C3{JA.T'r'E'R - 3

^Profile qf^Hine

Ijidiistry in Table of Contents

Chapter 3 Profile of and the Hotel Industry in Pune

3.1 Preliminary 73

3.2 Socio-Economic Review of and City 73

3.3 Geographical Location 74

3.4 Transportation 75

3.5 Weather 75

3.6 Economic Geography of Pune 76

3.7 Demography of Pune 76

3.8 Social Amenities in Pune 76

3.9 Tourist Attractions in Pune 78

3.10 Current Scenario 86

3.11 Future of Hotels in Pune 88

3.12 Conclusion 89 Chapter 3

Profile of Pune and the Hotel Industry in Pune

3.1 Preliminary

The previous chapter (i.e. Second chapter) presented the ^wth of Hotel industry along with the various bases of classification of hotels, a review of related researches which is followed by introduction to Management control systems. Now, in the present chapter, a short history of Pune (oiL^oints relevant to the study) is outlined. Towards the end of the chapter, we shall also see the present scenario of Pune (in keeping with the growth of hotel business).

3.2 Socio-Economic Review of Pune District and City

Historical Background Pune is called punya-nagri which means 'a city of virtuous deeds'. It holds a history of almost 600 years. Pune was ruled by the Yadava dynasty after the Rashtrakootas, before being taken over by the Mughals in the 17 century. The oldest reference to this name is illustrated on a Rashtrakoota copper plate, dating back to 937, in which the town is referred to as Punya Vishaya or Punak Vishaya. By the 13th century, it had come to be known as Kasbe Pune or Punavadi. During the 19th century, it was cited as Poona by British administrators. Since 1947, both spellings have been in effect, but Pune has prevailed for the last decade, (puneonline.com) Pune is famous from the historical days due to the Great King Chh. Maharaj, and other great leaders and reformers of

73 of the pre-independence period. Pune has always remained on the forefront being a major source of reformative thoughts and concepts in industrial, agricultural, social, economic and political fields. Pune is well known as the 'Queen of Deccan' due to its scenic beauty and rich natural resources. The district has importance as an important military base. Pune District is one of the most industrialized districts in Western . In the ancient period it was occupied by artists and musicians; in British reign it became a military center. A romantic and charming little Indian city, it was first inhabited by artists and musicians; under British rule it was an important military centre, but is mostly known for being an automobile manufacturing base. Besides, it is famous for its religious and historical places. Pune City is known on the world map because of its educational, research and development institutions. 3.3 Geographical Location: It has a vast area of 15,643 Sq.Kms. It is located between 17° 54' and 19°24' north latitudes and between 73° 19' and 75° 10' east longitudes. Pune district is situated in the river basins of River Bhima and River Nira. It is surrounded by district at its East and South-east; at its west and district to the North-west; at its North and North-east. It has 14 Tahsils or talukas. . It is the second largest district in the state and covers 5.10% of the total geographical area of the state. The landscape of Pune District is distributed triangularly in Western Maharashtra at the foothills of the Sahyadri Mountains and is divided into three parts: ""Ghatmathd", ''MavaV and '"Desk". The total geographical area of Pune district is 15642 sq. kms. This is around 5 per cent of the total area of Maharashtra state.

74 Pune district is also known as 'The queen of Deccan' with regards to its historical association with great cultural, social and political center in the Deccan. It is also called the 'Oxford of the East' as it is the educational hub. Presently, Pune is an emerging IT hub, too. Central Pune is located at the convergence of the Mula and Mutha Rivers. The Pavana and I The total geographical area of Pune city is 450.69 sq. kms. Out of the total area, 38.6 per cent is residential area, 1.8 per cent is commercial area, 9.5 per cent is defense area, 11 per cent is industrial area and 9.7 per cent is recreational area. Indrayani Rivers, tributaries of , span the north-western peripheries of urban Pune. 3.4 Transport Pune is well connected with other districts by way of rail, road, and airways. The rail network consists of both broad gauge (Electrified and Non Electrified) double track as well as single track lines. The road network consists of Express Highways, three National Highways, State Highways and Major District Roads. The district headquarter has connectivity through airways for transport and trade to major airports within the country and to select international destinations. Pune is one of the most important stations of the Central Railway. There are three main railway routes that pass through the district: Mumbai-Pune-Solapur route, Pune- rail route, -Baramati rail route. 3.5 Weather Pune District forms a part of the tropical monsoon land, and so has a significant seasonal variation in temperature as well as rainfall conditions. The climate of the Western region of Pune District is cool, whereas tlje Eastern part is hot and dry. Due to its unique geographical condition, the

