What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
A bi-monthly magazine by HRAEI | Vol 6 | Issue 1 | May - June 2020 What will it take for a revival of the hospitality industry after Covid-19
PRESIDENT’S NOTE T The Indian hotels' sector sailed smoothly into January 2020, after a record year in 2019, with 2020 set to be “even bigger”. The country first started feeling the ripple effects of the global COVID-19 turmoil We need a stimulus package to stabilize and support the sector in the near term to stabilize and support the sector in the near term, including a workforce support fund to ensure that there are no job losses. The government must also provide a moratorium of around 6 – 12 months on towards the end of February 2020, which all loans (principal & interest), including worsened at the beginning of March. working capital payments and overdrafts. Occupancy across hotels in key cities Apart from this, we also look for fiscal declined rapidly and as per an estimate support, such as a 12-month corporate tax by HVS it has declined by a staggering holiday to travel, tourism and hospitality 45 percentage points compared to the sectors. And deferment of all statutory dues previous year. such as advance tax, custom duties, excise The Government has already taken a duties, PF, bank charges etc. at central and step in the right direction by announcing state level for 12 months. its plans to set up a COVID-19 Taskforce to To revive demand some direct support undertake measures necessary to combat is also expected for waiver or reduction of the economic effects of the pandemic on GST on products offered by the sector for the country. We expect that the hospitality at least one year. Hope the government sector gets adequate monetary support appoints a think tank to evaluate and to recover from this unprecedented decide the measures necessary for the situation. We need a stimulus package revival of the sector. Pranav Singh President, HRAEI MYSTIC EAST | 3
EDITOR’S MESSAGE Even though the hospitality sector was hit hard by Covid-19 and the lockdown that followed it, MYSTIC EAST we never refrained from our social responsibility. A BI-MONTHLY MAGAZINE BY HRAEI Immediately after the announcement of Vol 6 | Issue 1 | May - June 2020 lockdown, several members of HRAEI came forward to offer pay-and use rooms to people EDITORIAL BOARD who have been asked to live in isolation for 14 SUDESH PODDAR HONORARY SECRETARY, HRAEI days. Over a thousand rooms of two-star, three- PRANAV SINGH star and four-star hotels were offered on pay- PRESIDENT, HRAEI and-use basis at a highly subsidised rates and all GOPAL DAS AGARWAL meals such as breakfast, lunch and dinner were HONORARY JOINT SECRETARY provided. S. H. RAHMAN Despite being Following a request from the Chief Minister MANAGING COMMITTEE MEMBER we adopted Lansdowne market in Kolkata for EDITOR hit hard we implementing hygienic practices to combat ATIKRAM GUPTA never refrained the pandemic. The HRAEI took over the market EDITORIAL & DESIGN P&S COMPANY for proper sanitisation awareness campaign to from our social prevent the spread of the novel coronavirus. We ‘Mystic East’ magazine is printed responsibility organised handing over of gloves, masks and and published by Atikram Gupta on behalf of Hotel and Restaurant Association of Eastern India. sanitisers, liquid handwash, to the shopkeepers Printed at CDC Printers Private Limited, No.45, Radha Nath and buyers in the market. We installed four small Chowdhury Road, Tangra Industrial Estate-II, Kolkata, West water tanks at entry points of the market and Bengal 700 015 made proper hand-washing arrangements for Hotel and Restaurant Association of Eastern India, 18A/1, stall owners and customers. Everest , 18th Floor, 46C, “The world is affected by a pandemic. We Chowringhee Road, Kolkata- 700 071; decided, till they find a cure, let us show some Telephone- +91 33 2288-1742/43, 40035993. care,” summed up Mr T.S. Walia, President E-mail: info@hraei.co.in Website: www.hraei.co.in Emeritus, HRAEI. 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
HONORARY SECRETARY’S MESSAGE May - June 2020 The hotel sector at large has been the biggest casualty of the COVID-19 shock, with demand at an all-time low across the globe. As the sector continues to build contingency plans to alleviate the fallout of the crisis, hotel operators should also look to extend the hand of solidarity to their owners by providing certain relief measures. For instance, there should be a one-time waiver or reduction in base and incentive fees. The relief should be in the form of a one-time waiver or reduction in base and incentive fees as well as distribution, technology and reimbursable costs, measured by correlating the total impact of the crisis on the hotel to the return of normalcy in operation post-COVID-19. In addition to this, all brand standard provisions that do not have a direct impact on revenues of the hotel and cannot be planned as per the revised CAPEX budget for the current year, should be deferred until such time normalcy in operation returns. While FF&E is an important fund set up by the hotel for periodic replacement and up-gradation, the funds should be released immediately and redeployed either towards initial working capital to resume hotel operations or towards the reduction in debt, as may apply to each situation. ********************** O n a different note, I happened to be part of the launch ceremony of Kolkata City Pathfinder, a useful and handy city guide. An initiative of the Jain Enterprises, this guide printed is glossy art paper has 74 catergories including popular places to eat, dine and stay in the city. Along with the information there are various colourful advertisements of different products and services. To have a glimpse you can log on to www.kolkatacityinfo.com. The hard copy is available at a moderate price of Rs 30 in several outlets. Mr Sudesh Poddar Honorary Secretary, HRAEI MYSTIC EAST | 5
CONTENTS BIG INTERVIEW May - June 2020 12 MR NAVIN In an exclusive interview Mr Suchanti shares his SUCHANTI, success mantra of SINCLAIRS HOTEL building the brand Sinclairs 8 HRAEI FIGHTS THE COVID-19 Association offers isolation rooms to the State Government 28 BIG BLOW The impact of the pandemic on Indian hotel sector is deep, but there's a silver lining in the dark clouds 6 | MYSTIC EAST
May - June 2020 34 MILK SAFETY FSSAI creates a guidance document to identify adulterants in desi milk products 40 PEOPLE, PLANET AND PROFIT Entrepreneurs can emulate a small ecoproperty in southern Thailand 46 GREEN AND ORGANIC The state of Sikkim is a storehouse biodiversity and diverse people MYSTIC EAST | 7
