MYSTIC EAST ...an unexplored horizon A bi-monthly magazine by HRAEI | Vol 2 | Issue 6 | November - December 2016

COVER STORY BYE BYE CASH TRANSACTIONS DEMONETISATION HAS HIT THE HOSPITALITY INDUSTRY FOR THE TIME BEING BUT IT WILL BOUNCE BACK SOON

DIRECTOR'S NOTE November - December 2016

Dear Fellow Members, Until last November, the hospitality industry MYSTIC EAST had been doing brisque business in these parts A BI-MONTHLY MAGAZINE BY HRAEI of the country. However, the gains got somewhat Vol 2 | Issue 6 | November - December 2016 reversed after the demonetisation drive. Over the short and medium terms, this will have varied effects on sections of the hospitality industry in EDITORIAL BOARD the country, but in the long-term, it will positively SUDESH PODDAR impact the growth of the hospitality sector. PRESIDENT, HRAEI Often, the strong season for the hospitality sector MR. RAJIV S. KOTHARI in the country extends from October to March, MANAGING COMMITTEE MEMBER, HRAEI which to a large extent, defines the success for the MR. S. H. RAHMAN industry in any given year. The lack of available MANAGING COMMITTEE MEMBER, HRAEI currency forced some hospitality customers to MS. RANJU ALEX either postpone or cancel their travel and accom- GENERAL MANAGER, JW MARRIOTT KOLKATA modation or to use hospitality products that easily There is a silver allow the use of the other modes of payments. EDITORIAL CONSULTANT SUSMIT BARMAN lining across Smaller businesses, F&B, QSRs and home deliv- eries bore the brunt, as there has been a tremen- CHIEF DESIGNER the dark clouds. dous loss of opportunity. SOMU DUTTA The vibrant and Despite the early setback, there is a silver lining innovative hospitality across the dark clouds. The vibrant and innovative ‘Mystic East’ magazine is printed hospitality industry is expected to bounce back and published by Atikram Gupta on behalf of Hotel sector is expected with creative ways to deal with the impact, from and Restaurant Association of Eastern India. electronic payment modes to value additions, to Printed at CDC Printers Private Limited, No.45, to bounce back special offers and shifts in spending patterns. Radha Nath Chowdhury Road, Tangra Industrial with creative ways Estate-II, Kolkata, West Bengal 700 015 to deal with the Hotel and Restaurant Association of Eastern India, demonetisation 18A/1, Everest , 18th Floor, 46C, Chowringhee Road, Kolkata- 700 071; impact Telephone- +91 33 2288-1742/43, 40035993. Sudesh Poddar E-mail: [email protected] President, HRAEI Website: www.hraei.co.in

THIS ISSUE OF MYSTIC EAST CONTAINS 56 PAGES INCLUDING COVER AND BACK COVER

All information in Mystic East magazine is derived from sources we consider reliable and a sincere effort is made to report accurate information. The publisher regrets that he cannot accept liability for error and omissions contained in this publication that might have crept in inadvertently. Similarly, opinions/views expressed by third parties are not necessarily shared by the magazine. However, we wish to advise our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances..

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MYSTIC EAST | 3 SECRETARY’S MESSAGE

Dear fellow members, So, what will this year's trends in hotel guest experience bring? This is a question many of us in hospitality industry must be facing at the moment. Well, when it comes to our in- dustry, trends can be both ephemeral and everlasting. Some are just a flash in the pan; others have a staying power that last for decades. LEAN LUXURY: The new trend in luxury is about of- fering travelers a more authentic, genuine luxury experience unfettered by specific brand or quality standards. It’s per- sonalized service, craftsmanship and a story to tell. They just need to have a story behind their brands to communicate to travellers. THE SMART HOTEL EMERGES: That’s simply a giv- en, especially as hotels continue to make large investments in beacon technologies, messaging, streaming in-room en- tertainment, and other smart hotel concepts. MORE BRANDS: Maybe Marriott won’t be adding any the hospitality more brands to its portfolio of 30 anytime soon, but when industry needs to be it comes to its peers, Hilton included, there’s certainly room to grow. In 2017 we should also expect to see even more prepared for even non-traditional hotel brands entering the hospitality space. more disruptions MINE THE DATA: Now that we’ve advanced enough to know how to collect or mine data, it’s up to the industry to that lie ahead. And know what to do with that information. We need to get really to be prepared, it’s smart around data science. It helps us personalize choices as you have personal access with mobile now. clear hotels need In 2017, it’s clear that the hospitality industry needs to be to look beyond the prepared for even more disruptions that lie ahead. And to be prepared, it’s clear hotels need to look beyond the boundar- boundaries of their ies of their own industry to take stock of what’s happening, own industry to not only in travel, but the greater world beyond it take stock of what’s happening

Pranav Singh Secretary, HRAEI

4 | MYSTIC EAST INSIDE November - December 2016

Cover Story November - December 2016 26 THE GREAT 8/11 KNOCK Demonetisation has surely affected the hospitality and tourism sectors in the short term. But eventually the industry is expected to bounce back and flourish

NEWS Despite good business, hospitality and aviation 8 12 stocks fall since November

Service charge advisory will create chaos

Domestic traffic in India Stayzilla strengthens could grow by nearly partnership with tourism 10 25% in 2018 14 boards in the East

MYSTIC EAST | 5 Inside

18 ROOMS APLENTY 34 WOMEN'S RISE ON TOP Today women form an intrinsic With demand for space for part of the hospitality enterprise's hosting MICE travellers operations. Now they are breaking there's a huge out of the paradigm 22 WALK THE TECH 39 WATCHDOG ON A ROLL After cracking down on noodles and Technology is playing a milk, central food safety watchdog key role in powering the FSSAI is now turning alcoholic housekeepers' jobs beverages

INTERVIEW 32 Bengal is showing the way, says Pramode 50 Bhandari, STATE SURVEY GM, The Mizoram has a huge potential in Park, tourism and hospitality industry that Kolkata waits to be tapped

6 | MYSTIC EAST HRAEI CORNER November - December 2016

MYSTIC EAST | 7 NEWS

SERVICE CHARGE ADVISORY WILL CREATE CHAOS

HE apex body of hotels and restaurants in India the FHRAI said in its letter that service charges are “consid- T Federation of Hotel & Restaurant Associations of In- ered a beneficial payment since it is meant for the bene- dia (FHRAI) has written to the Department of Consumer fit of the staff of the establishment…The service charge is Affairs, asking it to withdraw an advisory making service disclosed in advance and the same is clearly included as a charges optional, saying there was nothing illegal about separate heading in the bill as a charge not as a tax. Thus, levying the fee. there is complete transparency with regard to the amount, Making service charges discretionary will create chaos the rate and the purpose of the charge.” and disrupt the smooth functioning of restaurants across Citing previous rulings, FHRAI said the practice of col- the country and lead to unnecessary litigation between lecting service charges has been upheld by the National them and consumers, said FHRAI. Consumer Disputes Redressal Commission. “We request The department said on Monday that service charges you to kindly withdraw the subject mentioned press note billed by restaurants are optional and it is up to customers as there is nothing illegal or unlawful – much less unfair to pay them. The department cited complaints that hotels – in an establishment collecting a service charge from its and restaurants are levying an additional 5 to 20% in bills guests,” it added. in lieu of tips, regardless of the kind of service provided. Industry officials said the practice was critical to incen- In its letter to the department, FHRAI said service tivise staff. The guidelines from the government should be charges – an amount paid to the staff of a restaurant or clear with the processes that need to be followed. Custom- other establishment by customers and guests – are lawful ers and hotels should have clarity on how we reward service and that it is up to an establishment to decide whether and by the staff. It’s a huge motivation for the staff and makes how much to collect. FHRAI members met officials in the the staff put in extra efforts rather than being transactional. department on Tuesday and were told the matter would be Also levying service charge is an established practice of sev- looked into, said Pradeep Shetty, chairman of FHRAI’s le- eral years and it has even been upheld in the court of law. gal matters sub­committee. Most of money collected goes to the staff and is an in- “We regret that the department came out with such an tegral part of their incomes. Discontinuation of the same advisory, which pits consumers against the industry. While at this stage will adversely impact millions of workers and consumer rights are paramount, the rights of individual es- therefore we plan to continue levying the service charge as tablishments should not be impinged upon,” Shetty said. before.

8 | MYSTIC EAST November - December 2016

GST COUNCIL MEET REMAINS INCONCLUSIVE NE more round of GST Council States. He demanded the imbalance in COMMERCE MINISTER BATS O Meet concluded on January 4 in sharing the taxes between the Centre EXEMPTIONS UNDER GST FOR New Delhi with differences cropping and the States needed redressal un- TOURISM & HOSPITALITY SECTOR up on issues like administering the der GST. Instead of 50:50 sharing of taxes of territorial waters, states par- the taxes under different slabs, Kerala Union Commerce &Industry Minister, Nirmala Sitharaman in her meeting with ticipation in administering the GST, demanded 60:40 sharing in favour of the Union Finance Minister, Arun Jaitley control over smaller traders and busi- States under the GST. 'We see this as yesterday has suggested exemptions nesses up to the turn over of Rs 1.5 cr., a historic opportunity to correct the fi- under GST (Goods & Services Tax) for etc. As days are ticking, doubts are be- nancial imbalance being meted out by export sensitive sectors including Tourism ing raised about meeting the deadline States since independence,' he said. and Hospitality. She also asked for 100% of implementation of the GST. Commenting on the vexed compen- exemption or lower slab of 5% for labour Speaking to media after the GST sation fund for States, Issac observed intensive sectors like plantations, leather Council Meet, Dr Thomas Issac, Fi- that the with the deceleration expect- manufacturing, etc. under the GST. nance Minister of Kerala said that ed in the economy due to demoneti- According to reports, the Union Commerce “the differences seem to be widening” zation, the compensation fund of Rs Minister also suggested a review of the as days are ticking by on the issue of 55,000 cr would fall inadequate as current EPCG (Export Promotion of Capital GST. He said that the centre’s stand States are bound to suffer revenue Goods Authorisation) Scheme where im- on current powers being adminis- losses in the coming months. He said porters of capital goods and raw materials tered by the States on territorial wa- that therefore the States have been has to claim the refunds of tax paid upfront ters up to 12 nautical miles cannot be successful in adding required clause which makes the process cumbersome. accepted. He also said that agreement in the draft law. With this, apart from She asked simplification of the process as is yet to arrive on the issue of IGST. the Cess that will be pooled for com- the refunds generally takes months. Such imports need not to be taxed upfront. Kerala, he said, has raised the issue pensation, GST Council is empowered and sought clarity on “rate split” from to look for other sources for compen- Hotels currently enjoy the EPCG scheme the Centre under the GST. He said sating the States in the eventuality of for importing capital goods required for that the issue got the support of many any revenue loss. hotel projects in the country.

MYSTIC EAST | 9 NEWS

DOMESTIC TRAFFIC IN INDIA COULD GROW BY NEARLY 25% IN 2018

VIATIION Consultancy CAPA's comprehensive 200- out of 65 inductions), their share of the domestic market is A page India Aviation Outlook Report FY2017/18, to be expected to rise from around 65% today to reach 75-80% released in Feb-2017 at the CAPA India Aviation Summit within two years. stated that the domestic traffic could grow by nearly 25% in The last time that LCCs had a similar market position FY2018 and approach 130 million passengers in India. The was in early 2011 when their share stood at over 70%. How- next financial year is expected to be the third consecutive ever, on that occasion it was as a result of a blurred demar- year of domestic growth above 20%. Growth could be as cation between the full service and low cost operations of high as 25% but may be tempered by 3-5% because of the Jet Airways and Kingfisher. Airline business models in the impact of demonetisation. market are better defined today and LCCs will have a clear- However, the purchase of air travel using some with- ly dominant position. drawn denominations was permitted until the first half of International traffic is expected to expand at 10-12% in December 2016 which may result in a delayed impact in the FY2017 and FY2018, but bilateral restrictions preclude first half of FY2018. As of now, it is difficult to fully factor achieving true potential. Most of the ten largest international in what the impact may be, if any. The introduction of the carriers are achieving year-round average load factors of 90% GST next year may possibly also have a short-term negative or higher, indicating constrained capacity. Without India’s impact on economic growth for a couple of years until more unhelpful restrictions, international growth could be in the re- positive results emerge. gion of 15-17% per annum which would result in international Based on aircraft deliveries, competitive dynamics and traffic volumes doubling within five years. However, demone- the positive outlook for the economy, domestic growth at tisation could negatively impact demand for short haul tourist 20% or higher could continue for up to a further two years. destinations such as Dubai, Singapore and Thailand. The pace of aircraft inductions in FY2018 will be one of Several Gulf and Asian carriers are seeking additional the key drivers of traffic growth. This is however subject entitlements to the tune of up to 150,000 weekly seats. Bi- to deliveries of A320neos proceeding as scheduled and op- laterals have become a key issue in India’s geo-political re- erators being able to deploy the equipment as planned, as lations with markets such as the UAE, Qatar, Turkey, Hong some operational challenges have been experienced. Kong, Singapore and Malaysia. The Indian government With LCCs taking delivery of the clear majority of nar- may only agree to more modest incremental expansion in row body aircraft coming into the market (an estimated 50 seats than is being sought by some countries.

