MYSTIC EAST - STRATEGY FOR REVIVAL - Hotel & Restaurant Association of Eastern India
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MYSTIC EAST ...an unexplored horizon A bi-monthly magazine by HRAEI | Vol 6 | Issue 2 | July - August 2020 STRATEGY FOR REVIVAL HOW TO SURVIVE AND THRIVE IN THE PANDEMIC
Manufacturer of premium quality Hakka noodles (Chow), Pasta, Vermicelli and 3D Papad (Pellets). Currently available across Eastern India (General trade) & Modern trade (Pan India). For Trade Enquiries: Emery Foods Pvt. Ltd., Vill.: Bansai, P.O.: Kanaipur, Dist.: Hooghly 712234 Contact Person: Alok Kumar Ginodia, Mob: 9903670707 Email: ishaanginodia@emeryfoods.com
DIRECTOR'S NOTE RRecently in a webinar, Union Minister Mr Nitin Gadkari said that the government is considering an INR 20,000 crores fund to support restructuring of NPAs under the cur- rent policy. The Minister for Road Transport, We should follow Winston Churchill’s famous quote: never waste a good crisis. Minister informed that the government has announced various schemes to help the MSME sector to overcome the working cap- ital constraints in the wake of the Covid-19 pandemic. He said that the INR 3 lakh Highways, and MSME asked the hospitality crores MSME fund is aimed at enhancing industry to look at setting up an NBFC to the liquidity in the market which is critical take care of the capital requirements of the to drive demand and supply. He said that industry. He said that as many hotels earn the government is giving guarantee for revenues in dollars, it becomes easy for such collateral free 20% additional working cap- NBFCs to access foreign funds at much lower ital assistance and there should not be any interest rates. This will help the hotel industry hesitation on the part of the banks to help to access loans at less than 3% interest com- the businesses. Similarly, he said that the pared to over 10% interest being charged by government will soon release INR 20,000 the Indian banking system. crores fund to support the restructuring of This is a brilliant suggestion by the NPA under the present policy. I think our Minister which can go a long way to help members should take this opportunity fol- hotels and restaurants revive their fortunes lowing Winston Churchill’s famous quote: after the pandemic. In addition to this, the never waste a good crisis. Mr Sudesh Poddar President, HRAEI MYSTIC EAST | 3
EDITOR’S MESSAGE Hotel food and beverage (F&B) operations are among some of the most-affected MYSTIC EAST A BI-MONTHLY MAGAZINE BY HRAEI industries by Covid-19. As a result of the Vol 6 | Issue 2 | July - August 2020 coronavirus, hotels all over the world have changed their catering options to allow for EDITORIAL BOARD drive-through, curbside pick-up, take-out SUDESH PODDAR and delivery. Occupancy rates have fallen PRESIDENT, HRAEI drastically because of the high risk of travel MOHAMMED AZHAR HONOURARY SECRETARY and the need for social distancing. People GOPAL DAS AGARWAL are also doing more of their own cooking. VICE PRESIDENT If this trend continues, it could have major S. H. RAHMAN repercussions for the dining-out industry. MANAGING COMMITTEE MEMBER Since nothing inspires innovation as well EDITOR ATIKRAM GUPTA as necessity, hotels globally have pivoted to EDITORIAL CONSULTANT embrace new ways of providing service for SUSMIT BARMAN guests. These include contactless methods of CHIEF DESIGNER booking and payment, ordering meals ahead SOMU DUTTA of arrival, outdoor dining spaces and so on. ‘Mystic East’ magazine is printed To offer "At Home" experiences of a bar, The- and published by Atikram Gupta on behalf of Hotel and Restaurant Association of Eastern India. odore's family-run snack bar in Melbourne, Printed at CDC Printers Private Limited, No.45, Radha Nath Australia, has restyled itself as Ted's Grocer Chowdhury Road, Tangra Industrial Estate-II, Kolkata, West and Bottle-Shop, selling snacks, take-home Bengal 700 015 meals, hand-made cocktails and platters. Hotel and Restaurant Association of Eastern India, 18A/1, Elsewhere, some venues are maximizing Everest , 18th Floor, 46C, their use of self-service through technology Chowringhee Road, Kolkata- 700 071; Telephone- +91 33 2288-1742/43, 40035993. and robotics, with inventions like automated E-mail: info@hraei.co.in salad makers that don't need human contact. Website: www.hraei.co.in THIS ISSUE OF MYSTIC EAST CONTAINS 56 PAGES INCLUDING COVER AND BACK COVER All information in Mystic East magazine is derived from sources we consider reliable and a sincere effort is made to report accurate information. The publisher regrets that he cannot accept liability for error and omissions contained in this publication that might have crept in inadvertently. Similarly, opinions/views expressed by third parties are not necessarily shared by the magazine. However, we wish to advise our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances.. No part of the magazine may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extract used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material, solicited or unsolicited, nor is he responsible for material lost or damaged. 4 | MYSTIC EAST
July - August 2020 Over 520 rooms of 17 hotels in Kolkata entered into tie-ups with hospitals meant for Covid patients. The hotels that are functioning as satellite centres for hospitals are registering occupancy in excess of 70 per cent. With the prospect of regular business resuming any time soon extremely bleak, more hotels have now stepped forward to offer their rooms as Covid-care facilities. The tie-up with hotels has helped hospitals meet the bed crisis. The hospitals deploy staff at the hotels to monitor patients. Apart from 24×7 presence of nurses, doctors visit the facility twice a day. In addition, all medical amenities, includ- ing oxygen cylinders, are kept at the hotel to meet emergency needs. Doctors take a call on when a patient’s care needs to shift from a satellite facility to a hospital or when the person can be discharged. Hotels provide housekeeping services and food to the patients, most of whom are asymptomatic or mildly symptomatic. Hospital authorities also train hotel staff, front desk, house- keeping and waiters on how to go about their jobs safely. A mid-way home-type accommodation — between one’s own residence and the hospital — is a good idea to host less symptomatic or asymptomatic cases. But care should be taken In this way hotels to ensure that the general complaints, which thousands of have come forward patients seem to have with hospitals (especially regarding billing), do not afflict these institutions as well. to serve ailing In this way hotels have come forward to serve ailing citizens. citizens In the process they are also trying to get some business and cope up the immense loss brought about by the pandemic. Mr Mohammed Azhar Honourary Secretary MYSTIC EAST | 5