NEWS HRAEI fights the pandemic April The Hotel and Restaurant request all our hotel owners/members HRAEI offers isolation rooms to Association of Eastern India (HRAEI) to come forward in allocating rooms the State Government had an internal meeting after it for the purpose of self-isolation and To help the West Bengal government received requests from the Health self-quarantine for those who want to manage cases of Covid-19 pandemic, Ministry, and decided to extend their stay in hotels to avail facility,” Sudesh several hotels in Kolkata and nearby full support to the state government Poddar, the Honorary Secretary of Rajarhat-New Town areas have forward in this hour of crisis. A list of hotels and HRAEI, said. to offer pay-and use rooms to people availability of rooms has been sent to “Following the request, we decided who have been asked to live in isolation the West Bengal government and a to offer nearly 640 rooms mainly in for 14 days. A total of 640 rooms of 32 request made for imparting medical three and four star hotels. A total of 31 two-star, three-star and four-star hotels training to staff in handling those who hotel owners agreed to provide rooms were offered on pay-and-use basis at want to stay in isolation.“In the wake and soon we will make a list of our a highly subsidised rates and all meals of COVID-19, we had a discussion hotel staff, who will be trained by the such as breakfast, lunch and dinner will with the state tourism and health health officials in handling the guests be provided there. department. We have been asked to who want to avail hotel isolation 8 | MYSTIC EAST
May - June 2020 Sanitisation drive by HRAEI at Lansdowne Market in Kolkata facility,” said Pranav Singh, President, then they will be handled as per Mr Poddar. HRAEI. He said, “The training will be government guidelines,” added Mr given as per WHO norms like how Poddar. May to serve food, which food should be Besides providing comfortable HRAEI holds sanitisation drive in a served, how to sanitise the rooms isolation, HRAEI has also initiated market complex and their personal items, etc. This is a dialogue with the state government Following request from Chief challenging task but we are ready to for assisting them in distributing Minister Mamata Banerjee to adopt take this task because we feel that we dry food items like breads, banana local markets for implementing must stand with the state government and puffed rice to the needy. “We hygienic practices to combat the in this crisis.”“The state health have arranged a delivery van and Covid-19 pandemic, leading business department has promised to provide requested the state government to chambers and industry bodies have us all kind of help. Please convey the allow us to distribute it as we will be started sanitisation drive in over a message that only asymptomic guest needing police permission due to the dozen markets across the Kolkata. will stay in isolation for 14 days. In case lockdown. We will start distributing The Hotel & Restaurant Association someone develops any symptoms, this to all the poor and hungry,” said of Eastern India adopted Lansdowne MYSTIC EAST | 9
NEWS market for sanitization. The HRAEI took over the market in central Kolkata for proper sanitisation awareness campaign to prevent the spread of the novel coronavirus. The HRAEI heads Pranav Singh, the President, Sudesh Poddar, Honourary Secretary, and T.S. Walia, President Emeritus, organised handing over of gloves, masks and sanitisers, liquid handwash, to the shopkeepers and buyers in the market. The market committee and local police station helped in the effort. “The markets have been sanitised and masks and hand sanitisers were distributed to the shopkeepers through the respective market management, “said Mr Singh. The Association installed four small water tanks at entry points of the market. Proper hand-washing arrangements were made for both stall owners and customers. HRAEI representatives urged people to follow proper hygiene protocols to help prevent the spread of the virus in the community. “We also asked people to maintain the social distance measures and prevent gathering and crowding,” said Mr Poddar. In a rush many shop owners and buyers tend to ignore the basic norms. Especially the fish and vegetable markets have the biggest crowds in the peak hours of buying and selling in the morning. HRAEI representatives painted 10 | MYSTIC EAST
May - June 2020 Sanitisation drive by HRAEI at Lansdowne Market in Kolkata circles on the floor and urged people opt for free quarantine at government those who wish to stay at government maintain the mandatory 2- metre facilities. The state government, which quarantine centres for free will be distance from one another. had initially reserved 750-odd hotel transported to the facility by bus. “The world is affected by a pandemic. rooms for quarantine, had asked the “All the rooms are in luxury and We decided, till they find a cure, let us Hotel and Restaurant Association of good hotels. We (HRAEI) have show some care, “ said Mr Walia. Eastern India (HRAEI) to add another negotiated a discounted rate of more 650 rooms to the quarantine inventory than 50% considering the current JUNE to prepare for a large number of pandemic situation. It is a mix of Vande Bharat Mission offers a mix returnees from abroad. business and CSR for hotels. They of business and CSR for hotels “The additional rooms are in luxury are charging much less than usual. After inclusion of Kolkata in the hotels like Taj Bengal, Hyatt Regency, On the other hand, it is getting some Vande Bharat Mission—Central Novotel, Swissôtel, Vedic Village Spa business as well,” said HRAEI secretary Government’s endeavour to bring Resort, The Elgin Fairlawn, Lemon Sudesh Poddar. stranded Indians home amid the Tree Premier, Ibis Kolkata, The Sonnet As more and more flights from the Covid-19 lockdown—more than 2600 Kolkata, and Pipal Tree. We have Middle East, southeast Asia and the rooms in Kolkata hotels were opened negotiated a discounted rate of over UK fly in, more and more people may up for paid quarantine of citizens who 50%,” said HRAEI President Pranav go for paid quarantine. Top executives are arriving from abroad. In the first Singh. “The tariff will include meals. of some of the hotels by the Eastern batch of arrivals on May 17, the hotels Earlier, Lalit Great Eastern, Holiday Inn, Metropolitan Bypass and those closer got 27 bookings Pride Plaza, Westin, Stadel, Vivanta and to NSCB Airport have received queries All those flying into the city are Fairfield by Marriot had agreed to rent from possible customers who are required to get into compulsory rooms for paid quarantine service,” he intending to fly to the city, according to institution quarantine for 14 days; added. T S Walia, President Emeritus of HRAEI. home quarantine is not an option. Those opting for hotel quarantine However, there haven’t been many The returnees can either pay and get could hire app cab services at the confirmed bookings, managers of the quarantined at earmarked hotels or airport to travel to the hotel while hotels said. MYSTIC EAST | 11