10 | MYSTIC EAST

NEWS

DESPITE GOOD BUSINESS, HOSPITALITY & AVIATION STOCKS FALL SINCE NOVEMBER

share. Besides, crude prices have been rising since September after OPEC decided to cut production and formally did the same in November. ATF price worry Average aviation turbine fuel (ATF) prices were hiked by a steep 7.3% m-o-m in November following a cut of 3.7% in December, and then again hiked by 8.6% in Jan- uary. ATF forms around 40% of the op- erating costs of aviation companies. Brent crude hit an 18-month high on Tuesday at USD 58.37. Better days ahead for hotels since December quar- ter is the strongest for aviation com- panies, their financial performance is not expected to come under too much pressure. However, companies will disappoint in the current quarter as the full impact of higher crude prices and hike in ATF prices become fully visible, according to some analysts. Growth in FTA has been 10.4% y-o-y between January and November. During April- November, the avi- ation sector registered 23% growth y-o-y in passenger traffic. Yet, occu- pancy rates for hotels in India have been a concern (subdued) in some ESPITE increase of 9.3% and ity utilisation) improved by 460 basis large (important) pockets due to a sit- D 23% year-on-year in foreign points to 80.2% from 75.6% a month uation of oversupply, according to an tourist arrivals (FTAs) into India and ago, despite recent capacity addition analyst at an unlisted brokerage sub- domestic passenger traffic, respec- (at the beginning of the strongest sidiary of a large private bank. Howev- tively, in the month of November, quarter). er, things are looking up for the sector share prices of aviation and hospital- Despite adding six aircraft to its as there have been no greenfield ex- ity companies have corrected sharply FY16 fleet size, Spice Jet continued pansion for a long time, which augurs since demonetisation. They have de- to report PLF of above 90%. Indi- well for occupancy rates and average clined in the range of 10-20% com- go’s PLF came in at 87.3%, up 290 room rents. Comfortable debt position pared with 5% fall in Nifty 500 since bps m-o-m. Including JetLite, Jet of large players, such as Indian Ho- November 8. Data for December is Airways’ PLF was 77.6%, up 430 bps tels, EIH, Taj GVK and Hotel Leela (to awaited but analysts are quite confi- m-o-m. Abhinil Dahiwale, Analyst at some extent) coupled with cut in inter- dent that it will be robust. According Motilal Oswal said increase in PLF est rates will help lower losses or boost to Mayur Milak, Analyst at Anand has come at the cost of yields as com- profitability of respective companies. Rathi, the industry load factor (capac- panies cut fares to maintain market Source: The Hindu Business Line

12 | MYSTIC EAST

NEWS

STAYZILLA STRENGTHENS PARTNERSHIP WITH TOURISM BOARDS IN THE EAST

TAYZILLA, a platform for veri- enter the North East market. py to announce that this is the second S fied homestay and alternate stays Under this agreement, Stayzilla largest association with the government announced its strategic partnership and Department of Tourism, Odisha tourism in the North East after Assam.” with Department of Tourism, Odisha will jointly boost homestays aiming “Odisha hosts Konark Festival to reinforce its association with Gov- to provide unique stay experienc- which is a big celebration that attracts ernment Tourism Boards in the East. es to the travellers visiting Odisha. many tourists. Accommodation be- The MoU was signed in the presence Styazilla will lend its expertise to De- comes a big issue during this time as of Ankit Rastogi, Vice President Mar- partment of Tourism, Odisha to con- we do not have enough facilities and ketplace, Stayzilla and Dr. Nitin B. duct verification procedures and this this partnership is aimed to resolve Jawale I.A.S, Director & Additional partnership will enable verification such issue in the state. Through this Secretary at Department of Tourism, and training of these New Homestays MoU we want to promote lot of other Odisha. being developed right from the start, parts of Odisha which are unexplored After strategic tieups with seven state headed by Regional Office of Kolkata. beyond the regular Cuttack and Bhu- tourism departments across India in Commenting on this announcement, baneshwar. With Stayzilla, we look 2016, Stayzilla, gets on board with De- Ankit Rastogi, Vice President Market- forward to enrich the tourism experi- partment of Tourism, Odisha for the place, Stayzilla said, “With this MoU ence and also to open up new chan- joint promotion and development of signing we look forward to enhancing nels of livelihood for the residents as Homestays in the state. Stayzilla has the experience of tourists visiting Odi- they are going to be the hosts,” said signed an MoU with Assam Tourism sha by involving local communities at Dr. Nitin B Jawale IAS, Director and Development Corporation last No- the helm of tourism by getting them to Additional Secretary, Department of vember and was the first aggregator to open up their homes. We are also hap- Tourism, Odisha.

14 | MYSTIC EAST

NEWS

MAKEMYTRIP’S RIGHTSTAY TO JOIN HANDS WITH ASSAM TOURISM

Rightstay. Both the ATDC and Rightstay will also jointly conduct educational and training sessions for registered Homestays on best practices such as hospitality, skill train- ing online usage, content management, operations and ex- pense management. Speaking on the partnership, Deepak Tuli, Senior VP – Growth Business, MakeMyTrip said, “It is our honor to be associated with Assam Tourism Development Corpora- tion. The state of Assam has 200 plus properties listed on our platform and homestays account for 40% of the total properties on the Rightstay. We look to grow aggressive- ly in Assam and become the first OTA to heavily promote upcoming regions and homestays in the state. The state is a travel-friendly destination around the year and we look forward to making it one of our top markets for Rightstay. We have already had a head-start with more than 12,000 properties across 200 cities live on Rightstay with plans to SSAM Tourism Development Corporation (ATDC) to- end the year with 100,000 plus properties.” A day signed a MoU with Rightstay, an alternate accom- Anurag Singh, MD, ATDC Ltd said, “Assam Tourism will modation marketplace by India’s leading travel company, focus on quality homestays in the entire state. The rural As- MakeMyTrip, to promote the concept of homestays in the sam is a right place for tourists to experience the Assamese state. The MoU was signed between ATDC and Rightstay flavor of culture, nature and hospitality. Tourism Depart- in Guwahati. ment of Assam has already launched a rural homestay In order to promote Local Tourism in the state, ATDC scheme called “Aamaar Aalohi” on h December 24, 2017. intends to encourage organised, community based, envi- The focus area is to encourage rural and semi-urban peo- ronmentally and socially responsible Homestays across the ple to participate in tourism and self-generate income by region. Homestay is any traditional accommodation avail- managing a homestay. We are happy that MakeMyTrip has able/constructed aesthetically with best amenities and high- come forward to engage with us to promote homestays and est safety norms for the tourists. The objective to encourage also develop good package for Assam.” such Homestays is so as to create a participative, sustainable Rightstay has recently signed MoU’s with Andhra Tour- eco-system which provides an alternate source of income for ism Development Board, Kumon Mandal Vikas Nigam to- the locals and enhancing their livelihoods without straining wards strategic promotion of homestays and other govern- their existing resources, thereby creating sustainable liveli- ment owned properties as well as a higher promotion of hood and creating large scale employment. upcoming tourist destinations in these regions. Under this agreement, Rightstay will lend its expertise to Rightstay is an independent platform from MakeMyTrip the state’s tourism body to jointly promote homestays and and the application is currently available on Android and enhance tourism in the state through packages for Assam. web. It provides alternative stay options like villa, residen- Assam Tourism Development Corporation will also work tial apartments, homestays and guest houses and enables with MakeMyTrip to develop custom packages with MMT customers to rent unique places that offer great, authentic which will be promoted to enhance tourism in the state. experience at affordable prices. In search of authentic expe- Homestays opened and promoted under this agreement riences, travellers are now looking for diverse accommoda- will conform strictly to the high qualities and standards tion options and with Rightstay, MakeMyTrip offers a ‘home set by Assam Tourism Development Corporation Ltd. All away home’ experience to the customers. The objective is to Homestays registered with the ATDC will receive technical also leverage the demand, traffic and brand advantage that support in the form of inventory management and software MakeMyTrip has created in the travel market and its unique applications to ensure seamless booking procedures, from position in the alternate accommodation category.

16 | MYSTIC EAST A.V.HOTEL

SITUATED IN THE HEART OF THE COMMERCIAL HUB OF KOLKATA 1.5 KMS FROM THE TWO MAJOR RAILWAY STATIONS HOWRAH AND SEALDAH OF KOLKATA 2 KMS FROM ESPLANADE – THE MAJOR BUS TERMINAL 15 KMS FROM AIRPORT BOTH SINGLE / DOUBLE OCCUPANCY AND A/C - NON A/C AVAILABLE. ALL AMENITIES AVAILABLE AT THE PRICE OF BUDGETARY HOTEL LUXURIOUS BAR CUM RESTAURANT SITUATED ON THE 10TH FLOOR WITH AMAZING AERIAL VIEW OF THE CITY. JAIN FOOD ALSO AVAILABLE ON REQUEST.

1, SAMBHU MULLICK LANE, KOLKATA – 700007. NEAR BURRA BAZAR P. S. PH: 033 2268 7741/ 46. FAX: 033 2268 8199 PRICE WAR

ROOMS APLENTY With demands for space for hosting MICE travellers, there's a huge potential in banqueting and three to five star rooms in Kolkata

18 | MYSTIC EAST November - December 2016

OLKATA is all set to add supply of rooms and rising expenses. ously business is looking up, other- two to three hotels in the And is Kolkata really ready for so wise why will all these airlines come." ‘mid-market upscale’ to many swanky ultra-luxury hotels? According to him, all the new prop- ‘super-luxury’ segments Top hoteliers say it is both a challenge erties that are coming up now actually Kwith approximately 2000 rooms add- and an opportunity and will rebrand kicked off five-six years back. They are ed by the next year. Global the city as an attractive convention coming to completion now. "There "JW Marriott has already start- destination. Some believe Kolkata is may not be tremendous growth, nei- ed operating with 180 rooms. At going to be the next big thing among ther there will be a bloodbath due to least two major hospitality projects India cities with respect to corporate tough competition but the growth (Westin and Holiday Inn) are also ex- movement and tours. opportunity will be neutralised by pected to open their doors in the next "But despite so many new rooms the addition of new rooms. I am not few months," said Sudesh Poddar, the Calcutta’s average occupancy per se worried at all, on the contrary, feeling president of Hotel and Restaurant As- hasn’t dropped. This indicates that happy and excited that this is going to sociation of India and treasurer of the new business is happening," says bring in more business for us." Federation of Hotel and Restaurant Pramode Bhandari, GM, The Park Chennai, too, had gone through a Association of India (FHRAI). Hotels. He points out that air connec- similar phase in 2012, when 1,200 su- But that’s not all. With nearly sev- tivity is better with more flights and per-deluxe rooms were added at one en hotels to become operational in more new destinations added to itin- go. Industry experts feared occupancy the next three to four years, Kolkata erary of travellers in this area. "Ever would plummet, but the reverse hap- is set to double the room capacity in since the new terminal of the airport pened. Shift of MICE (meetings, in- the four to seven star segments. All in Calcutta opened, there are are so centives, conferences and exhibitions the projects are in various stages of many new flights, such as Dragon Air or events) from Mumbai and Hyder- construction. and Novoair, that have started opera- abad to Chennai owing to cheaper Moreover, there are more projects tion here. There are even two weekly room rates spurred the growth. awaiting clearances to start construc- flights to Yangon (Myanmar)! Obvi- The same is forecast for Kolkata, tion. Will the increased supply bring down tariffs in city hotels? According to a report by consulting firm HVS, based on data sourced from apex industry association (FHRAI), the average rates in 2014-15 were Rs 4,867, lower than Rs 5,230 in 2013- 14. Occupancy rates have also gone down to 67.7 per cent in 2014-15 from 70 per cent in 2013-14. According to HVS, these new rooms, adding to the existing inven- tory of around 2,530 rooms, will put pressure on rents in the short- to medium-term. In other words, both occupancy and average rate may be under pressure, but gradually the city will absorb the additional rooms and gradually improve its performance in the long-term. Nationally, the hospitality industry, which has seen a slight recovery in oc- cupancy in 2014-15 after a stagnation in the preceding two years, is expect- ing the improving trend to continue in 2016-17 as well. But net income will remain constrained by the growing Several projects are at different stages of construction in the city