75 district gets uneven rainfall. The Western part of the district that is adjacent to the West coast is a hilly area and is covered with forest; as a result it gets more rainfall as compared to its eastern parts. Southwest monsoon winds bring most of the rainfall during the summer and aprrox 85% rainfall during the monsoon. The monsoon arrives in the month of June and lasts till the month of September. October is warm, while the high season of Pune's tourist cycle i.e. winter falls between November and February. Late Jan to March is the most pleasant months in Pune. The sun is bright and warm and temperatures move in the moderate zone. 3.6 Economic Geography of Pune As per the district Socio-Economic Review 2011, for the financial year 2009-10, the total income of the Pune District was about 94,671.2J. crores. The district's income incorporates the Tertiary sector (about 53% i.e. 49892.81 Cr), secondary sector (41% 39087.88 cr) and primary sector (about 6% 5690.57 Cr). In tertiary sector, service industry shared 30% share. 3.7 Demography of Pune As per the census of 2010, Pune has an urban population of 5,518,688 along with the growth of skillful laborers and software engineers. This includes 4,485, 000 in 2005. The city has 81% of literacy level and 38% of population living in slums. Commonly the city speaks Marathi, Hindi and English. (Survey Report). As per census 2011, population of Pune district is 9,427,000; the population of Pune city tehsil is 2,695,911. This indicates that the district on the whole is undergoing urbanization; thus, paving way for more supply of labor. 3.8 Social Amenities in Pune The modem history of Pune, narrates the city to be one of the most prosperous and booming center of education and technology. The city of

76 Pune is the origin of various movements like social, religious, educational, political, economic and literary. The Camp area in Pune stands widely in contrast with the others, with its crowd of elite, colonial British buildings, still holding back their imperial charm. The families residing here belong to the regal and upper-class quality of families, with other instances of colonial architechture lie educational institutions, clubs, churches, or seminar halls.

Pune district, according to 2010-11 records, has 48 hospitals, 110 health care centers. Owing to this information and many ayurvedic health centers, Pune also encourages medical tourists. The automobile industry has gained prominence in the past several years and Pune may well be on its way to become the 'Detroit of India'. Bajaj Auto, Tata Motors, DaimlerChrysler (Mercedes-Benz), Kinetic Engineering and Force Motors Ltd are among the manufacturers in Pune. A vast collection of IT and software companies also call Pune their headquarters. In the latter half of the 20'*' century, Pune became home to the National Defence Academy, National Chemical Laboratory and the University of Pune. Since then, the number of educational institutions has been increasing.The Royal Turf Club is one of a handful of institutions still permitting the regal title. Looking east across the racecourse, one will see the elegantly reinstated St. Patrick's Church. Most of colonial Pune's institutional buildings are in and around the area. The 19th century Council Hall is buih in Italian style.A traveller visiting Pune should always be informed that the heritage architecture here is humble in every way, a thin shadow of the neo-Gothic wonders of South Mumbai. Even the old Governor's Residence (now the University of Pune building) in Ganeshkind is an unpretentious structure.

77 The exception is the Deccan College. Situated near Kirkee on the north bank of the Mula-, the college is an arresting neo-Gothic creation in stone, with its short towers and refined vaulted hallway.

3.9 Tourist attractions in Pune

Today, Pune is an industrial metropolis as well as an educational centre, and it has received acknowledgement as having the fastest urban growth rate in the country. It offers many destinations for a tourist or a traveler. Pune with its baffling historical significances, have survived to be attractive for tourists even to this day. Along with today's metropolitan culture, perplexes everyone at first sight. The place has also divided itself into three distinct separations, housing three kinds of edifices and emoting dissimilar wonder from each. Temples, churches, mausoleums, synagogues, museums and several dynastic architectures are evidence to Pune's distinctive wonders.