Inside Cover Story July - August 2020 23 HOW TO SURVIVE, REVIVE AND THRIVE The Ficci-Grant Thornton Report on Covid-19 impact on travel, tourism and hospitality industry 8 NEWS Kolkata hotels turn themselves into Covid care hospitals 9 Nitin Gadkari advises hospitality bigwigs to set up NBFCs Les Roches to assist 10 Indian students travelling to Switzerland for 59TH AGM OF HRAEI 12 education A new set of leadership for 2020-21 6 | MYSTIC EAST
July - August 2020 18 FREEDOM, PRIVACY AND SPACE 38 'CARE COMES FIRST' Rosewood Apartment Hotels introduces the concept of luxuries in large Interview of Tejinder Singh, Area rooms Manager East ITC Hotels & Cluster General Manager ITC Royal Bengal & ITC Sonar 34 DISTRIBUTED RESTAURANT How Covid-19 is going 42 AWESOME ASSAM The new tourism policy of Assam to impact design of encourages private investments in restaurants the state MYSTIC EAST | 7
HRAEI CORNER KOLKATA HOTELS TURN THEMSELVES INTO COVID-CARE HOSPITALS AS CASES SPIKE O VER 520 rooms of 17 hotels in Kolkata entered into tie-ups with hospitals meant for Covid pa- 24×7 presence of four nurses, doctors visit the facility twice a day. In addition, all medical amenities, including oxygen of medicines to the patient,” said Pranav Singh, President, HRAEI. Hospital authorities also train hotel tients. “The hotels that are function- cylinders, are kept at the hotel to meet staff, front desk, housekeeping and ing as satellite centres for hospitals emergency needs,” said ILS group waiters on how to go about their jobs are registering occupancy in excess of vice-president Debashis Dhar. Doctors safely. Only digital documents are 70 per cent. With the prospect of reg- take a call on when a patient’s care accepted and payments, too, have to ular business resuming any time soon needs to shift from a satellite facility to be transferred digitally. A mid-way extremely bleak, more hotels have a hospital or when the person can be home-type accommodation — be- now stepped forward to offer their discharged. Hotels provide housekeep- tween one’s own residence and the rooms as Covid-care facilities,” said ing services and food to the patients, hospital — is a good idea to host less Sudesh Poddar, honorary secretary most of whom are asymptomatic or symptomatic or asymptomatic cases. of Hotel & Restaurant Association of mildly symptomatic. But care should be taken to ensure Eastern India (HRAEI). “The rooms are provided with an that the general complaints, which “The tie-up with hotels has helped oximeter, thermometer, sphygmoma- thousands of patients seem to have hospitals meet the bed crisis. Our ILS nometer (machine to measure blood with hospitals (especially regarding facility has deployed staff at Sonnet ho- pressure) and attimes, saline stands. billing), do not afflict these institu- tel to monitor the patients. Apart from The hospital provides a week’s supply tions as well. 8 | MYSTIC EAST
NEWS July - August 2020 HOTEL INDUSTRY SHOULD TRY TO SET UP ITS OWN NBFCS: NITIN GADKARI A DDRESSING a webinar organ- ised by FHRAI, Gadkari said that the government is considering an INR For instance, every industry has to think out of the box, the Minister said. The Minister informed that the the current obstacles being faced by the nancial institutions in restruc- turing such assets. The framework is 20,000 cr fund to support restructur- government has announced various ready and will be released soon, he ing of NPAs under the current policy schemes to help the MSME sector to said. Nitin Gadkari, Union Minister for overcome the working capital con- Gadkari said that people and busi- Road Transport, Highways, and MSME straints in the wake of the Covid-19 nesses have to learn the “art of living” has asked the hospitality industry to pandemic. He said that the INR 3 lakh under the Covid-19 and should learn look at setting up an NBFC to take cr MSME fund is aimed at enhancing to adjust with it. Saying that he fully care of the capital requirements of the liquidity in the market which is understands the problems of the hos- the industry. The Union Minister critical to drive demand and supply. pitality sector in the country, Gadkari said that as most of the hotels earn He said that the government is giving said that the government has asked revenues in dollars, it becomes easy guarantee for collateral free 20% all state governments to postpone all for such NBFCs to access foreign additional working capital assistance mandatory fee and charges associat- funds at much lower interest rates. and there should not be any hesita- ed with the hotel industry. This will help the hotel industry to tion on the part of the banks to help Responding to the questions of access loans at less than 3% inter- the businesses. the hoteliers, Gadkari said the MSME est compared to over 10% interest Similarly, he said that the govern- department has set up a dedicated being charged by the Indian banking ment will soon release a INR 20,000 platform - Champions - for MSMEs system. The Union Minister cited the cr fund to support the restructuring to address their grievances associ- example of some of the Automobile of NPA under the present policy. The ated with the government schemes companies in the country who have government will take equity stake in and all the issues will be addressed set up their own NBFCs. the restructuring of NPAs to remove through it. MYSTIC EAST | 9
NEWS LES ROCHES TO COLLABORATE WITH QUINTESSENTIALLY TO ASSIST INDIAN STUDENTS TRAVELLING TO SWITZERLAND FOR EDUCATION Indian students during their journey.” Speaking on their collaboration, Mr. Adrian Artimov, Director of Marketing and Enrolment at Les Roches said “We understand that some students from India have been worried about travel- ling and hence we wanted to assure them and their parents by providing the best concierge service in India. We are extremely delighted to be partnering with Quintessentially and hope that we can achieve our aim of providing a pleasant journey to all our students. Les Roches is one of the best hospitality management schools in the world and by partnering with I N the current context, Indian stu- dents are naturally apprehensive of travelling abroad, and, therefore, luxury and assistance. From memora- ble events, to luxury travel, corporate services, global customer loyalty such an exclusive concierge service, we are showcasing how 5-star hospi- tality works to our students through to cater to their needs, Les Roches is programmes and much more, they first hand experience.” launching a one of a kind partner- are proud to partner with the world’s After having travelled to Switzer- ship with Quintessentially India, an most recognized brands such as Les land using Quintessentially concierge award-winning luxury concierge and Roches and support Indian students services, the students will arrive to lifestyle management service com- in their travel abroad. the comfort of the campus where pany. Ms. Mishti Bose, CEO of Quint- they will meet the designated Les Les Roches is offering free access essentially India said “It is an abso- Roches staff to smoothly continue to a private Quintessentially account lute honor to collaborate with Les further their