MYSTIC EAST | 19 PRICE WAR

only it is expected to draw the MICE tion."We won’t be much affected by Kolkata, with its business from Delhi and Gurugram. the price war because we are a heri- Ranju Alex, GM of JW Marriott Kol- tage hotel. We offer a unique experi- unique character and kata, said: "Kolkata, with its unique ence to our customers who look for soul, is a significant character and soul, is a significant special care. Our customers belong to addition to the MICE map globally . a group who look for specific services addition to the Our property could now be a new des- that only we can offer." MICE map globally. tination for global conferences and Even heads of non-luxury hotels are in that sense, it is a huge leap for the not that worried. Said Vinay Thakur, Moreover, the new business sector and beyond." Also the GM, Pride Hotel, "I don’t think tariff banqueting facilities hotel is heavily banking on weddings will go down because still there is a as almost all slots booked months huge demand of rooms in the city. Es- and the huge ahead. pecially in the peak season —say No- conference venue Echoes Bhandari, "I am also a bit vember to February—the hotels run more optimistic with the new ban- in sold out rates. The demand is far coming up in the the queting facilities and the huge con- greater than the supply. I don’t think New Town area will ference venues coming up in the the tariff will go down in upscale hotels. New Town area. More conferences Moreover, since these new hotels be- surely draw more will translate into more business long to the luxury category they may business travellers travellers. And they will need more create some pressure on the rents of rooms to stay overnight. The MICE similar hotels (such as the Taj Bengal segment is really going to be hot and ITC Sonar). However, if we have here," he says. hotels with 100 room inventory this Dilip Mishra, resident manager, won’t make a difference. There’s still Lalit Great Eastern, also feels they'll a huge demand of rooms in this cat- not be hit much by the competi- egory."

20 | MYSTIC EAST

HOUSEKEEPING

WALK THE TECH Technology is playing a key role in powering the housekeepers’ role as the newer design concepts make their lives easier

RESEARCH from Europe ty. Guests often associate the cleanli- industry is facing several challenges reported that almost 70 ness of common areas with the possi- such as shortage of labour and skills, A per cent of hotel guests say bility of getting an equally spick and ensuring consistent delivery as per that cleanliness and hygiene are the span guest room. On the other hand, the brand promise is prime objec- most important factor they consid- the same hotels could lose business if tive. The solution lies in the fact that er when selecting a hotel. Even new guests are exposed to the dusty lobby one must deploy right software tools hotel startups in India are now ag- floors and damaged chandeliers. To to minimise risk management and gressively promoting themselves keep a hotel clean is a continuous pro- make guests feel comfortable and with the ‘cleanliness’ tag. Photos of cess that has to take place as subtly as safe. Thus, today when technology is guest rooms showcasing hygiene and possible. Hotel guests look out for a making big strides in all the segments cleanliness has been one of the most pleasant experience during their stay of the hospitality business, the house- important deciding factors for guests at the hotel. keeping department is no exception. while choosing to stay at any proper- In today’s era where the hospitality With such a significant role on the

22 | MYSTIC EAST November - December 2016

shoulders of the housekeeping staff, they are continuously adopting and upgrading technology for their own good. The clipboards have been re- placed by housekeeping mobile apps along with other technological inno- vations which is easing the profes- sional lives of housekeepers. The future is all set to be governed by the technological revolution. Real- ising the same, the hotels are hugely investing in improving its technolog- ical adaptation. From hard broom to manual sweeping machine, from wet mop to wet vacuum cleaner, from cobweb brush to back pack vacuum cleaner and from carpet brush to dry vacuum cleaner, all are fine reflec- tions of the transition that the tech- nological advancement has brought about in the hospitality industry.

Driving force Recent technological innovations also include the introduction of gondola to clean high-rise building glasses, battery run wireless vacuum cleaner machines to clean busy banquet areas and restaurants, without disturbing guest and leaving no chances for the guests to trip and fall. The initiation of the software in mobiles which help floor supervisors to change the status of rooms and trace the location of the floor attendants without the help of the housekeeping desk, is a revolu- tionary change. The most important technological Hygiene and cleanliness are key factors for most guests trend which has made a difference is the ease of communication with a records and reducing loss and theft. and pressure to deliver clean rooms group of people through apps such as The use of live chip to track the linen quickly at the lowest possible cost. Whatsapp and the likes. Communica- movement is another commendable But today the technological revo- tion has taken a leap into the future example of technological assistance. lution has taken the housekeeping from the fixed phones to Whatsap- Linen inventory which is a tedious operations to a new level of ease al- ping. This has made communication task becomes live and so does track- together. Housekeeping divisions simpler by sharing in groups. One tap ing of those guests who try to take the are utilising technology to save time and all are informed! linen home. and in bringing clarity in processes. On a safer side, the introduction of Tech-savvy hotels are using tab-based Radio Frequency Identification Read- Time saving in-room solutions, maintenance slips er in the laundry operations is helping Earlier housekeeping was about high have been replaced by the ‘Triton’, in reducing manual laundry sorting staff turnover caused by a repeti- RF-ID systems are being used to track by providing an accurate wash count tive and physically demanding job linen and mini screen displays have

MYSTIC EAST | 23 HOUSEKEEPING

Some of the technology leveraged by the housekeeping departments has been iPads and smart phones with specific applications, kiosk- based stations and text message modules to address guests’ grievances

Mobile apps assist in real-time monitoring

replaced door bells, thus saving time optimum balance is achieved between have got replaced by glasses, stain- and energy. design and functionality. There are a less steel and man-made floorings, Mobile apps are assisting in real lot of innovations in the last decade or she highlights. While replacement time control and monitoring, helping so which have made the life of house- with glasses and stainless steel has in saving time and increasing efficien- keeper more relaxed. Moreover, any increased the work load again, the in- cy by eliminating day-to-day double innovation which is introduced some- troduction of man-made floorings has entries. Room history too, is now be- where globally reaches the other part made cleanliness and maintenance ing maintained in the IDS software of the world swiftly in this age of in- easy and more cost-effective. along with complaints management ternet. Currently, the trend in the ho- From a housekeeper’s perspec- to eliminate recurring issues. With tel industry is to keep the rooms and tive, the changing design concept of such efficient use of technology, the public areas as clutter-free as possible guest rooms and public areas in a housekeeping divisions in the hotels and we practice the same at our ho- hotel has definitely reduced the work are delivering service and managing tel. However, this is possible when the load. “With the escalating use of latest manpower, making cleaning 10 - 20 hotels are designed keeping emphasis technology adopted by hotels glob- times faster and managing manpower on simplicity and elegance in design ally, the work burden for the house- productively and effectively. coupled with maximum practicality, keeping staff has become more effi- Some of the technology leveraged which surely has optimised house- cient and well-organised. In the era by the housekeeping departments has keepers’ work.. that we live in today, technology has been iPads and smart phones with The changing design concepts of become an integral part of our lives. specific housekeeping applications, guest room and public areas of hotels All industries, big or small, depend on kiosk-based stations and text message have definitely impacted the opera- some form of technology to increase modules to address guests’ requests tional aspects. Lesser furniture, more the productivity of their businesses. and grievances rapidly. Complaints compact rooms have made maximum The hotel industry is among the most from guests are now addressed fast- utilisation of space. Replacement of prominent industries to make use of er through text messages rather than bed covers by duvets have simplified modern technology to bring ease into through staff stationed at a desk. bed-making and has contributed to- their day-to-day assignments. While wards reducing the turnaround time the housekeeping department’s daily Changing designs of hotel rooms and increased produc- responsibilities can be monotonous With newer designs and eco-friendly tivity. Similar transformations have and tedious, the rapidly changing de- setups taking centre stage, hotels are happened in public areas too. Con- sign concepts undertaken by the hotel constantly striving to ensure that an crete, wood, limestone and sandstone are certainly making their jobs easier.

24 | MYSTIC EAST

COVER STORY

26 | MYSTIC EAST WAR ON CASH Time to expand? • Since much of the country’s real-estate transactions have been conducted on a largely cash basis to avoid taxes, property sales have taken a beating THE GREAT across the country. With many buyers now on the sidelines, huge price discounts are expected when the market gets its bearings back with more liquid cash 8/11 KNOCK flowing in. • The demonetisation move has certainly Demonetisation has surely affected the hospitality and hit the real-estate market. According to PropEquity, a real-estate data and tourism sector in the short term. But eventually the analytics provider in India, uncertainty industry is expected to bounce back and flourish and the sharp decline in demand will likely push down the values of property in the country’s top cities by up to 30% over the next year. The cash crunch also creates a headache for many home builders who have borrowed heavily from private lenders at interest rates as high as 20 % a year. The developers typically rely OTEL bookings spotted in the horizon. on sales of new apartments to generate down, despite Since a major part of the unor- cash needed to service their debt. If sales reduces package ganised sector--small hotels and slow, builders might need to slash prices rates. Year-end restaurants-- operate through cash to generate cash. travel plans go for transaction the impact was hard • The crisis in real-estate sector can turn a toss due to demonitisation. MoT on them. Star hotels and big travel into an opportunity for wannabe investors claims inbound tourism & earn- agents didn't suffer much because in the hospitality sector. They will get ings unaffected by demonetisation. they've shifted to cashless transac- opportunity to buy property at a vastly 50% drop in tourism to Kodai- tion quite a few years back. How- reduced price. kanal due to demonetisation. City ever, food and beverage business • However, for existing palyers in the hotels introduce ‘Marry Now Pay got affected across the board. unorganised sector the situation is Later’ scheme. OTAs launch Mega "Until this November, the completely different. Demonetisation has ‘Cashless Travel Carnival’. Demon- hospitality industry had been hit them hard, especially in the food and etisation: Hotel industry earnings doing brisque business in these beverage business that depend heavily on cash transactions. Also smaller hotels drop by 50% in Mysuru. 37.4% parts of the country. However, that largely deal in hard cash has yet to travellers choose plastic money the gains got somewhat reversed recover from the demonetisation tsunami. over cash, says OTA survey. after the demonetisation drive," • Usually the winter months—the festivity, These news headlines culled says Sudesh Poddar, President weddings and year end bash—is their from newspapers, online news HRAEI. "Over the short and me- peak business time. But this year, the sites and hospitality periodicals dium terms, this will have varied middle class customer has been busy reflect the impact of demonetisa- effects on sections of the hospi- standing in the queue in ATM or bank tion in the hospitality sector quite tality industry in the country, but counters for hard cash. Naturally small succintly. There is no denying in the long-term, it will positively and medium players in the hospitality that the Prime Minister's "surgical impact the growth of the hospital- sector wants the average customer to be strike" on unaccounted cash in the ity sector." back on the table and the counter. country has had an unprecedented In other words, with more flow • So for an average hotelier—who make the collateral damage on the hospital- of cash the stress on the business majority of our members in the region—are ity and tourism sector. But in the will certainly ease out to some still reeling in cash crunch. Investment in midst of black clouds of crises a extent. However, some customers the real estate or expansion of existing business is not in his mind at the moment. silver linings of opportunity can be are moving to the organized sector

