What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India

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What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
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regrets that he cannot accept liability for error and omissions contained in this publication that might have crept in inadvertently. Similarly, opinions/views
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lost or damaged.

4 | MYSTIC EAST
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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
What will it take for a revival of the hospitality industry after Covid-19 - Hotel & Restaurant Association of Eastern India
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

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