BIG INTERVIEW: NAVIN SUCHANTI, SINCLAIRS HOTELS I ATTEND EVERY SINGLE HAPPY TO B REVIEW BY OUR GUESTS AND TAKE QUICK REMEDIAL OF FIVE PRO EASTER ACTION IF THEY FIND SOMETHING AMISS M R NAVIN SUCHANTI, CEO and Managing Director, Sinclairs Hotels Limited has nearly five decades of diverse experience spanning advertising, public relations, hospitality, administration, finance and taxation. He has held various important positions as committee member of several industry bodies which include Assocham, the Bengal Chamber of Commerce and Industry and HRAEI. He was also a member of Tourism Advisory Council of Government of West Bengal. Sinclairs Hotels Limited owns and operates hotels and resorts at seven places. Gangtok will be soon added to the chain. Also there is a plan to build a 114-key property in New Town, Kolkata. He spoke to Mystic East in an exclusive interview. Q: How did you get into the hospitality business? We already owned a very successful advertising and PR agency with countrywide presence, Pressman Advertising. Pressman had built MR NAVIN SUCHANTI strong brand equity and its forte was – CEO and MD, Sinclairs Hotels Limited high quality service and customer- 12 | MYSTIC EAST
May - June 2020 BE OWNERS TODAY MANY HOTEL OPERTIES IN COMPANIES HAVE FALLEN IN A DEBT TRAP; NEW RN INDIA ENTREPRENEURS MUST LEARN FROM THEIR MISTAKES centric approach. them profitable. Resort hotels at about where you want a new property The opportunity to acquire a hotel Burdwan, Dooars and Kalimpong are to be located. Connectivity, that is, company came our way some time greenfield projects and they all are ease of getting into the destination by in the late 1980s. Both my brother destinations of delight for domestic guests is one important consideration. Dr Niren Suchanti and I thought that and foreign guests. We are primarily in leisure section of this was a good fit with our existing Today I am happy to state that the tourism. Our aim is to choose a place business by way of sustained high company has no debts and each of the with natural bounties so that our quality service and focus on customer seven units are profitable. visitors can unwind the stress they go delight. In March 1990, we acquired Every time we build a resort through in everyday life and return Sinclairs with two hotels at Siliguri and property, we pay a lot of attention refreshed and rejuvenated. Darjeeling. to make it blend seamlessly with When we built the Burdwan the surrounding environment. The property, our consideration was that Q: How many hotels do you own way we go about planting trees and between Howrah and Asansol, you at this point and how many do you designing flower beds as part of our don’t have a good hotel. Burdwan manage (but not owned by you). green initiative come in for much also lacked in high quality banqueting Since acquiring Sinclairs, the number appreciation of our guests. facilities till we arrived. of hotels that we own has grown Come April this year, we will into seven. These are at Burdwan, commission a 60-room boutique Q: What is the USP of a Sinclairs Darjeeling, Dooars, Kalimpong, Ooty, hotel property – Sinclairs Gangtok. hotel? Port Blair and Siliguri. Gangtok will The eighth property in our chain is a To me it’s of paramount importance soon be added to our chain. leased property, as you may be aware that any guest staying in a Sinclairs Darjeeling, Siliguri, Ooty and that under Article 371F of the Indian property must return with memories Port Blair were acquired as sick Constitution, non-Sikkimese cannot to cherish and share with others. The properties making losses and there buy properties in Sikkim. management challenge then is to were default in payment of bank build a culture among the staff to offer and institutional loans. We invested Q: How do you identify a location a kind of service to guests from the in refurbishment of these properties of a hotel? point of arrival to departure that will and introduced new management Quite a few factors will be in play delight her or him. and operational systems to make when it comes to taking a decision You will have an idea of how good is MYSTIC EAST | 13
BIG INTERVIEW: NAVIN SUCHANTI, SINCLAIRS HOTELS Kanchenjungha Room at Sinclairs Darjeeling the service by doing a periodic review We are quite happy to be owners way of realising tourism potential of guest feedback at every property. I of five of the seven properties in of north-east is connectivity issue personally see what guests have to say this part of the country. And soon and infrastructure that needs about their stay experience. This gives we shall be commissioning the development. On more than once me an insight into guest likes and Gangtok hotel and that will complete occasion, Prime Minister Mr Narendra dislikes. In fact, every single review the circuit. Whatever may be the Modi has spoken about the need to is attended to by me. The important misgivings about the region in some promote tourism in that part of the thing here is to take quick remedial quarters, we have done well here country. action if guests find something amiss. and our experience with the local What gives me much satisfaction governments, district and other Q: What is the status of your is all the seven Sinclairs resorts officials has been excellent. We find upcoming hotel in New Town and hotels enjoy high ranking by the government in the state and local Kolkata? Tell us something about TripAdvisor, the bellwether of tourism authorities responsive to our needs. this new property. industry. While properties at Burdwan Being born in Kolkata and having We have the land in a strategic and Dooars have got top ranking, the lived here, I know the region and its location. The plan was to build an one at Port Blair and Kalimpong is potential pretty well. upmarket 114 room business hotel placed second and Darjeeling third. for which we already have a sanction. Siliguri is ranked seventh while Ooty is Q: Do you think that north-eastern The hotel is designed by a leading ninth ranked. part of India has a huge untapped Architect firm from USA. But because potential in the hospitality sector? of the large inventory of rooms built Q: Most of your hotels are I can’t agree more. Riches of nature up in the last few years, we have put in eastern India. What are the in north-east and distinctive cultures our New Town project on hold. We are advantages or disadvantages of and many unique local crafts in the waiting for the right opportunity to running a hotel in these parts of the region will always be a big pull for give shape to the project. country? tourists. What, however, stands in the Q: Do you prefer to set up 14 | MYSTIC EAST
May - June 2020 Burra Sahib Kothi at Sinclairs Retreat, Dooars greenfield projects? Is this the right optimal. Anytime is good time to do a level at Sinclairs, 40 per cent of the time to invest in such projects in new hotel project. total staff members have clocked in India? ten to 20 years with us. The country has so much tourism Q: How do you handle labour potential unexplored that it offers problems or attrition in your Q: What is your advice to a budding immense scope for hospitality business? entrepreneur in hospitality? groups to build greenfield properties To me labour problem is a This is a growing industry as also go for acquisitions. Both offer misnomer. At Sinclairs, everyone which offers opportunities to new good scope. The centre and the is treated as a member of a big entrepreneurs. But they have to be states are keen to promote tourism family and she or he is given very careful in reviewing any projects for revenue generation and creation respect. When an individual has that they may take up, especially of jobs requiring a variety of skills. the sense of belonging, they will location