MYSTIC EAST | 27 COVER STORY

Shadow on GST • Demonetisation’s shadow loomed large over Goods and Services Tax (GST) roll out discussions as states drew a hard bargain demanding extra compensation to offset tax revenue losses in wake of the currency culling move. • Under law, the Centre will have to fully compensate states for any revenue loss for five years after migrating No respite from long queues at ATM to the new tax system. The Centre estimates total compensation to states for losses arising from a transition to due to ease of alternate modes of venues in India. GST to be around Rs 55,000 crore in payment. Also the organized ban- The hospitality and the tourism the first year. queting business is witnessing sectors provide a large number • This will be met through a corpus growth, as customers are shifting of direct and indirect jobs in the generated by the levy of the clean to the almost cash-only unorga- country. The unorgainsed section environment cess on coal, also cesses nized sector of standalone party of the industry also happens to to be levied on demerit goods such as venues and farm houses to hotels be the largest job creator. Says tobacco, luxury cars, pan masala and for want of non-cash means Poddar, "The vibrant and inno- aerated drinks. of payment. On the plus side, vative hospitality industry is also • Many states are now pushing the weddings business is returning to quite resilient. So we expect to Centre for a grand bargain of sorts, seeking higher compensation Indian hotels from their overseas bounce back with creative ways to for revenue loss on account of counterparts, as unofficial chan- deal with the impact, from value demonetisation. States have argued nels for offshore transfers of cash additions, offers and shifts in that the economy-wide cash-crunch have dried up, forcing the cancel- spending patterns." Mobile phone following the unexpected ban on Rs lation of many Indian weddings based payment is already turning 500 and Rs 1000 currency notes in from foreign locales back to hotel out into a norm in the sector. November has hurt their revenues.

28 | MYSTIC EAST at some of the most significant tech milestones and statistics from the past two months.

Mobile wallets and Digital payments Without cash in the people’s hands, the only way to go immediately was electronic payments. Now, those two words encompass a wide array of payment methods like debit or credit cards, mobile wallets, online transfers and more. Needless to say, in most cases, retail stores have mostly been using cards. In fact, as revealed by RBI there are nearly 75 crore electronic cards in the coun- try out of which 72 crores are debit cards. These are mostly used by the general populace to withdraw money from ATMs. The most com- mon way these are used for digital E-WALLET payments is at PoS terminals at retail stores. Now, these retail stores obtain these (Point of Sales) PoS machines from their banks, which normally charges them an MDR TAKE THE (Merchant Discount Rate) which in the end gets charged to the custom- er. But to encourage card payments during this period, banks have TECH LEAP waived off such charges associated with card payments. It's time to learn to love the mobile wallet. Wave When it comes to mobile wallets, goodbye to your wallet, chuck out your change, the effects were almost immediate. cut up your credit cards. According to Paytm, the company registered a 200% hike in a number of app downloads and 250% surge in the number of overall transac- WO months ago Prime Min- tisation, some have expressed their tions and transaction value within ister Narendra Modi declared doubts and some have gone as far hours of the announcement on T that the currency notes of as to call it an outright mistake. November 9. The number of Saved 500 and 1000 denominations would But there is no denying that tech- Cards also grew by 30% during no longer be legal tender post mid- nology has played a key role in this that time, pointing at a strong set night on that day. Since the demon- entire month - be it through digital of repeat customers the platform etisation announcement, a lot has payments, mobile wallets, locating has now acquired. The company happened and it wouldn’t be wrong an ATM with cash or helping people had noted 1000% growth in mon- to say that almost every single citi- express their opinion about this ey added to the wallet and 400% zen of this country has been affected decision. growth in the transaction value of by this decision. While some have But has it all been beneficial? If offline payments at the same time. been in full support of the demone- yes, how much? Let us have a look All of this culminated to the over

MYSTIC EAST | 29 COVER STORY

Cards, ATMs and PoS will also be redundant

435% increase in Paytm’s overall Also, while these platforms do claim within technology. Take Tonetag traffic within hours on Nov 8. One to be secure at multiple levels, it is for example. They have a sound wouldn’t be too wrong in saying true that online transactions, even based model of payments between that while there are a lot of options more so on the mobile, do come smartphones which they recently and alternatives when it comes to with their own share of risk and you expanded to feature phones as mobile wallets, Paytm does seem should be extremely careful about well. All a user needs to do is to to be the popular choice, which which network you are on when you call a toll-free number and register could be due to their prolonged are using, say, your bank’s mobile their card details for the first time, presence in the market coupled app. Needless to say, download and when they are at a Tonetag with their aggressive marketing these apps only from official sources enabled vendor, they need to call across all platforms. like the Google Play Store or the App the toll free number. The mer- Store. At the same time, it’s encour- chant will then play a specific tone Big risks aging to see that apps and service from his Tonetag enabled phone But on the other hands, these num- providers are taking steps to secure which will be processed by the bers and accomplishments are to be their apps. At the time of writing IVR servers behind the call, which taken with a bit of salt. According this PayTM just announced an app in turn will process the payment to recent numbers released by RBI, password feature on their mobile - all without internet from the it does appear that mobile wallets app that lets you set a secure Pin, customer’s side. Paytm has also have been bloating the numbers Password, Pattern or Fingerprint to implemented an offline payment before announcing them. For ex- use the app. method via a phone call that works ample, according to Paytm, they are on your existing Paytm wallet. registering about 32.5 lakh trans- Offline India actions worth ₹60 crores daily. But the immediate question that Advice to hoteliers However, according to RBI in the arises is - how will the offline It's time to learn to love the mobile initial days of December, 8 mobile India, the part that has no access wallet. Wave goodbye to your wal- wallets and payment services had to the internet or maybe even a let, chuck out your change, cut up approximately 25 lakh transactions smartphone, get themselves out of your credit cards. But, before you worth ₹60 crore made across them. this? The answer once again lies do all that, make sure you keep

30 | MYSTIC EAST your mobile phone. Google (Wallet), Barclay’s (Pingit) their websites more mobile pay- Why? Because, in the future and PayPal have already signed up ment friendly. your mobile device may be how tens of millions of users. It is also However, it is important that you pay your way via your ‘mobile worth noting that WEVE (a collabo- existing systems are not just mo- wallet’. For the hospitality in- ration between EE, O2 and Voda- bile-enabled – a mobile strategy dustry this includes hotel rooms, fone) is planning to launch a mobile needs fresh thought particularly room service and all sorts of ancil- wallet. Apple’s Passbook should not when considering privacy and lary services from spa treatments be ruled out either. security. to cabs to and from the airport. The next step for hoteliers is to Interestingly, Gartner research To put it simply, mobile pay- address mcommerce and make states 60% of companies will ment transactions using mobile have no mobile strategy in 2014, wallets have exploded. a statistic we hope will improve as awareness levels grow, particularly West side story TYPES OF E-WALLETS of the commercial benefits. According to Gartner research, In general, as per the RBI, there are Once they have taken this cru- mobile wallet payments were three kinds of e-wallets—closed, cial step, hoteliers will be able to roughly $171.5bn in 2012, a 62% semi-closed and open integrate their services and market rise from $105.9 billion in 2011. In • Closed wallet: A closed wallet anything from restaurant deals to 2012, roughly 212 million people is one that a company issues exclusive spa promotions direct to worldwide made mobile payments, to its consumers for in-house guests. up 32% from nearly 160 million goods and services only. These Mobile payments can also be users in 2011. instruments do not carry the linked with back-office tools such The leaders when it comes to fa- advantage of cash withdrawal as a hotel’s property manage- or redemption. Several online cilitating mobile wallet technology ment system (PMS) or customer shopping portals such as Flipkart, are the retailers, with companies Jabong and MakeMyTrip offer relationship management (CRM) like Starbucks and McDonald’s such closed wallets. It is basically system, allowing hoteliers to see already building in capabilities in an account where money gets what preferences guests have and response to customer demand. credited in case of a refund due to be much more tailored in terms of It’s time for hoteliers to sit up cancellation or return. what they offer. and take notice. Gartner also • Semi-closed wallet: In the Only a few hoteliers who have states that it expects mobile trans- payments space, companies achieved this level of success, actions to be worth more than such as MobiKwik, PayU and however, it is on the horizon for $600bn with more global users Paytm offer semi-closed wallets. many. Whether mobile wallets will than there are people living in the As per the RBI, a semi-closed become as ubiquitous as credit USA by 2016. wallet can be used for goods cards in a few years is yet to be The growing importance of and services, including financial determined. mobiles (and the release of 4G) is services, at select merchant But as we move into 2017 it will not something that hoteliers are locations or establishments that be interesting to see where cus- have a contract with the issuing choosing to ignore. Most hoteliers tomers place their bets, and how company to accept these payment will tell you that while mobile is the hoteliers will take advantage of the instruments. Semi-closed wallets channel experiencing the greatest do not permit cash withdrawal or new technology. increase for browsing, the challenge redemption by the holder as well. Next year’s Hospitality Technol- is converting browsers to bookers. ogy Europe hopes to address these • Open wallet: Such wallets can Making mobile wallets work for challenges from both a commer- be used for purchase of goods the hospitality industry is a two and services, including financial cial and a technological point of way street – customers need to services such as funds transfer view. have confidence in mobile payment at merchant locations or point-of- As the industry matures, it is systems and hoteliers need to make sale terminals that accept cards, imperative for the key stakehold- payment processes simpler. and also cash withdrawals at ers to address these challenges to The good news is that mainstream automated teller machines ensure growth in customer base, payment methods from brands like transaction volumes and business.

MYSTIC EAST | 31 STAR INTERVIEW BENGAL IS SHOWING THE WAY

Nearly 2000 rooms are going to impact in Bengal also. Ever since be added to the hotel inventory the new terminal of the airport in in Kolkata in thecoming Calcutta opened we have so many months in all categories (basic new flights—Dragon Air, Novoair, to luxury). Is there a market for Golden Myanmar and so on. We have two weekly flights to Yangon! such a growth spurt? Obviously business is happening. Certainly a lot of rooms are being Besides, all the new properties that added. But you have to look at this are coming up now actually kicked from a broader perspective of the off five-six years back. They are only country. In the last few years, ‘India coming to completion now. There is Story’ is making a lot of waves across certainly a market; there may not be the world. The economy in the coun- a tremendous growth but you can try has been quite robust—with GDP expect a steady one. In the long run, over 7 per cent—and there’s been there will be good business. a positive vibe when compared to

financial scenario in the rest of the Can you give us some statistical world. Corresponding to this Bengal figures that prove Bengal is story is also positive. indeed showing the way? Mr Pramode Bhandari is You may not find big ticket invest- ments but the overall mood is posi- Well, Rs 6000 crores investment is regarded as the leading light tive with a stable government in the going live in FY 2016–17 with more among the top star hotel gen- state. Because of all these an organic than 800 rooms being added to eral managers in the city who growth is happening in the market. Kolkata’s hospitality space. Further- For instance, JW Marriott recently more Rs 1500 crores are ready to go graduated from Institute Hotel live in 2018–19 with the country’s opened its doors with 180 rooms Managemnet at Taratala in the largest Convention Centre coming in the luxury segment. Westin and up in Rajarhat.Bengal is fifth across early 1990s. Mr Bhandari, Holiday Inn are ready to open doors. India in terms of foreign tourist ar- who started his career way More properties are coming up In rival, according to a the Ministry of 3-4star categories too. But despite all back in 1992, as an operational Tourism data. The state also ranks these Calcutta’s average occupancy management trainee in TheTaj among the top 10 states in terms of per se hasn’t dropped. This indicates domestic tourist footfalls Bengal Hotel, has now gradu- that new business is happening.