A few major attractions or highlights are mentioned, here. Since it is the cultural capital of the State, every festival of all the religions are celebrated enthusiastically, Ganesh festival being the major one. Huge Ganesh idols are worshipped at nicely decorated pandals, also known as Dekhavas for 8 to 10 days. People from the city and nearby towns and districts, come in numbers to witness the celebrations of Ganesh festival celebrations. Huge money is spent on decorations of the pandals.

Secondly, Sawai Gandharva Mahotsav is a music concert that attracts serious music lovers. It is held in every December, and , has had every Indian and international artist to perform here and has given rise to a

78 number of budding ones too. Here one can hear great performers of Indian classical music at a very nominal price.

Next, one of the major cultural fest and tourist attraction is Pune Festival. It is held during Ganesh Mahotsav. The festival goes for ten days - starts with the installation of idols of Lord on the first day to immersion of the Lord's idols on the tenth day. Pune festival mainly emphasises on the celebration of art and culture, song and dance, custom and tradition. It started as a local event but now has succeeded to attract visitors from across India and abroad. The Maharashtra Tourism Development Corporation joining hand with the Union government actively promotes the festival abroad as a major tourist attraction. Classical dance, music recitals, film, drama festival, automobile rallies and traditional sports are held as a part of the festival.

Osho Ashram, also known as the Osho Communal Centre is located at Koregoan Park of the city. It attracts a number of devotees each year including a large number of them from the western countries. is a royal residence built by the second , Bajirao-I. It is visible that the ruins can translate the glory of the Maratha power. The doors of the palace are so strong that it had been designed to dissuade huge enemy attacks. Raja Dinkar Kelkar Museum has nearly 20,000 collections of objects paintings, handicrafts, armour-suits, musical instruments and many other objects of art and artifacts collected from all over the world. Dinkar Kelkar spent almost 60 years traveling and purchasing objects from the remote areas and towns of India. Gandhi National Memorial / Mahatma Gandhi, Kasturba Gandhi, Shri Mahadeobhai Desai, Dr. Sarojini 79 Naidu and others were kept under imprisonment here. It is known for its architectural excellence. is a three-storyed mansion, Peshwa, Bajirao II, known for its beautiful entrance and balcony with carved woodwork typical of the Peshwa period. Sports: Tennis courts can be rented for sports. , Ladies Club and WIE complex has table tennis and badminton courts. One can also enjoy swimming here. There are special facilities for speedboats and water scooters. Further, the historical forts cater to the interests of mountaineers and trekkers. Apart from these sight-seeing places, Pune also has biological diversity zones like National parks. Sanctuaries, Botanical gardens, Zoological gardens, reserved forests, hill stations, lakes, waterfalls, area of flora and fauna, etc.

f %•

Innor VSQW of Shaniv/ar wada «,

Shinde C

r H^ ^

Aga KKan Palac?, Puni? ^>-

A list of Tourist destination in Pune as per the government report is revealed in the table no. 3.1 below.

82 Sr. no. Name of destination NameofTehsil Pune City

Aghakhan Palace Pune City KelkarMusium Pune City

Parvati Pune City

BabasahebAmbedkarmusium Pune City 6 Mahatma Phulc Musium Pune City 7 Shaniwarwada + Lalmahal Pune City 8 Vishrambaug wada Pune City 9 Shinde chatri Pune City 10 Patalcshwar Pune City 11 Osho Aashram Pune City 12 lluca, Pune University Pune City 13 Parvati Forest Area Pune City 14 Ycrwada Jail Printing press Pune City 15 Wetal Hill+ Hamuman Hill Pune City 16 Deccan College Archaeological Dept. Pune City 17 Dchu - Mandir Haveli 18 Dehu - Gatha Mandir Haveli 19 Dehu • Bhandara Dongar Haveli 20 Theur Haveli 21 Shivapur Dargha Haveli 22 snake park (zoo) Haveli 23 Appughar Haveli