and cost. These should be India offers a diverse portfolio of put the best foot forward. I have thoroughly analysed and then only the niche tourism products from leisure always believed that more than project should be implemented. The to business to adventure to medical money people want respect and financial mix to invest in the project is tourism. As domestic and foreign recognition for good work. They also important and leveraging should traffic for each niche segment will also want their career to progress be very conservative. Today many grow, the hotel industry will have in an ideal work environment, hotel companies have fallen in a debt to be ready with sufficient numbers which Sinclairs offers. trap and it is therefore necessary for of rooms as also all supportive Attrition is a challenge. In our case, the new entrepreneurs to learn from infrastructure. however, the attrition rate is lower their mistakes. Having said that I must We are in the process of identifying than the industry average. What say that Indian hotel companies have locations for a couple of greenfield has worked to our advantage is the a great future as there is still a huge projects. We take up a project when presence of a unique family culture. To untapped potential in the tourism we find the location ideal and cost give you an idea of the high retention sector. MYSTIC EAST | 15
BIG INTERVIEW: NAVIN SUCHANTI, SINCLAIRS HOTELS SINCLAIRS RETREAT DOOARS Located at Chalsa Hilltop is spread over 20 acres of verdant green. Built in com- plete harmony with nature, the resort is ideal for those seeking rest, rejuvenation and adventure. SINCLAIRS BAYVIEW Located right on the waterfront, this is Port Blair's only hotel to of- fer spectacular views of The Bay of Bengal from almost all its rooms SINCLAIRS SILIGURI Situated in Pradhan Nagar, at the heart of the city, this is a luxury hotel equipped with modern amenities 16 | MYSTIC EAST
May - June 2020 SINCLAIRS RETREAT OOTY Enveloped by the clouds at 8,000 feet and situated exactly where the "Queen of Nilgiris" was discovered, it is the highest located resort in South India SINCLAIRS BURDWAN Situated at High Street 1 in Renaissance Township, this is an upscale tourist resort offering finest accom- modation, club and banquet facilities SINCLAIRS RETREAT KALIMPONG Nestled in the virgin green surroundings, the retreat prominently stands out over five acres of aesthetically landscaped green. MYSTIC EAST | 17
GM INTERVIEW: SUBHASH SINHA, WESTIN CALCUTTA HIGHEST R GROWTH L SUBHASH SINHA – General Manager, The Westin Kolkata, Rajarhat S UBHASH SINHA has been challenging markets vis-à-vis the leader is involved in formulating, appointed as the General finance department. administering, coordinating and Manager of The Westin Kolkata At The Westin Kolkata Rajarhat, the directing activities of all departments Rajarhat. A veteran in the business of astute and perceptive Subhash brings to develop result-oriented goals for hospitality, he has enjoyed exponential to the table a dynamic energy in all growth and profitability. Motivating, success in all the top-notch properties the areas of operational activities in team building and supervision are he has served in an illustrious career accordance to his pivotal designation. also some other key responsibility spanning more than two decades His dynamism, passion for the industry areas associated with his work. now. He is reputed for his appetite and leadership qualities are driving Prior to joining The Westin Kolkata for the culinary arts which he has the hotel to greater achievements. Rajarhat, Subhash has achieved married with his nifty managerial He is focused on generating outstanding results in his role as General skills to successfully lead and inspire impeccable personalization and guest Manager of Marriott Suites Pune. He led highly performing teams. An authority recognition, besides maintaining this property boasting of 199 suites in the fields of operations, sales and the competitive edge and re- since it was launched in May 2016. marketing, he has also gained the strengthening the brand presence. Before this, he was associated with the reputation of successfully handling Additionally, this inspirational Oakwood Group of Hotels as the General 18 | MYSTIC EAST
May - June 2020 WITNESSED ROOM REVENUE LAST YEAR Manager for two properties in Pune, Armed with a Diploma in Hotel Mystic East in an exclusive interview: namely Oakwood Premier & Oakwood Management from IHM, Kolkata Residence Naylor Road, successfully with a specialization in Catering Q: What are the typical challenges managing a total of 287 keys. Technology, his honesty and sincerity you generally face while operating He has also worked as the Director have been the stepping stones for in your market? of Operations at JW Marriott Pune, the northward ascent in his career. In Kolkata as a city is emerging as in charge of all rooms and food & fact, his keenness for the industry was a destination of large events and beverage operations. He has been recognized early in his career when conferences. However, there is a a part of two pre-opening teams of he was awarded with Marriott Global disconnect in supply and demand. Marriott in Pune, The Marriott Hotel Chef of The Year Award 2012 and Approximately 60 per cent supply and Convention Center and the Award for Culinary Excellence 2011. has increased over the last couple of Courtyard by Marriott, as an Executive Outside the workspace, Subhash years attracting bigger players in the Chef, where he has instrumental is social and fun-loving. A fitness market. The flight connectivity is a in setting up the critical Food and aficionado, he enjoys cycling and also matter of concern as well. International Beverage arm across both the passionate about travelling the world connectivity plays a major role in the properties. and loves reading books. He spoke to IT and ITES segment which is lacking MYSTIC EAST | 19
GM INTERVIEW SUBHASH SINHA at the moment. Rates are another major factor and with the mid-scale and budget brands entering the city, the ADRs needs to be watched going forward. Q: How do you face such challenges to stay ahead in the race? We are abreast with the events happening in the city and ensure ourselves ahead of the competition. As a company, we have set tools and mechanisms which help us to track competition and maximize on events and days when required. With the help of Marriott Intl, we do get connected on a larger platform nationally and internationally which assists us being one step ahead of the competition The Westin, Kolkata always. Q: Considering the peculiarities of the market what kind of innovation in the vicinity. Our expert panel in we learn something new every you brought into your products, banqueting also helps us to target day. Keeping a close eye on the especially F&B, and services big outdoor catering events and competition and the emerging trends including banquets? delivering the best Westin experience. is crucial. We are the only Westin in the East Q: What is your future plan to which resembles the wellness brand. generate more revenue/profit? Q: How is the hospitality sector We as a Hotel have unique