Tourism summiT New age drivers come TogeTher. see pages 1-28 No.U(NDGPO)-01/2016-2017 Date of Publication: 14/04/2017 Volume 2. Issue 12. aprIl 2017. `50. section 1 RNI No. DELENG/2015/62794 Posting Dt. 12-17/04/2017 This issue appears in two sections. Total pages 28+28=56 Postal Reg. No. DL(ND)-11/6180/2015-16-17

IndIa’s TrendIng Forum In Travel & TourIsm First india Tourism Summit takes off

SK miSra VK DuggaL amitaBh Kant aShoK LaVaSa

Sanjay Kothari ajeet Sharan atuL chaturVeDi

SriKant Suman BiLLa LeeLa nanDan rajVir Singh naguLaPaLLi

arun Kumar Kumar P L Sahu Vinay PrataP

DeeP KaLra S BiSwaS PanKaj SriVaStaV anKur Bhatia

KB Kachru DiLiP Puri manaV thaDani

KaPiL KauL raKeSh mathur Sanjay Sharma SureSh nair

gB Srithar chetan KaPoor raja nateSan niKhiL Sahni maureen LeiBL

rohit KhoSLa SteVe Borgia rommeL VaLLeS rajeeV KohLi DoMore!

21-23 September, 2017 Register now on www.bitb.org this issue : April 2017 3

SKa Misr Chairman, ITRHD In recent years, there has been a growing recognition that this impact need not be limited to well-known circuits or golden triangles but can also result in tremendous gains for rural areas,, as well.

BT I B launches independent conclave: V K Duggal India Tourism Summit takes off Former Governor, Manipur ITB has been conceived as an industry platform for a diverse exchange The outreach of tourism is Bat different levels. There is the traditional B2B level, the new-age B2B total. It pans into each and level and we are also developing meaningful B2C within certain target every area, be it employment, groups like the golfing community, wedding planners etc. We also have another platform within BITB, which is the Conclaves. This or economic activity. Economic is built around bringing senior leadership to provide serious thought activity at the smaller scale, the processes on trending issues in the marketplace. We successfully ran 6 BITB medium scale, and at the large Conclaves at the first edition of the BITB expo in October 2016. scale. It touches every person’s BITB Conclaves also run as independent events with a sharp focus of life in some form or the other. their own. We recently concluded one such Conclave, the India Tourism ,, Summit in March 2017. We are seeing it as a quarterly commitment. So, from January to March, in the last week of March we did the India Tourism Summit. In the second quarter, April to June, we are doing Indian Outbound Summit. In the third quarter, we will be co-planning the BITB Conclaves along with the BITB expo in September and then the last one for the year in December. In that pattern, the commitment of BITB to providing a meaningful platform for industry continues. At India Tourism Summit and at future BITB Conclaves, as we were able abmita h kant to do at the BITB Conclaves running parallel to the BITB expo, our first CEO, NITI Aayog endeavour is to do something new, trending, and something meaningful, and All the requirements for bring in a new angle for what tourism can be for India. tourism are available now. At the India Tourism Summit, we brought new idea and new sets of There is no rational reason speakers. Even if there was an existing player who has spoken at other why India’s tourism should not industry platforms, we approached him differently to say something grow in the coming years. The differently. And in many ways, the fruit of the pudding is in the eating. So, only thing in infrastructure that if you take up a hospitality panel discussion, the panellists were quick to you actually lack is great accept that never before had they been asked to participate in a discussion MICE centres. on how they could drive India’s tourism. It is normally always the other way around. Here they were being asked to do more. Another key session on ,, ‘Joining the Dots’ aimed at understanding how to bring cohesiveness in the efforts taken by various ministries for augmenting tourism and travel in the country. Through serious engagement with industry leaders, we also took stock of issues hampering regional connectivity and growth of aviation sector in India. Make in India in tourism was also discussed at length, among other sectors. In this issue, we bring you highlights of the India Tourism Summit. Also, there is detailed coverage of the recently concluded HICSA in Mumbai. Ashok Lavasa Finance Secretary of India An issue which plagues the tourism sector which we have still not been able to resolve is the issue of multiplicity of authorities which are dealing with various issues. This becomes a barrier to integrated Contents growth of infrastructure O pening remarks A VIation and tourism. . 4 Tourism, new-age drivers must be viewed 15. Aviation: Seamless in sync with ,, in its holistic expression and differently Tourism R ural tourism 16. Tourism and aviation are unalienable; AI has ramped up connectivity, says Tourism in rural India can address social .5 Pankaj Srivastava and financial problems:S K Misra D eep Kalra M ake in india in tourism REGIONAL CONNECTIVITY Founder and CEO, Makemytrip 17. Inadequate airport infra challenge in . 6 Tourism, wellness and hospitality boosting regional connectivity: Ankur I think it is working well but it key sectors for ‘Make in India’: Bhatia is very early days. Time will Atul Chaturvedi tell. The proof of the pudding new-age drivers 7. Steve Borgia: It is all about one big is in the eating. I think the dream for a beautiful idea called India 18. New drivers of new-age tourism moot tricky part will come when the and we need to do it together. Let us the way forward headiness goes away. It is the unleash India 20. Sanjay Kothari: Industry must create honeymoon period. When the 8. Andhra presents its case as the Best jobs to assume the stature stock settles down, and it will, kept Secret among Indian destinations it longs and deserves people will start saying that the T ourism in indian economy 21. GB Srithar: Over the course of the last 5 rosy picture is not that rosy. decades or more, our role has also been Things will get tough. 9. Industry must become more vocal and shaped by the demands of the time active in taking the lead: Amitabh Kant ,, A holistic approach one-on-one 22. Ensuring operational success of the 10. Multiplicity of authority barrier to growth of merger is the real challenge, says integrated infrastructure: Ashok Lavasa Deep Kalra joining the dots H ospitality A mechanism for joint secretary level inter- editor: Navin Berry Tourismfirst is owned, published 11. 24. Hospitality as driver of new-age tourism ministerial interaction critical: V K Duggal [email protected] and printed by Navin Berry and printed at Skill development in the Anupam Art Printers. 6/14, Industrial Area, AYUSH addressing lack of credibility, 25. Dilip Puri: senior writer: S hashank Shekhar 12. hospitality industry will impact the [email protected] Kirti Nagar, New Delhi - 110 015. accreditation of yoga schools: larger service sector It is published from 36-37, 3rd Floor, Ajeet Sharan features editor: Priyaanka Berry Indra Palace, H-Block, Connaught Place, 26. Rohit Khosla: We will see room [email protected] New Delhi – 110 001. 13. Govt. serious on expansion of aviation rates heading north as industry heads infrastructure: business development: Saurabh Shukla Tel: 011-43784444. Arun Kumar towards more maturity on ADRs [email protected] Total pages 56 4 Opening remarks T ourism, new-age drivers must be viewed in its holistic expression and differently At the recently concluded India Tourism Summit in New Delhi, the following view was shared in the opening remarks. These are reproduced for a larger dissemination.

By Navin Berry many o​ f our cities have become university cities. And these students provide a reason here are a lot of summits happening I n recent years, events for their families to keep visiting the country. all over the time in the country, in such as Jaipur Literary Like we do visit many cities in UK and USA​ various disciplines and endeavours, Festival have started , where Indian students are studying. People but somewhere, tourism was getting drawing ten to fifteen are coming for medical reasons. People are Ta miss. We thought it was a good idea that coming for events. In recent years, events thousand people, and tourism should have a summit of its own, but they are all coming such as Jaipur Literary Festival have started the challenge for us was to do something for the Literary drawing ten to fifteen thousand people, differently. Lot of people within the industry Festival. Many of and they are all coming for the Literary seem to tire off with too many events, too them are coming from Festival. Many of them are coming from many discussions – and somewhere, the drift overseas; many of overseas; many of them are coming from has become that nothing will ever change, them are coming from within the country. But somewhere in our and therefore our idea was to attempt within the country. understanding of tourism, we have yet not bringing that change! We did a seminar, the begun to include ​many of these impulses to first one possibly in the country, way back But somewhere in tourism. We are also looking at, to my mind, in 1976, at t​he Claridges in New Delhi and it our understanding at ​tourism as a mindset. It is something very was c​ alled ‘the seminar on tourism policy’. of tourism, we have holistic. It is something as a concept. Are I do not have a copy of it; we did bring yet not begun to we ready for tourism? It does not mean do out a booklet on the recommendations. I include m​ any of these we have a hotel, or do we have an airport; wish I had a copy. And, I feel some of those impulses to tourism. but rather whether we have a sense of recommendations mentioned then, way We are also looking completeness to a destination, be i​t is a city back in 1976, still stand true. One of our at, to my mind, at ​ or a country. then delegates, who is around, but not at tourism as a mindset. I think tourism is increasingly going to this event, Inder Sharma, will perhaps recall It is something very mean a state of mind, a state of readiness in this. But coming back to ​now, the expanding holistic. a given destination. That given destination contours of what we have called n​ ew-age must have its law and order intact. It must N avin Berry ,, tourism and how these will drive t​hings Chief Editor, Cross Section Media have a sense of security. There must a sense of differently? wholeness to that city. I think a lot of us in the To begin with, I​ am not clear, and I recent past who have been complaining that think many of us are not clear, as to what is be the gospel where every country defines To each country, its own reasons why people we need infrastructure, but actually saying we tourism, and when we use this word tourism, tourism. Regardless of the purpose of visit, travel to it. In the case of China, just as much need a sense of wholeness to that destination what do we mean by it? Many a times, I any international traveller coming to your as in India, the proportion of ethnic Chinese so that we can get more tourists. I think visi- meet people at social gatherings and they country is regarded as a tourist. We have is very high. Again, the number of Hong tors are coming, but they are not necessarily say that India’s tourism is booming – and I tended to think, historically, over the years, Kong Chinese coming to visit the mainland is tourists in our traditional sense of coming for come and meet tour operators and some that the tourist is somebody who is only com- also very high. Their proportion of business sightseeing, or for monuments, and therefore other members of the industry, they are ing for sightseeing, who is being serviced by travellers is also very high. being serviced by a tour operator. complaining that tourism is down by 20- a tour operator, and he is going to be visiting In the case of India, we have tended, at So, there are these challenges. There 30%. So, one starts wondering where is this monuments and will g​ o shopping. So, that is least within the industry, that tourism is only is the online challenge. The reach of dichotomy happening that while tourism is the narrow sense of tourism as we have seen leisure Inbound group travel. B​ ut today I see India has increased manifold, with booming, some people are saying that it is over the years. a lot of emphasis, and I am sure we all see the penetration of international online down by 20-30%. However, when we see the world picture, that, new-age drivers to tourism, there are companies. The rates and the outreach Going back to the b​ asics, as the UNWTO just as much, tourism is all forms of travel, new impulses to tourism. There are a lot of will only grow, giving rise to many more has described tourism which is meant to and these are collectively dubbed tourism. people coming to India for education, as travellers from across the globe. BT I B honours visionary leaders and organisations for their impact on tourism in India

Vimala Bissel, Founder, FabIndia receives the award from SK Misra, in presence Arun Arora, GM, Institutional Sales and Gaurav Jain, Head of Corporate, Institutional of Nikhil Sahni, V K Duggal and Navin Berry. and Fleet Sales, Maruti Suzuki India receive the award from V K Duggal.

Dr. A K Tyagi receives the award for Haldiram from Nikhil Sahni, P ushpa Bector, Executive VP and Head, DLF Premium Malls receives the award for DLF in presence of V K Duggal. Mall of India from SK Misra, in presence of Nikhil Sahni, V K Duggal and Navin Berry. rural tourism 5 Tourism in rural India can address social and financial problems: S K Misra S K Misra, Chairman, ITRHD, in his keynote address shared his experiences of how proper planning and coordination, coupled with strong local involvement could alter the sagging fortunes of villages. He batted for better infrastructure in nation’s hinterland and urged the government to examine the feasibility of ‘SMART villages’ concept, at least on a pilot basis before nationwide implementation. Excerpts from his insightful address:

By TF Bureau In recent years, there has been a growing recognition that this e have been focussing on impact need not be limited to well- T he role of the beaten track for too known circuits or golden triangles government should long and it is time that but can also result in tremendous primarily be that we moved in different gains for rural areas as well. of a facilitator. “Wdirections. When we talk of the rural sector Both international and domestic Insuring a steady or rural development our first thoughts go tourists are increasingly looking flow of funds where back to Gandhi and I would like to start for experiences ​of ultimate luxury required, developing with a quote by him. “Just as the Universe is and the authentic experience of policy initiatives, contained in its cells, so is India contained in the rural life has a growing appeal. organising training its villages.” Our rural areas may suffer from programs, developing This is as true today as it was in Gandhi’s poverty and lack of many things infrastructure, time. Ask any Indian where he or she came but are often extremely rich in one particularly in regard from and chances are that you’ll be given particular asset, that is heritage. to connectivity, the name of an ancestral village even if the In the rural context, heritage does drainage, assured speaker has been residing in a city for 3 not mean only monuments and power supply and generations. Unfortunately, adequate attention architecture but encompasses adequate publicity has not been given to the challenges of crafts, music, performing arts, and finances to keep meeting the needs of the rural areas. Only cuisines, rituals, history, natural recently have we started to see increasing environment, agriculture., lifestyle the momentum political recognition of the fact that India’s and other resources, both tangible going. Once the overall development is linked with extent and in-tangible. There is much talk basic requirements to which the rural sector is brought under of alternate and rural tourism but have been met and the mainstream and is able to contribute the ground reality is that most of the momentum substantially to the national economy. the potential remains unexplored. established, local There is a need for an overall residents will take up Rural areas face daunting challenges change in our mindset. At present, the task with great Those of us who work and live in our rural tourism does not figure actively enthusiasm. modern, urban areas, hardly realise, in state tourism policy. It does find ​ Sak Misr ,, that 700 million of our fellow citizens still mention in the policy document CHairman, ITRHD reside in rural areas or that there are more of the Government of India but than 600,000 villages and countless small what been the result? Most of these settlements scattered throughout our 29 initiatives in this direction are emerging from The role of government should primarily and employment. Proximity to existing tourist states and 7 union territories. And in spite the private sector with only a small number be that of a facilitator. Insuring a steady flow destinations will be an added advantage of the romanticised nostalgia that many of of exceptions by some state governments. of funds where required, developing policy as most foreign tourists with limited time at us feel for our rural origins and despite the One such private initiative demonstrates initiatives, organising training programs, their disposal and perhaps a limited budget beauty of the areas itself, more than 30% of the potential and needs to be mentioned. developing infrastructure, particularly in also would be attracted to spend an extra the rural population suffers from poverty Pandurang Taware, founder of Maharashtra’s regard to connectivity, drainage, assured day or two to get an authentic experience, and an estimated 15 million rural families Agri Tourism Development Corporation power supply and adequate publicity and if they can do so easily. The catalytic effect are both poor and landless. This has led to (ATDC), and can be regarded as a true finances to keep the momentum going. Once of tourism over the course of time makes urban areas getting more and more clogged pioneer in the field. Established in one village, the basic requirement have been met and itself felt and this should subsequently be as rural citizens flee their traditional habitat Baramati, in 2005, ATDC has in the short time the momentum established, local residents a motivating factor for policy makers. Of in search of what they hope will be a better grown to encompass 500 trained farmers and will take up the task with great enthusiasm. If course, ​one should not expect wonders as life in the city. Ironically as they are escaping 152 agri-tourism locations in the state. basic facilities are ensured, tourists who desire results will not flow overnight. Development, the lack of civil infrastructure, the mass The concept of agri-tourism indicates to see the authentic India will start coming in particularly of the infrastructure, takes exodus is helping to add to the woes of agriculture and traditional culture with a much larger numbers. Repeat visits and new time. When the concerned villages take on the cities which are increasingly suffering pollution free environment thus providing clients will be acquired by word of mouth. a different colour, it will not go unnoticed from pollution, shortages of resources and a personal experience of the rural lifestyle. In addition to the revenue and employment and will motivate neighbouring villages to facilities like housing, development of slums ATDC offers visitors the opportunity to generated by local hosts, many other direct create attractions so that they also avail of and sanitary conditions etc. In the process experience local agriculture practices while and in-direct benefits and opportunities will the benefits. This spin off effect will bring in not only does the gap between the rural also becoming acquainted with an authentic accrue. The rich resources of our diverse rural more villages in the fold. The experience of and the urban sectors widen but problems rural lifestyle, local music, food, dances, areas can cater a variety of special interests, many foreign countries, both developed and increase on both the sides. rituals, festivals and arts and crafts. It is a way be it religious, anthropological, agricultural developing, points in the same direction. Rural areas suffer greatly from this for Urban Indians to discover their real or and so forth. Farm tourism constitutes a migration. Traditional crafts are decimated symbolic roots as well as a way for foreigners special category of its own. New technologies could aid our efforts as their skilled practitioners leave for to experience another reality. If the lessons Tourism and rural development can be urban employment that waste their finely- learnt from this brilliant initiative are to T ourism and social implications seen as two sides of the same coin. There is honed talents but at least provides a more applied on a broader canvas there is need With increased income, better living urgent need however for all stake holders to dependable income. In village after village, for a comprehensive and well-co-ordinated conditions, easy accessibility, urban centres join hands and evolve strategies that remove the younger generation leaves in search of policy taking various stakeholders on-board. for marketing products and availing of other bottlenecks and roadblocks and create new greener pastures and the age-old attachment products, the incentive to move from their avenues for long terms sustainable tourism. to the soil gives way to frustration and A holistic approach, local involvement rural homes will no longer exist. In the long Co-ordination is the key to success in any despondency. needed run, rural tourism can make a significant major activity but in the field of tourism sadly, In turning to employment in industrial Holistic approaches need to be developed contribution to arresting migration, making it has not achieved the desired results despite units, construction and low-level service ranging from infrastructure, training the villages attractive to their residents and constant talks and recommendations being jobs in the city, the transplanted villager not programs, finding local leadership that might even result in some reverse migration. made regarding the need for a co-ordinating only loses a sense of identity and confidence can add to the catalyst for change, the India is hundreds and thousands of villages body at the highest level. but often begins to suffer health problems. involvement of women and, of course, and promotion of tourism in rural areas It is certainly not impossible to achieve this One study in-fact has concluded that the financing. Tourism automatically brings should necessarily be selective. Each and provided we have the right people at the right migration in to urban areas is associated in economic benefits to society, primarily every village will not qualify. Those villages place who are sufficiently motivated to move with an increase in obesity and diabetes, in regards to increased development but that are unique in some aspect and offer away from the beaten track. which drive other risk factors. It should be also in opening up economic potential basic level of infrastructure will be more The scenario today is not what it was obvious therefore, that there is urgent need for related activities in the area. Today suited. The basic requirements of success even 10 years back. We have many positive to come to grips with the urban-rural divide these benefits are mostly accrued to urban would be having something for the visitors to factors in our favour, especially new as it threatens to reach alarming proportions. areas and well known tourist areas. If a see, experience, do or buy. Another aspect technologies and digital revolution that Some corrective measures have been deep thrust can be given to promoting and is to have clean, hygienic and comfortable allows us to communicate freely across adopted by the government in recent years developing tourism in rural areas, it can places to stay and eat with basic sanitary the globe. Looking to the future, in states but those of us who work in villages, do not be one of the most effective instruments of facilities. In my view the most essential that have not taken up the initiative, a small see any significant change for the better. rural re-generation. Although, many private elements in planning for rural destinations number of pilot projects will demonstrate the individuals are taking up the challenges would include the following: potential. These will need to be well planned T ime to examine ‘smart village’ on their own initiatives, developing a truly ◗ Creativity and innovation are essential. with inputs from relevant agencies such as What is really needed is a direct, co- comprehensive and nationwide movement ◗ Activities, attraction and adventure can agricultural universities, banking agencies, ordinated and comprehensive approach requires a supportive, effective and encourage visitors to stay longer. NGOs and concerned corporates. They need to rural problems. For instance, the smart meaningful co-ordination between many ◗ Culture and heritage are the strongest magnus. to include training programs, infrastructure cities program that has been launched agencies concerned including the central ◗ Partnership and collaboration are essential development, adequate and timely funding by the government with much fan-fare government, central government ministries if rural areas are to benefit. as well as simplification. Tours of selected is a very commendable initiative. At the and state government departments of rural Establishing a rural tourism network group of farmers and other successful same time a ‘smart village’ project must development. In addition, panchayats and will have a synergistic effect, benefiting all projects could provide inspiration. To give also be launched, even on a pilot basis, other local bodies need to be involved. There players. Once tourists start coming, local greater focus to this concept, each state to begin with. It would inspire confidence is a vast vacuum waiting but if we can evolve initiative combined with governmental government may consider a rural tourism amongst the residents​, lead to community our rural communities and tourism activities support will ensure further augmentation development corporation with a co-ordination involvement and overall regeneration. We all on a large scale, it will be a win-win situation of facilities, traction and activities including group comprising other relevant groups and recognise the great impact that tourism can for both the tourist industry and for the the development of social development agencies and a specially designated officer have on development. millions living in the villages. measures in the fields of health, education from the Ministry of Tourism. 6 M ake in india in tourism