integration and accom- manager that will help students pre- Roches, one of the leading hospi- modate them in preparation for the pare their travel details for Switzer- tality institutions in the world. We studies ahead. land for the October intake this year, believe our brand ethos is in per- Les Roches is a part of Sommet offering a personalized services pack fect tandem with the ethos of Les Education, which also includes sister which will include flight booking, Roches. Uncompromising on quality, schools Glion Institute of Higher Ed- airport transfer, meet and greet at we at Quintessentially are agile prob- ucation and Ecole Ducasse under its the airport, VIP lounge access and a lem solvers who are passionately umbrella. The collaboration between personal protective equipment pack. committed to connecting the Indian Les Roches and Quintessentially shall Founded in 2000, as the first private community to their brand partner also be extended to the sister schools members club, Quintessentially India at Les Roches through authentic, and the services shall be offered to has come a long way to becoming meaningful experiences and aim the students that shall be attending the authority and the real voice of to provide perfect assistance to the Glion and Ducasse this coming year. 10 | MYSTIC EAST
July - August 2020 PRIDE HOTELS LAUNCHES AN ALL NEW CATERING SERVICE EXPERIENCE T HE Pride Hotels has launched new catering service ex- perience at its, New Delhi, Kolkata, Ahmedabad, Pune, Nagpur, Chennai and Bangalore properties. The hotel group with online food delivery aggregator platforms to deliver its food delicacies at customers' doorsteps. “We are constantly working towards re-modeling our ser- opens its services for doorstep deliveries redefining the vices for guest satisfaction whether it’s at our premises or at dining experience in the New Normal. The initiative enables our guests’ chosen venue. This contactless order, payment the customers to enjoy food delicacies with ‘contactless’ and delivery option will help us in delivering a responsible delivery and unique food offering to satiate their cravings. guest experience. Through this initiative our guests will be The catering menu is curated by the team of expert chefs able to experience and indulge in their favourite cuisine and culinarians featuring an interesting amalgamation from the popular restaurants of Pride Group of Hotels of Indian food concepts and local ingredients together. present at their cities.” says, Atul Upadhyay, Vice President These are small bites and memorable flavours. Be it au- Operations, Pride Hotels Ltd. thentic Home Style Mixed Vegetable, Dal Makhani and As a part of the ‘New Normal’ and keeping the present Paneer Achari from the Vegetarian menu; Murgh Dum circumstances in mind, the Pride Hotel has launched the Biryani, Lamb Rogan Josh and Rara Ghost Punjabi from the ‘Pride Safety Assurance’. It’s a commitment from the Group Non-Vegetarian menu and Pasta, Sandwich & Burger from of taking care of its guests at every step of its service. the Asian menu, one can savour it all at their home. Under ‘Pride Safety Assurance’ initiative, the Pride hotel This initiative was taken by the Pride Hotels to make sure has rolled out enhanced technological measures like con- that its loyal patrons don’t miss out on their favourite cui- tactless check-in & check-out services, contactless billing sine due to COVID. To amplify the concept of ‘Luxury-in-Pri- facility, touch less dispensing centre for the sanitizers and vacy’ the hotel group is now offering exclusive catering ser- mobile friendly dining menu. The initiative is designed to vices for personal meets at home. Pride Group will help in tackle the realities of the COVID-19 pandemic at the hotel making the celebrations successful with delightful culinary level and further advance the company’s efforts in this creations and flawless service. Pride Hotels have partnered area MYSTIC EAST | 11
AGM NEWS 59th Annual General Meeting of HRAEI The HRAEI AGM was held at The Park, Kolkata on September 3. A new set of leadership was elected for the FY 2020-21 Mr Sudesh Poddar gets elected as the President, HRAEI. President Emeritus Mr T.S.Walia welcomes him 12 | MYSTIC EAST
July - August 2020 Mr Sudesh Poddar felicitated by Mr Pranav Singh 59th Annual General Meeting of HRAEI at The Park, Kolkata MYSTIC EAST | 13
AGM NEWS Newly elected members of the Managing Committee of HRAEI Members attending the Annual General Meeting at The Park 14 | MYSTIC EAST
July - August 2020 THE ROADMAP AHEAD H OTEL and Restaurant Associ- ation of Eastern India (HRAEI) has elected a new set of leadership for the region for the next one year. Mr Sudesh Poddar, an emi- nent hotelier, with business interest in the hospitality industry in the States of Assam and West Bengal, was elected as the President of the association in the recently concluded Annual General Meeting held in Kolk- ata. Mr Poddar said that his top priority is to revive the hospitality and tourism industry in the eastern part of India hit hard by the Covid-19 pandemic. Mr Poddar is an authority in the business of hotels and is thoroughly acquainted with the industry and also possesses 35 years of experience along with immense expertise and acquaintance in the field. In the past, Mr. Poddar has been very closely associated with HRAEI and FHRAI in different capacities. He has held office as the President of HRAEI for four consecutive years, during the year commencing from 2014 and upto 2018. Mr. Poddar has also held post as the treasurer of FHRAI for 2 consecutive years during the years 2014 - 15 and 2015-16 and also held post as Honor- ary Secretary in HRAEI during the year 2019-20. He is also a member (Catering Expert) on the Board of Governors of Hotel Management and Catering Technology, Kolkata. He took charge at a moment when the industry is going through a tough challenge. He spoke to Mystic East in an exclusive interview. MYSTIC EAST | 15
AGM NEWS The excerpts: and Restaurants during their stay and The rooms charges were highly sub- Congratulations for getting elected in this way revenue can be generated. sidised including meals in all types of as the President of Hotel & Restau- We have also appealed for complete hotels—ranging from budget to star rants Association of Eastern India GST holidays for 6 Months (at the hotels. At a later stage, many turned (HRAEI). Now that the hospitality state Level) with declining revenues their rooms as satellites of some industry is going through one of almost all hospitality businesses are hospitals as they ran out of beds. We the toughest crises what is your running out of working capital. In also provided rooms for the inbound plan to revive business? addition, we have asked for relaxation passengers from abroad as a part of Our industry is indeed going through in excise license fee up to 50% rebate Vande Bharat Mission. In addition, we the worst crisis in recent history. My for the year 2020-2021 and allowing held a sanitization drive in Lans- top priority