and state of Westin as a brand promotes wellness doing in the current economic the art offerings. We have the highest and we keep ourselves ahead in the scenario? What is the status of the club in the East (31 32) which is located game. Exploring new tertiary markets sector in Eastern India? at a height of 152 meters serving like Bhubaneswar, Guwahati, Siliguri, Kolkata as a city is experiencing growth the best of drinks and cuisine. We Jamshedpur, Bokaro and Ranchi is in the hospitality sector with an influx of also have one of the finest Pan Asian on our agenda already while we hold new additional inventories to support restaurants in the city called Nori with expertise in delivering the best service large conferences and events. As a city, breathtaking views of the Eco Park. and experience to our guests. We also it has noted a tremendous growth of Vedic, our recent addition traces us promote ourself as a culinary destination 10.3% in rooms sold and 12.1% in Room back to our culinary heritage which of Kolkata bringing in the best flavours Revenue growth over last year which is is one of the most unique concepts in to the city. With the help of Marriott Intl, the highest in the country. the city. With a magnificent pool and we are in the process of forming tie-ups 30,000 sq. feet of banqueting space with bigger players to facilitate large Q: Would you like to comment on including lawns, The Westin Kolkata events and outdoor caterings. your expectations and reaction on becomes a destination in itself to Union Budget 2020? host big events and hold activities for Q: What is your advice to budding The tax bracket plays a major role different periods of the year. We do managers in your market? in deciding rates in both rooms and take advantage of the connectivity we Smart work clubbed with learning banqueting services. A flat tax bracket have with Biswa Bangla Convention is the key to success. We need to keep on hotel services would help the sector Center and the Eco-park to host ourselves updated every moment to grow more in terms of revenue activities and cater to large events in this ever-changing world whilst thereby adding to the GDP of the state. 20 | MYSTIC EAST
May - June 2020 MYSTIC EAST | 21
GM INTERVIEW: JAMESON SOLOMON, SWISSOTEL, KOLKATA EASTERN REGION IS A FAST DEVELOPING DOMAIN WE EXPECT A HUGE BOOM IN THE HOSPITALITY SECTOR IN THE REGION S WISSÔTEL KOLKATA, part luxury residential development in in your market? of Accor group, announced the heart of South Mumbai. He had There is an influx of inventory, the appointment of Jameson been associated with the Sheraton from 5-star hotels and independent Solomon as the new General Manager Grand Bangalore at Brigade Gateway, properties, who work with in December 2019. A seasoned Bengaluru, Grand Hyatt Mumbai, Park aggregators and OTAs. In this scenario, professional, Solomon has more than Hyatt Dubai and Hyatt Regency Dubai. it is competitive and occasionally two decades of experience in Hotel Jameson believes it’s challenging quality loses out to lower pricing as is Management, Pre-opening, Strategic and lonely at the top. Ffocus on work- evident from ADR trend. Planning, Client Relationship, Training life balance and staying connected & Development. with industry peers is the key to Q: How do you face such challenges Prior to joining Swissôtel Kolkata, success. He spoke to Mystic East in an to stay ahead in the race? Jameson Solomon worked with Leela exclusive interview: Social Media is playing a major Palaces, Hotels and Resorts as Head role in revenue generation and this of Operations, where he headed the Q: What are the typical challenges is purely by creating awareness of project of pre-opening an exclusive you generally face while operating the brand and also engaging the 22 | MYSTIC EAST
May - June 2020 customer to create brand loyalty. OTAs will continue to be a major contributor and in a market where everyone is trying to increase their share, it is extremely important to keep a check on rate parity. Q: Considering the peculiarities of the market what kind of innovation you brought into your products, especially F&B, and services including banquets? It is most important to understand the preference of guests and engage in terms of F&B offerings and services. It is important to showcase ourselves displaying modern trends in terms of innovative set ups and thematic food and beverage presentation. Q: What is your future plan to generate more revenue/profit? To leverage the vast possibilities of Digital Marketing and Accor’s ALL Loyalty programme which is based on augmented hospitality concept and provides multiple experiences not just restricted to stay. We would focus on targeting the premium business travellers. As per current market studies on Kolkata about 75 per cent of room demand for premium segment comes from business travelers. Our aim would to be the preferred Premium Swissotel, Kolkata hotel in our operating market by providing multiple experiences and services as per individual need with scenario? What is the status of the are getting organized in eastern the support of our very talented sector in Eastern India? region these days. Operations team. Eastern region is a developing domain and has lot of focus Q. Would you like to comment on Q: What is your advice to budding from Central Government. The your expectations and reaction on managers in your market? infrastructure (new hotels coming Union Budget 2020? It’s a challenging and lonely at the at rapid speed about 1700 plus It’s a balanced budget, where top, focus on work- life balance and rooms added per year since 2018), government has allotted INR 2,500 be connected with industry peers. connectivity (ongoing contraction crore for tourism promotion. 100 of Indo – Bangladesh and Thai Road) more airports to be opened which will Q. How is the hospitality sector and tourism remain at the centre of it. enable seamless travel between tier doing in the current economic More and sports and cultural events 2/3 cities and urban cities. MYSTIC EAST | 23
INTERVIEW: SABRINA DEY THE EAST SEEMS POISED FOR A NEW AGE OF SABRINA DEY – Director of Operation, JW Marriott Hotel, Kolkata GROWTH R ECENTLY JW Marriott Hotel, her commitment to guest relations Q. What are the typical challenges Kolkata, announced the during the 26/11 terror attack at the you generally face while operating appointment of Sabrina Dey as hotel. in your market? Director of Operation. In her current After a one year stint, she joined Kolkata is a very discerning market, role, Sabrina will be seen effectuating The Oberoi Grand Kolkata with the where clients come in with extremely strategies to support business growth, same position. Her core leadership high expectations, especially in the revenue generation through up- role included revitalising internal luxury hotel space. Our guests are selling of products and services and groups, building and managing guest well travelled and are familiar with creation of value through designing relationships, training and mentoring the most recent trends in hospitality, new products. teams to outperform themselves including food and beverage, In a career spanning over 12 