T ourism, wellness and hospitality key sectors for ‘Make in India’: Atul Chaturvedi A multi-pronged effort to make processes simpler, infrastructure more robust and approach more in tune with global times was already underway, iterated Atul Chaturvedi, Joint Secretary, DIPP. He detailed how the government was proactively addressing key lacunae by working on removing bottlenecks. Excerpts of his speech: On making processes simpler body, World Bank or any other international ‘Make in India’ is basically a pillar organisation, they have been talking about of a new and resurgent India and India being one of the most open economies T here are a number there are several new things that of the world. of things that are we are looking at. At the top of the happening on this agenda is obviously new processes. A new approach front. There are We are looking at processes that Third is the new approach. We are looking 21 new cities, six are coming in the way to making at several other things, other than Make in industrial corridors, any investment, and how do we do India. The PM is talking about Digital India, and top of that away with those hurdles. Therefore, Skill India and how these things go together corridor is the Delhi- the whole aspect of ease of doing to make the right kind of investment to Mumbai industrial business becomes very important. motivate investors, who come and make corridor, in the offing. A number of things have been in India. These national initiatives are an All these are being taken up at the national level and important aspect of a new approach to make planned to ensure at the state level. Amitabh Kant in India. that we provide mentioned about state rankings and ‘name and shame’ and how I nfrastructure plug-and-play kind it is going to change the ground There are a number of things that are of a facility to the situation with reference to ease of happening on this front. There are 21 new investor. Delhi- doing business is something we are cities, six industrial corridors, and top of Mumbai industrial looking at. that corridor is the Delhi-Mumbai industrial corridor is the biggest Second is the new sectors. As I corridor, in the offing. All these are being infrastructure project mentioned that in Make in India we planned to ensure that we provide plug- happening anywhere are looking at 25 new sectors and and-play kind of a facility to the investor. in the world. It is a 110 billion US dollars’ investment opportunity. FDI and rewriting FDI policies is a key ,, component of the ‘Make in India’ initiative. Atul Chaturvedi Joint Secretary, DIPP India is one of the most open economies.

ake in India’ was conceived Therefore, 25 focus sectors were how do we bring about right kind Delhi-Mumbai industrial corridor is the when the government realised thought off and, among those 25 sectors, of investments, policies and processes. How biggest infrastructure project happening that how complex and tourism and wellness were also two do we become a part of the global chain anywhere in the world. It is a 110 billion complicated we had made sectors. Whatever is being done with and how do we supply to world? So we are US dollars’ investment opportunity. That ‘MIndia with reference to doing business and the help of all the sectoral ministries trying to bring in the right technology and is the kind of investment that is going to making any investment in India. The story and departments, with the help of state processes. happen in this particular corridor. The with reference to manufacturing was missing governments and private industry, is FDI and re-writing of the FDI policies is SMART cities projects, which consists of and how do we bring that into focus was the towards tourism, wellness and hospitality a key part of the ‘Make in India’ initiative. around 100 cities, has also being launched idea behind ‘Make in India’. sectors. That is why world over, whether it is a UN simultaneously.

M aureen Leibl, Director, Muse India Heritage Concepts Carefully organised and developed museums and monuments can have a massive impact on tourism he need to re-invigorate our museums is after today I can hold my head up high because we widely acknowledged but it is a major issue have a monument that can match any other in the “Tthat requires serious discussion and inputs world.” Another young man who was an NRI said that I think on this issue, from many people more qualified than I am. However, “I have lived in America for so many years and have it might be very I can unequivocally confirm that museums throught always been ashamed when people ask me about good to organise out the world have a strong impact on tourism and a museums in India. After coming to Mehrangarh fort, I a museums and quick search on Google will give dozens of studies and now know what I can talk about.” tourism summit in research papers giving back up documentation and This is the impact that carefully organised and India in the future. statistics. I will quote just one source here, the national developed museums and monuments can really To give our cultural museum director’s council of the UK, which has said have. I think on this issue, it might be very good to policy specific road that, tourism is an important part of the UK economy organise a museums and tourism summit in India in and the 5th largest industry in the UK. Museums and the future. To give our cultural policy specific road maps that can be galleries are key drivers of British tourism and play a maps that can be followed to increase the role and followed to increase significant role in attracting visitors and in building the impact of our museums in general as well as there still the role and impact British brand overseas. unexploited potential to effect tourism. On the subject of our museums I should mention here that in Jodhpur, where I of souvenirs, I can speak with more authority. This in general as do most of my work, we are seeing such an increase small company that I established in the late 1990s, well as there in domestic visitors. Domestic tourism seems to be Muse India Heritage Concepts, focuses on projects that still unexploited a growing thing here and in fact just recently I was fall under the category of cultural commerce, primarily potential to effect looking at our visitor’s book and I found some very museum shops. Shops have been staple of the museum tourism. interesting comments from some domestic tourists. experience in most parts of the world for a long time ,, but when I became involved in this in the late 90s, it One person said “My wife and I travelled all over the Maure e n Leibl world. We love to visit museums and monuments and was an unknown concept in India. M ake in india in tourism 7

steve borgia, Co-founder, EcoTourism Society of India I t is all about one big dream for a beautiful idea called India and we need to do it together. Let us unleash India

e keep talking Today the mansion which is a typi- hotel. Now, we have to look at sell- about India as a cal house over there lies in ruins. T ourism in India is ing products where you can hear, very incredible The doors have gone to Singapore, not about what you touch and feel India. country but it is Mumbai and Delhi. The windows see but how you “Walso very unlimited. Many worlds in have gone. You can re-cycle and use see it. Infrastructure R esponsible Tourism one country. I established my first every bit of these houses. and service are the Promotion Council could rural tourism project after my stint in Development too destroys. You areas which need address the lacuna to be looked into. If UN and I found a whole world in one want to broaden a road, kick 100 you believe this can The tourists must be taken as close village. After 20 years, we are talking temples, break statues, cut trees but happen then let us as possible and given experiences about Make In India but things have innovation from our side can reverse setup a responsible like these. We need to give them already been getting made here such destructions after protest. There tourism promotion immersion experiences. Teach them so maybe we need to rename the is a beautiful temple, nearly 150 council. A pan- to ride bullock carts, give them campaign, ‘Remake In India’. We years old, on the Tanjore belt. The India organisation, licences to ride bullock carts; teach headed by area speak in about 2000 languages; write temple got broken and the statues experts supported them to drink coconut water with in 50; introduced the art of counting were thrown away. I protested and by a bureaucrat. palm leaves; give them native food to the world; introduced air-mail to took the concerned people to court It is all about one but give them excellent stay quality. the world 12 years after the British but could not stop. Finally, I had to big dream for a We need to take the style to total introduced postal services, and a buy those statues and put them in beautiful idea nativity. If we can manage to achieve whole lot to come. one of my palace hotels. The Madras called India and these things, then finally people will we need to do it Central Prison, an 1837, 7 tonne together. want to listen to our story. All that Development can destroy, too! gate. Produced in Birmingham and ,, we need is a story to tell, history to Ancient cultures, practices, lifestyle, shipped all the way to India by the steve borgia connect and a wiz-kid to sell. In the history etc. are being a part of peo- British. Just because my CM was good old days, there was no wi-fi, no ple and land even today. There are locked there for a day, she decided brochures and yet the whole world cultures, 450-500 years old, which that prison shall not stay. She broke the lobby of one of my hotels. So, coffee called Tipperary and I export came here. They took so much, yet are practiced year after year without the prison and gave it to a dealer. I there is a reversion process. There it to England. The Tipperary coffee we have so much to offer. Now, India a break in many villages. India had to buy the door and now it is are dark buildings, condemned and has a premium right from the days is a natural niche market. The past travelled, created monuments, fes- in my museum in Mahabalipuram. broken. You do not care for them of the East India Company. The is a product and it will be the future. tivals and experiences as old as the Similarly, one of the best palaces ever and they go bad and finally it is hotel got awarded the 6th best idea Add responsibility to it and India will human civilisation. India is the only built in the southern part of India, deemed non-liveable and broken. for greening the world, by fortune be an unprecedented country which country that can sell emotion today. called the Mint palace, crafted in Yercaud, we say there is no magazine, and the 3rd best idea, is unique, interesting and having I hope the revolution continues Shekhawati by Rajasthani sculp- water. The amount of construction incidentally, was the Amazon for- a price advantage. Take tourism and I think it is time we go in for a tors. Each stone brought to Chennai the place has seen, of-course there est. Thanks to rural poverty, many to under developed regions and second revolution because without and set by Chettinad craftsman. A will be no water. Then it is deemed villages have been abandoned. sustainable tourism will automati- a revolution nothing happens in our four-story beautiful palace. Some- not good for human living and is So, I picked up 3 beautiful vil- cally come in. Tourism in India is not country and I think the day should body needed that pathway to gain thrown. Labour goes away, coffee lages, restored them and launched about what you see but how you see start today. What really went wrong? entrance for a shopping mall they plantations die. So, what we did something called The Rural Tourism it. Infrastructure and service are the I think things went terribly wrong in were building and the palace was is that I created a hotel inside a Society of India, way back in 1990. areas which need to be looked into. the last 100 years. We have smashed broken. I got a stay but could not stop 100-acre coffee plantation without When I came back from the UN and If you believe this can happen then monuments, stolen artefacts, it, came to Supreme Court and lost. cutting a single tree. The hotel had was wondering what to do in India, let us setup a responsible tourism threatened regions, lost villages, Finally, I had to end up buying that 100 rooms, was locate in a hill sta- I found a big opportunity and today promotion council. A pan-India lost cultures and so forth. 3 years palace, remove it stone by stone and tion, has a beautiful water treatment that hotel has 125 rooms. All those organisation, headed by area experts ago, I took a group of my friends carry it 400 kms. away and it was plant and a sewage treatment plant. villages have been converted in to supported by a bureaucrat. It is all from Rajasthan to a place called kept in my garden. I did not know Now I have water in that single hotel a beautiful hotel. Not only the per about one big dream for a beautiful Chettinad, Tamil Nadu, and showed what to do. Finally, we erected it in to irrigate 600 acres of the coffee capita income went up two times idea called India and we need to do them a typical house in the village. the village and it has now become plantation. We produce the best and now they say it is a village in a it together. Let us unleash India.

Ra kesh mathur, Former President, ITC WelcomHeritage & EC Member, Indian Heritage Hoteliers Assc T ourism in India is essentially about heritage. But what have we done about it?

et me tell you that I only gest some quick solutions. Firstly, enlightened country allows buildings discovered my country the cost of restoration and conver- We need to give on highways and travelling on “Lafter I joined welcome sion is so high. I think everybody them considerations these roads is dangerous. We need heritage. I used to be flying in and understands that these buildings in thing like CLU to make road travel a lot safer in out of big cities and it was only were made hundreds of years ago, and bar licenses these places. The railways for some later that I went and saw what this and therefore the entire infrastruc- and so on and so reason reduced the number of first country is all about and what is ture, if it needs to be revived, the forth. We need a class cabins and bogies. Can we the fabulous resource of heritage cost is much more expensive than consistent luxury not introduce a nice air conditioned that we have. Tourism to India is setting up a new hotel. tax policy across tourist chair car in every train essentially about heritage. But what The second problem is that all states. We need across the country to encourage the have we done about it? How many the title deeds are not clear. Most to create an equity discerning traveller to go to these people over here know that in the of these heritage assets belong to fund through some places? And of-course we need what we call royalty and they were state of Assam, between Guwahati special purpose to do something to introduce skill and a town called Margherita, there responsible for giving title deeds to training institutes in these areas are about 18 golf courses in 21 tea others. In many cases, they did not vehicle of about 100 which will lead to local employment estates with about 18 beautiful give title deeds even to themselves. crores whereby they generation. As far as marketing is country homes which are all dying So, they actually have no papers, this can get investment concerned, we need a central fund a slow death. These are all heritage is an actual fact. Now, where do you support as I said a to promote heritage hotels. You can homes built during the early 20th get these title deeds from? And if you lot of them cannot use the heritage hotels association century. Similarly, I can give you an do not have the title deeds, you are entitle themselves to as a nodal body. We have just come example of places like Jageshwar not eligible for any loans. Change of loans. up with a concept of the Indian or places like Patal Bhuvaneshwar. land use. We have had cases where ,, heritage festival and mart where I ra keSH mathur Heritage homes in these cities are because some properties are being think we need government support. selling space to display election converted to hotels, the governments This is a very different concept posters because they do not have are insisting that you apply for CLU walk-in customer. It does not make and give them tax holidays. We need where the buyer instead of coming the resources to maintain them. This from domestic to commercial. Now, any sense for a hotel owner in a to give them considerations in thing to a stall where the owner is sitting is an actual fact. Therefore, there is these are large land banks. The village to pay license fee as per com- like CLU and bar licenses and so on and trying to sell experiential a disease somewhere we need to moment you say that you have to pay mercial bar rates. Lack of resources and so forth. We need a consistent tourism, we are taking the buyer address urgently. commercial fees for change of land to market individual holdings just luxury tax policy across all states. to hotels where they can actually I will stick to heritage hotels use, it becomes totally unviable and because they do not fit global norms We need to create an equity fund experience. We have created 27 as a lot has been said about rural unproductive. Most of them are rural and of course lack of individual through some special purpose circuits and I would request that tourism etc. as you cannot de-link based and because of issues like lack resources to impact the environment. vehicle of about 100 crores whereby something be done to promote this all these. Heritage hotels are mostly of infrastructure, electricity, water What are the solutions? I think we they can get investment support as kind of an initiative. essentially located in rural areas. problems, sewage problems, drain- need to constitute a national heritage I said a lot of them cannot entitle Lastly, I want to add one more Nothing can be maintained or sus- age problems and of course lack of hotels and tourism promotion board themselves to loans. point, that a lot of heritage buildings tained till it is financially productive skilled man power in rural areas. to formulate policy along with the Since we spoke about domestic and cities are occupied by the or profitable. Let us start with that There is a very interesting, small Indian heritage hotel association and tourism being important, most government and are dying a slow premise. What are the problems of but very significant thing that we it should be common to all the states heritage hotels are connected death. We should do something to heritage hotels? The answer is very have been talking about for the last because currently policies vary from through roads and every time you convert them in to heritage tourism basic and there is no rocket science so many years. The bars and the state to state. We need to package build a new highway, it becomes a assets. You can build new offices over here. Let me begin with the restaurants in these hotels are not incentives and subsidies to incentiv- high street with building on both and convert these in to some kind of problems and then I will also sug- commercial. They do not have a ise them to revive their properties sides. No modern, western or tourism asset including hotels. 8 M ake in india in tourism A ndhra presents its case as the Best kept Secret among Indian destinations S rikant Nagulapalli, Secretary Tourism, Andhra Pradesh was recently at India Tourism Summit as the partner state. He made a presentation on how the new state of Andhra, for all your familiarity with it, was offering green field opportunities for hotel investment. Below is an excerpt from his presentation. By anagat Choudhary participate in domestic as well as international marts as part ndhra Pradesh is a new state of creating the demand for the with an old name. The state products that they have. This state T his year we have is about 1,000 kms long on is divided in to about 5 hubs with targeted about the east coast of India and 30 priority destinations. When 1500 crores with “Ais closest to South-East Asia. After the we are attending most of these the focus being bifurcation of the state, we have identified national or international marts, on hotel resorts tourism as one of the major drivers of the the feedback that we are getting and water sports state economy and accordingly certain from them is that they would because of the large policy frame work and targets have been like to come here for the culture number of water set for implementing the tourism policy. The and heritage of the state. So that state has targeted about 8% of the GDP share is what we intend to convert in bodies and very as far as tourism is concerned with about a to products and sell. When we long coast line... million jobs in the next 10 years. were a united state we never felt The state has the need to promote or market identified 2 P ro-active policies and a government our tourism assets but after the locations as special that understands the importance of bifurcation we saw that we have tourism zones tourism very beautiful assets in terms of where we have, A very good tourism incentive policy has having the largest tiger reserve in taking from the been put in place which is ranked the best the country in Srisailam, which recent budget in the country by WTTC 2 years ago. The very few people are aware of, we announces, worked state has also been ranked number one in have a location in Karnool which on the basic ease of doing business this year. We have is one of the two places where concepts. That is a very pro-active CM, Chandrababu Naidu, human beings have evolved over another area where and the kind of importance that is given to the last 2 lakh years. a lot of investors the tourism industry is immense. In the last 2 have expressed years, we have seen about two thousand new Vizag a growing MICE interest. hotel rooms added and we still have a lot of destination ,, shortage of hotel rooms because all the 5-star Many such products exist but we Srikant Nagulapalli hotel rooms got left behind in Hyderabad. have major challenges in terms Secretary Tourism, Andhra Pradesh Unfortunately, we did not get a share of those of the international airport, e-visa hotels so we have to build these hotel rooms and things like that. Apart from afresh. that the new capital is also becoming a almost weekly basis with escort officers. S pecial Tourist Zones in the offing destination for many of the international This year we have targeted about 1500 crores The state has identified 2 locations as I nvestment promotion and creating tourists, especially Amravati because of its with the focus being on hotel resorts and special tourism zones where we have, taking associations top agenda 2500 years old history. This is the 5th time water sports because of the large number from the recent budget announces, worked The tourism policy currently focuses that location is becoming the capital of a of water bodies and very long coast line. A on the basic concepts. That is another area primarily on increasing footfalls and we political entity. That is a place from where number of water sport operators are setting where a lot of investors have expressed have a target of about 50 lakh footfalls by Buddhism got exported from our country up their shop in Andhra Pradesh. In the interest. We have some properties of 2029. We are already in the top four in terms to the Far East. Incidentally this story was last 1 year itself we have 15 locations where tourism development corporation which of domestic arrivals and this is primarily narrated by the Japanese Prime Minister to these facilities are being setup. Vijayawada we are more or less privatising and because of religious tourism. Andhra our Chief Minister when he met him first, and Amravati, we have the Krishna river almost 50% of the privatisation has been Pradesh has the highest footfalls in terms three years ago. Vizag is again fast becoming where we have one of the largest islands in completed. We intend to withdraw from of the temples. We have the best managed a MICE destination where we are having a fresh waters. These are almost 4,500 acres these properties and move the tourism temples in the country. The current focus lot of business travellers that are coming of islands located between two cities. This development corporation to different of the policy is on investment promotion in. These travellers are tending to stay back is another location where a lot of investors areas. Also, a large number of PPP projects and unfortunately, when the state got for a couple of extra days and extending have visited in the last 2-3 months and are are being undertaken. We have identified bifurcated we never had any tour operators. the stay. We have a lot of opportunity setting up about 10 locations to create a route around 60 land parcels and most of them So, we are now in the process of creating there in creating good tourism products for operating jetties. Another focus area that are available on our website. The project associations for tour operators in Vizag, or enhancing the value of the existing we have is Konaseema which is similar to ideas, information and memorandum for Amravati, Tirupati and Anantpur with each products. We currently have a pipeline of the back waters in Kerala. Probably quite the same are on the website as well. Apart of these areas linked to an international about 14,000 crores investment which has different in terms of the culture, food and from this, in the next 4-5 months, we will airport. We have a lot of incentives which been signed up by way of about 113 MoUs heritage. That is another location that we will be setting up a unique anti-submarine are being given to these tour operators to and each of these MoUs we track on an be focussing on in the near future. aircraft museum.