is to revive the hospi- adjustment with the next year re- downe market following a request tality and tourism industry in the newal fee for those who have already from the honourable Chief Minister of eastern part of India, hit hard by the paid should be considered which West Bengal. Covid-19 pandemic. To attract more will help in revival of the business. tourists in the region, especially the Reduction of 50% on sanction fee Did you meet the Chief Minister? North Eastern India, we shall make and fire license for upcoming hotel Yes. We met her when she called appeal to the Government for more projects must also be considered; it several industry bodies for discussion flights and easier access. We are in will encourage entrepreneur to open in the fight against the novel corona- the process of making a roadmap to new hotels and which will in turn virus. We stated that we have offered promote a lot of inbound tourism to generate new job opportunities. Also over 2000 rooms to the State Health tap the tremendous potential of this capital subsidy should be given for Department as quarantine centres for region. We have a deep concern for new hotel projects. those affected by Covid-19. We made those entrepreneurs who invested her a request to arrange health insur- in the tourism and hospitality sector After the Covid-19 the HRAEI ance coverage of Rs 10 lakhs to each before the pandemic. They were hit seems to have taken up taken up a hotel staff attending the quarantine hard by Covid-19. With zero business number of social initiatives. centres. The Chief Minister prom- they had hard time paying their staff, We stood behind governments ised to cover the workers under the rentals for their property and also the during the hour of crisis. We offered government’s Swasthya Sathi health utility bills. Some of them are on the isolation rooms for Covid-19 people insurance scheme. She also compli- verge of going bust. We shall appeal who were asked to live in quarantine mented the Association for our “noble for moratoriums on loan repayment for two weeks at pay-and-use basis. services”. We donated Rs 5 lakhs to and relaxation on interest rates on the Chief Minister’s Relief Fund. loans for them. How are the hotels and restaurants What else is in your Roadmap doing after their reopening after Ahead? We have a deep lockdown? In the light of the lockdown due to concern for Weekends are attracting customers. Covid-19 the Association submit- In some restaurants in the Park Street ted the following suggestions and those entrepreneurs area one could see people waiting prayers to the Governments of West who invested for seats. Especially after the govern- Bengal, Odisha, Assam and Anda- in the tourism and ment allowed restaurants to serve man & Nicobar Islands. To revive the drinks and bars open, things are hospitality & tourism sectors we have hospitality sector getting better. But we are concerned requested governments to engage before the pandemic. about those who are still not getting very actively in organising more con- enough business to survive. Many big ferences and seminars in the states. They were hit hotels are attracting families through This will increase the footfall and hard by Covid-19. “staycation” packages. But then bud- delegates attending the conferences get hotels are still struggling to get will avail the services of the Hotels customers. 16 | MYSTIC EAST
APARTHOTELS FREEDOM, PRIVACY AND AMPLE SPACE The concept of enjoying the luxuries of a hotel in a larger room with the facility and freedom to make one's own meals always intrigued Saurabh Vaish, the Founder and Managing Director of Rosewood Apartment Hotels
APARTHOTELS Saurabh Vaish, the Founder and Managing Director of Rosewood Apartment Hotels R OSEWOOD Apartment Hotels Corporate Home Away from Home, ings also host a gym, restaurant, is the first fully organised curating stays in Golf Course Villas, business centre, residents’ lounge aparthotel brand in North Mountain Valley Villas and others are and conference rooms. India. The idea of apartment ho- in the pipeline. Rosewood cuts out unnecessary tels was conceptualised in 2008 This chain of apartment hotels premiums such as meals that a and today the brand boasts of five gives guests the privacy and flexibil- guest may not use. Guests can cook properties at Gurugram, Haridwar, ity to be on their own with minimal- meals in the fully-equipped kitchen Pantnagar, Bhimtal and Dhanachuli istic interference and are at their and eat in the comfort of their own . Now Rosewood plans to spread its beck-n-call if need be. Each studio living area. The serviced apartments wings in other cities like Ahmed- apartment comes with a full-fledged are crafted with thoughtful homely abad, Noida and Dehradun. The and equipped kitchenette, a lobby touches to make your stay even launch of Rosewood Villas-- Luxury area and housekeeping. The build- more comfortable. 20 | MYSTIC EAST
July - August 2020 With Rosewood, being able to live and sleep in different rooms whilst away from home is a luxury you can afford. The serviced apartments are a welcome alternative to the all-in-one hotel room, providing more space in comparison. The live-in in the apartment offers more freedom and privacy com- pared to other run-of-the-mill hotels. Guests are not constrained by fixed meal times and avoid food they may not enjoy. The unique chain of aparthotels was founded and con- ceived by Mr Saurabh Vaish. Mr Vaish spoke to Mystic East in an exclusive interview. Excerpts: Q: What inspired you to conceive Rosewood Apartment Hotels? A: Extensive travelling at a young age with my parents and staying at some of the best hotels always made me admire the finesse & quality in this industry. This fascination for hospitality developed into a passion during my 18-month management trainee program at Jaypee Hotels & ITC Maurya, New Delhi, way back in 1988. Since then I have been aspiring to own and manage a star rated hotel property. This opportunity emerged 20 years later in 2008 when I decided to switch from my textile manufactur- ing business to the fast-growing ser- vice sector. The mere fact of providing a quality product and a delightful customer experience has always been very exciting and close to my heart. I find that the hospitality industry offers immense opportunity to fulfil this desire since it offers a dynamic environment and varied guest service requirements, along with challenges of developing and managing prop- erties to be able to offer a quality product. During my travels, we used to fre- Rosewood Apartment Hotels at Dhanachuli quently stay at serviced apartments MYSTIC EAST | 21
APARTHOTELS Rosewood Apartment Hotels at Gurgaon and the concept of enjoying the lux- uries of a hotel in a larger room with the facility and freedom to make your own meals always intrigued me. I found that there is a huge gap in North India in the mid-segment ser- viced apartment business and hence we chose industrial and corporate hubs which offered the possibili- ties of extended stays to setup our properties. This thought and concept led us to the industrial town of Pantnagar in Uttarakhand and our first property was established. Q: What makes your property stand out in the hospitality industry in India? A: We are North India’s first organized Apartment Hotel chain offering 4-star hotel luxuries in a serviced apartment environment. Rosewood Apartment Hotels at Pantnagar 22 | MYSTIC EAST