years, and competition Following her internationally. They often want to Dey has perfected her art, while tenure in Kolkata, Dey moved to experience the same things back enhancing customer satisfaction Agra at The Oberoi Amarvilas as Food home, particularly during special and maintaining the standards of and Beverage Service Manager, in occasions. For hotels to recreate these the establishments she has been 2012, where she was managing the is sometimes a challenge, especially associated with. Having graduated restaurant, bar, in room dining and if the ingredients or technology are from St. Xaviers College, Kolkata in special dining experiences at the not presently available in the city. It 2005, she went on to complete her resort. is however a pleasure to work with Diploma in Hotel Management from In 2014 she joined The Oberoi such challenges, as it only helps us get The Oberoi Centre for Learning and Grand Kolkata where svhe managed better at what we do. Development in 2008. Dey initially restaurant, bar, in room dining and started her training at The Oberoi banqueting operation for the 209 Q: How do you face such challenges Centre for Learning and Development room property. She also spearheaded to stay ahead in the race? and officially kick started her career the task force in opening the all- The only way to face any challenge with The Oberoi Mumbai as Assistant day dining restaurant and Bar is head on. We try to constantly Manager, Food and Beverage, where Threesixtythree° at The Oberoi Grand innovate and develop new concepts she was also a recipient of the FLO Kolkata. She spoke to Mystic East in an to stay ahead of the curve. Sometimes GR8 Award for Bravery 2009 for exclusive interview: that can mean working with suppliers 24 | MYSTIC EAST
May - June 2020 to develop products which give a local edge to an international concept. At other times, we use new technology to change the game. While the possibilities are endless, there is only one constant that helps keep us relevant – great service and the ability to deliver exceptional value to our patrons. Q: Considering the peculiarities of the market what kind of innovation you brought into your products, especially F&B, and services including banquets? We keep experimenting with new ideas in the food and beverage space. From Chef’s tables inside the kitchen, to avant garde presentations of food during sit down dinners, to recreating local market places and Kolkata heritage spots inside the banquet venues. The idea is to give visitors, or even locals a slice of nostalgia, along with their meals, as we transform the surroundings into areas one would frequent to experience the best of street food during their college days. Q: What is your future plan to generate more revenue/profit? The plan is to keep challenging ourselves, pre-empting what guests JW Marriott, Kolkata want and deliver that proactively, coupled with great service. We feel that quality will speak for itself and will ‘sharpening the saw’! operations in the East due to the organically lead to greater revenue Q. How is the hospitality sector relatively fewer hotels in the luxury and profits. doing in the current economic and premium space. We therefore scenario? What is the status of the had to ship them from a Delhi or Q: What is your advice to budding sector in Eastern India? a Mumbai. I see these challenges managers in your market? The hospitality industry in the reducing in the future as the number Focus on the basics and invest East seems poised for a new age of of hotels grow. in your core competency. There is growth. With more and more brands actually no substitute to working and and different products coming into Q: Would you like to comment on learning as much as you can, while the region, we can look forward to your expectations and reaction on still finding time for your passions. It resources, which were earlier scarce, Union Budget 2020? is so important to remember to keep becoming more available. There Not in particular. We are optimistic investing in yourself, whether through are several suppliers with high end for a great year for the industry as a knowledge or self care. In short, keep products, who were reluctant to build whole. MYSTIC EAST | 25
INTERVIEW: BINAY THAKUR, AVP, PRIDE HOTEL, KOLKATA TRULY INDIAN, TRADITIONALLY LUXURIOUS, PURELY PRIDE BINAY THAKUR – AVP, Pride Hotel, Kolkata B INAY THAKUR is an heritage sites and museums have also industry, while room night demand experienced Associate Vice got focus. These are really appreciable had not witnessed noteworthy change, President at Pride Hotels in steps. Rs 2500 crore budget allocation demand from the commercial and Calcutta with a demonstrated history for development of tourism and extended-stay segments witnessed of working in the hospitality industry. hospitality industry will seem to be organic growth, proportionate to Skilled in Hospitality Industry, yield fruitful in long run, no immediate that of commercial/industrial activity management, pre-opening, food & effect we can expect. in Kolkata. Leisure demand has beverage and hotel management, witnessed marginal improvement in Thakur is a strong professional with Q. What is your advice to the this market, because of initiatives such a DHMCAN focused in Hospitality budding managers in your market? as the recent introduction of river Administration and Management Managers should be more proactive cruises which attract foreign tourists from Patna. He spoke to Mystic East. towards the team as they are towards to the city. The only segment to exhibit their guest. If the team is happy surely healthy growth is the meeting and Q. Would you like to comment on they will keep the guests also happy. group segment primarily due to social your expectations and reaction on The basic motto should be together events, weddings and a few city-wide Union Budget 2020? we achieve the best among the rest. conferences. Currently India is in 34th position Q. Where does Kolkata figure in the on tourism raking formerly was on hospitality map of India? Q. What are your views on 65th. Government initiative will About 75 per cent of room competition? surely help to improve the rank in demand for premium segment comes We always believe in healthy coming years. Rs 9000 crore has been from business travellers. Kolkata competition, even though a lot of allocated to roads to key heritage is driven primarily by commercial international brands are coming up site, 100 more new airports are to be activity emanating from PSUs, PSBs, in Kolkata but we still believe that if activated. Private train program are to manufacturing, IT/ITeS, engineering, we are providing the best services to be accelerated and development of medical activity and the telecom our guests and keep them happy they 26 | MYSTIC EAST