Raje e v Kohli, Joint Managing Director, Creative Travels G overnment must talk to us as equals, throw away archaic policies

n what it would take for These are source markets that add als who can take Indian tourism Oan Indian tour operator to little value to the real stakeholders further, only if we had the support We no longer acquire a global foot print and sellers of travel in our country and guidance to do so. The Make excite sellers of When PM Modi launched his Make and little to our coffers. The Make in India policy wants to increase travel overseas. For Make in India to in India program, we in the tourism in India policy wants to encourage employment yet, I find our industry make a difference industry were very excited but now the inflow of investment in to India. is retrenching manpower. The gov- in our lives, the 3 years later, we sit in a position of Yet, the only industry that prob- ernment wishes to grow tourism, government needs to extreme disillusionment, despair ably has the highest net retention they want us to achieve the vision be prepared to talk and apprehension for our future. of dollars in the economy has the of twenty million arrivals, our tar- to us as equals, not talk down to us. We We as an industry have always weakest administrative support. gets keep on increasing and yet the need to collectively approached the government as a We have allowed international environment we are operating in, be prepared to throw partner in their efforts. Make in India companies to come in to India as an industry, has not changed. away all archaic has made us proud as a nation. The to setup their footprints and to International travel partners policies of our tourism concept is wonderful and the pas- acquire or eradicate Indian players. also say that India is a fascinating administration and start from scratch. sion evokes thrills. But for tourism, Multi-nationals have filled in the country and culture yet, we are a Times have changed it has unfortunately offered little coffers of online portals that have painful and expensive destination and what has not opportunity or hope for any turna- deliberately embarked on a mis- to sell. We no longer excite sellers worked for a decade round. The government touts double sion to remove local competition of travel overseas. For Make in is unlikely to work in digit increases in tourism arrivals through predatory pricing or unfair India to make a difference in our the future. We need to be prepared for but anyone has studied economics practices. We have done a lot for lives, the government needs to be change. or statistics will know that numbers foreigners to come and invest yet, I prepared to talk to us as equals, ,, are not absolute and can tell any as an Indian player have no support not talk down to us. We need to Rjevha e Ko li tale one wishes to spin. Where it to expand my footprint overseas. collectively be prepared to throw is a fact that absolute arrivals have We recognise competition, we away all archaic policies of our increased, digging deeper in to the welcome investment but we ask tourism administration and start to match our pace? The private that can generate the amount of details shows that our key source that we as Indian players have the from scratch. Times have changed sector can do only so much with employment needed to eradicate markets are in a spiralling decline. same right to do what others can and what has not worked for a its limited resources. It is time poverty. We are the only sector in do across the world. decade is unlikely to work in the to treat us as equals and take the Indian economy that can add Dichotomy between govern- future. We need to be prepared our passion for our country as significant growth to our foreign ment intentions and actions I ndia an expensive destination for change. The private sector the power to drive the Indian exchange reserves. We are the Growth has come from the likes of to sell has embraced change and wants economy and the Make in India only sector that can truly make the Sri Lanka, Nepal and Bangladesh. We have many brilliant profession- more. Is the government prepared program. We are the only sector lion roar. To urism in indian economy 9

I ndustry must become more vocal and active in taking the lead: Amitabh Kant Amitabh Kant, CEO, Niti Aayog minced no words, alleging that the industry was failing in pushing the government on the tourism front. Calling the industry passive and silent, he pointed out how government’s inadequate destination marketing was not been highlighted by the industry. Excerpts of his discussion with Navin Berry, Chief Editor, Cross Section Media follows:

By Priyaanka Berry a great believer in earnings. You should target in terms of earnings NB: Do you see the possibility of a to achieve a 5x growth in the next 3 marketing fund for the industry? years. It is also possible to enhance AK: I think it is a very good idea and you your per capita earnings. Its hugely T oday I feel the should take this forward. My view is that in possible to give a big thrust. Not the tourism sector the government doesn’t in terms of numbers but in terms private sector doesn’t perform and the private sector only talks. You of value. Because now you have make adequate must walk the talk and when you do that the opened up the gates for electronic sound. You should government will meet you half way through. tourist visas. That is a huge move make a hue and cry. If you don’t do this, you will have the forward. The priority of the demise of tourism because the government government is growth is incapable of doing consistent and All the requirements for with job creation. professional marketing over a long period tourism are available now. There The multiplier impact of time. If you want to create a brand, it is no rational reason why India’s of tourism is so should be done by the private sector. A lot tourism should not grow in the immense and there is of capacity is now being created in terms of coming years. The only thing in no other sector that hotels, infrastructure and rooms, now you infrastructure that you actually can create such jobs. need about a 100x of professional marketing lack is great MICE centres. You We haven’t tapped than what is happening right now. You need need more convention centres. the job creation a huge penetration of brand India across Which we have initiated. We potential of the markets and across the digital world. India are creating one of the biggest tourism sector at all. must become the top most recall market convention centres in Dwarka My view is that there amongst travellers which is not there right that is 5 mins from the airport and are 5 key areas where now. So you have created infrastructure and connected with 2 metros. Also, tourism needs to you have created rooms, now you have to Pragati Maidan is being redone. focus on. ensure that the demand grows rapidly and MICE tourism will take a quantum that these rooms are filled and you create jump. We at NITI Aayog are in ,, even more hotel rooms in the next lot. the stage of planning for opening up the islands. We are doing 5 in Am itabh Kant NB: From the days when you were Lakshadweep and 5 in Andaman CEO, NITI Aayog in the Ministry say 17 years ago, now and the next phase will have 20 the whole canvas has changed many more. The concept is a sustainable you do if today you were given charge NB: The sense I have always got is that of Incredible India as a campaign, as whenever the industry is looking to a means of education and bringing in meet the government it is regarding I think the industry must have a greater voice more numbers? some tax reduction or the like. We to tell the government that it is miserably AK: I never look back but only look ahead. have not gone seeking any broader Today I feel the private sector doesn’t make picture. failing in doing destination marketing. adequate sound. You should make a hue AK: I am a great well-wisher of the travel and cry. The priority of the government is and tourism sector. It has huge potential growth with job creation. The multiplier for growth and growth in jobs. You need fold. The current department of and holistic development. The other thing impact of tourism is so immense and there to work with many more states. You need tourism is virtually at the same level is to relax the CRZ in a manner to develop is no other sector that can create such jobs. 10-12 champion states in travel and tourism as it was during your time. It hasn’t beach destinations. Rest is all marketing and We haven’t tapped the job creation potential which is missing. After Rajasthan and Kerala, grown in terms of numbers of people incentivizing the private sector to contribute of the tourism sector at all. My view is I thought you would have many more state or professionalism. Do you something to the resources. With GST, tourism should that there are 5 key areas where tourism which would create jobs through tourism. mega happening on this front with be at the lowest level. If you want tourism needs to focus on. One is marketing and You need to work with Chief Ministers. consultants or an enlarged tourism to be a job creator, then it should be at the promotion of E-Visas; improve the quality Government has given 42% allocation to ministry? lowest level. of infrastructure; you need to open up the the states. The states have to make this their AK: The new General Financial Rules in MICE market and open up the beaches number 1 priority. government allows you a lot of freedom. In NB: You mentioned the 160 countries which have a huge potential; you need DIPP, I had taken on a lot of outside profes- where we have the E-Visas, has it great amount professional and world class NB: On this, my suspicion is that the sional bodies that assisted and supported me produced the required numbers already marketing in all areas; you need to focus on government machinery is terribly in a vast range of areas. Here, in NITI Aayog, or you expect it to take longer or are skill development and ensure that in GST vulnerable to the incumbent in power. I have hired a lot of young professionals and there other things that we need to you have the lowest level of taxes. You have a Secretary, he goes and the a lot of consultants. These are young people do along with the roll out that are not whole policy and priority is changed. from Harvard, Wharton and Oxford, they happening? NB: Many a times you said that you There is no consistency in terms of bring in all the life into NITI Aayog and they AK: The government has put out the policy blame the industry for not doing certain endeavour, in terms of policy and are the ones driving things. Same thing I did in framework. There might be some teething things. Many of us including me think at objectives. Kerala success story is also DIPP; I had World Bank, KPMG working with problems and those can be sorted out. Any times that the industry should take up a due to continuity in thought process. me. It is good to stay lean and thin as a body facility is as good as or as bad as you market bigger challenge as a whole rather than AK: Kerala has continuity all throughout. but it should have the ability and flexibility to it. People around the world are not aware their individual projects. You need to have continuity. The Kerala work with the best professionals from around that you have an electronic visa facility. You AK: I think the industry must have a private sector is very vibrant unlike in the world which the present rules permit. So, I need to market it aggressively. For this lack of greater voice to tell the government that Delhi. Their dynamism we don’t see here. don’t know why this is not being done. awareness, I blame the private sector more it is miserably failing in doing destination See the Kerala Travel Mart – supported by that I blame the government. marketing. As group and as an industry I the government but totally driven by the NB: How do see travel and tourism never hear your voice that the government private sector. panning out? NB: We all know you are the creator of isn’t doing enough. I have been Secretary AK: See I am not a great believer in the num- Incredible India which ran beautifully for DIPP and I have interacted with every single NB: Do you think something like this is bers game. So, I won’t say that from 8 million first 3-5 years and now it has gone into industry; the tourism industry is the most possible on the national level? you want to go to 15 million or so on but I am a bit of a dormant phase. What would passive and silent. AK: Yes, absolutely, why not? 10 A holistic approach

M ultiplicity of authority barrier to growth of integrated infrastructure: Ashok Lavasa In probably a first in recent years, the Finance Secretary of India speaks to the tourism industry at India Tourism Summit that took place last month in Delhi, on his take of Indian tourism as an industry. In the present government, he has already served three key portfolios. He was ​secretary, Civil Aviation and then the Environment Secretary and in both these sectors there was a fair amount of work done​ that has or will impact tourism going forward​.

By Priyaanka Berry contributing to the economic growth in remove signages. would like to make a countries and this We have still not been Atithi Devo Bhava few observations on the shows that tourism able to resolve the has to seep into our role and importance of is a sector that has issue of multiplicity citizens’ sensibility tourism in the current a direct impact on of authorities which and sensitively and “Icontext. We always refer to travel economic growth only can we hope and tourism, and I was asking and on employment are dealing with that India becomes myself what is the distinction generation and an various issues. This a major destination. between a traveller and a tourist indirect and induced becomes a barrier to I would like to and I felt that perhaps a traveller impact which is far integrated growth emphasis on the is someone who wants to go from greater than the of infrastructure and role that family plays one place to another but a tourist is direct impact. In tourism. Perhaps in teaching its own someone who wants to spend time, the current context countries where a lot children in being he wants to discover that place and where global tourism of progress in tourism good citizens. understand different cultures and has been growing has been made, my While it is very lifestyles. about 3.9% or so, sense is that many of good to attract The way the world is moving the Indian tourism the local authorities foreign tourists and today, particularly the wave industry is forecast are responsible for I am all for it, but I which people are calling anti- to grow at a much ​ managing tourist think that no country globalization, I ask how is it going higher​ rate and this attractions. In India, in the has grown if to impact tourism? And I felt that is what people also the situation is not it has not provided what is happening in the world, say about the general that. It is not just for the domestic the protectionist tendencies can growth about the the Taj that is to be travel and if it has provide a great opportunity for Indian economy preserved only but not looked after the tourism. It is the tourism industry as well. The way also how you get budget traveller. that can create a tourist attraction tourism growth has Another issue out of a wall and it is the tourism taken place in India, there and the entire which plagues the industry that can create a tourist whether it is in terms experience around it. tourism sector which attraction even out of wall that is of investments, or ,, we have still not been damaged. The brilliance and the growth in arrival of a sHOK Lavasa able to resolve is the Finance Secretary of India creativity of the tourism industry foreign tourists, it is issue of multiplicity of is about packaging and taking a in the multiplication authorities which are product to the world in a manner of domestic tourism, where India dealing with various that they find it attractive and want has grown immensely. Whatever issues. This becomes to experience. be our grievance about the slow Atithi Devo Bhava has to seep into our a barrier to integrated Now there are a number of pace of growth but I would feel growth of infrastructure statistics to show how tourism is that India has grown a lot. I recall citizens’ sensibility and sensitively and only and tourism. Perhaps can we hope that India becomes a countries where a lot of progress in tourism major destination. has been made, my sense is that many of Buy and Sell B2B and B2C. the local authorities are in 1993, when I was in tourism and and natural resources. How are responsible for managing tourist Ready to use packages even the earlier days when people you able to not only present these attractions. In India, the situation is like Mr. Misra were in tourism, India resources but also preserve them not that. It is not just the Taj that is to was still talking of a million foreign is very critical. Without preserving, be preserved only but also how you tourist arrivals per year and now we are looking at a very myopic get there and the entire experience there are months in which you get approach. around it. almost that number. Along with this​ The beauty of tourism is in its If you look at the allocation of , ​there are some challenges which ability to connect with the local the Ministry of Tourism and think have come and we need to address population. If there is a disconnect that is the only investment that the those. For example, take the case between what you are providing government is making to promote of river rafting. 20 years ago, people to an outsider who is visiting that tourism that would be a slightly hardly considered going for river place and the quality of the life unfair way of looking at it because rafting but now adventure tourism in the area where that resource is of the holistic way of looking at has grown in a rapid way and this located, the wider the disconnect it. You should keep in mind the has brought issues such as safety the more problems you will have various other programmes that the and environment to the fore. Now, in promoting tourism. It is the government runs and investments unless we address these issues we responsibility of the government it makes and policies and schemes will not have a holistic development and the tourism industry to narrow that are handled by other ministries of tourism. this disconnect. that contribute to the development 21-23 September The way tourism industry There is no better industry than of tourism. Even if you limit yourself would grow is not only by direct tourism which is all inclusive and to the allocation to tourism, this intervention but you must look this slogan that we use of Atithi year for example, there is a 16% at the entire approach of the Devo Bhava, if it is going to remain growth in allocation to tourism. government. Such as Swachh just a spiritual statement, it will not This is a big step which the Bharat Abhiyan, to improve the help at all. I think this has to seep government has taken. image of India. Another thing to into civil consciousness. How I do believe that whether you Call: +91 97177 64717 emphasis​e​ is that resources that do you make your citizens tourist see tourism an industry or not Email: [email protected] India has, finance is only one of friendly and not citizens who will but there is a lot of industry in the resources, others are heritage scribble on noticeboards, or worse tourism. jo ining the dots 11