83 Sr. no. Name of destination Name of Tehs 24 Karia water Park Haveli 25 Tomb of Maharaj & Tula Pur Haveli 26 National Chemical Lab Haveli 27 Dhammabhumi , Punc Haveli 28 Shri shctra Koregaon, Bhima Haveli 29 Shri Shctra Lohgaon Haveli 30 Shri shctra Wade Bholai Haveli 31 Hutamta Pinglc Smarak, Talcgaon Dhamdhcrc Haveli 32 Lake Haveli 33 Someshwar Mandir Pashan Haveli 34 Katraj Mandir Haveli 35 Khed Shiwapur Darga Haveli 36 Maval 37 Lohgad Maval 38 Visapur Maval '39 Tung or Kathingad Maval 40 Maval 41 Koraigad Maval 42 Lonawala Maval 43 Maval 44 Wax Musium Maval 45 Caria Bhaje caves Maval 46 Maval 47 Aatmasantulan Village, KarIa Maval 48 Shri Shetra Dudhiwarc Maval 49 Shirgaon Prati Shirdi Maval

50 Firangai Mata Mandir Maval 51 Shirur 52 RanjanKhalge (pot holes), Takli Haji Shirur 53 Shri shetra Ramiinga, Shirur Shirur 54 Morachi Chincholi Shirur 55 Pabal Samadhi Shirur 56 Dr. Kalbag Vidnyan Aashram, Pabal Shirur 57 tnamgaon Heritage excavation Shirur 58 Hutatma Smarak Shirur 59 Ghod Dam Area Shirur 60 Triveni aashram Art of Living, Markal- Rd. Shirur 61 62 Jivdhan Junnar 63 Junnar 64 Chavand Junnar Sr. no. Name of destination Name of Tehsil 66 Ozar Junnar 67 Lenyandri Junnar 58 Malshoj & Nanc Ghat Junnar 69 Khodad Binocular, Narayangaon Junnar 70 Agro Touriam Junnar 71 Rcda Smadhi Aalc Phata Junnar 72 Purandar Purandar 73 Jcjuri Purandar 74 Narayanpur Purandar 75 Ketkawlc Balaji Purandar 76 Bhuleshwar Purandar 11 Narayan Bet Purandar 78 P.K. Atra birth place Purandar 79 KhanwadI Mahtma Phulc Birth Place Purandar 80 Kade Pathar Purandar 81 Malhargad Purandar 82 Rohida 83 Bancshwar Bhor 84 Bhatghar Dam Bhor 85 Chakan Fort or Sangramgad Khcd 86 Aland! Khed 87 Bhimashankar Khcd 88 Swaymbhu Shambhu Mahadcv Dcvsthan Khcd 89 Hutatma Rajguru Smarak, Khcd 90 Morgaon Baramati 91 Shrt Soneshwar Devsthan Mandir Songaon Baramati 92 Poet. Moropant Sahitya Sthia Baramati 93 Yawat Bhuleshwar Mandir, Sonneshwarnagar Baramati 94 Pawna MulshiDam Mutshi 95 Mulshi 96 Maval Srushti Mulshi 97 Panshct -Warasgaon Dam Vcihe 98 Sinhgad Vcihe 99 Rajgad Velhc 100 Torn a Vclhc 101 102 Ujani Dam Area Indapur 103 San gam Bet Rahu/waiki Daund 104 Dimbe Dam

85 3.10 Current Scenario

In present times, one might say there are three Punes - the City, Deccan and the Camp - separated geographically as well as in flavour. As the city is largely urbanized, its major earning is from software sector with some major manufacturing industries. Along with other handicraft product, the city mainly earns through the industrial sector of the city. Thus, Pune being the second largest city of Maharashtra is one of the mevitable centers of Maharashtra tourism. Owing to this the tourism industry in Pune has a tremendous potential for growth, given the availability of basic infrastructure and the variety of tourist themes. Pune's rich historical and cultural heritage has been under-explored by the tourism industry and the government agencies. Till date, in the absence of proper MIS and long term planning, the development of tourism and eventually hospitality industry, has suffered due to the fragmented approach of various government departments like forest, tourism, ASI, irrigation etc. The statistical data that emphasizes the tourist arrival in Maharashtra and Pune indicate positive sign for hotel business. The data is shown in the figure 3.1 below.