July - August 2020 near industrial and corporate hubs which enable us to get long stay guests who are able to truly benefit and appreciate the facilities of our property. We have now ventured out into two leisure locations one facing a lake and the other with spectacular views of the snow-capped Himala- yas. These are again being primarily offered to our corporate clients for their offsite trainings and leisure trips. 4. Do you prefer to build a proper- ty from scratch or buy an existing property and then refurbish it according to your requirement? Since we don’t have standard hotel rooms, we prefer to build from scratch. However, we also explore existing properties but only those which can be customized according Rosewood Apartment hotels at Bhimtal to our concept and requirements. The four distinct features which erties whether it be the crockery, 5. Who are your guests? Are they set us apart from other properties in cutlery, linen, guest amenities etc. people from the corporate houses? our vicinity are: making us comparable to 5-star Or, families on pilgrimage? Large size rooms (400 sqft. to 700 properties. Since we are located in the indus- sqft.) with fully equipped kitchenette • Each guest at our property is not trial & corporate clusters, our and all and facilities and comforts a room number but is known and primary clientele are all the nearby of a star rated hotel property with addressed by his name. We take industries with whom we have cor- flexible dining options – pride in extending the highest level porate tie-ups and we prefer to en- • Dine in our in-house restaurant of personalized service and even tertain bookings only through them • Order room service offering customized meals to our or through their references. Some • Cook your own meal in your kitch- long stay guests. This has resulted in enette with complementary pantry more than 90% repeat clientele and of our major customers include Tata shopping service the privilege of hosting a New Zea- Motors, Bajaj Auto, Ashok Leyland, • Food delivery to your room from a land national for almost 3.5 years. Maruti Suzuki, Mahindra & Mahindra, nearby restaurant. In addition, we try to ensure that Hero Moto Corp, TVS Group, Green- • Each of our properties is profes- our long stay guests get a local fla- ply, Dabur, ITC Limited, Anchor by sionally managed by a team of ho- vour, we extend to them personalized Panasonic, Tata Steel, Voltas, Saint tel management graduates having curated experiences such as Ganga Gobain, Hindware, Hindustan Zinc, adequate work experience in the Aarti, river rafting, kayaking /boating, JBM Group, VLCC, Yes Bank, Axis hotel industry. forest treks, bird watching etc. Bank, Spicejet etc. • There is immense attention to de- We were even featured as the “10 tail and standardization and we use 3. How do you choose the most promising corporate lodging industry’s best suppliers for every location of a property? service providers in 2019” by the item which we place in our prop- We primarily look at locations Silicon India Magazine. MYSTIC EAST | 23
APARTHOTELS FANTASTIC FIVE The Rosewood Haridwar The Rosewood Gurgaon The aparthotel in Uttarakhand’s holiest city Haridwar The aparthotel offers a luxurious setting with where the River Ganga emerges from the Himalayas, exquisitely styled guestrooms, a multi-cuisine is an all-rounder, no doubt. It is home to businessmen, cafe, and a large conferencing space combined spiritualists, yoga enthusiasts, family vacationers and with new-age technology and business support adventure junkies! services. The Rosewood Pantnagar The Rosewood Bhimtal The aparthotel was launched in Pantnagar to cater to the Perched at 8500 feet above sea level, the employees and visitors of the industries around the city in Rosewood experience in Dhanachulli is most SIDCUL industrial area. It soon gained momentum and has exciting in the snowy winters. The scenic ham- since seen staycation guests who base themselves at Pant- let has captivating views of the Himalayas, the nagar and day trip to the nearby picturesque hill towns of dense forests and kids playing around in the Ranikhet, Binsar and the seven-lake town Nainital. apple orchards. The Rosewood Dhanachuli Located in Mukteshwar, 19 miles from Binsar Wildlife Sanctuary, Rosewood Dhanachuli Retreat features views over the Himalayas. It is fit for every kind of traveller- business, leisure or someone just looking for a scenic, spiritual and quiet break. 24 | MYSTIC EAST
July - August 2020 COVER STORY/STRATEGY HOW TO SURVIVE, REVIVE AND THRIVE The FICCI & Grant Thornton Report gives a complete overview of Covid-19 Impact on Travel & Tourism and ways to rebuild the industry T HE travel and tourism indus- The tourism sector makes a signif- including wellness and adventure try in India is looking at up icant impact on the economy of our tourism, as well as investment into to 40 million job losses (both country. The data by World Travel and the industry through schemes, such direct and indirect) and about USD Tourism Council (WTTC) reveals that as PRASHAD and Swadesh Darshan, 17 billion in revenue loss in the next in 2019 the tourism industry in India which have proven to be successful one year. contributed INR 194 billion to India’s in increasing the number of foreign The COVID-19 pandemic has result- GDP. The industry also supported and domestic visitors in India. ed in the loss of lives and livelihood 87.5 million jobs, 12.75% of total The government has also lever- all across the globe. Industries across employment in 2018-19. Due to the aged e-visa capabilities and extend- the spectrum have been impacted by impact of the pandemic on the glob- ed it to 169 countries making it easier the pandemic, the travel and tourism al economy, the WTTC is estimating for individuals to visit our country. industry has felt maximum impact losses of up to USD 2.7 trillion with Looking ahead, domestic tourism due to grounding of planes, closure up to 100 million jobs at risk. The will be the way forward as inbound of railways, hotels and other estab- travel and tourism industry in India is tourism will take longer to revive and lishments. looking at up to 40 million job losses open up. Although the Indian travel The travel and tourism industry has (both direct and indirect) and about and tourism industry has not re- proven its importance as an eco- USD 17 billion in revenue loss in the ceived much support from the recent nomic growth engine for the world next one year. announcements on the economic economy. For nine years consecutive- All across the world, countries are relief package by the government, ly, the industry’s growth rate has sur- looking at tourism as the main driver it should be considered as a priority passed the growth rate of the global to revive their economy. The central sector. In order to achieve this, gov- economy. In 2019, the industry grew government plays an important role ernment, industry and institutions at 3.5% compared to global GDP in developing a strong visitor econ- must make collaborative efforts to growth rate of 2.5%. Accounting for omy which is evident from the fact create a supportive ecosystem for 10.3% of total GDP, the industry con- that the Ministry of Tourism has also tourism. tributed USD 8.9 trillion to the global undertaken a slew of initiatives, such We are happy that a National Tour- GDP and created approximately 330 as the Incredible India 2.0 campaign ism Taskforce (NTF) has been formed million jobs, one in 10 that year. focusing on niche tourism products by the Ministry of Tourism, Govern- MYSTIC EAST | 25