A mechanism for joint secretary level inter- ministerial interaction critical: V K Duggal V K Duggal, after an extensive discussion with panelists, recommended some measures for ‘Joining the Dots’. Excerpts:

n Tourism Challenges and the way forward: The outreach of tourism ◗ Formal structure for Joint Secretary is total. It pans into each level interaction: There is a need to and every area, be it create a structure so that such an Oemployment, or economic activity. interaction takes place on a regular T here is a need for Economic activity at the smaller scale, basis on a functional level. A meeting the medium scale, and at the large of various joint secretaries, chaired by sensible and desirable scale. It touches every person’s life in Secretary (Tourism) level of liberalised some form or the other. Multiplicity of authorities: It comes policy where the into play. That is the problem we will commercial use of On need for regular inter- have to address. your ancient heritage ministerial meet to sensitize ◗ Liberalised policy on commercial is concerned. Not only bureaucrats about the needs of usage of monuments: Sensible and palaces of Maharajahs tourism industry desirable level of liberalised policy who are converting All ministries are connected to tourism. I where the commercial use of your them into hotels, but think Joint Secretary level interaction can ancient heritage is concerned. Not monuments as well. It be extremely productive. They have more only palaces of Maharajahs who creates publicity and time and understanding of the whole are converting them into hotels, you are forced to keep thing. They can push it in their ministries. but monuments as well. It creates it clean. There is a publicity and you are forced to keep need for coordination On heritage tourism it clean. between Ministry of One thing is fairly certain. When it comes ◗ Coordination among ministries: Tourism and other to organising large events in the country, There is a need for coordination ministries which can we have attained enough expertise. Some between Ministry of Tourism and play a significant role practical issues have been raised. Where other ministries which can play a in growth of tourism museums are concerned, I think there significant role in growth of tourism in in the country. is a general level of satisfaction. Where the country. monuments are concerned, it is not only, ◗ Turf battle or ministerial ,, within the precincts of the monument, it priorities: Challenges remain. It is the approach to, and the environment could be priorities of those ministries of the monument which also has to be and departments; it could be turf V K Duggal Former Governor, Manipur looked at. battle. P romoting indigenous sports will help tourism and culture: Rajvir Singh, JS, Ministry of Sports R ajvir Singh highlights the untapped potential of indigenous games in attracting domestic and international tourists. T here are many nfortunately, we are not doing coordination. In one department, if there are indigenous sports, much to promote sports. Sports, in 11 divisions, people do not know what the like Jallikattu in Tamil most of the leading countries, and other division is actually doing. Not many Nadu. It is a popular I was reading their curriculum, is a people would be knowing that FIFA Junior sport. We need to Umandatory activity in the school – and half of World Cup is being held in India. 24 teams encourage such the European countries teach sports, some will be participating in that event, and it will activities. A calendar as competitive and some as participative, be held across six different venues. Delhi, of these events can and team sport is compulsory in Europe and of course, is one of them. Goa is already a be drawn up by the the USA. Not many of our school children tourist destination. Others are Kochi, Mumbai, department of sports. play team sports. It is very important. I quote Goa and Guwahati. We will also write to the a report that by 2030, India will have its Secretary, Culture and tourism, as well, that We have not done one-third of population affected by lifestyle we are hosting and these are venues. We that till now. The diseases. will also be organising ‘Himalayan Region snake boat race in In Europe, when people go for tourism Games’. We were planning of holding them Kerala, bullock cart activities, they will take their bicycles along in the last week of April, but now they have race in Tamil Nadu, with them. Not many in India, I believe, been rescheduled for November. I wrote to 11 buffalo race which do it. We have a lot of fun sports in India, Himalayan states, and countries, consisting has been banned in indigenous, all across the country and they of Nepal, Afghanistan, Bhutan, Myanmar and Karnataka, and the are dying a slow death. Thailand – which will be participating, about Rai Kilapur Rural Sports tourism in the modern sense the Games. Olympics. It attracts can attract a lot of people, if we package it There are many indigenous sports, like millions of people, properly. The Ministry of Sports has been Jallikattu in Tamil Nadu. It is a popular sport. including from holding many events. But it was for the first We need to encourage such activities. A abroad. time, and we in the sixty-eighth year of our calendar of these events can be drawn up by Rj a vir Singh ,, republic, a conference of Ministers of culture, the department of sports. We have not done sports and tourism, of states and the centre, that till now. The snake boat race in Kerala, Joint Secretary, Ministry of Sports was held in Kachchh at the behest of the bullock cart race in Tamil Nadu, buffalo Prime Minster. It was done to promote sports, race which has been banned in Karnataka, events can be drawn and sports can become event, on a real-time basis, as a real-time and through that culture, as well as, tourism. and you must have heard of the Rai Kilapur a vehicle to grow itself, as well as facilitate entertainment industry in times to come. So, I was Deputy Secretary, Agriculture Rural Olympics. It attracts millions of people, growth in other sectors. we need to promote sports and through that in 2004, looking after a division called including from abroad. A calendar of these Sports is going to grow as a real-time tourism and culture. 12 jo ining the dots AYUSH addressing lack of credibility, accreditation of yoga schools, says Ajeet Sharan P honey Yoga instructors, ill-managed centres and complicated visa processes have all curtailed the growth of Ayurveda, wellness and yoga tourism in the country. Secretary AYUSH shared some important steps undertaken by the ministry to bring more standardization and quality in offerings. Excerpts from his address:

YUSH, for those who are has a target of one lakh. I am fairly certain not really aware about, is an that he will achieve the target of having acronym for Ayurveda, Yunani, one lakh certified yoga instructors. Siddha, homeopathy and R ishikesh alone We have written to states to include Anaturopathy. I will focus on Ayurveda and yoga certification as a mandatory has over 200 yoga Yoga, because to my mind they have the centres. Rishikesh requirement when they have to employ a biggest tourism potential, and to my mind yoga teacher. This common certification we have not yet scratched the surface. and Mysore are two will be a much better thing. Starting with yoga, of course, after the of the biggest centres Similarly, we are going ahead with International Day of Yoga’s announcement for yoga learning the accreditation of large yoga schools – two years back, there is tremendous in the country, but where people come for a more structured interest in yoga, and in coming to India there is absolutely no program. We have certified Sri Sri Centre to learn yoga. We have a large number infrastructure there. in Bengaluru. I think there are about 15-20 of people coming from across the world. Tourists feel major yoga centres in the country, and in They are not novices, mind you, and they cheated and file a the course of the next few months we will come from far a place as Peru and Chile in police complaint. It be able to accredit these yoga centres. South America. leaves a bad taste So, are we prepared to receive these Ayurveda: people who come here to learn yoga? in everybody’s There are similar issues. I think in terms Absolutely not. There are many issues. mouth. So, we are of value addition proposition, probably, Visa hurdles: Till recently, they could not initiating a centre for Ayurveda has much more to contribute, come to India on tourist visa, and if they accreditation of yoga even more than yoga, because people were coming on a student visa, they had centres. It is not going come here for two things: for wellness, to come through structured, approved, to be easy. We need and for serious medical treatment. A and accredited programs. So, there was cooperation from large number of patients come over for no way for people to fudge and come for state governments. Ayurvedic treatment and, unfortunately, tourist destinations, and, clandestinely, these are people who have lost hope of come in a way, try and enrol in a yoga ,, recovery from all other systems, and this is program. Aetje Sharan their last resort. With great difficult, we have managed Secretary, AYUSH, Indian School of Medicine Issue, unfortunately, is more here to get yoga as one of the purposes for on the supply side. There are only eight obtaining a tourist visa. Here again, if one NABH accredited Ayurveda hospitals in has to stay for more than six months which two of the biggest centres for yoga learning whether the yoga teacher was good or the country. There a few hospitals that are many of these tourists do, because they are in the country, but there is absolutely no bad. Yoga learning was happening in the accredited, and those are also concentrated serious yoga students, they have to go back infrastructure there. most unstructured manner. Most teachers in the south which can provide serious to Nepal, or Bhutan to get their visa renewed. Tourists feel cheated and file a had a Sanskrit background, or at most an treatment. But the potential is huge. People We have tried that with the home ministry, police complaint. It leaves a bad taste in eight-month diploma from some place, and from across the world can come here and but I do not know why they cannot get that everybody’s mouth. So, we are initiating a they call themselves teachers. There was seek treatment for diseases. renewed in India – and it gives a bad name. centre for accreditation of yoga centres. It is no way of knowing the level of proficiency At one level, we are trying to get them to not going to be easy. We need cooperation of the teacher. Fortunately, it has been Wellness: learn yoga, and on another level, we are from state governments’. Maybe, draw a sorted out. We have together a system of It is a very big segment. I recently visited a trying to make things so much difficult for leaf out of what Kerala has done in terms of certification of yoga instructors. It is a four- hospital in Trivandrum. It had a capacity of them. classification of Panchkarma centres. There level certification where Ministry of AYUSH, 180 rooms. I was, probably, the only Indian Lack of credibility and need for they have classified them among Platinum, along with the Quality Council of India have visitor there. There were visitors from Europe, classification:A person sitting in San Gold, Silver etc. based on some kind of put together this in place. There is a process and staying there for a minimum of 15 days. Francisco signs up for a yoga program categorization. I think it will go a long way in of online registration, followed by an online That is the kind of contribution Ayurvedic based on the website of that centre, and improving the credibility of the system, as far exam. Till date, I think we have certified tourism can make for the country. when they come here they find just a hole as learning yoga is concerned. about 2000 yoga teachers – level one and So, potential is huge. Challenges are there, in the wall. Rishikesh alone has over 200 Certification of yoga teachers: Till two. Very soon, in the next six months, this but they can be addressed by cooperation yoga centres. Rishikesh and Mysore are recently, we had no way of categorising level should cross 15,000. Swami Ramdev with state governments. Bharat Mala has significant ramifications for tourism; focus on wayside amenities, says Leela Nandan Apart from boosting existing road networks, the ministry intends to create last-mile connectivity, and coastal connectivity through an ambitious project – Bharat Mala. Also in the pipeline is construction I am happy to share of a number of wayside amenities on 33 locations, across 9 states in that the Ministry has the country through the PPP model. Excerpts of her address: come out with a very pro-active policy, hile I was in tourism, I within state governments which will interact having identified 33 recollect the number of and bring proposals, and make sure that locations, across nine meetings we used to seek these proposals are mainstreamed in the states in the country with Road Transport and ministry’s plans. That notwithstanding, we which are along WHighways Ministry, simply to push two- are embarking upon an ambitious national National Highways. three key issues which are core to the program called Bharat Mala – where we Wayside amenities entire debate about tourism. One is are trying to take into account coastal will be developed on infrastructure, connectivity, especially connectivity, ports and border connectivity. the PPP model, so last-mile connectivity to destinations and So, tourism does find a significant that either there are monuments. The other was the need for mention in our Bharat Mala plans. Hence, it is combined wayside wayside amenities, because of all the all the more required that there is interaction transportation happening through roads. with state governments, so that the ones amenities for cars which are urgently required to upgraded are and buses, or only Bharat Mala has taken a holistic posed to the central government. for truckers, or only overview on infra augmentation for cars. These would On the one, I will tell you that the argument Wayside amenities: include restrooms, is same as it was all those years ago. When I am happy to share that the Ministry has eating facilities and we look at the entire business of identifying come out with a very pro-active policy, Wi-Fi etc. National Highways for upgradation and having identified 33 locations, across ,, expansion, we really look at the term called nine states in the country which are along Lee la Nandan PCU – passenger carry units. So, the volume National Highways. Wayside amenities Joint Secretary, Road Transport and Highways of traffic is something that determines will be developed on the PPP model, so how they will be expanded and upgraded, that either there are combined wayside and there is a lot of engagement with state amenities for cars and buses, or only for amenities will come up very soon, and we not be confined to this dialogue, but governments. That was the case earlier. It truckers, or only for cars. These would hope that tour operators and individual should continue beyond it, so that issues continues now. So, I feel that we need to include restrooms, eating facilities and tourists will benefit from this pro-active that have emerged after this discussion keep doing advocacy with states, and within Wi-Fi etc. This policy has been approved stance of the Ministry. is taken forward by us in our respective the states it has to be PWD and transport and rolled out. These 33 places will be We really need to be connecting on ministries, and we can factor them in our department. These are the departments put-out for bidding very soon. We hope that a regular basis. ‘Joining of Dots’ should plans. jo ining the dots 13 G overnment serious on expansion of aviation infrastructure and connectivity: Arun Kumar The Ministry of Civil Aviation has plans of adding more teeth to air-connectivity, especially in tier-2 and tier-3 cities. While congestion at available airports is an issue, it is an international phenomenon and new airports are being added to address it, he said.

will talk about two types of tourism most liberal regimes in the world, and we that we can envisage – domestic and have allowed our country to be connected international. On the domestic front, with the world, as much as possible. We have been our job is to join the dots. Provide the Emirates, Qatar and all the other big airline building airports. Iecosystem, environment that people can companies are flying 9-10 destinations Kapil Kaul remains fly. So, encouraging airlines and building into the USA and in India while the USA is very concerned about more airports are some of the things that geographically three times bigger than India. the constraints facing we are currently doing. The domestic traffic Policy of 18 destinations: It is also a sound Indian airports, but I growth in India, at the moment, is around policy initiative for promoting tourism. will just submit that 25%, except for the blip in the month of We allowed this to SAARC and ASEAN all the big airports, February when it came down to 17%, for 21 countries, and here the growth has been all over the world, months it was growing at 25%. In the last five phenomenal. Singapore and Bangkok have are constrained. In years, 60 million to 110 million is the growth been connected to these 18 destinations. If fact, in Europe, they in numbers, making us one of the largest you remove a couple of airports from these have pricing based domestic markets in the world. 18 destinations, other are our top airports, on the congestion level at the airport. Delhi airport is getting The cabinet has sanctioned 4,500 crores congested, but with the UP elections for promoting smaller airports which could getting over, we expect another airport include places like Pondicherry and Jaisalmer. to come in Delhi as well. Mumbai will have another airport On the international front, our numbers like Ahmedabad, Goa, Lucknow and Jaipur. in 4-5 years. have also swollen to 55 million. If you add They are all having tourism, and helped Arun Kumar ,, the two, it makes it to 175 million – sixth or us connecting destinations like Gaya and Joint Secretary, Ministry of Civil Aviation seventh largest market in the world. Varanasi. As far as I am concerned, there is a case P olicies on the international front: for expanding this list. It could be Madurai, On the domestic front well. Mumbai will have another airport in Open Sky: Open Sky means no limitation Coimbatore, or any other destination. It can It has been phenomenal. We have been 4-5 years. on traffic rights, and any number of flights be examined. Basically, we are facilitating building airports. Kapil Kaul remains very The cabinet has sanctioned 4,500 crores can be mounted on both sides. We have flying from SAARC and ASEAN countries. concerned about the constraints facing for promoting smaller airports which offered it to around sixty countries. I am Other than that, we have significant Indian airports, but I will just submit that could include places like Pondicherry and happy to share that we have, so far, signed connectivity with the Middle East. There all the big airports, all over the world, are Jaisalmer etc. So, we are connecting the Open Sky agreement with 14 countries. Spain, too, we have very liberal bilaterals; we have constrained. In fact, in Europe, they have dots; we are building the infrastructure. Netherlands, Serbia, Sri Lanka and Greece given more than a lakh seat to the UAE. pricing based on the congestion level at the Our airlines are robust. We are adding 50- are some of them. We already have Open Sky So, we have very liberal bilateral regime, airport. Delhi airport is getting congested, 60 aircrafts every year. So, we have huge agreement with the USA and the UK. but it has hurt us a little, in terms of not but with the UP elections getting over, we capacity and I guess we, on our part, will try India’s bilateral traffic regime is one of the allowing our hubs to grow. expect another airport to come in Delhi as our best and do our best for tourism. MD oU will demonstrate success in SMART cities mission before replicating the model: Kumar Vinay Pratap Sma rt cities mission is an expensive exercise and has its limitations. Therefore, the ministry plans to execute projects and demonstrate success before implementing them on a larger scale. Excerpts of Kumar Vinay Pratap’s speech at the gathering:

am going to talk about three flagship developed as a SMART city. missions undertaken by the MoUD: So, the idea is to start small, demonstrate Swaccha Bharat Mission, SMART success, and replicate within the city and T here are a lot of CITIES mission, and HRIDAY (Heritage across cities within the nation. misgivings about IDevelopment and Augmentation Yojana). As I said, you develop these areas with the SMART cities All these missions have an externality, in developed country infrastructure, because it mission. The mission terms of returns that they will produce for is very important to demonstrate success. We tourism. We have not directly consulted spend a lot of money, but do not get much in was brought in 2015, Ministry of Tourism, or the tourism industry return. So, there has been a new thinking in its tenure is till 2020, while drawing these missions. this regard. and the government There are a lot of misgivings about the In terms of connection to tourism in of India is putting in SMART cities mission. The mission was SMART cities, each of the SMART city rupees 50000 crores on the mission. That is a very small sum with regard to the S everal national programs have major requirement. Like the government implications on tourism. Swaccha is planning on developing 100 Bharat Abhiyaan touches every part of SMART CITIES. 60 the country. have been declared till now, but the areas HRIDAY mission is directly related to of cities are very small, because it costs tourism. 12 cities have been selected a lot of money. to improve infrastructure and access ,, Ku mar Vinay Pratap to the heritage sites – and, obviously, Joint Secretary, Ministry of Urban Development there will be returns in terms of tourism. our cities are not too clean. So, we have been declared open defecation free. to bring about better measures for solid It requires a lot of behavioural changes. waste management; waste to energy You can put in money, but unless people brought in 2015, its tenure is till 2020, and proposal for these 60 cities that we have projects, and waste to compost; and to realise it themselves, these changes will not the government of India is putting in rupees received have proposals about developing make our cities open defecation free. happen. 50000 crores on the mission. That is a very the core city area. For example, the proposal That is a major issue in India. We are the small sum with regard to the requirement. of NDMC talks about the making Connaught open defecation capital of the world. So, HRI DAY Mission: Like the government is planning on Place pedestrian only. It would be a no-vehicle it extends to all 4041 towns and cities Directly related to tourism, 12 cities have developing 100 SMART CITIES. 60 have area, and come up around March 2018. which have been declared in India. Unlike been selected to improve infrastructure been declared till now, but the areas of the SMART city mission, it covers the and access to the heritage sites – and, cities are very small, because it costs a lot of S waccha Bharat Mission: entire canvas. We have had some success. obviously, there will be returns in terms of money. For Delhi, area under NDMC is being It was launched in 2014. The idea is that Maharashtra and Gujarat have already tourism. 14 jo ining the dots ASI planning to restore and conserve all monuments under its ambit, says P L Sahu T he Ministry of Culture is planning to conserve and restore over 3,600 monuments falling under its jurisdiction. In a bid to ensure global standards, it has undertaken several projects under the public-private partnership model. P L Sahu, Joint Secretary, Ministry of Culture addressed the gathering, informing the audience about ministry’s initiatives and how it would positively impact travel and tourism in the country. Excerpts of his speech follows:

