months to a year. "Recession would induce companies to cautiously move in case of short term planning and hotels need to keep a careful eye on the macro and micro economic scenario of the country concerned to know the flow of capital and guests impacting the business," he added. Paul Machpherson, chief development officer, Jumeirah group said, that irrespective of the slowdown of economy, Indian market is offering a strong opportunity for greenfield projects in various regions of the country. But first, there needs to be improvement in infrastructure to drive a local demand.

On the way one should go about operating in a new market, Sean Worker, MD and Sr VP International, Wyndham Worldwide opined, "Franchise and management model, segmentation wise, is appearing positive. We are very bullish with a number of developments lined up for India." According to him, India is a dominant market in the South East Asia region and other markets are acting as feeder ones. Paul Foskey, Executive VP, Mariott International remarked that international focus of late has been on India and China. Companies have to identify their role on a short and a long term basis. “Since market forces tend to run in extreme, our focus is on long term models, “ he said.

The panel discussed the pros and cons of having ventures in India and which key modalities deter the progression of projects. Moderator for the session, Sujata Goel of CNBC TV18 asked the members to comment on the HR front in India. Foskey said, India holds an advantage to China for having younger population, which also poses the problem of retention. So opportunity is equally balanced by a threat. In the list of challenges, bank lending, guarantees, slow rate of project, and more announcements on paper etc. featured high on the lists of the panel. Considering that the mid market opportunity is increasing, panel expressed caution in light of increasing land prices. The debate concluded by exploring opportunities in having a mix of franchisees for management models of operation in hospitality. Worker said, "There is a need to have blended approach where management and franchise both offer opportunity. Also, these are challenging models as there is a greater scope for teaching and learning as well while operating in newer markets."