May - June 2020 Pride Hotel, Kolkata will always come back to us. Pride Q. What according to you the role of challenges in hospitality industry Plaza Kolkata believes in Truly Indian F&B in getting business for a hotel? these days? Traditionally Luxurious Purely Pride! F&B plays a crucial role in brand Attrition is a major challenge as promotion in that particular region. millennial are always in move they Q. What are your plans for expansion Guests sometimes connect to the hardly spend one year in a company. in the eastern region of India? hotel through this only. Innovative To maintain the balance between the Recently we have added a new food festivals and food promotions service deliveries according to brand property in our inventory based out are good ways to reach to guests. As promise is sometimes challenging. of Gangtok and also looking out for a whole we can say visibility of the Industry is recently facing steer potential market in eastern zone for brand gets prominent through F&B. competition from online booking Brand Expansion such as Guwahati, agencies in terms of booking & Darjeeling, Sikkim etc. Q. What are the important revenue management. MYSTIC EAST | 27
GM INTERVIEW: BILASH DAS, GM, FERN RESIDENCY THE AVERAGE ROOM TARIFF ROSE SIGNIFICANTLY IN THE CITY CHANGE IN GUEST EXPECTATIONS IS PERHAPS THE BIGGEST CHALLENGE BILASH DAS – General Manager, Fern Residency, Kolkata B ILASH DAS, General Manager in your market? system, unique stay experience and of The Fern Residency, Kolkata, First challenge is in hiring and swift check-in check-out services are is a hospitality professional retaining the staff. Lack of skill in fresh the top demands. One of the major with over 19 years of experience in graduates is a teething problem. challenges in our hotel industry is operating and managing hotels and Secondly, price inflation of daily use that many hotels are facing the credit restaurants. He spoke to Mystic East in products, eatables and other amenities menace. Dealing with parties who pay an exclusive interview: have risen steeply in the last few after a period of 30, 60 and 90 days or years. Change in guest expectations even later is a big hassle. Furthermore, Q: What are the typical challenges is perhaps the biggest challenges in many payments are extremely delayed you generally face while operating hotel industry. Free WiFi, entertainment or go in bad debts. 28 | MYSTIC EAST
May - June 2020 Q: How do you face such challenges to stay ahead in the race? One needs to train the new workforce properly. Retaining a qualified staff requires us to employ a few tactics. A feeling of belongingness needs to be created among the staff that allows all the members to stay emotionally attached with the hotel and provide them perks and higher responsibilities. Keeping control on stock, strategic purchase and reducing the wastage is the primary agenda for saving on the cost incurred on a daily basis. To meet the guest expectations we can provide a self-service guest portal which will facilitate quick check-in check-out services, map location guide to our hotel, request for pick-up and drop- game, keeping up with these trends Q: What is your advice to budding off services. And the most important is important to F&B directors and the managers in your market? is our guest remains updated with hotel GMs. Be an innovator. It is not necessary the expenses incurred on a daily When we suggest self-service in the to be a radical innovator. Being an basis. So, we just need to approve the same sentence as in-room food and incremental innovator is more useful valid request of our guest and be rest beverage, it’s easy to revert back to as a manager. Little innovation in assured of the best hotel experience. the traditional model the hotel mini- processes and dealing with the team Online marketing campaign bar. However, the self-service model and clients can make a big difference attracting direct bookings and that we anticipate to take over the in success and career trajectory. bookings from other online channels F&B segment in the coming years, is majorly with advance payment that a far cry from the overpriced, under- How is the hospitality sector doing provide a quick return of investment. performing mini-bar. While they do tap in the current economic scenario? This way, we can save on hiring extra into the basic principle of self-service, What is the status of the sector in personnel for payment collection. but modern guests crave enhanced Eastern India? Thus we get to pay grocery, electricity autonomy over their experience, and maintenance bills on time. In mini-bars simply aren’t equipped to There is unquestionably a surge short, we can have an ample cash succeed, that is, at a reasonable cost in business in the hospitality sector. reserve as working capital. to the guest, or a reasonable profit for The city witnessed the substantial the hotel. figures in room occupancy in star Q: Considering the peculiarities of A popular movement relating category hotels over a period of the market what kind of innovation to in-room, self-service is being few months despite of economic you brought into your products, implemented as high-end, self-service slowdown. Thanks MICE, especially especially F&B, and services amenities. Specially the inclusion of the Biswabangla convention centre, including banquets? Netflix, Smart TV, and voice-activated the average room tariff also escalated Food and beverage is not a science, technology are becoming popular up significantly. The average daily rent and just like in any art form, trends in add-ons. room in Kolkata went up from 5.1k to the food service world are constantly With ‘Grab & Go’ style service within 5.2k in 2019 in comparison to the year shifting to reflect the changing hotel, guests can grab a small, pre- before, even after addition of almost interests and needs of our guests packaged or easy to prepare meals on over 1000 rooms across all segments and consumers. Besides, being a fun their own schedule and terms. of star rated hotels. MYSTIC EAST | 29
COVID BIG BLOW and Tourism Council, the COVID-19 pandemic could slash 50 million jobs worldwide in the travel and tourism industry, reflecting a 12-14% reduction in jobs lInternational travel could be The impact of the pandemic on Indian hotel adversely impacted by up to 25% sector is deep, but there's a silver lining in the this year, equivalent to a loss of three months of travel dark clouds lThe industry could take up to 10 months to recover after the outbreak is over. COVID-19 & IMPACT ON THE INDIAN HOTELS SECTOR The Indian hospitality industry is undoubtedly one of the biggest casualties of the COVID-19 outbreak as demand has declined to an all-time low. Global travel advisories, suspension of Visas, the imposition of Section-144 (prohibition against mass gatherings), India like most other countries is on lockdown, the ramifications of which are unprecedented. lForeign Tourist Arrivals (FTAs) into India (particularly leisure travellers) T started softening in February, as O analyze the impact of to India. With the number of cases the spread continued its unabated COVID-19 on the hospitality rising sharply on a daily basis, even movement to other countries. industry, HVS published a if the pandemic is contained soon, lFollowing suit, the Indian detailed report on how to tackle the the ripple-effects will be felt across Government suspended travel visas situation and be on the safe side after the world well into the year, pushing (with a few exceptions) till 15th April the virus is contained. all major