On the thriving examples of community million people visiting the monuments in development in the country. the country and roughly 20 million tourists I want to begin with talking about a meet- visiting the museums. We have 7 museums On the monuments ing that was held a couple of months back in as well as about 44 site museums of the ASI, side, we have now Kutch. The meeting was attended by about we have about 25 science centres and all started adopting 300 officials from the state government, the of these make for about 20 million visitor some of the best central government, ministers of state as well footfalls. practices available as central governments, who came together in the world today. to have a coordinated approach for tourism. On the work undertaken by the ministry We are using the The beauty of this confluence is that the to see through the vision of preserving Public-Private tourism ministry brought out the report of the and promoting Indian Culture Partnership model to summit which was shared with everybody Talking about what we do in the ministry do conservation work. and time was given to every ministry from, to promote art and culture, as mentioned Some of these sites both state and centre, to work out a strategy before I will stick to the tangible part, particu- that this model has for development of tourism. larly the work of the Archaeological Survey I personally went to Kutch twice and I can and the museums. If you look at our cultural been implemented vouch for the fact that it is one of the best heritage, the outstanding universal values in have seen footfalls examples of community development. My of the cultural heritage of India, we have grow as much as first visit, I saw for myself the poverty in that 35 cultural and natural sites in India today 20%. There are many part of the country. Now, if you go there you which have the world heritage tag given by other things on which can see for yourself that there is a thriving UNESCO. Looking at 2007-2012, not a single we are working. The 150 crore business running there. heritage site of India was actually inscribed government has and if you now look at 2014 onwards, 12 allocated 350 crores On the ministry’s vision to preserve and of these sites are now inscribed. This also to protect and create boundaries around the monuments. We have introduced the system of 100 P L Sahu ,, Joint secretary, Ministry of Culture Adarsh Monuments where world class facilities will be provided. convert more and more of these sites in to facilities as well as cashless facilities at the global sites. monuments. We have around 116 ticketed monuments in the country. There are 17 World’s best practices and PPP model festivals of India which we organise abroad promote Indian cultural heritage includes the intangible heritage culture. For to better conserve heritage which is a record in itself. Coming back to culture, the vision of the example, Yoga has now been inscribed. So, On the monuments side, we have now This year to showcase our art and culture culture ministry is to preserve, conserve and out of the 35 cultural heritage centres or started adopting some of the best practices we organised Sanskriti Mahotsava and promote our cultural heritage. To use the sites in India, we have about 27 cultural sites available in the world today. We are using Bharat Rang Mahotsava by the National cultural legacy of the country for soft power, and about 8 natural sites, for which we take the Public-Private Partnership model to do School of Drama. We are going to hold the diplomacy and of course, to promote culture, support from the ministry of environment conservation work. Some of these sites that 7th edition of the Theatre Olympics in the both tangible and intangible. I will restrict and forests and process the files for giving this model has been implemented in have country which is a huge achievement in the myself to the tangible cultural heritage of them the cultural heritage tag. What we have seen footfalls grow as much as 20%. There global forum. We have introduced the system the country because it directly impacts the done actually in the ministry in the past are many other things on which we are work- of 100 Adarsh Monuments where world tourism sector. By tangible I mean the great couple of years is that we tried to improve ing. The government has allocated 350 crores class facilities will be provided. India has and ancient monuments that we have which the legal framework on which we can work to protect and create boundaries around the about 3 lack monuments in the country and are maintained by the Archaeological Survey as well as founding a national committee monuments. We have just made a must-see the ASI just has 3,686 of those monuments of India and the museums, where the tourism which includes the best available experts to portal where information about the best state under its protection. We are coming up with footfall is quite large. Taking in to account work with and we asked the experts to create as well as ASI protected monuments is avail- a scheme to restore or conserve all of these some of the statistics, we have roughly 50-60 dossiers. So, we are working really hard to able for tourists. We have introduced e-ticket monuments. D elegates come together for a comprehensive overview on tourism, network on the sidelines AVI IAT ON 15

S peaking at the Indian Tourism Summit 2017, panellists discussed a host of issues facing the aviation industry. They, at length, examined the role of aviation in making tourism seamless. There seemed an underlying converge on the need for boosting infrastructure and catering to market demand, rather than creating it. A viation: Seamless in sync with Tourism N umbers look good if supply-side constraints like bilaterals, infra can be addressed: Kapil Kaul

By anagat Choudhary forecast and one point five or two multiples, you get high twenties. But the number would n the forecast of the travel and be different if you do 6-7%. So, that is the I would like to tourism sector decreasing the importance of data and if you have to get emphasise this disparity between inbound reliable forecasting done, we have requested and we are doing and outbound. the ministry to ensure that the statistics can some research and OForeign nationals coming in to India in 2006 be reported by country of residence as well understanding the were 4.4 million and the outbound was 8.4 as nationality. Planning will also be assisted visitations that come million. These numbers went up to 6.3 mil- by monthly foreign visitor arrival data which in from China and lion and 13.99 million, respectively, in 2011. can be split in to air and non-air so that it Australia. These are In 2016, there were 8.89 million inbound becomes extremely focussed in terms of two big markets tourists and about 20 million outbound understanding how traffic flows are coming. where in the next 5-7 ones. The forecast is 13.2 million inbound This is primarily the selected trends for out- years we will see a tourists and 33.2 million outbound tourists bound markets in India, South-East Asia and significant growth by 2021. The 10-year forecast, which is for the UAE. South-East Asia and the UAE are the 2026, is 17.3 million inbound and about 50.8 two most popular outbound destinations. but obviously, India million outbound tourists. This is where the The USA is the leading long-haul des- receives very less growth number are and these are extremely tination. Let us look at what is the growth Chinese travellers significant. There are supply side constraints curve for the outbound markets from India largely because of so if we remove obstacles like bilaterals, on selected markets in 2016. Some of the strategic visa and infrastructure etc. These number look quite markets like Australia, Eastern Europe are other issues but that exciting. These are unconstrained forecasts the fastest growing markets. Obviously, the is going to change. so they assume only incremental liberalisa- base is smaller so their growth effect is larger. Chinese visitors that tion of bilaterals. Our thought is that bilaterals These two are followed by Africa, Canada go to Sri Lanka and are not going to be expanded, as much as we and Western Europe and when we talk about Maldives are in much would like so, that could create some impact Western Europe, it excludes UK. higher number. on the growth numbers. Airlines will be These numbers will be different from Kapil Kaul ,, better able to plan and deploy capacity and some of the tourism arrivals in these CEO – South Asia, CAPA launch more convenient routes if the ministry countries because there is traffic which goes of tourism can report statistics. by land and that is something that could It is a big issue, statistics by country of be factored in but these are the outbound the fastest growing in-bound region but the travellers largely because of strategic visa residence or nationality. If you look at the numbers from India. I would like to quickly emerging action is in the East. I would like and other issues but that is going to change. February 2017 numbers, we were doing a share the inbound numbers. We could not to emphasise this and we are doing some Chinese visitors that go to Sri Lanka and forecast for the next 5 years, re-looking at qualify the 2016 numbers so here are some of research and understanding the visitations Maldives are in much higher number. So, if these numbers, the growth numbers from the 2015 numbers. The US, UK and Western that come in from China and Australia. These you have to look at the inbound paradigm, tourism is about 13.7%, but when you build Europe are the key contributors to foreign are two big markets where in the next 5-7 the look east strategy, making visas around and take Bangladesh and Pakistan investors and together account for 40% of years we will see a significant growth but affordable and getting wealthy Chinese to out, the number is 6-7%. So, if you take a 13% visitations or visitor arrivals. West Asia is obviously, India receives very less Chinese come to India would be interesting. Intend to make IGI an aviation hub; Terminal 1D to be operational in 2 years, says Rommel Valles

On the state of infrastructure of the homework so they are well aware even Delhi Airport to the extent of the kind of aircraft they At the moment, there is renovation hap- want to fly. For us whether it is inbound or pening at the airport. By the year 2026, we outbound, we are very happy as long as Our airline marketing expect a 100 - million passengers using customers use the airports. We are very team does in-depth the Delhi Airport. Right now, the capacity keen on making Delhi a hub for airlines homework so they is only for 60 million passengers. With the because we now have a national carrier are well aware even expansion of Terminal 1, we are re-visiting which has operations out of Delhi. to the extent of the the master plan and in Terminal 1-D, we kind of aircraft they want to fly. For us, whether it is inbound or outbound, we are With the expansion of Terminal 1, we are very happy as long re-visiting the master plan. as customers use the airports. We are very keen on making are extending the departures as well as the On plans for Aerocity Delhi a hub for airlines arrivals. The renovation is expected to be Basically, we have 5,100 acres of land and because we now done with in another 2 years’ time. 5% of that can be developed. So, the first have a national carrier We are very happy with tourism 45 acres are developed and we have the which has operations whether it be inbound or outbound. In hotels around there. I believe the next 45 out of Delhi. view of the inbound we have an airline acres are also going to be developed and marketing team that attends the road they are looking at bits. At one time, there ,, conferences where we connect with a were rumours that they were talking of a number of airlines. We do our homework hospital over there but I do not think that is and tell them about India and Delhi and true. It is basically going to be leisure travel Romme l Valles H ead, Stakeholder Management, GMR Airports, GMR Group the possibilities of coming in to Delhi. related development wherein the F&B Our airline marketing team does in-depth sector is going to come up. 16 AVI IAT ON Tourism and aviation are unalienable; AI has ramped up connectivity, says Pankaj Srivastava n subdued growth much smaller than the inbound, Vienna with effect from April of in outbound due to that is because we have not 2016 and before we started our Air India has Oinsufficient capacity factored in the huge domestic flights, Austrian Airlines had their recognised First of all, let me just talk about traffic within India. If you look flights from the last 20 years in the fact that what airlines can do for tourism. I at those domestic tourism this country. But the model that connectivity would like to put it across in one figures, our domestic tourism the airline was using was that they is vital for line by saying that what blood is far ahead of the inbound. Air carried passengers from India to development of does for the body, airlines do India has recognised the fact Vienna and only 20% of that was tourism, besides for tourism. I mean to say that that connectivity is vital for actually bound for Austria and the the economy and we are the connecting tissue. development of tourism, besides rest were bound onwards. This did the VFR traffic. We connect people from biggest the economy and the VFR traffic. not do much good for Austrian With that in mind, parts, whether it is international With that in mind, what we have tourism. So, when Austria decided what we have done is that in the past about 3 When Austria decided to pull out of this market, we years, we have connected as stepped in and we started flights to Vienna which many as eleven international were operating thrice a week. destinations on our network. or domestic, to their destinations. done is that in the past about to pull out of this market, we Pn a kaj Srivastava ,, That is why the importance of 3 years, we have connected as stepped in and we started flights Commercial Director, Air India airlines come in the development many as eleven international to Vienna which were operating of tourism. With regard to the destinations on our network. I will thrice a week. We have been the passengers that are going in, and countries around Austria. outbound, I must say that though give you an example of a flight carrying a 90% load factor on 85% of the passengers are bound This has given a lot of impetus to outbound figures are looking into Austria. We started flying to these flights since day 1. Out of all for tourism purposes in Austria Western and Central Europe.

O ur focus is now on catering to the demand rather than creating supply: S. Biswas

n the shortage of infrastructure and the 18 airports will be airports out of which no flights were Wherever there infrastructure development plan in terms operating earlier. The remaining 27 airports already is a gap, we Oof increasing capacity have the infrastructure and now will become opera- The AAI (Airport Authority of India) has already tional. Hopefully we will be able to cater to these needs are working developed 94 airports till date out of which 72 are because the government mandate is that by December on filling it up. airports with scheduled operations. There are 22 air- 2018, 50 airports have to be operational through re- However, there is ports which have been developed but there no flights gional connectivity. We are going to get more than half a a demand from operating out of them. Our focus is that wherever there dozen new airline players to come up and be associated the airlines, we are capacity constraints in terms of things like terminal with the RCS (Regional connectivity scheme). are going to meet building capacity, we are going ahead with develop- If you look at Agra, there are no airlines operating it. What has been ment of these things. We are developing interactions there right now. Fortunately, we are going to now get happening is that with the airlines as well to find out what are their connected thanks to the RCS. If we talk about Jaipur, in the past we requirements so that we can meet the expectations we are going to develop a terminal building which has have developed and we have allocated `70,500 crores for a period of seven times the capacity of the current terminal build- airports which the next 5 years for various developments. ing. Our profile has been changed. Wherever there is have never For example, we are going to invest around `2,100 a gap, we are working on filling it up. However, there been used. So, crores for upgrading the terminal building at the Chen- is a demand from the airlines, we are going to meet it. now our focus nai Airport. Similarly, we are doing the same with many What has been happening is that in the past we have has changed to other airports in the country. We have facilities and developed airports which have never been used. So, developing what infrastructure which are not getting connected by the now our focus has changed to developing what is is already there. airlines due to their own reasons. Under the Regional already there. New airports will come as and when the S. Biswas ,, Connectivity Scheme, the government has said that 50 need arises or the airline’s demand. Under the RCS, it ED (Arch), Airports Authority of India new airports are set to be connected. Within 6 months, is the airlines which need to come forward and let us we are going to connect 45 airports out of which around know their requirements.

AirAsia has made travel more affordable in the region: Suresh Nair, GM, India & South Asia, Air Asia Berhad

n the massive Air Asia network being built around countries Buy and Sell B2B and B2C. O I n terms of the and how it is impacting the Ready to use packages outbound and inbound. composition I usually do not discuss my of our traffic, products in such gatherings I would say and tend to focus more on the that it is an 80 topic but in this case, there are -20 outbound a couple things I would want to to inbound share. AirAsia is maybe the top percentage and most airline in the world which we have the is really catering to the tourist ability to make market, specifically the leisure that increase. As travel market. From our networks and when the across APAC, you can see sectors Indian market on which we have really built also opens up, up business. The way we have there will be built up boosts inbound as well as outbound. We started from all more facilities. these smaller towns and built up ,, the business there. Now, we are Sursh e Nair 21-23 September the only carrier flying in to Goa GM, India & South Asia, Air Asia Berhad from the east. Now the tourist traffic if you see, many of them As and when the Indian market region and made inbound travel are going from one beach to also opens up, there will be affordable. We offer our low fares another beach. more facilities. We have seen all over the network. We had an In terms of the composition that markets, where we have put India month across the network of our traffic, I would say that it in capacity, have grown to take last year. Our in-flight magazine, Call: +91 97177 64717 is an 80 -20 outbound to inbound up that capacity. What we have called 360, promotes different Email: [email protected] percentage and we have the done is that we have opened destination across our entire ability to make that increase. up various markets in this network. REGI ONAL CONNECTIVITY 17

I nadequate airport infra challenge in boosting regional connectivity: Ankur Bhatia While the supply side is expected to remain robust in the coming years, with a large number of new aircrafts to be rolled out, inadequate airport infrastructure will be a bigger concern in India’s bid to boost its air connectivity into tier-2 and tier-3 cities. Kapil Kaul in conversation with Ankur Bhatia. Excerpts from the discussion.

By Priyaanka Berry person takes multiple flights we are looking at about 30-40 million people going in the Unfortunately for K : When you look at the whole air in the country for domestic routes. The India, we have not tourism landscape and how population who has the potential and can been able to take off to make it competitive, one afford to fly is approximately 300 million just yet. Airlines have of the key things will be to people. This is the middle class which is started flying just Kmake sure that connectivity is well actually growing 10% on a year on year spread across the country covering basis. The reason that they do not fly is because they have all the key destinations. The need because the places they want to fly to are availability of aircrafts is for affordable, safe and regular not connected by air. So, they use a train or and they haven’t done connectivity and to make that happen go by road. There is a gap here. If you look a feasibility of those there are a lot of initiatives that the at mature economies across the world, like aircrafts on those government has taken since 2004. We intra-Europe and intra-US, the number of air specific routes. had the first regional policy that came passengers are much greater in the regional We did some into effect in about 2004, where the connectivity space. calculations for the government gave a lot of concessions Unfortunately for India, we have not been regional space where to the airlines. Unfortunately, in a able to take off just yet. There are many you are looking at period of about 10 years, a lot of reasons for this. Airlines have started flying average aircraft airlines started and had to fold-up just because they have availability of aircrafts capacity of 70-80 because of viability challenge. In and they haven’t done a feasibility of those passengers, India the last two-three years, if there is aircrafts on those specific routes. We did requires as of today anything that this government has some calculations for the regional space about a 1000 planes really focussed on aggressively is the where you are looking at average aircraft just to take care of need to build regional connectivity. capacity of 70-80 passengers, India requires the existing demand The National Civil Aviation Policy as of today about a 1000 planes just to take right now for regional which is approved by the government care of the existing demand right now for connectivity. has a tremendous emphasis on regional connectivity. Ankur Bhatia regional connectivity and it focusses The problem which I see from an ,, EXECUTIVE DIRECTOR, BIRD GROUP on the need to make to make it viable. aviation point of view is that our airport

KK: I wanted to talk about undercapitalization. One of the biggest I think you will agree with me that the aviation model for low cost problems is that airlines in India start with very little money and then they carrier is not a passenger model but a financial model andI think that close. What do you think would be a minimum capitalisation that is required is true for all the successful low cost carriers across the globe. to make a regional airline work? AB : If you look at the business model in Capitalization is not an issue with regard to regional airlines. terms of financing there are various models available. There are international airlines as credible partners. But of course you can’t start an airlines with 10-15 crores. Depending Why has regional connectivity in infrastructure is not ready to take these to put in 50 planes in a year, can those on what agreements you can have with the India failed to take off? Is it a business 1000 planes and I think that is the biggest planes be accommodated at the existing manufacturers, that is critical input that will model issues, or a viability issues, hurdle and drawback. This is true both for airports? If you were to do a model which is impact the capitalization and once that is or undercapitalised of airlines when metros like Delhi and Mumbai and also for small such as 5-15 planes, I don’t think you sorted out, I don’t think this is a bottleneck. they start? Do companies misread the the regionals airports such as Chandigarh, make money on that. That is more putting market? Is it policy and infrastructure? Lucknow and Amritsar. A lot of them are a brand out here. It is not viable unless you KK : You think the regulatory Today we have just under 50 aircrafts on the brink of capacity in terms of parking are ramping up to at least 200-300 planes in environment is from a safety, security in the regional space and there is no and slots. There is a huge issue in terms of the next 4-5 years. and policy making perspective more Regional Aircraft Order. If India has to infrastructure that is there. If we want to aligned to making a regional airline get its connectivity competitiveness leap-frog in aviation and if we want to get to KK: I wanted to understand that you work? in place, we need to ensure that the the point of flying 400 million people I think work with all the OEMs and the leasing AB: From my point of view as a trade person dependence on top 10-15 airports what is very important is that we push and companies, one of the biggest problems and also from CII, we have been pushing which holds 80% of the market needs get those numbers coming in from regional is getting an aircraft on lease. How do governments to look at regional and that is the to be taken off. I heard during the aviation. we sort out this acquisition problem? way forward. Yes, there is a focus but unfortu- Summit some of the regional hotels and AB: I think you will agree with me that the nately unless they put in the money where it heritage hotels. If we can’t get regular KK : If we go one by one and list out the aviation model for low cost carrier is not a is required in upgrading the infrastructure we and reliable connectivity to these hotels aspects that are important from the passenger model but a financial model and will have a tough game to play. I think tourism, both domestic and prospect of making it viable. If we look I think that is true for all the successful low international is not going to take off. It’s at a business mode, is an 80 seater cost carriers across the globe. Similarly, KK : Are you still interested to look at it? going to hurt regional integration and model viable? when you talk to manufactures and you AB: Of course, as long as there is viability. it going to hurt almost every aspect of AB: From an entrepreneur point of view, talk of those volumes, India is where you We understand the business and do economy. when you look at this model I think the only can get those volumes, you will be able everything else except fly planes. We We speak with Ankur Bhatia, Executive thing which does not attract you is that you to get to that financial leasing or sale and are at all the big airports, we have the Director, Bird Group on the challenges will fly 3 times over to reach that number lease back model. Again, the question is largest distribution network in the country and nuances of regional connectivity of 180 passengers as you would flying a that you can’t scale up like what you would responsible for 60% of all distribution in in India. He has immense knowledge A320 or a 737. Having said that, with GST do in a national airline to go to 100 planes the marketplace, we are the largest ground on the whole landscape of travel and coming in, the issue of over tax ATF would because you require three times more handling company with our Partner. This will tourism in the country. get sorted out, but it is volume game. Unless passengers to get that. One option is to always remain interesting in my life, because AB: The number of people we fly in the you don’t have those volumes you will not activate alternative airport, there is Juhu, I don’t think unless and until we upgrade Indian skies is approximately 100-110 million, be able to make money on this network. Safdarjung Airport etc which would be less these airports how this becomes a viable of which you do individuality, that is one Again, re-emphasizing that when you want costly to get started with. business model. 18 n ew-age drivers