July - August 2020 ment of India. It will play a major including Mobile World Congress drop in both inbound and outbound role in the survival and revival of the (MWC), Google I/O, and Facebook’s tourism of approximately 67% and Indian travel and tourism industry so F8 event, leading to huge economic 52% respectively from January to that it can once again be the torch losses. February as compared with the same bearer for the Indian economy. The pandemic is estimated to have period last year. We are pleased to present the FICCI a debilitating impact on the Indian The aviation sector, which contrib- - Grant Thornton report, Travel and travel and tourism sector, which utes 2.4% of Indian GDP, is among Tourism: Survive, revive and thrive includes hotels, travel agencies, tour the worst affected sectors due to in times of COVID-19, which looks operators, destinations, family enter- COVID-19. The spread of the pan- at the impact of this crisis and the tainment venues, restaurants and air, demic across the country, in the last recommendations for survival and land and sea transportation, amongst two months, has led to a 47% decline revival. This document will facilitate a others. Overall, losses are estimated in the passenger traffic. Following better understanding of the chal- to total up to USD 16.7 billion. Being the lockdown in March, airlines have lenges faced by the industry and the a large employment generator for been incurring parking charges as opportunities for revival, both by the the country, 40-50 million jobs will nearly 650 planes of Indian carriers government and private sector. be at risk in 2020, both directly and are now grounded. These airlines are indirectly employed in the industry. liable to pay a lump sum amount of Dr. Jyotsna Suri Past President, FICCI The Ministry of Tourism has consti- INR 6 million of parking and housing Chairperson, FICCI Tourism Committee tuted a National Tourism Taskforce, charges. Airlines are also refraining Chairperson and Managing Director, to be headed by the Minister of from increasing prices for the sum- The Lalit Suri Hospitality Group State (I/C) for Tourism to meet the mer season. According to the Centre challenges posed by COVID-19 and of Aviation (CAPA), the Indian aviation Impact of COVID-19 on the will include state tourism ministers, industry could bear losses up to USD travel and tourism sector in joint secretary level officers of the 3.6 billion during AprilJune 2020 India concerned central ministries, and rep- alone. COVID-19 has disrupted interna- resentatives from associations, such The travel ban has largely impacted tional travel trade and supply chains as FICCI, CII, ASSOCHAM and WTCII, as tour operators and travel agencies in an unprecedented way. Several well as heads of tourism and hospital- as the restrictions have not only countries have suspended tourist ity associations. affected current bookings, but future and business visas and banned both With large scale cancellation of bookings too. With March and April domestic and international air travel, travel plans by both foreign and being peak season for Indian travel- bringing economies to a screeching domestic tourists, there has been a lers heading to both domestic and halt. The International Monetary Fund international destinations, nearly 90% predicts a shrinkage of the global bookings of hotel and flights have economy by 3% during 2020 due to been cancelled for the same period. the novel coronavirus. Among these cancellations are cruise With many economies yet to hit bookings for destinations such as their infection apexes, experts predict Thailand, Singapore and Malaysia. Ac- Relief measures and economies around the world to cording to the Indian Association of recommendations by FICCI shrink in the first quarter of 2020, Tour Operators (IATO), the hotel, avi- to the Government of India with ripple effects expected to be felt ation and travel sector together may in the following months. The travel With coronavirus impacting the incur losses of about INR 8,500 crore and tourism sector is the worst hit. Indian economy, the travel and due to travel restrictions imposed on Of all the segments of the hospital- tourism industry is looking at foreign tourists by India which further ity sector, the Meetings, Incentives, up to 50 million jobs at risk. For puts at risk the survival of smaller to Conferences and Exhibitions - pop- the industry to tide over this cri- medium sized organisations includ- ularly known as MICE segment - has sis, several relief measures have ing the jobs of several thousand, if been hit the most with major inter- been recommended to the not lakhs of individuals. For tour national business events cancelled Government of India by FICCI. operators and travel agents across MYSTIC EAST | 27
COVER STORY Six-month moratorium to be extended to a minimum 12-month moratorium period on all working capital, principal, interest payments, loans and overdrafts • Permit one-time rescheduling of principal/interest dues in line with the estimated cash flows of each project post recovery from COVID-19 without treating it as restructuring, re-classification/ downgrading in asset qualification and requirement of additional provisioning. • 12-month waiver of all statutory dues including customs, excise and license fees and increase in insurance premiums • Stimulus package to provide salary support to businesses • ESI contribution to be deferred for 12 months. Insurance corpus of Hard surfaces, including seat trays, touch screens, door handles of a plane need disinfection after each flight ESI should to be used to provide wages to all covered workers • Waiver and/or reduction of GST on products offered by the sector for the length and breadth of the coun- their challenges. a 12-month period try, average losses in revenues com- Various pilgrimage sites, including pared with the same period last year large temples across the country, • Direct cash support for the have been in the range of 50-80%. have been closed in the wake of the aviation sector (airlines, ground India has a total of 3961 