ally risen to the top of one of Also the domestic market in India Won’t it set off a tariff war the finest hotels in India. Mr has gone up. As per data domes- tic hotel consumption market has among most of the players in Bhandari, General Manager, grown 6-8 per cent. This is be- the hospitality sector? The Park Hotels discussed the cause the middle class people are Tariff war always happens in the status of hospitality sector and travelling more frequently; they market, especially when the demand have more disposable income. Air goes down. On the flip side, because more with Mystic East in an connectivity is better with more of technology hotels are able to better exclusive interview. flights and more destinations. So all stategise on their price; you can fore- these factors have definitely left an cast better. We use ARR and RevPar—

32 | MYSTIC EAST November - December 2016 two common yardsticks to better Room bookings (CII). CII works aggressively on the strategise aided by latest data science. theme ‘Destination East’ which will We look at this over a period and haven’t been hit hard happen in February. There are 102 not just one or two days. A period of by demonetisation international buyers who have con- months, six months, or a quarter. firmed their attendance in this meet. Price war will always be there in a effect in the luxury And it’s not just about North East— competitive market. segment as cashless the entire East will be projected. And Bengal is taking the lead. This shows So you feel the the impact transaction has things are moving ahead fast. But lot on ARR and occupancy will been happening for more needs to be done. be okay, despite tough We guys at the hospitality sectors competition? quite some time. But are the partners in the development. Believe me, things are going to the F&B sector has We also need a lot of incentives. For stabilise. And there will be organic certainly been hit for example, not just hotels, it holds true growth. I don’t think the market is for the airlines too. We have been going to crash or there will beany the time being. With asking the government to reduce the bloodbath. Nothing like that. more cash flow things price of Air Traffic Fuel (ATF) so that For instance, during the summer airfare comes down a little more. months—the off season—rates go are expected to ease This will encourage more airlines to down. There is a dip in occupancy, but out arrive in eastern India and bring in later it just shoots up. It stabilises. more travellers and tourists.

How is demonetisation How can tourism and affecting the hospitality sector is still a virgin destination for tourists hospitality work in tandem? in the state and the rest of the from across the world. I believe all Bond between these two sectors have country? the north eastern states must get been strengthened by technology. A There is definitely an impact on the their act together and go for a com- traveller can now book her airtick- food and beverage business and bined marketing campaign to take et and hotel conveniently through banqueting. At least 15—20 per it to the next level. For instance, the a smartphone. She can find, book cent of the business has been hit. West Bengal government – I mean and pay with just a few taps on her But rooms—NO. Because most of the tourism department of the state— phone. These things also have helped our business is online these days. has been extremely active in the a lot to increase the business a lot of Payments are online. Corporate trav- space for the last few years. Perhaps both the sectors. ellers use plastic money and travel it’s been 20 times more aggressive cards. However, many low-end hotels than it had been before. The Beauti- So you think the year 2017 will still do a lot of cash transaction. ful Bengal campaign and the allied be a good one? Overall impact can be felt in the F&B developments have been spectacular. I think this is going to be a stable side in all categories. Now they have hired Shah Rukh However, as more cash is being Khan as their brand ambassador. year; there’s nothing to be sad. The dispensed the problems in the F&B They are also attending all important hospitality sector in Calcutta has sector is also going to be eased out international marts—trying to reach done on an average 68 per cent busi- soon. I hope in the next three months out to the global traveller. ness last year. City will maintain this there will be enough cash in the Some states in North Eastern India level. Mumbai’s figure is 74, Delhi, market. And we should come back to is doing this in pockets, but not as 65-64. We are like average. I am also normalcy on all fronts. aggressively as Bengal. I think all a bit more optimistic with the new the states—in the East and North banqueting facilities and the huge What is your general outlook in East—must get together to market conference venue in the city. More Eastern India, considering the themselves in a better way. For conferences will translate into more huge untapped potential in the instance, our MD Mr Vijay Dewan is business travellers. And they will North Eastern side? the tourism committee chairman of need more rooms to stay overnight. A large swathe part of Eastern India at Confederation of Indian Industries TheMICE segment is going to be hot.

MYSTIC EAST | 33 COVER STORY

GENDER GAP WOMEN’S RISE ON TOP Today, women form an intrinsic part of the hospitality enterprise’s operations. They’re breaking out of the paradigm and taking charge as some of the top officials of the industry

34 | MYSTIC EAST November - December 2016

HE hospitality experience There used to be If you’re tough enough, the world is would prove to be quite in- your oyster,” adds Walia. T complete, without the charm- a certain taboo Moreover, the UN World Tourism ing smile of a woman. It is undeni- in our country Organisation (UNWTO) has finalised able that women have excelled in this a broad-based action plan designed to sector not only in India, but all over regarding women highlight and uplift the role of women the world. The feminine touch indeed working in hotels. as employers, employees and travel- lends grace and elegance to the hospi- lers. At a forum convened at ITB Ber- tality industry. In fact, it would only A lot has changed lin in March 2008, a special UNWTO be fair to say that the industry today and we are now Women in Tourism initiative was holds more potential for women than started. This initiative is designed to ever before. waking up to the raise and maintain awareness about One might think that being a wom- need to have more the social and economic opportuni- an might be a disadvantage in a work ties that tourism can offer to women; arena where long hours, steep stress women working in stress the need for appropriate poli- levels and crisis management are hotels cy frameworks to promote women’s common place. However, women empowerment and protect women’s have come out trumps, and worked rights in tourism, and encourage the twice as hard to do a better job than public and private sectors to facilitate their male peers. Women now enjoy the achievement of gender equality prominent positions in what was once in tourism development. However, perceived to be a man’s domain. “Ho- regardless of these improvements, tels demand long hours because our women continue to be inequitably guests are arriving at all hours . This en have joined the workforce: 33 per hired, promoted and rewarded. specially happens when you are just cent in 1960, 43 per cent in 1980 and starting out in your career and that is 45 per cent in 1990. In 2003, 40 per The glass ceiling syndrome when most women drop out into their cent of the world’s 2.8 billion work- The glass ceiling syndrome refers to home keepers or an alternate career ers were women. Between 1995 and invisible artificial barriers that pre- . Moreover there used to be a cer- 2015, the global female labour force vent qualified women from advancing tain taboo in our country regarding participation rate decreased from within their organisations and reach- women working in hotels. A lot has 52.4 to 49.6 percent. The correspond- ing their full potential. Though this changed in the past two decades and ing figures for men are 79.9 and 76.1 term was popularised in the 1980s, we are now waking up to the need to percent, respectively. Worldwide, the when it became a significant concept have more women working in hotels,” chances for women to participate in in the United States, its application to says Ranju Alex, General Manager, the labour market remain almost 27 this day is apt. JW Marriott Kolkata and Multi Prop- percentage points lower than those The concept describes a tenden- erty Vice President, East India. for men. Since 1995, women’s em- cy for women to be over represented When ability, instead of your post, ployment in services has increased at lower levels of the industry, and commands respect, gender becomes from 41.1 percent to 61.5 percent. under represented at senior levels. irrelevant. It’s important to convince According to the ILO, women make Therefore, women must re-invent the your staff of your competence. That up over 90 per cent of all employees wheel and prove themselves time and done, being a woman makes no differ- in the catering and accommodation again, in order to make a mark in the ence,” adds T.S. Walia, vice president operations. It’s about time then to competitive industry. Federation of Hotel and Restaurant give women their due — acknowledge While women comprise almost half Associationn of india. and appreciate their contribution to the work force, the number of women the global travel and hospitality in- in mid-management level is still low. Shoulder to shoulder dustry. This is where the term glass ceiling Women are a growing part of the work “A hotel kitchen is considered to be comes from. The authors of the book force. According to an analysis of fe- primarily a male dominated place. It ‘Breaking with tradition: Women and male employment by the Internation- is probably one of the most stressful Work’, describe this phenomenon al Labour Office, over the past several places as well, but I think that gen- through the management pyramid decades, a larger percentage of wom- der biases belong in history books. by showing the representation that

MYSTIC EAST | 35 GENDER GAP

Women executives agree there is a lack of a level ground amongst the HR leaders in the industry

women have at different levels of premises shall during the hours in looking for a career in the hospitali- management in any industry. which such premises are kept open ty industry. They had challenged that for business, employ or permit to be section 30 imposed unconstitutional Gender bender employed either with or without re- restrictions upon the rights of wom- Although most top management and muneration, any man under the age en to pursue their profession in hotel decision makers in the industry have of 25 years or any women in any part management and other facets of the been increasingly sensitive to the is- of such premises in which such liquor hospitality industry. sue of women executives in the work- or intoxicating drug is consumed by Women executives today agree place, they remain hesitant in chang- the public.” However, what is of in- that there is a lack of a level ground ing the corporate profiles of their terest is that the bar on women got amongst the HR leaders in the indus- top management to reflect a greater struck down as being unconstitution- try. However, their claim is that the diversity of thinking and building an al, when the Delhi High Court decid- increased pressure on them to per- innovative mix of professionals. ed the case Hotel Association of India form only makes it more interesting. According to section 30 of the Pun- and others vs. Union of India on Jan- “Every career can be challenging to jab Excise Act, 1914, “No person who uary 12, 2008. a woman, but it is up to you to step is licensed to sell any liquor or intox- Two of the petitioners of this case up to the occasion and work past the icating drug for consumption on his were graduates of hotel management, biases,” says Vinaay Malhotra, vice

36 | MYSTIC EAST November - December 2016

gender of the employees. However, it is interesting to note that low-paid and part time workers are women, more often than not. It is a misconception within the in- dustry that women have a preference for part time work and are willing to accept jobs that provide them less than subsistence wages. In fact, when it comes to women, the hospitality industry is notorious for high labour turnover levels. The gendered categories of occupa- tions are those prescribed by patriar- chal perceptions. The social dynamics which reinforce the recruitment to and the exclusion from these occupa- With changing times the traditional gender roles have undergone a tions are what make women the nur- relative change turers and men the patriarchs. It is the done thing in our patriarchal society, if men do not spend as much time as women on domestic chores. president, Hotel and Restaurant As- the woman in question seemed to be However, with changing times, the sociation of Esatern India (HRAEI). considerably aware that she was sub- traditional gender roles have also un- Women perceive sexual harassment scribing to stereotypical behaviour dergone a relative change. Men today in the work place as an ongoing prob- as part of her job. Although she was actively support the female counter- lem. Women are sometimes forced not particularly comfortable with this parts in their families to work out- to leave the hospitality industry due idea, it was clear that the customers — side the house. However, according to gender discrimination and sexu- instead of her — were the ones being to a study on ‘Women’s Perceptions al harassment. Sexual harassment taken in. of Glass Ceilings in Private Organ- is simply not just about the employ- Caring for the comfort of others, isations’, this may well not be true. ment decisions based on an individ- preparing and serving food are quint- While a majority of men (40 per cent) ual’s acceptance or rejection of sexual essentially gender-based stereotypical claimed that they were supportive of advances. It also includes constantly ‘women’s activities’. These activities their wife’s occupations, only 21 per being present in an environment of call for the exercise of implied skills cent women accepted that their hus- flirtatious and suggestive advances, widely assumed to reflect the ‘inher- bands were supportive of their career and a casual attitude towards respect- ent aptitudes’ possessed by women. choices. It is no wonder then, that on ing the other. The cultural mindset in a country an average women take much longer However, it’s interesting to note like India is that of a male dominat- compared to men to grow within the that women have smartened up to- ed work environment. Sometimes, industry. day. “They recognise that it is all a this is also considered as the reason part and parcel of their job, and on for a wage gap between male and fe- The juggling act their part probably only play acting, male employees in the industry. Low- Women in the industry are constantly rather than real life,” says Sylvia H er wages account for the movement faced with work-family conflict. Hos- Chant, in her book, ‘Women of a less- of women to better paying and more pitality management is not a nine- er cost’. She explains with an exam- ‘respectable’ professions and higher to-five job. Success in the industry ple: A waitress who has just finished paying fields. demands long hours, a great deal of an embarrassingly lengthy conversa- The concept is also closely related stress management, and problem tion with a group of middle aged men, to the employers’ perceptions of eco- solving. Their commitment to fam- turns around, gives me a wink, and nomic advantage, rather than gender ily and children has hampered the exclaims ‘these men are all the same’. preferences. They want cheap work- growth prospects of women in the It’s obvious from this scenario that ers and are not bothered about the past. However, women are juggling