New drivers of new-age tourism moot the way forward We are talking about new drivers of tourism and of course we can spend a few weeks trying to identify those new drivers, as there are so many. The scope is really vast. And one amongst the so many drivers of tourism, the potential of employment generation, which is a really important one, will function the other way round, where the need for employment generation is now going to catapult tourism. Reported by Anagat Choudhary

S umAN Billa , Joint Secretary, Ministry of Tourism Close to clinching with the ministry of environment and forest, looking at a 20 metres offset from the beach subject to a coastal management plan

ust to put it in perspective, look at is to look at the structure to take a more active position in if you look at the numbers, within which the ministry operates Only few of the getting some of the best and the “J which are always a good and that is something that we have beaches are biggest conventions in to the coun- place to start from, we do about 8 been talking about for some time. developed and try. If we get ten of them in the next million plus international inbound In the ministry itself, we have the the problem with 3 years, I think that will by itself set into India. And if you look at a policy making and the executive developing beaches the ball rolling. The second thing is that you have CRZ city state like Dubai, it does close functions which are both rolled regulations, which that we need to do is to create a to 13 million. If you look at those in to one. So, perhaps there is a means that you are corpus or a challenge fund. If some- numbers, I think it is a shame that great case to hive the executive 200 metres away body is going and bidding, how do a country like India, with all of the functions, keep that nimble, get the from the high we sweeten the deal on a matching variety that we have and the tourism private sector and let them have a tide line. basis maybe with the states and the So, one of the things products that we have, we only seat at the table to kind of see as to that we have been centre to make that happen. manage to attract about 8 million. how we can really push the agenda working on, and are The other change that is com- I think that there is absolutely no on a time bound basis rather than close to clinching ing, and I am jumping the gun doubt that we are going to grow and to get encumbered in a bureau- with the ministry of here a little bit, is that one of the cratic process. And the second big environment and elements that we have beautiful that we are going to grow robustly forest, is that we and there is big potential because thing that is really staring at us in might be looking at a beaches in peninsular India which we are at the bottom of the barrel the face is the development in the 20 metres offset from are hugely unexploited. Only a and there is only one way to travel, digital space. Not many people the beach subject to a few of the beaches are developed which is up. So, when we travel up know and at several times when coastal management and the problem with developing what we need to be clear about I meet tour operators, they come plan. beaches is that you have CRZ regu- ,, lations, which means that you are is the route that we are going to and tell me that business is not Su man Billa take. One, I think we need to be happening. It is not that business is 200 metres away from the high tide responsible to our communities, not happening because India is not line, effectively you are watching our environment and everything slowing down as all the numbers people today are not really worried development in terms of returns. the sea through your binoculars. else because assuming that growth are to the contrary. What you about what they own, it is not the Unless you assume that a hotel is So, one of the things that we have is a given, we need to chart out a should be looking at is look at how possession but the experiences necessary for the development of a been working on, and are close path that is harmonious with the your digital counterparts are doing that people have and I think that city because it is intrinsic to it and to clinching with the ministry of society and with the environment because anything that can be com- is transforming. All of us need to then you reserve the land as such, environment and forest, is that we at large. The second is, if we need moditised, is getting commoditised make that change onto communi- you are never going to be able to might be looking at a 20 metres to grow, the growth is not going to whether it is hotel rooms, whether cating well with the world on what get more hotels. We definitely need offset from the beach subject to a come from one segment alone. The it is flight tickets or whether it is it is that we are all doing. more in that 100$ bracket. coastal management plan. We are growth has to come from several activities, everything is getting Fourth and important is, if you One of the things that we have going to be looking at a 20 metres areas and all of those engines commoditised, bundled together, look at the way the number are, done is the electronic tourist visa offset for the islands as well. That is that we have whether it is heritage sold and cross sold at very attrac- we get 0.68% of the world’s tourist and I think that is phenomenal. We going to open up a huge opportuni- whether you are talking about tive prices. So, unless we are able arrivals but if you look at the rev- have eased the system as it were ty for developments on the beaches medical whether it is wellness, to look at what the digital space is enue that we generate, it is almost and that is that unlocking that pin- and islands. wildlife, adventure, all of these doing and how it is transforming 1.7%. So, your earning is oversized point. The other one that is going Lastly, one big mover that is engines need to fire in concert to the business and unless most of in comparison to the number of to come up big time is going to be now happening is the bread and make that number happen. us are able to walk that path and tourists that you get. What does this the GST because whatever hap- breakfast piece because we are If we have to move up from adapt to that change, I think there mean? It means two things. One, we pens, if we are going to be pitched around 200 classified hotel rooms attracting 0.68% of international is going to be a lot of redundancy are getting tourists which are either anywhere between 26-32% of tax as short in this country. If we have to tourist arrivals in to India to 1% by in the sector and that is something at the very high end, who are doing of today, I think that you are going to actually make good that supply 2020 and double it to 2% by 2025, I we need to work on. the palace hotels, bubble tourism, be hugely uncompetitive anywhere side loss and if you are growing at think we need to just focus. I think Another element is even in the chauffeur driven cars etc. or we are because the moment anybody re- 10-11% every year, you need to be we need to get it across the border way that we approach our tradi- getting the backpackers and the alises that a quarter of what you are building up the supply side and I and get moving. This is not a diffi- tional marketing and campaigning. youngsters who are the lower end of going to pay is going to go for taxes, think there is a huge vacuum there. cult task because I think the biggest Print is almost dead and TV is the spectrum. I think there is a huge it makes it unviable, especially for How much ever you promote your challenge that we have is that we getting there and I think digital is market in the middle. large movements like MICE etc. hotel industry it is going to take need to find that lever to unleash the new way to go because for a People who travel with their MICE is going to be a big driver time for them to measure up. What the potential of the entrepreneur. country like India, where we have families to stay in 100$ per night because I think on the MICE front we need to do is to look at the bed I remember about 20 years ago, a number of products, it is very kind of hotels and that is a piece there are two things we need to and breakfast and the homestay nobody could have thought that difficult to put it all together in to that we are completely missing out know. One, there is a study by ITB piece which are very critical. A lot India would be doing so well in a thirty second montage on a film on. If we have to grow our numbers which says that 52% of all travel is of online aggregators have done the power sector. We thought we or say, in a single photograph in robustly and in the long term, in a happening because of MICE and a salutary work in getting these would always be a power deficit a newspaper. So, I think the way way that makes sense substantively, two, we have a lot of world class things going. There is a need for country but several states today to do it is actually to do a digital we will have to target this segment. facilities in MICE and I think the accrediting home stays across are power surplus. The key really campaign where you are able to There are two things here. One facilities that we have can actually the country on a singular unified lies in how we structure a system track people onto yourself and is the way we finance our debt hold over 90% of the conferences guideline and secondly accredit- where the entrepreneur is able to target them based upon their and how speculative that can be. that happen in the world. So, there ing the aggregators themselves. To open up, play and bring in busi- interests. The other is social media And the other is land reservation are two things that can be done my mind these are some of the big ness to the country. and I think it is really transform- itself because a hotel can never here. One, we have a convention drivers that are going to play out in So, the first thing we need to ing the way we do things because compare with any other real estate promotion bureau but we need the next few years. n ew-age drivers 19

New drivers of new-age tourism moot the way forward We are talking about new drivers of tourism and of course we can spend a few weeks trying to identify those new drivers, as there are so many. The scope is really vast. And one amongst the so many drivers of tourism, the potential of employment generation, which is a really important one, will function the other way round, where the need for employment generation is now going to catapult tourism. Reported by Anagat Choudhary

Chetn a Kapoor, Research Head, Phocuswright India Mobile is the breeding ground for innovation; companies are doing everything to go up or down the funnel

o begin with, a lot of our advantages lie. content around the destination the audience must Around certain decisions in the and therein ultimately lead to more “Tbe wondering what a US, we did a quick dip-stick survey quality shoppers going through the research company is doing at an of European travellers, one of the During our last sites. Even when you are within event filled with policy makers and key source markets of tourism in consumer survey for destinations, Google is now trying stakeholders? The more I thought America, about their decision now India, we realised to be a part of it through Google about it, the appropriate answer to travel to the US, post elections that close to 60% of trips. When we speak of the things to that is, sometimes when a lot and surprisingly anywhere Indian travellers are to do ultimately a destination now using search of you are focussed on your day between a fifth to a third of engines to search for is as good as the products and to day tasks, you tend to have the European travellers are less likely travel. One in two are the activities that it has to offer. blinders on and as a result miss to visit the country at this point. shopping on websites Historically the tours and activities out on the bigger picture and the This market in itself becomes an focussed on travel market has been overwhelmingly larger opportunities. Even some of opportunity for other destinations and ultimately one in offline and very fragmented but two travellers are now the trends that are out there which to tap on. Speaking of outbound buying travel online. when you look at it from outside in, could potentially impact or even travel, a lot of the industry When you look at this it is actually very significant. influence your businesses. What stakeholders look at GDP per capita whole funnel, what We recently concluded a I was looking to present here is as a strong indicator of travellers we increasingly also global study around tours and some of the findings that we have in those markets looking to travel see that the lines are activities and now truly place this blurring. captured as part of the various and particularly outbound. Over ,, category as the third biggest travel industry surveys that we do. The the last 3-4 years we have done segment after flights and hotels. As point is to ultimately bring it down several consumer surveys across we know a lot of these activities to figure out what are some of the Asia and we have discovered Cet h an Kapoor are booked in-destination be it top drivers increasingly for the various appetites for outbound shopping or purchasing tickets to travel and tourism industry. local activities or even going on an The market place that we are a some of the fast-growing markets, excursion. A lot of these bookings part of globally is worth 1.3 trillion be it inbound or outbound, increasingly, especially amongst dollars and it includes all of the Wen you look at the universe companies need to go where the the FIT audience, happen at the flights, accommodations, ground of mobile users in India, it is travellers are and by that I mean destination itself but at the same transfers, cruises and even other mobile. So, when you look at how time this is changing. You have forms of in-destination activities predominantly young millennials. consumers are booking or rather got some of the travel industries as well. Within this 1.3 trillion the percentage of travel being biggest names now trying to dollars, the Indian travel market is booked online, while China is make in-destination activities worth around 30 billion dollars. It now buying travel online. When already ahead of the rest of the bookable online which is further is a fragment of the global travel travel. Of-course, domestic travel is you look at this whole funnel, world with almost one in two going to streamline some of these opportunity but one of the fastest primary and almost all travellers do what we increasingly also see that digital bookings now happening experiences and also, how travel growing travel markets in the domestic travel but markets such the lines are blurring. Websites on mobile, India is just around companies are going to offer world. How do we come to some of as Australia, Malaysia and China, with a lot of intent and inspiration touching a quarter of that. them as part of the post booking this data? Every year Phocuswright almost one in two travellers is now are heading to the bottom of the What we cannot also ignore experiences. Of course, I will like to works with hundreds of companies, going outbound and that truly is tunnel towards booking and a lot and particularly around the travel add that Airbnb is also launching tourism boards, travel companies the opportunity that India could of booking websites are trying funnel is Google’s move. Google is trips including in Delhi. As a etc. and we feel industry surveys as also tap in to. Specific to Indian to move up the funnel trying to now moving closer to the bottom of conclusion, while there is a lot of well as consumer surveys to come travellers going outbound, one in capture more of this audience. the funnel. One of the reasons why uncertainty in certain parts of the across some of the data points. every three Indian online traveller This is bringing in a new form of they are doing it is that because world, it is opportunity for the other Firstly, we need to take a step is now going outbound as well and competition within digital travel they are challenged by the whole markets. Funnel revolution is all back and look at the world that we that is opportunity for other DMO’s and that is something that the eco-system. As consumers or even about how the digital travel search are in. There is a lot of uncertainty to tap in to as well. industry needs to watch out for as the industry moves from desktop or buy behaviour is changing around our travel industry which The second trend is what we well. Let us take a look at the state to mobile and within mobile and companies are trying to do also while it is uncertain for some call the funnel revolution. If you of mobile. the whole universe changes to everything and trying to move up markets, it is an opportunity for look at the typical search shop Of-course India, similar to apps, chat-bots, AI and more as well as down the funnel. Mobile others. If you look at events like by pattern, it is more or less like China, is a very mobile driven guarded networks, the question of-course is something that cannot the Syrian refugee crises, Brexit, a funnel. A lot of inspiration and market but when you look at the still remains that what would you be ignored, especially with the multiple terror attacks across intent happens at the top and as universe of mobile users, it is do if you were forced to find out advent of artificial intelligence and Europe, while these events have shoppers convert in to researching predominantly young millennials. new means to capture and rather chat-bots which will further add to definitely affected travel and and ultimately go in to buying, they We did a survey in the US to retain your customers? Google personalisation in to pre, as well as tourism to some degree in those typically go through these kind of see which age group is more in one of its ways in addition to post travel booking. Google, again, markets, on the other side we also websites, if not entirely through comfortable with shopping and bringing on flights and hotels as stirring up the pot and rattling the have events or decisions which them. During our last consumer ultimately booking on mobile and part of meta-search online is also snake and trying to create products further deter travel to certain survey for India, we realised that it is no surprise that the younger moving in to destination inspiration to remain relevant. And lastly, markets as well. In this scenario, close to 60% of Indian travellers are audience, primarily millennials, content. One of the products activities which have started to Asia and even India in itself is not now using search engines to search reflect that behaviour and it is that they have released in the be essential elements for building insulated but at the same time, we for travel. One in two are shopping similar here in India as well. recent past is Google destination destination brands. These are some are at a relatively sound footing on websites focussed on travel and Broadly when you look at APAC where they are partnering with of the top drivers when you look and thus that is where some of ultimately one in two travellers are and try to talk about tapping in to companies to curate some of the from outside in. 20 n ew-age drivers

Sanjay Kothari , Chairman, Public Enterprises Selection Board I ndustry must create jobs to assume the stature it longs and deserves

left tourism in 2012 and four years of constant efforts from The second biggest manpower this probably is the first France and Mexico, specially the requirement in this country is for “Isession that I am attending Mexican president. The resolution vehicle drivers. Drivers could be after having left. What I find really said that tourism contributes 9% T he second trained and this job would provide amusing and interesting is we to GDP, is the fastest growing biggest manpower huge benefits to the trade and the requirement in this dealt with all these subjects while economic activity and creates 8% country is for vehicle general public. There are so many I was a part of the industry and employment, with each job in the drivers. Drivers could restaurants in the country. A lot of we continue to deal with the same tourism sector estimated to create be trained and this people are doing part time jobs subjects today, with the same up to two jobs in other sectors. The job would provide as waiters but very few of them enthusiasm and vigour. We are a resolution went on to read that huge benefits to the are trained professionals. Why trade and the general population of 132 crores and 65% ‘we therefore encourage that the public. There are so can we not train these people in of the population is below 35 years G20 recognises the role of travel many restaurants bulk? There are so many such of age. This is a big challenge for and tourism as a vehicle for job in the country. A lot areas that can be looked in to. In the country. This is a liability that creation, economic growth and of people are doing my last job, I have been going to can become an asset provided development and commit to travel part time jobs as villages. When I went to a village waiters but very few we train the youth and we train facilitation as a conduit for job of them are trained I was surprised to hear people professionals. Why telling me that they had no jobs can we not train these as the men had all migrated to L ooking at the Indian scenario, at people in bulk? the cities and the women had no ,, work. Why can we not create jobs present we have 10 million youngsters for such people? If you want to Sanjay KoTHari be heard and want your sector to becoming eligible for jobs. be important, you have to create jobs. What Y2K bought was IT professionals followed by drivers them professionally. Looking at creation and global growth.’ its workforce. There is yet another employment was 5.8%. and then housekeepers. Passing some other figures, if you have Looking at the Indian scenario, forecast which is coming which There are a number of jobs in the buck from X to Y would be the heard the budget speech, tourism at present we have 10 million says that 64,900 people are about the industry which the government easiest solution but allow me to tell was given impetus because it has youngsters becoming eligible to be laid off in the next five years. will have to look at. Guides, for you that whatever I have learned employment generation potential. for jobs. This means that there Now, the figures in the first six example. We are terribly short in tourism, is being used by me vis- Let me take you back to 2012. From is an urgent need to create 10 months of 2016 were very dismal. of guides in the country but are à-vis my CSR in the public-sector 2008-12, at the UNWTO forum, we million jobs. On the face of it we If one wants to associate with fighting cases within the ministry, undertaking. If somehow, we can were trying that somehow tourism have the H1B1 Visa problem and the ministries, one must create with the trade as well as with the create employment potential in can find a place in G20, which is companies laying off people. At employment and prove their worth. courts almost everywhere in the our villages, the dream that this one of the most powerful bodies in present Zomato laid off 10% of If we look at the whole scenario, country. Why cannot all the stake country will be one of the most the world. In that G20, a resolution their employees whereas OLA direct employment in 2009-10, in holders just sit together and resolve powerful economies by 2030, will got passed at Merida with three to laid off around 700 people from India, was 4.37% whereas indirect this issue? come true.