centrally pandemic. Tirumala Venkateswara handling and airports) protected sites either under UNESCO Temple, the richest Hindu temple has • Waiver of parking and landing as a world heritage site or the Arche- incurred losses of nearly INR 125-130 charges ological Survey of India (ASI). Monu- crore so far. Other temples in Tamil ments, such as the Taj Mahal and Agra Nadu have also incurred losses due • Short-term, interest-free or low-in- Fort in Agra and Qutub Minar in New to the lack of daily offerings. Closure terest loans for rebuilding busi- Delhi, are the highest revenue earners of pilgrimages has also had cascad- nesses in the form of term loans grossing annually INR 77 crore, INR 34 ing effects on hotels, homestays, and working capital loans crore and INR 26 crore, respectively. businesses of travel agents as well as •C reate a separate tourism fund The livelihoods of approximately 1.75 floriculturists. under the aegis of Ministry of lakh daily earners, including tour Negative impact on the Indian Tourism, accessible to the industry guides, rickshaw pullers, photog- Railways has also been witnessed as a collateral free, 10 year loan, raphers, etc., have been affected in ever since the nationwide seizure of with a moratorium of two years and Agra alone. Tour guides with licenses rail services across the country. The minimal rate of interest to support from the government are not allowed Indian Railways facilitate the move- businesses stabilise in this time of to take up alternative jobs, adding to ment of goods as well as passengers. crisis 28 | MYSTIC EAST
July - August 2020 The Indian Railways is expected to rate for fire, loss of profits COVID-19 without treating it as witness losses amounting to INR • SGST to be waived off till the situa- restructuring, re-classification/ 17 billion due to COVID-19; almost tion becomes normal downgrading in asset qualification 13,000 passenger trains have come to • Tax rebates by the government for and requirement of additional pro- a standstill. encouraging spending on domestic visioning There is an urgent need to take holidays (for example, LTA) and GST • Permit sanctioning of additional immediate steps to not only contain relief and other incentives for corpo- facilities in the form of working the spread of the virus but also to rates to organise meetings, incen- capital term loan for meeting cash address the key pain areas of the tives, conferences and exhibitions flow mismatches during the period industry to minimise the impact of (MICE) within the country affected by COVID-19. The tenure of the outbreak on the Indian economy such facility shall be assessed based and businesses. A combination of Regulatory measures on the individual project cash flows. monetary, fiscal and financial mar- • Permit one-time rescheduling Such additional facilities to be treat- ket measures is needed to help the of principal/interest dues in line ed as standard assets businesses and people cope with the with the estimated cash flows of • I n case of projects under imple- crisis. Therefore, to be able to frame each project post recovery from mentation, the banks/institutions/ correct actions and policy measures, it is important to understand clearly the specific problems that people and businesses are currently facing. This alone can enable the government to take appropriate measures. Measures recommended for the survival and revival of the travel and tourism sector • While a six-month moratorium has been granted to the industry, a min- imum 12-month moratorium period is needed on all working capital, principal, interest payments, loans and overdrafts. Collateral and inter- est-free loans for five years for SMEs in the sector to help them sustain and rebuild • A 12-month waiver of all statutory dues with respect to license fees, property tax and excise fees • Defer GST and advance tax payments at the Central Government level and removal of fees for any upcoming licenses, permits and their renewal • Bailout packages to fund and support salaries in the sector Export status for foreign exchange earnings for inbound tours and hotels • A 12-month deferment in the in- crease of insurance premium related to standard fire and special perils Staff need to be trained a new standard operating process of safety and hygiene MYSTIC EAST | 29
COVER STORY NBFCs be permitted to extend Relief measures requested for all categories of employees for the the Date of Commencement of tour operators next 12 months Commercial Operations (DCCO) • Restoration of Service Exports from • Employees to be allowed to with- by one year without treating it as India Scheme (SEIS) scrips for duty draw a fixed sum of INR 10,000 for restructuring as it would bedifficult credit of 10% to the tourism indus- up to six months from their EPF for promoters to raise funds from try. accounts other business/services for project • Extension of Services Export Promo- • ESI contribution to be deferred for completion. tion Council (SEPC) membership to 12 months. The insurance corpus of • Lending to tourism sector to be 31st march 2021 ESI needs to be used now to provide treated as ‘priority sector lending’ • Finalisation of an aggressive Incred- wages to all organised workers for at least for next one year which will ible India marketing plan during all accumulated days from nonavail- enable access to bank finance lockdown and implementation on ability of work and the act needs to • Amendments to Master Direction opening to drive domestic travel in be amended immediately -Reserve Bank of India (Relief Mea- India • Professional tax to be waived for all sures by banks in areas affected by • Approval of completed forms by companies as well as employees up Natural Calamities) 2018-SCBs to Directorate General of Foreign Trade to March 2021 include: within 30 days to utilise the cash •R efunds of cancellations and – COVID-19 in the definition of flow to pay salaries and expenses advances of travel agents and tour natural calamity and permit use • No landing fees for Goa, i.e. charters operators from AIRLINES/IATA: MOT of this circular for tourism sector land for free to encourage flights to and MOCA immediately advises – Enabling NBFCs to use this circu- come back them to refund. Advances/float lar (presently only applicable to • Same ticket prices for foreigners accounts also to be refunded in full banks) and Indians for entry to historical immediately as they are of money – Removing additional provision- monuments. in float/advances for not issued ing requirement for the restruc- tickets tured portion of loans under this Relief measures requested for • Billing period for IATA carriers to be scheme travel agents extended to 15 days. MOCA should • Support fund majorly for salaries underwrite these payments to travel Policy measures and establishment costs through agents & tour operators which will • Stimulus package to be formed to the following: be securitised against these re- stabilise and support the sector in – Government to contribute ceivables from IATA and low-cost