MYSTIC EAST | 37 GENDER GAP

Percentage of women employees sional backwardness in this industry, most women will not let family be an across the organisation obstacle to their careers. Changing tradition Senior ( (1.6%) Women = 3% Thus, if women are addressed by pol- Management icy and programme, their presence as the major contributors to growth in industrial production and house- hold savings is recognised, and their participation ensured in the design- Upper (10.9%) Women = 11% ing aspect of planned development Management of the sector, it would strengthen the achievement of the overall objectives of growth that this industry has set for itself. Women in the sector are changing Middle (29.7%) Women = 26% perceptions and age old ideas that Management the hospitality industry is not a ‘de- cent’ sector to be in. To survive in this industry, a woman needs to more than just good looking and charming. Hence they are welcoming every chal- Entry-Level (57.8%) Women = 50% lenge. They meet interesting people Management from a wide range of backgrounds, observe their behaviour at a close range, and thus make more critical both comfortably. assessments of their own positions. Unlike in the west, most women in They use the opportunities they get to India don’t even get adequate mater- travel around the world, and expose nity leave; nor do they have access themselves to new environments. to good crèches and conveniences. Women have now understood that if Nonetheless, the spirit of the Indi- they prove their mettle, they have a an working woman is salute worthy. great scope for promotion within the Women in India leave home early, Today’s woman industry. and manage work shifts as well as expects no Says Ms Alex, “Women have a nat- household chores. ural charm and grace which fits well “The key to the cycle lies in effective concessions on the for this profession . Marriott Interna- use of one’s time. From there on, it just basis of gender. tional has taken a lot of steps to en- takes care of itself,” says Walia. The sure that more women join our work- need of the hour is to understand as She believes that force.” employers that both men and women the pathway to Today’s woman expects no conces- bring different qualities to the table. sions on the basis of gender and has Every individual is different, so clas- success for men as made light work of glass ceilings. She sifying them on the basis of gender is well as women is believes that the pathway to success also not fair. It’s all about igniting the for men as well as women is paved spark of leadership in each employee. paved with talent, with talent, hard work and ambition. There prevails today a positive atti- hard work and The fast paced industry is no less than tude towards women’s advancement a gladiatorial arena, complete with and professional growth. Though the ambition competition and theatrics and women socio-cultural set up of our society has are showing that they are as tough, if played a large part in women’s profes- not more, than the boys.

38 | MYSTIC EAST CONTROVERSY WATCHDOG ON A ROLL After cracking down on noodles and milk, central food safety watchdog FSSAI is now turning to alcoholic beverages with plans to set up standards for drinks including beer and whiskey

MYSTIC EAST | 39 CONTROVERSY

FSSAI states that the ethyl alcohol in alcoholic beverages shall be of agricultural origin

OOD Safety and Standards Au- shall be of agricultural origin. to be credited for these standards as thority of India (FSSAI) recent- The draft mentions the two pro- they are well drafted giving specifica- F ly released the draft standards cesses through which beverages can tions of each type of the alcoholic bev- for alcoholic beverages wherein it de- be obtained - distilled and undistilled, erage and further narrowing down to fines each type of beverage and cites where distilled means a distilled bev- the sub-types of each of them. The FS- separate regulations for them. The erage, spirit, or liquor containing eth- SAI has given time to the stakeholders draft also touches upon the process anol that is made by distilling ethanol to give their views in this regard be- through which a beverage can be ob- produced by fermentation of cereal fore October 9.” tained. grain, fruit, vegetables, molasses or “The labelling requirements spec- While defining an alcoholic bever- any other source of carbohydrates. ified in the draft have also asked to age, the draft states, “Alcoholic bever- The undistilled means fermented un- state standard drinks that the pack- age means a beverage or a liquor or distilled alcoholic beverages such as age or container could make and also brew containing more than 0.5 per beer, wine, cider and toddy. specify allergens for some types of cent ethyl alcohol (ethanol) by vol- A N Panchal, food safety officer, alcoholic beverages,” added Panchal. ume/ volume as the active agent.” It food department, Rajkot Municipal The draft identifies and defines var- states that the ethyl alcohol used in Corporation, said, “FSSAI has done ious kinds of alcohol such as brandy, the production of alcoholic beverages its job well. The scientific panels have cognac, whisky (bourbon, Irish whis-

40 | MYSTIC EAST November - December 2016

4.2 Depending upon the ethyl alco- hol content specified in Table-3, Beer can be classified under following four types: 4.2.1 Light – (0.5 to 4%) 4.2.2 Standard – (4.1 to 5%) 4.2.3 Strong – (5.1 to 6%) 4.2.4 Super strong – (6.1% to 8%) 4.3 Beer shall be of following types: 4.3.1 Lager: Lager beers are prepared by using bottom fermenting yeast and aged; may have low or high alcohol content and can be found in a wide variety of colours from light to dark. It is stored for a specified period before being bottled or canned. 4.3.2 Pilsner: A type of lager beer which is light with 3.0–3.8% alcohol and has a medium hop flavour. 4.3.3 Ale Beer: Prepared by us- ing top fermenting yeast and usually lighter in colour, prepared from pale malt and has a medium bodied fla- vour. 4.3.4 Stouts and porters: These are dark beers made using roasted malts or roast barley, and typically brewed with slow fermenting yeast. Page 13 of 21 4.3.5 Root beer: These are beers Ensuring chef-guest interaction has become an important criteria while containing an infusion of various roots, bark and herbs. 4.3.6 Draught Beer: Beer with all types (lager, ale, stout, pilsner etc.; mild and strong beers) may or may ky, single malt, blended malt, Scotch label in any manner while the FSSAI not be pasteurized and shall comply in detail) gin, vodka, fenny and ar- logo and licence number is also man- with the requirement as specified in rack. The draft widening its scope has datory. Table -4. even laid down standards for various 4.3.7 Flavoured Beer: It is a country spirits. SAMPLE CLASSIFICATION beer-based beverage with added nat- Further, with regard to labelling, Standards for Beer ural or nature identical flavours. the draft demands mention of the 4.1 Beer: It is an un-distilled alco- 4.3.8 Blended beer: It is a beer- number of standard drinks, best be- holic beverage made from any malt- based beverage blended with small fore or use by date. ed grain, but commonly from barley quantities of spirits in any form to get In case of imported alcoholic bev- malt, with hops or products obtained unique flavours. erages, the information regarding from hops to impart a bitter flavor 4.3.9 Irish beer: The beer pro- the name and address of the import- and sometimes added with adjuncts duced in Ireland is known as Irish er shall be allowed to be affixed in like wheat, maize, corn rice and sugar. beer. It can be either lagar, stout or the custom bonded warehouse in Beer may contain additives permitted ales type. the form of an additional sticker in under the Food Safety and Standards 4.3.10 Wheat beer: It is brewed a manner that it does not overlap or (Food Products Standards and Food with a large proportion of wheat cover the original information of the Additives) Regulations, 2011. although it often also contains a

MYSTIC EAST | 41 CONTROVERSY

significant proportion of malt- 2.8 Whisky/ Whiskey 2.8.3 Irish Whisky: The whisky ed barley. Wheat beers are usually Whisky is the alcoholic beverage distilled in Northern Ireland or in the top-fermented. Wheat provides a soft made from neutral grain spirit, or rec- Republic of Ireland as Irish whisky in character to beer and is sometimes tified grain spirit, or neutral spirit or accordance with the laws applicable hazy or cloudy with a touch of spice their mixture or is made by distilling thereto in Northern Ireland or in the notes. the fermented extract of malted cere- Republic of Ireland. al grains such as corn, rye, barley; or 2.8.4 Malt or Grain Whisky: 1.4 Other Requirements: molasses. It shall be with or without It is the alcoholic distillate produced 4.4.1 It should have clarity with char- caramel colour or additives permitted from fermented mash of malted or acteristic colour, taste, bouquet and under the Food Products Standards & unmalted cereals or a mixture of both form of its type. Beer shall be bottled Food Additives Regulations, 2011. It with or without other natural en- canned or kegged and effectively pas- shall be any of the following types: zymes. It should have a distinct aro- teurized. 2.8.1 Bourbon: It must be made ma and taste derived from the natural 4.4.2 Beer shall be free from chlo- in the USA in accordance with laws volatile principals already present in ral hydrate, ammonium chloride, applicable thereto and may not be the raw materials or formed during diazepam, paraldehyde and/ or any distilled to more than 80 per cent fermentation. Malt whisky is made other types of narcotic, psychotropic alcohol by volume from a fermented primarily from malted barley and substances* including caffeine which, mash of not less than 51 percent corn Grain whisky is made from any type when mixed with alcohol, are injuri- and must be stored at not more than of grains. ous to health. 62.5 % alcohol by volume for at least 2.8.4.1 Single Malt Whisky: It 4.4.3 It shall be free from coliform two years in charred, new oak barrels. is the alcoholic distillate produced and other pathogenic microorgan- 2.8.2 Rye whisky: It shall be from fermented mash that uses only isms. whisky distilled in Canada/USA as in one particular malted grain or malted 4.4.4 Beers shall comply with the accordance with the laws applicable barley, distilled in port still only and requirements as specified in Table-3. thereto in Canada/USA. produced from a single distillery. 2.8.4.2 Blended Malt or Grain Whisky: It is a mixture of at least 2 per cent malt or grain whisky with whisky or it is a mixture of single malt whiskies. Blended whiskies are typi- cally made from a mixture of malt and grain whiskies often along with neu- tral spirits/rectified sprit, caramel, and flavouring. 2.8.5 Scotch Whisky: It is dis- tilled and matured in Scotland in ac- cordance with laws applicable thereto in Scotland. 2.7.5.1 Blended Scotch Whis- key: It is a mixture of Scotch Whis- kies in accordance with laws applica- ble thereto in Scotland. 2.8.6 Tennessee Whisky: It shall be a straight bourbon whisky produced in the state of Tennessee in accordance with the laws applicable thereto in Tennessee. 2.8.7 Vatted Malt Whisky: It is blended from malt whiskies of differ- ent distilleries. 2.8.8 Other Requirements: The draft identifies and defines various kinds of alcohol 2.8.8.1 Whiskies shall have the

42 | MYSTIC EAST November - December 2016

Highlights

Rum when labelled as “matured” shall be blended with rum spirit matured for not less than six months in oak vats or barrels. Brandy when labelled as "matured" shall be matured for a period of not less than one year in oak vats or bar- rels. It shall possess the characteristic aroma and taste of brandy. In case of package containing more than 10 standard drinks, accurate to the nearest whole number of stan- dard drink. The label of a package of a beverage containing more than 0.5 per cent alcohol by volume must not include the words ‘non-intoxicating’ or words implying similar meaning. An alcoholic beverage which contains more than 8.0 per cent alcohol by It is an undistilled alcoholic beverage made from any malted grain volume shall not represent as a “low alcohol beverage.” Alcoholic beverages which have characteristic taste and aroma. To from chloral hydrate, ammonium less than 10 per cent. alcohol shall enhance the characteristic flavor of chloride, diazepam, paraldehyde mention the date, month and year of the product, natural/ nature iden- and/or any other types of narcotic, expiry on the label, in that order and tical or artificial flavor permitted psychotropic substances* including preceded by the words 'Expiry date' by the Food Safety and Standards caffeine which, when mixed with al- or 'Use by.' However, the manufac- (Food Products Standards and Food cohol, are injurious to health. Additives) Regulations, 2011 may 2.8.8.5 The ethyl alcohol content turer may use the expression 'Best be used except in case of single malt of Whisky shall be in the range of 36 before' as optional or additional whisky. to 50 per cent by volume at 20 degree information. Wines stand excluded 2.8.8.2 Malt or Grain whisky, C when determined according to the from this regulation. when labelled as matured, shall be method prescribed in FSSAI Manual matured for a period of not less than of Method of Analysis of Food 2015 This move by FSSAI has expanded its one year in wooden oak, wooden - Alcoholic Beverages. The tolerance regulatory ambit to another direction vats or barrels. limits for ethyl alcohol content shall which will help bring in clarity. 2.8.8.3 Blended malt whisky, be + 3.0 per cent by volume of the when labelled as matured, shall con- declared strength. tain malt or grain whisky matured 2.8.8.6 The water used for dilu- for a period of not less than one year tion to bottling strength should be in oak vats or barrels in the blend. as per IS 10500. 2.8.8.4 Whiskies shall be free 2.8.8.7 It shall also conform.