Raja Natesan, CEO, UniGlobe Travels, South Asia D rivers of change must align themselves together to create effective and efficient outcomes

rom what I know, the last need to be superior. If one were of driving efficiency, in every one 10-15 years we have been to just recall history, it all started In India, the of these spaces. Fpretty much asking the with superiority shown in terms of difference is in Strategically, drivers of change same set of questions in terms real muscle. Then it went to what I the way that it is have to all pull in one direction of the drivers, in terms of what is would call military might. Then it accepted here. In so that they result in efficiency happening in the corporate space, goes onto commercial might which the last 10 years we and effectiveness for everyone have still been talking in terms of whether it is going to is followed by information. At some about how good it involved. So, the question that be the demise of the travel agent, point in time, information will was 30 years ago, I want to ask is that, are the are we actually growing or not hopefully translate in to knowledge there is still talk about present drivers of change more and so forth. I want to therefore and beyond that in to wisdom but why there isn’t a opportunistic than strategic? I take a fundamental step back and as of now everybody seems to be unified front in order find that there is a fundamental to get everybody ask the question as to why there quite happy in the assurance that together on the same difference in the way big drivers is change in terms of anything? I everybody has access to truck- page. There are 20 of change have been accepted in am not even restricting myself to loads of information, if I can call different forums the western world compared to corporate travel or even travel or it that. That in itself seems to be talking 20 different the way they have been accepted somehow driving a certain amount languages. There is even anything else that happens in an inability to quickly in the eastern world, specifically the world at large. I just want all of of change. If you look at the driver adapt to what is new India. If there are new technolo- us to go right back to the millennia for change in the corporate world, technology. And most gies and changes in the western when humans actually lived in maybe even fifteen years ago the importantly, decisions market, very quickly the players caves. Right from that point in corporate world would look at the seem to taken with a tend to re-group and accept that time there has constantly been this travel agencies and be delighted to short-term,, view. this is not something that is going R aja NatESan to change and therefore as a group they pretty much pull in one

get a booking done in 30 minutes. Today the same scenario has been completely reversed, where Drivers of big change must take even with all kinds of technology, it is still not enough for a travel a long-term view and adopt new agency. In-fact even an online technologies to remain relevant. travel company finds it extremely difficult to find any kind of loyalty as far as a customer is concerned. Why is it that despite there being agency, there is the corporate direction. In India, the difference technological revolutions, and admin manager who looks after all is in the way that it is accepted T&E sees an increase in budget I am talking about revolution in the needs of a corporate traveller, here. In the last 10 years we have in the Asian region every aspect of the travel industry then there is the CFO and there is still been talking about how good including corporate space, we the supplier. Now if you just look it was 30 years ago, there is still S urveys shows that the markets in the Asian region are do not have the driver pull in one at technology driving all these five talk about why there isn’t a unified increasing their T&E budget for the coming year. direction? It seems to be more different players in the corporate front in order to get everybody esults of a survey conducted by East & Partners Asia Corporate Travel & Entertain- of a diffusion rather than driving space, you will find that the needs together on the same page. There ment Programme for the first quarter of 2017 have shown a positive outlook for most together. For this I just want to take of each of these corporate players are 20 different forums talking 20 Rcorporates which fall under the T&E market. Most of the countries in Asia under a simple example from corporate is different. So, what the traveller different languages. There is an the T&E market have shown an increase in their T&E budget. A number of upcoming travel itself. If you look at just needs is very different from what inability to quickly adapt to what Southeast Asian Corporates are believed to be increasing their budget in the coming year. corporate travel and you can the travel manager is trying to get is new technology. And most im- India and China have come up as have come up with the highest increases in their T&E expand it to whatever universe, the traveller which is very different portantly, decisions seem to taken budgets. The budget increase as not come as a surprise for these countries as they are including the government, there from what the CFO needs and so with a short-term view. Whenever fast becoming global leaders in terms of business travel. Conferences and Event are the are typically five players in the on. This is clearly not all pulling there is a driver of big change, it primary spend in the total budget across the entire region. Markets across the region have increased their spend on Normal Business Travel and a decrease in the spend on corporate travel space. There is in the same direction and it is is essential that one look at how it Conferences and Events over the last quarter. of course the traveller himself, happening despite there being will become the long-term view as then there is the corporate travel phenomenal revolutions in terms well. n ew-age drivers 21

G B Srithar , Regional Director, South Asia & Middle East, Singapore Tourism over the course of the last 5 decades or more, our role has also been shaped by the demands of the time

t is wonderful to have an Our vision for Singapore is a the private public partnership. opportunity to be present at ‘vibrant and inspiring destination’ We have been fortunate in that such a summit where there are that we are proud of. Our mission We have been regard as a lot of initiatives taken I fortunate in that some deep questions being asked is to ‘shape a dynamic tourism regard as a lot of up by us bring in the partners of the industry. The comments landscape for Singapore in initiatives taken up on-board. We do not own the that I am making are precisely as partnership with industry and by us bring in the product but we work closely with a friend offering our experiences community.’ Singapore tourism’s partners on-board. them. These partnerships are one managing the tourism affairs in role is that we have multiple We do not own the of the main reasons why today product but we work Singapore. roles. We are promoters which closely with them. our Singapore tourism board So, actually Singapore Tourism promote the country. We are These partnerships advertisements or promotions Board started as Singapore Tourist regulators who regulate the hotel are one of the main always carry our Singapore stake Promotion Board in the year industry and the travel agents. reasons why today holders. The stake holders over 1964. For those who are aware We also have a planning role our Singapore here being hotels, attractions, tourism board of Singapore’s history, you will where we are champions for the advertisements or MICE facilities etc. These are realise that Singapore became tourism industry, so we plan for promotions always some of the stakeholders we independent in 1965. So, we the long-term development of the carry our Singapore work most closely with. How stake holders. The we are structured is that we are stake holders over under the ministry of trade and here being hotels, We have been focussed on public- attractions, MICE industry but we also have an facilities etc. independent board composition private partnership from day one ,, where the members are, except for GB h Srit ar my CEO, brought in to the board of our inception. for their expertise. Whether it be a particular field or a particular how to manage a sector that middle of South East Asia, we were region. They sit on the board actually had the Singapore Tourist country’s tourism. We do precinct can continuously give better ‘Surprising Singapore.’ We wanted giving guidance and passing the Promotion Board organised by the development where we go in opportunities and employment to welcome tourists coming in to plans that are brought to the table. government of the day, realising and talk to various associations to graduates out of universities. the country and feel that Singapore The board of directors has a very the potential of tourism as a very like Little India Shopkeeper’s Finally, we do an operations had its own identity. After this we important role apart from the important and economically Association and the China Town role as well. Sometimes we do became, ‘New Asia Singapore’, Ministry of Trade and Industries, to contributing agency. We are a Business Association and we organise major events like F1. as that was a time when Asia was shape the direction and plans of statutory board, sitting under the work in partnership with them So, I think over the course of becoming very important. This was the Singapore Tourism Board. We ministry of tourism and industry to develop what we call place the last 5 decades or more, our followed by ‘Uniquely Singapore’ have a mix array of people from and we consider ourselves an management. Another role that role has also been shaped by and now our current branding is various verticals who are able to economic development agency. If we play is industry development. the demands of the time. When ‘Your Singapore’. You can say that give inputs from their knowledge of you look at our vision and mission It is about employability of we started, we were basically as a brand we have evolved over- running industries and giving some statements, I think they encapsulate the people who are coming promoting Singapore as a brand. time and what we have been very direction to some of the plans that our spirit. in to the industry. We look at At the beginning, as we were in the focussed on since day 1 has been the board comes up with.

Nikhil Sahni, Group President, Government Banking & National Head - Branch Banking, YES BANK H ospitality industry must be given infrastructure status for banks to be able to finance projects

he only circuit in India which Europe. I had an opportunity to frankly quite surprising to me as I is of relevance globally is the visit a country called Ireland where do not understand what it is that we golden triangle. I do not think I visited Dublin. When I reached include in amusement parks. In the T U nfortunately, as a that we have really developed that the Dublin airport, I was aware banking community, US for 319 million people, which is sector. The government from its of the history between Northern we find it very difficult one-fourth the size of our country own side has launched the Videsh Ireland and Republic Ireland and to finance these whose 65% of the population is be- Darshan scheme with an allocation that they were arch enemies. What hotels as they do not low 35, they have 400 amusement of around 1500 crores. So why have I noticed, despite that, was that have infrastructure parks. We possibly do not have status. Today a hotel these not taken off? I will give you one can, by purchasing a very to claim infrastructure a mega-amusement park policy. a very small example. The Buddhist simple and non-expensive licence status must be 200 For creation of circuits there need tourism circuit in India is perfect and travel directly to Belfast. Two crores in size. This to be creation of activity and I do but maybe one of the reasons different countries, who are not on is ridiculous as you not know why we have not looked it does not work is because it is the best of terms, decided to make will not have a lot of at this as an option. Singapore projects worth 200 spread across 2 states. Co-operative it simple because they understood crores. This industry happens to have looked at it bril- federalism over here can really that this is what tourists will get to needs to be given liantly as every time one visits that help. I will give an example from do. The middle segment in India infrastructure status country, there is something new at the earliest so that to look forward to. Similar is the banks can come up case with Dubai and Abu-Dhabi. I and finance these projects. was absolutely astonished to see a ,, completely indoor amusement park Buy and Sell B2B and B2C. in Abu-Dhabi which is promoted Nhik il Sahni by the Ferrari World located there. Ready to use packages I think this is something that needs is looking for options and they are looking for ideas as well as activities. Activities was mentioned A country of 132 crore people only as a very essential aspect. I think in terms of centre-state coordination has 120 amusement parks which is and partnership between states, I frankly quite surprising to me. am yet to see a lot of developments. I have not heard about too many partnerships between states and maybe it is time that there hotel to claim infrastructure status to be looked at from a policy is a tourism partnership which must be 200 crores in size. This is perspective because if you develop also contributes to the overall ridiculous as you will not have a activity, that is when you will be development of the country at lot of projects worth 200 crores. able to give a boast to tourism so large. I think that is something that This industry needs to be given my request or rather advice would will specifically contribute to the infrastructure status at the earliest be that we should at least look at a developments of circuits. so that banks can come up and fi- mega-amusement park policy and 21-23 September Given the growth in tourism nance these projects. Banks would encourage investment. Everyone that India is looking at, the country be very happy to finance these in the world is looking at India requires nearly 1,80,000 rooms. The projects if there is a suitable and and with this kind of growth they idea is that a large chunk of these long enough time-frame allowed would be interested to see if we rooms need to be in tier-2 and tier-3 for the borrowing entity to pay. have a policy and we quickly need towns and are mid-market hotels. Dubai has a Bollywood amuse- to strike a deal, get someone in and Unfortunately, as a banking com- ment park. Which brings me to the all sorts of issues like connectivity, Call: +91 97177 64717 munity, we find it very difficult to amusement park concept. A coun- seasonality etc. that tend to come Email: [email protected] finance these hotels as they do not try of 132 crore people only has up should be looked in to and have infrastructure status. Today a 120 amusement parks which was resolved. 22 on-n e o -one E nsuring operational success of the merger is the real challenge: Deep Kalra Deep Kalra, Founder and CEO, MMT was at his candid best. In an exclusive one-on-one with Chetan Kapoor, Research Analyst, Phocuswright, he opened up on the big merger – which has taken the online marketplace by storm. While stocks have soared to record high, indicating that the financial world has taken to the merger, the larger challenge, to his understanding, is going to be ensuring the operational success in the coming months, a task more complicated than generally perceived.

are most reliable, we are the best everyone into this. So, I spent a good couple and because they have a good of hours painting a picture of what we can do experience with us. That is how together, because now we are not fighting that I t took a long time, great brands are built. But when daily street fight; we are not spending all our but by October someone is discounting 80 cents to energies and all our money in the daily street we stitched a deal. a dollar, by 20-30%, people change fights and battles with our competitors. So, Finally, we had a deal their preferences. That is the reality let us build something which is special. Let us where we got a 100% of life. In travel space, they say, build products that have not been seen any- of GoIbibo, 100% of the three most important things where else in the world. Let us not fall in the RedBus, close to 100 are price, price, and price. They trap of copying. Let us not talk about Artificial million dollars from know we are selling someone else’s Intelligence (AI), let us do AI. Let us do incred- them to balance of the product, except for the holiday ible personalisation, so that everyone who cash on the balance package that we put together. comes to us will see a different interface on the sheet. In return, they When people get the same deal basis of what you have done in the past. All of got 40% of MMT – at a cheaper rate, your most loyal these things, interesting stuff are in the works. which is, obviously, customer move, and that was pain- If you have done anything with us, even if it is very precious. The ful. So, finally we said let us try to one click, forget purchase, I know something market has given it project and look out for the next 2-3 about you and you have a mobile app, I know big thumbs up. It is years to understand how it is going where you are. I know what you have done; 3 billion dollars plus to look out. I did have a chat with what you are interested in, and why should I now. We do not get the CEO of Naspers, and it did not serve you the same interface as someone else. carried away with really go anywhere. Then, I think, Anyways, we got people aligned. We agreed market cap, but I am fate has a way as well. We were on a set of projects that are interesting for us, lumped together, all the OTAs, in but said that 18 people will not be enough. So, just saying from a the infamous service tax case. I was we invited the next 200 people and we have got financial point of view meeting Ashish of GoIbibo in court, them involved with real projects, not theoreti- that we have got a and at least that is one area you are cal. The brief I gave was what would you do in thumbs up. on the same side for something. this team if you did not have to fight your com- ,, It took a long time, but by petitor day in and day out. What would you do De e p Kalra October we stitched a deal. Finally, to build something special for 2020 when you Founder and CEO, Makemytrip we had a deal where we got a 100% have all the resources, as we had all the money. of GoIbibo, 100% of RedBus, close I said, let us think about that make company

Byh Shas ank Shekhar You talk to Airtel and the painful statement that Gopal Vittal put out recently, he said We have got to make it work from an operational CK: How do you see the blending of please put your money in Fixed Deposit, in- both companies, cultures and supply- stead of putting your money in Telecom right point of view. That is the real challenge. I technology to begin with? now. You will get 1% return on capital. That DK: You have gone for the jugular right away. is what it is right now. It has become so hard. underestimated some of the challenges The rationale behind this merger is fairly Of course, they have made money in the pertaining to mergers and acquisitions. straight forward. It became painfully clear to past, but the reality is that Jio is playing with me, and to some of my colleagues, too, that financial muscle. And, they spent somewhere the heavy discounting war was going on for around, people say, 10 billion dollars, or 15 to 100 million dollars from them to balance cross-functional teams. a long period of time. It does not happen too billion on capex. They are saying that they of the cash on the balance sheet. In return, I am very aware of the fact that everyone much on the airlines side, because airlines are going to exercise that muscle. they got 40% of MMT – which is, obviously, will not be there. I told the leaders that I are very specific that you cannot discount I can tell you that no other market in very precious. The market has given it big will be pleasantly shocked if all 18 of us are their product which is a good thing. I like the world, except India and Japan where a thumbs up. It is 3 billion dollars plus now. We in the room after one year. Some of them that. I like to play fair and square, because we public company CEO can go ahead and bet do not get carried away with market cap, but will check out and I wanted them to know have seen the gain in those kinds of markets. the bank. Literally! And no one will ask a I am just saying from a financial point of view that it was perfectly ok. Company is larger In the hotel space, you take away chains question. It is only here. You cannot do that that we have got a thumbs up. We have got than an individual, but you will be wishing like The Taj and others, who are also equally in North America. You cannot do that in Eu- to make it work from an operational point of away a great opportunity. You are secure. particular about their pricing, and they rope. People ask a hundred questions. Why view. That is the real challenge. It has been So, address the security issue. There is no should be as they are great brands and they are you doing this? Again, that is the way this two months since we have got the approval. insecurity and each one of you is in the do not want their brand to be diluted, but game is played. So, once it became clear, company. Then we identified top 100 people only 10% of the hotel inventory in the country and I did validate it that these guys were not C K: What are some of the early steps from each company and ringfenced them, is chains which are established. There are giving up – and we competed. I think after that you have taken as part of your or handcuffed them, whatever you want to newer chains coming up, which I am sure three quarters, and for three quarters we integration? call it. Provided them more stock option, etc. we will talk about. The rest of the inventory did not discount at all. We said we are not DK: I underestimated some of the challenges And we have been very open about it. Now, in the country, thankfully for us, is actu- discounting on hotels; we are not discount- pertaining to mergers and acquisitions. It is let us build something special. Then I said ally very fragmented, and is individual and ing on our profits. We have got to go, and not easy. It is very tricky, especially when you do not get caught up with one thing that is independent properties. Now, those are the we are answerable to the market; we are on want to retain people. For every individual, what happens to my job title and who do I places where OTAs like us can add a lot of path to profitability; we had made 10 million no matter what level he or she is at, their report to. Something has to change. I started value, and I do not think that most of these dollars in 2012. Kingfisher pushed us back universe is in them. They do not get the other from the top. Except me, everyone was going properties are really bothered about whether in the red. We had come out, breaking even mumbo-jumbo, except for some very senior through some change in title; both Ashish you are discounting or not, so long as you are on a quarterly basis. I was stuck to that path, people who get the big picture. and Rajesh are giving up their fiefdoms. Both doing it from your own pocket. They want to but the market did not like it. MMT is listed in We get that and that is why we got profes- were running their companies, and now they see their rooms get filled. the US on NASDAQ; they did not like it. They sional help. We have got an ex-partner at are going to have a narrower, but deeper, It became painfully clear that this said your hotel pre-eminent position is being McKenzie. She is helping us with the process. double brand. discounting was not going to stop. We were challenged. I am being very frank on this My point was that I needed to align So, I think it is working well but it is very not the first aggressor. We never discounted, because it is quite interesting to unravel all of everyone to the bigger picture, and the bigger early days. Time will tell. The proof of the actually, in airfares. We have built a decent this. We said we are way ahead in the airlines picture here was what can we do together. pudding is in the eating. I think the tricky market share; we are 17% of the domestic space, but the reality is that hotel is where the Why is this merger important for them? For part will come when the headiness goes market as MakeMyTrip alone, of everyone game is, in our OTA space. The most valuable Naspers, it is great. For my shareholders, too, away. It is the honeymoon period. When flying. Flights works quite smoothly. It has OTA in the world is the group called PRICE- it is great. the value has gone up by three the stock settles down, and it will, people an easy interface. Everything works well, LINE which owns Booking.com, Agoda and times. But why does it matter to the individ- will start saying that the rosy picture is not because airlines are high-tech. others. They only sell hotel rooms effectively. ual. I tried to get into their shoes. It is not the that rosy. Things will get tough. There will When it comes to hotels, the price war One metasearch company called Kayak is same why it matters to me as a shareholder; be someone else coming down the line. We was started largely by GoIbibo. They played worth 85 billion dollars. Expedia is not even why it matters to those who have a good know that there are great companies which to their advantage – which is they had very 20 billion now. People do not know that. So, amount of stock, so we have 350-400 people are waiting to come in there. deep pockets and they were private. They it is a big gap. CTRIP is worth 25 billion dol- who have some stock in the company. That We are very pragmatic, I can tell you. And, if were 100% owned by Naspers and Tencent, lars which is in China, and has a very similar part helps, but that only helps till your stock there is an elephant in the room, I am going to together. When you are private, you are model like ours which is multi-service. is doing well. After a while, they get very be the first one to call it out. There is no point not really answerable to the market on a We decided to compete and we bled savvy about it. They say, that is done, but a in saying that let us talk about something else. quarterly basis. So, you can do whatever you for the next 3-4 quarters. We spent a lot of thinking professional does not come to work That is the elephant in the room. We spent think is right, and we are seeing this in every money. We raised 180 million dollars from because how much they are earning. I do not many hours talking about reporting styles. segment. People say they only see this on CTRIP last January. It is a lot of money, think so. I think it is a by-product. We come The conclusion I came to is that we make the internet and they say it is not fair. I say, almost 1000 crores. We started spending to work because we enjoy it. a fuss about the company culture. We are even though, we are not doing it, all is fair in that, but it was going nowhere. It was painful. So, it had to be exciting. I spent a lot of very proud of our culture. We have been one love and war. And this is war. Whether it is We said you cannot build a great business time with Ashish and Rajesh, painting a bigger of the best companies to work, like Inter- corporate war or whatever. You are not doing like this. We want to solve customer’s issues. picture, a bigger canvas of what we can do Globe – in the top ten. It is a great place to be anything illegal. You have got the money We want people to come to us not because together. Why should not we become larger, for a young company. Feels great, but let me and you are doing it. What is the difference we are the cheapest, but we want them to global, even put a market cap to it. What- tell you that every company feels that their between this and what Jio is doing right now. come to us again and again, because we ever! And I said I am going to really immerse culture is great. 23 24 h ospitality