the near-term, including a workforce 33.33% of take home salaries to carriers/non-IATA airline support fund to ensure that there all employees of registered travel • Complete GST and income tax hol- are no job losses agencies. iday for tourism, travel and hospi- • Waiver of all statutory dues such as – Government to use funds of ESIC tality industry for period of twelve advance tax, custom duties, excise to pay salaries of employees cov- months: duties, etc. at central and state level ered under the scheme. – IT Holiday effective FY2019-20 for 12 months – No deduction of TDS on salaries – Reseller model for air travel • Provision of a 12-month corporate for employees of the trade till agents to be permitted for corpo- tax holiday to travel, tourism and March 2021 rates/customers with GST num- hospitality sector and deferment of – Subsidise electricity by 33.33% ber with the agents directly on payment of all statutory dues, such to give relief to 53,000+ travel payment basis since airlines don’t as custom duties, excise duties, PF agents, more than 1.3 lakhs tour pay on payment/receipt basis and and bank charges, at central and operators (domestic, inbound, credit GST only on flown basis state level for 12 months adventure, cruise and outbound), – Unlock inter-head credit of GST • Extension of annual renewal of li- more than 2,700 MICE organisers across IGST, CGST, SGST for tour censes paid for in 2020 until the end and 19 lakh plus tourist transport- operators. Permanently allow of 2021 without any incremental fee ers tour operators to claim IGST for or charges • PF contribution to be waived off for hotel reservations/other services 30 | MYSTIC EAST
July - August 2020 Hotels are revising their room cleaning protocols thoroughly interstate basis as input credit to charge to companies in the sector. Opportunities for growth in the claim ITC Thereafter, subsidised rates can ap- sector – Roll back of TCS introduced in ply on actual consumption and not Promote niche travel products under Budget 2020 by the finance against fixed load the Incredible India 2.0 campaign minister • Export Promotion Capital Goods – LTA like tax benefit for Indians for (EPCG) scheme to consider grant • Yoga and Ayurveda - Promote two times a year for domestic and of extension in export obligation wellness tourism as a key unique international travel. This will stim- fulfilment period by an additional selling product which will gain a lot ulate domestic travel by Indians three years (beyond current limit of attraction in the near future of six years) for all the licenses • Religious circuits - Religious circuits Relief measures requested expiring during current and within is a highly unorganised travel market. for hotels this and the next financial year, A complete relook is required to • GST rates on companies in hospi- without attracting any penalty or formalise these offerings into circuits tality should be slashed for at least interest for all faiths. Even the NRI market two to three years. Currently, large can be tapped for this product, if hotels are charged a GST rate be- Special package for the survival institutionalised well. Government tween 12-18% based on room rate. of heritage hotels needs to play a unification role with Now that hotels are almost empty, • The CSR initiatives for hotels, avia- state, private players, travel operators the GST rate should be brought tion, travel, tourism entities should and other identified points of sale, down to 5-6% with immediate be extended to Swatch Bharat, including fin-tech companies. A fea- effect which in the case of tourism indus- sibility study should be conducted to • 500 units of electricity per month try, should include monuments, connect the religious sites by modes and water to be provided free of tourist sites, and other facilities of transport such as aerial ropeway MYSTIC EAST | 31
COVER STORY parking space on a chargeable basis for overnight halts with CCTV for additional security. • Film industry - Government must encourage film makers to shoot at Indian locales in order to showcase India further to both domestic and foreign markets and subsequently create demand. India should have a single window clearance for all shoots to reduce delay and uncertainties. In- dia should also provide a cash rebate to reduce cost of shootings as movie shoots are a medium to increase footfalls across the country. Promote the corporate travel segment Online travel companies and travel management companies in India must develop technology platforms to aid and develop the corporate hotel segment. This would ensure bookings and payments are made from India thus allowing revenues Immediately after the pandemic there will be holiday rush of tourists to sit in India rather than overseas as currently payments are made either by overseas associates or out of the and trollies. Rail, bus, and IRCTC need attract younger population who per diem foreign exchange allowance to all work in cohesion for the circuits could combine their air/rail travel for the traveller. to be a success with self-driven cars. The self-driven Current trends and patterns • Culinary tourism - It is a great cars should have an in-built applica- indicate bookings and payments are opportunity to explore variety of tion for navigation and facilities for made by the traveller overseas, which cuisines in the country. Focus on the traveller/driver can be brought in-house by the com- creating culinary circuits and trails • Caravan tourism - It should be panies. Not only will it increase their and promote it extensively through promoted for road trip holidays as penetration but will also contribute digital campaigns. Promote local food it will give a unique experience to to government through GST collec- by partnering with online restaurant visit many destinations while limiting tions. aggregators for showcasing dining in contact with others. Government experiences of cafes/restaurants should come up with caravan circuits Create a more conducive business • Self-drive holidays - Self-drive hol- and identified camping spots. These environment idays, including hiring of self-driven camping spots should have the infra- The government should re-visit their cars need a complete re-look in the structure for waste management and regulations, taxation and other norms Indian market. Currently, only 10,000 other basic services such as water and to increase ease of doing business self-driven commercial vehicles are food. Petrol pumps on the highways in India. Organisations are choosing registered in 30 cities across India. can also expand their services for car- to register their companies abroad The base should be expanded to avans to provide waste management citing stable regulations, subsidised include a larger number of railways, and other basic services including tax rates and increased global inves- airports and city gate ways. This will cooking fuel. They can also provide tor interest as reasons. The Indian 32 | MYSTIC EAST
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