MYSTIC EAST | 43 TAXATION A big blow? Or, a soothing balm? The hospitality, travel and tourism sectors are still pondering over the impact of GST

44 | MYSTIC EAST November - December 2016

HE Constitution (122nd The service tax tourism industry. Simultaneously, we Amendment) Bill, 2014 known are keen to spread awareness on this T as Goods and Services Tax got operational new policy among our members.” (GST) Bill got passed by the Rajya way back in 1997 Travel agents hope that GST will sabha on August 3, 2016 and went do away with the multiple taxes that on to for final approval to the lower and we are still are levied on them. Unlike the time of house. Presently, the bill is being rat- struggling service tax introduction, they expect ified by the states (till date 21 states there will be clarity in understanding have done so). The bill is likely to be- with consultants in the bill, reasonable tax rate and the come law by April, 2017. The Indian understanding the tourism sector will be conferred on Government has brought GST return the export status. filing forms to disclose in front of pro- abetment procedure fessionals. which is why there Apprehension Now, let’s see the impact it could “The service tax got operational way make on the hospitality and tourism are a number of back in 1997 and we are still strug- Industry. As per the highlighted draft cases still pending. gling with consultants in understand- GST Bill, the definition of Export of ing the abetment procedure which is Services does not includes the tour- We don’t want the why there are a number of cases still ism and hospitality sector. Therefore, same story to be pending. We don’t want the same sto- the definition needs to be updated in ry to be repeated,” said one agent. order to showcase the benefits on the repeated Federations have have highlighted hospitality and tourism sector. the above concerns and will be ap- The tourism and hospitality indus- proaching the government soon with try has pointed out amendments to specific solutions. As a leading trade the draft Goods and Services Tax law association, our major action would that supports exception for tourism Right direction be to understand the bill once it is fi- and hospitality businesses, and put Sudesh Poddar, President of Hotel nalised. We also hope that the govern- them under 6-8 per cent tax slab just and Restaurant Association of Esatern ment empathises with the much talk- similar to other countries. Several India (HRAEI) has called it a step in ed about travel and tourism sector. federations representing the indus- the right direction and further adds, The hopes are high and the common try has been in talks with the finance “We are a segment of the economy refrain is that the multiplicity of taxes ministry and governments of various which is overtaxed and we are paying would be reduced. As of now the law states on the GST draft law. high double-digit tax at various levels. is being amended and it is too early Says an industry captain, “We are If the government wants our sector to to talk about what effect it will have the sounding board of the govern- be a high driver of growth, then it is on the inbound tour operators, most ment for the sector and we feel the time to think differently. Tourism and believe. “We believe it will stream- single biggest game changer in tour- travel cannot be perceived as luxury line the tax regime for good. We hope ism will be GST. It is therefore im- anymore.” things to get better in our domain as portant for us to make the govern- It is also being said that the unified multiple taxes will be a thing of the ment realise how important it is and taxation system under the GST re- past. Now on, collectively as the pre- at what slab we are put in. We are gime will work under the ‘One Nation mier association of domestic tour op- therefore doing a lot of work around One Tax” notion. After the implemen- erators we will try to understand and GST.” tation of GST, the GDP is expected to analyse its repercussions on our seg- In addition to the proposed VAT improve by up to 2 percent and India ment and will make appropriate rep- and luxury tax which currently have a will be seen as a single market. resentation if needed,” says a leading set off in the draft law, the federations’ Says Pranav Kumar Singh, sec- travel agent. other demands include a GST set-off retary, HRAEI, “GST Bill has been Aviation Turbine Fuel is currently which subsumes inter state levies on passed in the Rajya Sabha but we need treated separately from other petro- transportation, state electricity cesses to figure out on how it will connect the leum products for claiming modvat and liquor tax, and making an excep- service tax to GST. Now the onus lies credits and if ATF is not brought un- tion for the sector in the classification on us to understand the bill and what der the GST regime there would be of export services. effect it will have on the travel and substantial cost impact on ATF used

MYSTIC EAST | 45 TAXATION

registration under the GST regime as is the case with service tax registra- tion presently. “The much anticipated passage of the GST Bill brings in a new era in fis- cal reforms in India. Tax rates across various states will be uniform. The consumer will benefit from lower tax- ation, as there will be no tax on tax at different levels. Input credit on GST ushers in a whole new world of taxa- tion,” says T.S. Walia, a senior mem- ber of HRAEI. Some captains of the industry be- lieve it is going to be one of the big- gest pillars of reforms which will take up India’s ranking in ease of doing business by several notches. This will impact e-commerce players and ag- gregators too. With the facility of winding up the individual taxation system into a single entity, the new optimised tax system will help in enhancing the business running in the country. The consequences could be seen after the core implementation of the GST next year. Under the GST regime, it is believed 15X year-on-year growth sounds too good to be true that various cost components of the tour and hotel services will be includ- ed in single tax. This will reduce the cascading effect and benefit the trav- Exhibit 1: Indirect taxes pertaining to the Hotel Industry ellers. The credit will flow through the On Rack rate Tamil Nadu B2B supplies and will be made com- Rate Amount in Rs. pletely transparent. However, for this Rack rate - 7,000 benefit to play out effectively, it is nec- Actual rate paid [A] - 5,500 essary that all the B2B supplies are Luxury Tax [i] 12.5% 875* made fully creditable and the credit Service Tax [ii] 9.0%@ 495# flow is seamless across the states. Total taxes [B=i+ii] 24.9% 1,370 Benefits to all Gross bill payable [A+B] 6,870 Hospitality and luxury industry ex- GST #18% perts have said implementation of Reduction under GST 7% the goods and services tax (GST) will Source: ICRA research; * Luxury tax computed on rack rates; # service tax on actual tariff; @ includes 40% abatement benefit the sectors by lowering costs Other similar States include Delhi, Gujarat, Andhra Pradesh for consumers and facilitating seam- less movement of products across the country. in our member aircraft due to cascad- er compliance cost, network indus- According to experts, companies ing duties leading to price increases. tries like express industry, banks, etc. specialising in food and beverages There is also hopl that in order to low- will only need to do single centralised operations could be the biggest bene-

46 | MYSTIC EAST November - December 2016

Exhibit 2: Indirect taxes pertaining to the Hotel Industry On Actual rate Maharashtra Kerala Rate Amount in Rs. Rate Amount in Rs. Rack rate Not Applicable Not Applicable Actual rate paid [A] 5,500 5,500 Luxury Tax [i] 10.0% 550 12.5% 688 Service Tax[ii] 9.0% 495 9.0% 495 Total taxes[B=i+ii] 19.0% 1,045 21.5% 1,183 Gross bill payable[A+B] 6,545 6,683 GST #18% #18% Reduction under GST 1% 3.5% Source: ICRA research

Exhibit 2: Indirect taxes pertaining to the Hotel Industry Tamil Nadu/Kerala Maharashtra/Delhi Rate Amount in Rs. Rate Amount in Rs. Food & beverage bill[A] 14.5% 123 12.5% 106 Service Tax[ii] 6.0% 51 6.0% 51 Total taxes[B=i+ii] 20.5% 174 18.5% 157 Gross bill payable[A+B] 1,024 1,007 GST #18% #18% Reduction under GST 1.5% 0.5% Source: ICRA research# indicative rate

Exhibit 4: Indirect taxes pertaining to the Hotel Industry single tax structure. This allows states to have their own taxes without a cap State Taxes Central Taxes with separate accounting require- ments and results in double compli- ance for the restaurant industry. This Value Added is neither beneficial for 'Ease of doing Luxury Tax Service Tax Customs duty Tax (VAT) business' nor for the customers. According to a projection by cred- it rating agency ICRA, GST will be Excise duty Entertainment on liquor and Excise duty neutral to marginally positive for the Tax tobacco Indian hotel industry, depending on the state and service provided. The Source: ICRA research projections also show banquets will become cheaper and impact on room revenues and restaurants largely neu- ficiaries of GST within the hospitality taxations. NRAI has been advocating tral. sector. Food and beverages bills have for reduction / simplification of the Everybody likes consolidation of multiple components and can inflate same. We Welcome the Centre's move taxes as it leads to greater transpar- the bills by 30-35%. A single-slab tax for introduction of this much awaited ency and will help guests and buyers will benefit consumers and should reform. We would need to look at the understand overall costs. Some states lead to savings of 10-15% on the over- GST details as and when finalised, have luxury tax and that impacts all bill, However, liquor should be includ- room rates. If India aspires to be com- The restaurant industry has been ed in GST. Exempting it defeats the petitive, then the tax structures too burdened with high and multiple very purpose of bringing in a uniform need to be competitive.

MYSTIC EAST | 47 INTERVIEW

NOSTALGIA ON PLATTER

XECUTIVE Chef Atin Das planned the puja platter at The Pride Hotel, Kolkata, keeping nostalgia in mind. “Bengalis are E nostalgic about everything—their culture, literature, politics and food. So while planning the puja menu I included recipes from the past. Especially some of these have been recreated from the age of Bengali renaissance.” Thakurbarir Panchmisheli is a mixed veg- etable dish taken from the kitchen of the famous Tagore family in Jorasanko. Rajnandini Pulao is another one revoking Zamindari tastebuds. The buffet serves a different type of pulao every day. The kachuri and potato combination also changes daily. There are four non-veg- etarian items, including prawn and a fried fish. A traditional savoury like Dimer Devil, Fowl Cutlet or Fish Kabiraji are also served. “I adapted this recipe from central Kolkata restaurants like Basanta Cabin. Very few star hotels serve these.” Even the dessert section has a lot of variety with five items. Hi- ramanik is a dessert created out of cottage cheese and khoya kheer. Doodh Puli and Kheer Mohan were also on offer on differ- ent days."These items too will remind a foodie of yesteryears when these items were household dish in Bengal," he told. Das started his career at Radisson Blu, New Delhi, after having graduated from IIHM, Chennai. He was a member of the 'opening team' in 1996. After a four year stint there, he joined as founding member of a few other hotels like Hyatt Regency in Kolkata. He's been at The Pride Hotel, Kolkata, for the last two years. His Durga Puja platter during five days of the celebration has been a big hit. He shares a unique recipe with the Mystic East team.

RECIPE: GHATE BHAPA CHINGRI INGREDIENTS • Marinate prawn with salt, turmeric • Leave it for ½ an hour Prawn -- 200gm • Make a mixture of mustard paste, Mustard seeds -- 45gms curd, green chilly paste,salt,turmaric Green chilly – 5gm and mustard oil Mustard oil -- 30gms • Mix marinated prawn with this mix- Curd -- 50gm ture and leave for 2 hrs Salt -- to taste • Then place prawn along with mixture Turmeric powder -- 2gm in earthenware pot and place in a tray with little water METHOD • Place tray in moderated hot oven for • Wash prawn and peel prawn with the 30mins tail and head on • Garnish with green chilly slit • Give a slit on the back to take out • Special Note:- Prawns with intense vain earthy flavour, cooked in mud-pot.