86 Month April May-11 Jun-11 Jul-11 Aug-11 Sep-11 Domestic 17,02,787 18,03,912 18,04,131 9,24,186 11,41,572 12,22,376 Foreign 14,023 13,878 13,673 13,552 14.890 14.749

Month Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Total Domestic iO .)•-', 3 jj lu.72.7'-.i iC.oo.-7 J :;.. • M; ;u..:},oj'. iO.il iOb 1 4y,82,'JS2 Foreign 14.62 7 14,762 14.844 13 'Ji^ 13.051 14.114 170.098

ource Toumm itatiitia of Maharoihtra, MTDC. By AC Niehen 0RG-MAR6

Monlhwitc Oometik k (on%n lowritt How }f, itiitOli

1% m •>

A*ill Vn II lw«:i K.I II Au. i: \«i.k!l IV in MM l: DPI! I t-m 1.^ fit I.' lAa l.>

fig No. 2.2 Month wise Tourist Flow

The above table shows month-wise tourist inflow in Maharashtra for the years 2011 to 2012.

87 Total Foreign Domestic Percentage Percentage Percentage District visitors in Visitors in Visitors in of of total of foreign Name Apr 11 to Apr 11 to Apr 11 to domestic visitors visitors Mar 12 Mar 12 Mar 12 visitors Mumbai 3,03,73,603 19 17,05,016 83 2,86,68,587 18 2,15,27,973 14 53,558 3 2,14,74,415 14 Ahmadnagar 1,58,49,544 10 15,901 1 1,58,33,643 10 Punc 1,51,53,650 10 1,70,698 8 1,49,82,952 10 Osmanabad 69,85,875 4 481 0 69,85,394 5 Raigad 68,24,731 4 3,471 0 68,21,260 4 Other 6,03,01,759 38 95,671 5 6,02,06,088 39 Total 15,70,17,135 100 20,44,796 100 15,49,72,339 100

Source: Tourism Statiitks of Maharashtra, MTDC, By AC Nielsen ORG-MARG

Here, the table no. 3.2 reveals district wise tourist arrivals in Maharashtra. The tourists are classified as Domestic tourists and foreign tourists.

3.11 Future of Hotels in Pune

Pune district is blessed with peaceftil and serene environment and beautiful locations. The city is adorned with historic monuments, forts, temple, rivers and mountains and hilltops as mentioned before. The rising middle class is also becoming increasingly affluent, mobile, Internet savvy and more sophisticated in terms of what is demanded in terms of tourism products and services, and more importantly the price they are willing to pay for it. All of these aspects taken together provide the most beneficial environment for the development of the entire tourism activity.

Further, as for accommodation, one will be able to find the most upscale, stunning resorts in the city centre, while moderately priced rooms will also be plentiful and comfortable. Entry of international brands through joint ventures and Ue- ups is likely to enhance the service levels and will narrow demand- supply gap of rooms. However, according to recent government reports, the shortage in rooms to remain for next five years leading to higher occupancy levels and increase in Average Room Rates (ARR). Survey report citation.

88 Secondly, according to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 % between 2010 and 2019. This will place India at the third position in the world. India's travel and tourism sector is expected to be the second largest employer in the world. Capital investment in India's travel and tourism sector is expected to grow at 8.8 % between 2010 and 2019. The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020. Although, the growth for hotels is also likely to come, major impediments to the growth are sensitivity to business cycles and adverse political and social events (including terrorist attacks), high rate of tax, high land price, bureaucracy, and poor infrastructure. Furthermore, owing to high land prices, there are more five star hotels than budget hotels, making Pune a high cost deluxe destination.

3.12 Conclusion In keeping with the above information, the hotel industry is going to witness a fremendous growth. Therefore, with the increasing growth of tourism and its associated opportunities, the need for control procedures in hotels assumes a lot of significance. The managers need to monitor the control systems to escalate profitability. This justifies the researcher's efforts in studying the cost confrol procedures in the selected sample hotels.

The next chapter will attempt to prove that the hotel industry is also a service industry. Further, it will explain the concepts of cost control in accordance to the hotel industry. In this way, it presents the cost-benefit analysis of organized hotel industry.

89 A Map of Pune District

90 Bibliography 3 1. www.puneonline.com 2. www.wikipedia.org 3. www.soc.usm.com 4. www.fhrai.com 5. www.deviahilayavishawavidyalaya.com 6. www.procateringwiz.com 7. www.economictime.indiatime.com 8. www.googlescholar.com 9. www.makemytrip.com