economies into a possible 2020, which in all likelihood will be THE WORLD is still coming to terms recession. extended. Even if it is not, the paranoia with the COVID-19 outbreak and The Travel & Tourism Sector across surrounding the events will continue there is no doubt that the pandemic the globe is undoubtedly the biggest to have a major impact on travel. will change the world as we know casualty of the COVID-19 pandemic. lDemand from FTAs is not expected it. Closer at home, the Indian hotels' Several countries have issued travel to pick up any time soon. In our sector has been hit hard, grappling advisories and are in lockdown opinion, travel bans across the globe with significantly low demand, with mode, with all major global business, will fully roll down only by the end of very few future bookings. Essentially, social and sporting events getting the year, even though such a process all transient demand has completely cancelled since February. will commence much sooner. vanished – the remaining is largely lFurthermore, the majority of the on account of either a few long l IATA estimates that global airlines future travel bookings for winter i.e. stay guests or hotels having been need an emergency fund of up to US$ October-March – the strong season for prescribed by the Government for 200 billion as they fight for survival our industry - are done in the summer the international travellers returning lAccording to the World Travel months, have largely evaporated. 30 | MYSTIC EAST
May - June 2020 DOMESTIC TRAVEL WILL BE KEY TO THE IMPACT ON THE INDIAN HOTEL decline by 16.7 – 20.5 percentage points THE REVIVAL SECTOR WILL BE SIGNIFICANT over 2019, while ADRs are estimated to With new confirmed cases being The Indian hotels' sector sailed decline by 7% to 8% for the year. As a reported daily, the penetration of the smoothly into January 2020, after a result, RevPAR will witness a significant COVID-19 virus in India has caused record year in 2019, with 2020 set to be decline of 31% to 36.2%. mass hysteria, the reverberations “even bigger”. The country first started Therefore, the overall revenue of of which are expected to continue feeling the ripple effects of the global the Indian hotel sector is set to decline well into the second quarter of COVID-19 turmoil towards the end of by anywhere between US$ 8.85 billion the calendar year 2020. Demand February 2020, which worsened at the to US$ 10 billion, reflecting an erosion segments such as MICE, business, beginning of March. Occupancy across of 39% to 45% compared over last social and sporting events have been hotels in key cities declined rapidly year. Besides the actual business loss, cancelled or deferred indefinitely for and as per our estimates has declined the hotel owners will also incur losses the foreseeable future. by a staggering 45 percentage points due to fixed operating expenses, debt The silver lining to such devastation compared to the previous year. Such a repayments, interest payments and is that it has brought multiple steepদ decline in such a short period of several other compliances required to representative bodies from Travel, time has never been witnessed by the be undertaken as part of the sector. Tourism and Hotels to collectively make sector. representations to the Government and The report predicts the second THE WAY FORWARD the Prime Minister’s Office. As we go to quarter of the year to be the worst hit. RECOMMENDATIONS FOR THE print, in all likelihood the Government Hotels will be unable to drive rates GOVERNMENT OF INDIA should announce measures to revive and may even seek to attract business Monetary Support: and support the distressed sectors, at deep discounts. lStimulus package to stabilize and with specific focus to the hospitality The overall occupancy in the branded support the sector in the near term, sector, among others. hotels segment in 2020 is estimated to including a workforce support fund to MYSTIC EAST | 31
COVID HOW TO FIGHT BACK S t a n d a r d Operative Procedure on preventive measures in Hospitality Units to contain spread of COVID-19, by Government of India, Ministry of Health and Family Welfare Background: All hotels and other hospitality units must take suitable measures to restrict any further transmission of COVID-19 while providing accommodation and other tourist services. The SOP aims to minimize all possible physical contacts between Staff and Guests and maintain social distancing and other preventive and safety measures against COVID-19. Scope: This document outlines various generic precautionary measures to be adopted in addition to specific measures to be ensured in hotels and other hospitality units(henceforth, ‘hotels’) to prevent spread of COVID-19. Hotels in containment zones shall remain closed. Only those outside containment zones will be allowed to open up. GENERIC PREVENTIVE MEASURES: (A) Persons above 65 years of age, persons with comorbidities, pregnant women and children below the age of 10 years are advised to stay at home, except for essential and health purposes. Hotel management must advise accordingly. (B) The generic measures include simple public health measures that are to be followed to reduce the risk of COVID-19. These measures need to be observed by all (staff and guests) in these places at all times. THESE INCLUDE: i. Physical distancing of at least 6 feet to be followed as far as feasible. dispenser) and thermal screening provisions. ii. Use of face covers/masks to be made mandatory. ii. Only asymptomatic staff and guests shall be allowed. iii. Practice frequent hand washing with soap (for at least 40-60 iii. All staff and guests to be allowed entry only if using face cover/ seconds) even when hands are not visibly dirty. Use of alcohol- masks. The face cover/masks has to be worn at all times inside the based hand sanitizers (for at least 20 seconds) can be made hotel. wherever feasible. iv. Adequate manpower shall be deployed by hotel iv. Respiratory etiquettes to be strictly followed. This involves management for ensuring social distancing norms. strict practice of covering one’s mouth and nose while coughing/ v. Staff should additionally wear gloves and take other required sneezing with a tissue/handkerchief/flexed elbow and disposing precautionary measures. off used tissues properly. vi. All employees who are at higher risk i.e. older employees, v. Self-monitoring of health by all and reporting any illness at pregnant employees and employees who have underlying the earliest to state and district helpline. medical conditions, to take extra precautions. They should vi. Spitting shall be strictly prohibited. preferably not be exposed to any front-line work requiring direct vii. Installation and use of Aarogya Setuapp shall be advised contact with the public. Hotel management must facilitate work to all. from home wherever feasible. vii. Proper crowd management in the hotel as well as in outside ALL HOTELS SHALL ENSURE THE FOLLOWING ARRANGEMENTS: premises like parking lots–duly following social distancing norms i. Entrance to have mandatory hand hygiene (sanitizer shall be ensured. Large gatherings/congregations continue to 32 | MYSTIC EAST
You can also read