48 | MYSTIC EAST

STATE SURVEY: MIZORAM

Aizawl is a It is a beautiful and bustling city set on ridges of steep hills

THE LAND OF BLUISH HILLS Mizoram has a huge potential that waits to be tapped by the tourism and hospitality industry

50 | MYSTIC EAST November - December 2016

IZORAM is a mountainous cassion celebrated with much gusto. famous for its production of fibreless state nestling in the south- The most popular dances of Mizoram ginger which thrives well in the state. M ern tip of the north-eastern are Cheraw (Bamboo Dance), Khual Paddy, maize, mustard, sugarcane, region of India, sandwiched between Lam (Dance for Guests) and Chheih sesame, potatoes and grapes are the Myanmar and Bangladesh. The Trop- Lam (Dance of Joy). main crops produced in the state. ic of Cancer runs through the heart The Mizos are a gregarious, sim- The young state of Mizoram is eco- of the state. Mizoram has a pleasant ple, carefree and peace-loving people. nomically weak and is entirely de- climate throughout the year, and is a Since the days of the chieftains they pendent on its agriculture. Inefficient land of great natural beauty having have always been a close-knit society infrastructure and poor connectivity rich variety of flora and fauna. The with moral values based on Tlawmn- are the major deterrents for tourists. scenic landscapes of bluish hills and gaihna, or essentially, selfless service The entry permit formality for both mountains, steep rocky cliffs, serene for others, a rare principle which goes domestic and international tourists is lakes and deep valleys of gurgling well with Christianity. another hurdle for tourists. However, rivers with its spectacular waterfalls the State Department of Tourism has makes the state an ideal destination Social Life developed satisfactory tourist facili- for nature lovers. The fantastic ar- There is practically no status or class ties, within a short span of its activ- ray of wildlife especially the bird is distinction amongst the member of ity. The state has excellent potential an added attraction. To the more ad- the Mizo society, enabling even a for tourism development with em- venturous spirit, the rugged terrains fourth-grade emplyee of the govern- phasis on eco-tourism and adventure and swift flowing rivers are ideal for ment to chair a social gathering or a tourism. However the success of its various outdoor sports and adventure church service attended by officers tourism highly depends on the infra- activities. of high ranks, the privilege being structure development of the entire accorded to any active volunteer or Northeast region. The People worker. Moreover, the local commu- Agriculture is the major occupation Mizoram is the land of the Mizos or nities, now largely represented by the of the people of Mizoram. Shifting the Highlanders who belong to the Young Mizo Association, voluntarily cultivation (Jhumming) is pre-dom- Mongoloid race. The Mizos are divid- assume the resposibility of helping inantly practiced in Mizoram, which ed into several sub-tribes, viz. Luseis, the needy and the poor. The Mizos are has degraded the natural forests of Lais, Maras, Kukis etc. , each of which proud to say that hardly any beggar is Mizoram to a very large extent. Pres- have their own customs, social prac- to be found in the streets. ently, efforts are on to wean away the tices and dialects enriching the tribal Endowed with a rich and colourful farmers from the destructive practice cultural heritage of the state. Though culture, the Mizos are passionately of Jhumming and to adopt new and animism was the traditional religion drawn to dance and songs. They have sustainable agricultural practices. of the Mizos, most of them have now a rich repertoire of community danc- The state situated in the transition- embraced Christianity which the es and songs reflecting their mirthful al region of tropical and temperate Christian missionaries have propa- nature which has been handed down environment is also bestowed with gated to them along with formal ed- for generations. In fact, the Mizos are hills having steep slopes, deep valleys, ucation which eventually resulted in a singing community and still prolific rivers, natural lakes, plains etc. thus the Mizos becoming one of the most with new songs and Christian hyms creating varied ecosystems in a rela- literate communities in the country. to this day. Festivals, weddings, tively small region. Though mostly Christians and great- death of a person and calamity are The forests of Mizoram could be ly influenced by the Western lifestyle, occassions involving the whole vil- broadly classified as: the Mizos cling to their rich cultural lage community. North – Tropical Wet Evergreen For- heritage, colourful customs and lively est traditions. The festivals and dances of Economy South – Tropical Moist Deciduous the Mizos have a unique tribal flavour. Agriculture is the main occupation of Forest Other than Christmas and New Year's the Mizos who practice jhum or shift- East – Subtropical Pine Forest (mixed Day which are the most popular festi- ing cultivation. The government has with broad leaved species) vals, Chapchar Kut, a festival marking now introduced new and modern- However, for a state like Mizoram, the end of the laborious clearing of ized systems of cultivation with the which is blessed with natural resourc- jungles for the year's cultivation during intention of weaning the people over es, any attempt of socio-economic de- the first week of March, is another oc- to permanent cultivation. Mizoram is velopment has to be considered with

MYSTIC EAST | 51 STATE SURVEY: MIZORAM

Palak lake is the largest natural lake in Mizoram

utmost concern for the natural envi- financial assistance from the Ministry achieved a commendable record. The ronment. And considering this factor of Tourism, Government of India. name ‘Mizoram’ has been brought to alone agriculture and tourism could The Department’s main thrust the notice of the traveling crowd, both be the best alternatives for the bright area has been the construction of domestic as well as foreign travelers. future of Mizoram. basic accom- modation for Tourists The Department with its limited al- visiting the State and development location of fund has performed to the Tourism of recreational facilities for tourists. best of its ability in promoting Tour- Mission & Vision: The Department In addition to this, the department ism. It has been working in making of Tourism, Government of Mizoram has been running the various Tour- the State, Mizoram as the next des- was bifurcated from the Department ist Lodges and Highway restaurants tination of the new millennium. The of Information and Public Relations in the State, meeting the demands of rich and diverse cultural heritage, only in 1987. Its main function has accomodational needs of the Govern- the abundance of flora and fauna, the been development of tourism and its ment as well as the general public and possibility of development of Wild- allied activities and building basic in- the Tourists visiting the State. The life Tourism and the development of frastructure for Tourists. The Depart- Department has now completed 42 Adventure Tourism, makes Mizoram ment has a Directorate but no District Tourist Lodges and Highway Restau- very attractive to the Tourism sector. office in the State. From its inception, rants, which are being managed by Tourism development: The Depart- it has been concentrating in building the Department. ments main function is development tourist infrastructure for accom- mo- In spite of limited Officers and Minis- and promotion of Tourism in the dation as well as recreation facilities. terial staff as well as operational staff for State. Mizoram has been a late starter It has developed a number of Tourist manning these various Tourist Lodges in the field of Tourism. As mentioned Lodges, Highway Restaurants and and Highway Restaurants, the Depart- earlier, it was bifurcated from the De- Picnic spots all over the State through ment has within a short period of time, partment of Information and Public

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Government of India has financed 74 schemes under different categories. These are: The Department has in its 23 years of existence achieved a lot, given the time and resources available. It has developed a substantial number of fa- cilities for tourist. As far as infrastruc- ture is concerned it has constructed 42 units, which are functioning. It has a number of projects that are at vari- ous stages of completion.

Places of Interest Aizawl: The capital of Mizoram, is situated at about 1132 meters above sea level. It is a beautiful and bus- tling 112 years old city set on rigdges of steep hills. Flanked on the north by the craggy peaks of Durtlang, the hill city overlooks the valley of the river Tlawng and ranges of blue hill beyond. It is arilinked by daily flights from Kolkata and Guwahati. It is connected to Imphal by air and it ac- cessible from Shillong, Guwahati and Scenic landscapes are an ideal destination for nature lovers Silchar by road. Champai: This is a commercial town located near Myanmar border, Relations only in 1987. inclination for hotel jobs and are also 194 kms from Aizawl. Set on an alti- Only then did it start development tourist friendly. tude of 1678 metres, the town over- of Tourism in Mizoram. The main Infrastructure: The department looks a patch of flat land which hap- function, as of to- day, is in the field has developed various tourist Lodg- pens to be the largest plain area in the of development of basic accommo- es, Highway Restau rants and Picnic state and also commands a good view dation infrastructure and recreation Spots in and around Mizoram. The of the adjoining hill ranges of Myan- facilities within Mizoram. It has been mar from which the forefathers of developing these various tourist facil- the Mizos immigrated ages ago. The ities through the liberal financing of breezy hills around here are lush and the Ministry of Tourism, Government strewn with beautiful rhododendron of India. blossoms. Within a few kilometers Management of tourism: The De- Nature lovers are away are some villages of historical partment has been running and man- attracted by the significance where the age-old Mizo aging the various Tourist Lodges and way of life is still preserved. Highway Restaurants in the State. great variety of The town is 27 kms from Zokha- These facilities has been manned and wildlife to be found wthar, the border township through managed by trained professionals which the Indo-Myanmar trade is be- from the field of Hotel Management in this remote ing conducted and hence Champhai from various Catering Colleges in In- area adjoining the is an ideal shopping place for various dia. In addition to provide employ- imported goods. The town is also a ment to hotel professionals, it has Myanmar forests convenient base for trekking and vis- also managed to providing employ- iting landmarks and historical places ment opportunities to locals who has in the vicinity including Rih Dil, the

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Palak Lake: This is the largest nat- ural lake in Mizoram and is situated near Phura village which is about 391 kms to the south of Aizawl. Oval in shape, it covers about 1 sqkm and is surrounded by lush virgin forests rich in flora and fauna. Legends abound the origin of the lake. One version says that before the lake was formed, there used to be a big village here and a large serpent lived in a cavern in the vicinity and occasion- ally stole the villager’s livestock. When it started stealing their children, the villagers decided to kill the serpent. Using a huge fish hook and a dead goat for bait, they managed to catch and kill the serpent and distributed its meat to every household for dinner. That night strange things began to happen. A wid- Chap char kut, the most important traditional festival, is held in March ow living with her two children got the serpent’s head as her share and started cooking it in a big pot. After sometime, legendary lake located 5 kms within observe the indigenous weaving tech- when she looked into the boiling pot, Myanmar which is associated with the niques of the Mizos here and obtain she found that the eyes of the serpent Mizo Animist religion of yore. Mizo handlooms at bargain prices. was blinking, rolling and watching her. Lunglei: This is the second largest Other tourist attractions at Thenza- Frightened and horrified, she threw city of Mizoram and is also the head- wl include Vantawng Waterfall which out the pot with the serpent’s head still quarters of Lunglei district in South- is located at a distance of 5 kms south inside it. Later on, she heard strange ern Mizoram. It is an ideal base for of Thenzawl, Thenzawl Deer park noises and ran out of the house to find nature lovers for exploring the sur- which has several deer in its natural her doorsteps being flooded with water rounding areas which are rich in flora environment and Chawngchilhi Cave. which continued to rise. She took her and fauna, hamlets and landmarks Vantawng fall: Located at a distance children and ran away just before the linked with folklores and legends. A of about 137kms from Aizawl, Van- water submerged the whole village. All 175 kms drive from Aizawl, Lunglei is tawng khawhthla or Vantawng Fall is the other inhabitants were drowned loftier than Aizawl, perched at an alti- the highest and most spectacular of all while they were sleeping and the water tude of 1222 metres. An engraved im- the waterfalls and cascades in the fast formed a wide lake that has come to be age of Buddha found near Mualcheng flowing rivers of Mizoram. It is located called Palak Dil. village, about 50 kms from the town in Vanva river near Thenzawl and is Legends aside, nature lovers are remains an enigma till date since no named after Vantawnga who was said attracted by the surprisingly great other Buddhist relics has been found to be an excellent swimmer. So good variety of wildlife to be found in this elsewhere in the state. a swimmer was Vantawnga that he remote area adjoining the Myan- Thenzawl: This is a village located at could hover in the cascading water like mar forests. It is a home to most of a distance of 43 kms from Aizawl. It was a fish, but unfortunately during one of the common wetland birds and hill initially a dense forest with lots of wild such performances, a drifting log fell birds, and is believed to be a winter animals before it was cultivated and in- from above and killed him. stop-over for migrating Pintail Duck habited in 1961. The Tropic of Cancer The height of the fall is recorded as while a few elephants still roam the runs through this picturesque village. 750 ft and though it is difficult to get surrounding virgin forests. Though It is an important center of traditional close to it because of the sheer for- a jeepable road connects Palak Lake Mizo handloom industry. The looms ested hillsides surrounding it, a com- from Phura, care has been taken to at Thenzawl produce rich and colorful fortable viewing tower has been con- maintain and preserve the area in its varieties of handlooms. One can also structed by the Tourism Department. pristine environmental state.

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