Hospitality as driver of new-age tourism

K .B. Kachru, P rincipal Advisor, Carlson Rezidor India M anAV Thadani, Chairman, HVS - APAC Focussing on mid-markets is D omestic leisure travel fuelling necessary to build numbers numbers, trend set to continue

I ndustry must take I am an owner as well. some responsibility, so I think owners will should the government. spend money where They must also take some responsibility and they think they will there has to be a close get returns on what working relationship they are investing in. I between the two. think one interesting There were some other phenomenon for India, examples given in and since we are at the previous sessions and tourism summit, I have I was amazed. There to say that leisure travel is a place between in India, overall, is up – Guwahati and some and it is being fuelled town called Margherita, I am not very familiar by domestic tourism with it, I believe in those to a larger extent than 19 kilometres there are international which 19 golf courses, and is a very good thing, nobody has heard because international of ,,them. numbers ,,are very low. K.h B. kac ru manav thadani

On change in the hospitality tive shift towards the organised, but to say On AsiaPac. How hotels are doing by domestic tourism to a larger extent than landscape in Goa and elsewhere, that the segment will be over, my answer is in the neighbouring countries; their international which is a very good thing, because and an overview on the mid- no. That is not going to happen. I would like business, ARRs and more: international numbers are very low. So, if you market to stretch it a little bit. I think going back to First of all, comparing India to the Asian ask Rohit (fellow panellist) and he has got some “First of all, it must be complimented that this your stance of the need for a mid-market, we “continent, I think that similarities are there in leisure hotels that are heritage properties – those panel is not discussing usual things, like taxes need to start focussing on what we need to many countries right now. I do follow some of are doing very well. If you ask the Oberoi’s, those and licenses, and the problems that we have do to really move up the economy segment, the other countries. Singapore, Thailand and hotels in the leisure segment are doing very well, been discussing for the last twenty years. Prob- upper-end of the economy and the mid- Indonesia are all struggling in ways similar to compared to ten years ago where leisure markets ably, I have been hanging around for a longer market segment. India – where occupancies have been doing very used to struggle, and business hotels used to do time, but we are discussing real things. We well, but the rate movement has not really hap- well. Today, it is practically reversed. If you have are focussing on where we ought to be; what On ADRs pened. I think other than Japan and Philippines got a good property at a good location, in terms should we do, and what are the challenges. There is no justification why our ADR is not which are having good years, I do not know the of leisure, and you are providing that experiential Talking about Goa, markets are changing improving in line with what is happening. details as to why they are having good years, but travel, those hotels are doing very well. and even for an international company, for Deep Kalra, I think, explained the whole thing just the basic overriding numbers are strong in Domestic tourism has got into every market. us and others like Marriott, are focusing on on a much bigger canvas. He said that hotels those markets. I think most other markets have Jaipur may not be as interesting to may as Co- tier-2 and tier-3 leisure destinations. We have are their target area where they are making somewhat struggled. Closer to home, why we org, or a hotel outside of Delhi, but it all about four hotels in Goa and all of them are mid- more money than airlines, because they are thought things will do well and why they have accessibility. market, mid-market upscale hotels. We are discounting. So, I think taking cue from what not is partly is occupancies have done well. not there in the luxury segment at all. I feel, Sanjay said, I think it is high time that we In the past when rates started crossing 70%, Ona Go if you really want numbers, we want to move consolidate and start behaving, at least, in the rates used to go up by 10-12%. Rates used to Goa is an evergreen market. You have got so from eight million to sixteen million, then we direction of getting more mature in this field. go up by double-digits. Today, many markets many rooms coming in, and you can build ten have to focus in the mid-market and upscale. when they have crossed that 70% threshold, and more hotels; you would want to go to Goa and I mean that is the market to focus on, if we On industry taking the responsibility of in some cases even mid to high seventies, the try the new hotel out. really want numbers. Otherwise, we will just promoting international inbound growth rate is not in the double-digit bracket. It is go to the absolute upper niche and we will Industry must take some responsibility, so happening, but in single-digits. Very few markets On pushing tourism be struggling at the budget line. should the government. They must also take are seeing that. So, in terms of RevPAR, you Recently, I was a part of the government coun- It is predicted, I read a report somewhere, some responsibility and there has to be a close should have still grown in double-digits in many cil, actually it was headed by Amitabh Kant, that in the next five years there would be working relationship between the two. There other markets. But there are markets where that and he invited few of us and one of the sugges- fourty percent growth in the mid-market seg- were some other examples given in previous has not happened. It has been very uneven, and tions that came forward was that, of course you ment vis-à-vis the luxury segment – which is sessions and I was amazed. There is a place that is the disappointment, I think, with owners. have the Incredible India 2.0 which is being only pegged at 6.5%. between Guwahati and some town called There was a lot of expectation that it would hap- launched and how can that money be spent, We have to start accepting and acknowl- Margherita, I am not very familiar with it, I pen and it has not really taken place. but one of the suggestions that was bought was edging that there is a shift towards the believe in those 19 kilometres there are 19 golf that why can every guest pay ten rupees – I am mid-market and unless we focus on this mar- courses, and nobody has heard of them. We On whether owners are receptive to the idea just putting a number – every time he checks ket, I do not thing we will get our numbers. do not know. Nobody has marketed them. The of spending money on destination marketing in a hotel, and you put that into a corpus. So, state government has a role. The central gov- I am an owner as well. I think owners will spend money spent by people staying in Delhi will be On the possibility of looking at the ernment has a role, and whatever the industry money where they think they will get returns on collected and utilized in Delhi. The government bigger picture of the unorganised can do. But if you expect only hotel companies what they are investing on. I think one interesting can then match that fund to promote a particu- sector, and how they can be brought to come and promote India, I am afraid I am phenomenon for India, and since we are at the lar destination. It has happened in many other mainstream being blunt, I do not think it is going to happen. tourism summit, I have to say that leisure travel global cities, whether it Singapore, whether it is I have no doubt that there would be a posi- It can happen by being together. in India, overall, is up – and it is being fuelled New York city. h ospitality 25

Hospitality as driver of new-age tourism

d ilip puri, Founder, Indian School of Hospitality O ne of the key sessions in S kill development in the hospitality industry the recently concluded will impact the larger service sector India Tourism Summit was dedicated to deciphering We do not foster that spirit of innovation, creativity and entrepreneurship in the way we run our curriculums, at least in hospitality. how the hospitality That is my sense of where we are today. I think bringing that in will foster that spirit again. industry could drive Entrepreneurship, innovation and bringing these people into our industry will make and tourism. The role of create products and experiences which will better attract the tourism market, and that is destination promotion, another role I see hospitality playing. Today, when we speak about hospitality as an creating new products, and industry, I think it encompasses all other allied businesses – think aviation, cruise liners, the need for adequate skill retail and luxury. Hospitality per se, from an education perspective, training perspective, brings about enhancement to take on the best in terms of customer service front- facing businesses – which is now not the challenges emanating restricted,, to hotels. in a dynamic marketplace, dilip puri and more, came under On how the unorganised sector can become a international, and in growth of tourism than us big brands. part of the larger framework I think they are already getting organised. I mean On the need for skilled manpower and where it will scrutiny by a heavyweight think what social media does. What TripAdvisor does. come from “Today, whether you are staying in a guesthouse or you are To be clear, what I am setting out to do is in more higher panel which included senior staying in an OYO, or you are staying in a five-star luxury, the education space, bringing in more international quality into opportunity for the customer to share those experiences to our hospitality and education. But to answer the question, it industry leaders. One of determine whether people will go back to that guesthouse is already happening. There is a genuine belief that the ‘Skill or that hotel is in itself a certain amount of quality and India’ mission can become a bandwagon for people to upscale standardization. If you are going and booking a guest house, and provide the talent needed at the level. That is where the the most important and still review whether someone has stayed there, if it is not employment is going to come from, because these millions good you will not stay there. and millions of guesthouses and hotel rooms in tier-2,3,4 and takeaways of the session So, if you are talking about the unorganised sector, that 5 markets, they all need a better quality of skill talent then they sector is self-organising. You take the example of OYO. OYO is certainly have. So, I think there is already a move towards that. was the need for creating aggregating that sector. OYO and other such players. And, this And people who are truly entrepreneurial in their spirit, setting is the example all over the world. Today, after many years of leg- up a small business or a guest house can be really lucrative for more cohesion between the islation, AirBnB is almost regulated like a hotel company in the an entrepreneur. I have, in my research, found out that students United States. The big companies fought saying why would the want to come and do a four-year program in hospitality not to lodging tax be different for this kind of hotel accommodation. work in hotels, but to become entrepreneurs. We do not foster industry and government So, my answer to the question is that organising is self-organis- that spirit of innovation, creativity and entrepreneurship in the ing. It does not necessarily need massive amounts of regulation way we run our curriculums, at least in hospitality. That is my to promote destinations to be able to do that. And, this sector is organising itself better sense of where we are today. I think bringing that in will foster with better guarantee of quality experiences. You will see more that spirit again. Entrepreneurship, innovation and bringing – which would in turn drive and more tourists at the lower end of the market, the backpack- these people into our industry will make and create products ers if you like, use these types of products. and experiences which will better attract the tourism market, And, that is the answer to our discussion that how can the and that is another role I see hospitality playing. tourism. Also, in focus was industry support tourism without necessarily having too much regulation, and kind of self-regulating itself in a way. On the trend of trained hospitality professionals how to hone the art of taking to other sectors, and whether that trend has On the need for the organised sector to handhold ceased off late storytelling for taking India the unorganised sector in becoming more corporate No, it has not. I do not think it should. Today, when we speak in nature about hospitality as an industry, I think it encompasses all to the global tourism They do not need big chains and big hotels to help them do other allied businesses – think aviation, cruise liners, retail that. I think, as you see improvements in quality of skilling and luxury. the workforce, and it begins to happen, you will not see the Hospitality per se, from an education perspective, marketplace. We bring you need for big hotels and chains to step in and handhold the training perspective, brings about the best in terms of smaller guy. The smaller guy lands up doing probably a more customer service front-facing businesses – which is now not excerpts from the profitable job of running his business, because he is running restricted to hotels. We train and educate, and what I want it himself. He is closer to his customer, but I would like to to do, is not hospitality as we understand it as hotels. It is proceedings… believe that the sector in the future, for our country, will be a a whole larger sector in the services industry which I am far more significant player in courting tourists, domestic and talking about. 26 h ospitality

r ohit khosla, Senior Vice President–Operations, Taj Hotels Resorts and Palaces we will see room rates heading north as industry heads towards more maturity on ADRs n leisure and Indian there you would find a lot of stress footprints. Therefore, it is important domestic market, and as far as tourism figures and leisure for promoting Assam as a tourist also about the foreign destination figures are concerned, I f you look at destination in the international leisure market but that is getting supported by individual sector, market. We are playing our role. OAs far as the foreign tourist market MICE and weddings etc. If you let us say Coorg, We realise that we have made is concerned, there is a section look at individual sector, let us or Corbett, significant investments there, so that continue to travel, and India say Coorg, or Corbett, or Bekal, or or Bekal, or it becomes important for us to has a lot of interest in key markets. Guwahati. Even if I look at these Guwahati. Even promote the destination. So, I would not say that foreign sectors, we look at these sectors, if I look at these tourist market is declining, but there is not too much of supply. sectors, there is What it means to be more what I would say is that domestic We see that where there is not not too much of mature in terms of ADRs tourism and travel is increasing. too much of supply, we are doing supply. I think we talk about it being So, I would not say that we need reasonably well over there, and the We see that fragmented and I totally agree. In to be extremely concerned that figures are looking up. where there is fact, there is a very high level of the numbers are dropping. In not too much of frustration, and Manav echoes my fact, the government has taken On whether the trend is same supply, we are feeling that when you are growing some great initiatives like e-visa. with hotels that are more doing reasonably double-digit in terms of volumes So, there is a reporting of higher international footfalls driven, well over there, and occupancies then why are you number of tourist arrivals. I would compared to domestic driven and the figures scared of taking up your rates. And, not say that it is going down but There are certain destinations are looking up. I think it is for a couple of industry domestic is growing far better than that have been developed over ,, leaders to take a call and what international inbound. a period of time, and coming rohit khosla really happens is that everybody follows. As we go ahead, we will see this happening. I think it already and they are able to utilise it, and gone down. It is just that economies happening. We are already seeing Some people like to play the role of enjoy the destination more. That is of travel is not working out for the indications of that – leading follower, but there are people who what makes the difference. certain people. hotel companies becoming firm If I have to take Rajasthan, on their rates – and I am quite play leaders. On Goa and driving numbers that is also a very important confident that right now we are at through hospitality tourist destination, or if we take the cusp where the demand was Goa was put on the tourism map Kerala, the interest over there for much lesser than the supply, and Coming to what Manav was back to the topic of motivating through a concerted effort so international tourism is very high, today we are at a situation where talking about, we do find that our hospitality to drive tourism, you many years ago, and promoting and hotel companies continue to the demand is growing more than properties dealing with leisure are aware that Taj has worked it in different tourism fairs, such work with government agencies the supply. So, obviously, rates business are definitely doing better. very hard to develop Goa as a as ITPO, WTM, and all the other like FAITH, WTTC, and others to will grow, some people try to test We are able to drive their rates destination. It developed the international fairs. We started off jointly promote ‘Incredible India’, the market, and some people like better than in business locations. destination and promoted it with getting so many chartered working with the MoT to develop to play the role of follower, but And, I guess a lot of it is to do internationally. There was a flights, and we all know what destinations. We work with state there are people who play leaders. with the competitive scenario. It lot of international inflow, and has happened to the charter tourism boards as well. And I think they will influence the is the demand-supply situation, that spread over to domestic. business. We also know what has For example, we opened a new market. Give it this year. I think wherein in certain leisure Therefore, now what is happening happened to the business from hotel in Guwahati, in ITB recently. 2017-18 is a year where people will destinations we find that supply is that while international the countries where the charters Assam tourism had a booth and look at the maturity of the market, is still not that much. Specific footfalls are dropping, domestic used to originate from. There has they were promoting the state, with and look at growing the rates, and destinations tend to drive up. If tourism has increased. Once the been a decline those economies, Kaziranga and other destinations, I think 2018-19 will be the year we look at the Rajasthan sector, destination takes up and becomes so source markets have dried up. but Taj played a key role over there which will show you the results we look at Jaipur as a city. Jaipur prominent, obviously, domestic That, however, does not mean that to say that there are large domestic that actually the market and the has had a huge influx of supply, so travellers have higher access to it interest in destinations like Goa has players who are also setting up industry has matured.

s haNJAY s arma, Market VP, North India and Nepal, Marriott We need to start behaving like an unfragmented market; must hone the art of storytelling

n branding exercise occupancy, depending on demand of an event. This is something which and large inventory and supply, there is no logic of grow- T he big change we need to address. and how it pans out ing only in single digit, in terms of that today is in increasing tourism your ADR. That does not make any needed is that On working in tandem with Onumbers in India, domestic and business logic, neither as an opera- a one big step the government to promote international tor nor as an owner. Why you have where we start tourism The take on this is very simple. Marri- a single-digit growth is because you saying that we Let me give you an example of ott International today is more or less have a fragmented market. It is a rat are no more something similar what we are the largest operator in India, not only race. You are not ready to take risks, a fragmented saying that what can be done and in terms of brands and also in terms and you still continue to operate market. what is being done. This unknown of room count. The sheer fact that and everyone tries to see that they We want to work turf between Delhi and Gurgaon, a we are in every segment of the mar- do not lose their market share. towards making huge investment came, called DIAL ket is in itself a testimony that we are Do we continue to worry about it a mature – and with a humongous number not looking at only particular seg- our market share, or do we con- market, and a of rooms, almost 3000 rooms in the ment of the market. The merger with tinue to worry about our quality? mature market plan which will eventually come. Starwood, by taking over a bigger Improving our stature in the market, will only happen There was only one way to co-exist portfolio of luxury into the Marriott bringing in more quality for tourism, when there is a and work along with everyone. portfolio where in certain markets and improving the tax structure for certain amount What we did along with other we had more upper upscale only the government? If rates go up, taxes of discipline that partners who are competitors, we available, now with thirty brands, also go up. The government will comes into the created a consortium to drive MICE and specifically going back to India, have more resources to spend. market segments. into DAIL. So, there is a consortium with 15-16 brands already opera- ,, of nine hotels, and everyone wants s anjay sharma tional and few more coming in the On creating a larger canvas of to be a part of it. Actually, the first near future, we want to create space tourism in the country big fruit of the consortium was they in every market segment… to bring There is something coming in my We are not good storytellers at the in more business into the country. To mind and I think it is, probably, a moment. We need to become better create more tourism for the country, little bit interesting for me to put storytellers. I will give you one small and bring in discipline into the this across. I think we have been example. There is a very beautiful T he big change that is needed is market. I think the need of the hour too busy creating headlines that festival in Punjab which I came that we need to start saying that we is that we have been talking too long we have had so many millions of across recently in Anantpur Sahib and bragging ourselves being a frag- travellers coming into the country and it is called Hola Mohalla. It is are no more a fragmented market. mented market. The big change that on e-visa. We have created a lot of one of the most fascinating events today is needed is that a one big step headlines that we have had sixteen on planet Earth. Unfortunately, even where we start saying that we are no percent growth, and 20 percent if you go through whole of Punjab, may be, we should start think- marketed together and brought in more a fragmented market. We want growth, in our tourism numbers, it is not being marketed the way it ing of how we can create more the largest ever MICE convention to work towards making it a mature but I think in my opinion and a lot should have been. Whereas a joint events in every state and create a happening in April in DIAL. That is market, and a mature market will of opinion makers that I talk to, we promotion strategy of promoting story behind them to try and weave the first step. Rohit was mentioning only happen when there is a certain have failed in creating trendlines it as an event and creating a story them into a tourism blanket for the that Taj will market Lucknow. I take amount of discipline that comes into rather than headlines. We need to behind it as an event in every state country. People go to a particular a cue from here, election tourism the market segments. start creating trendlines for tourism, which happens. The government place for a reason. They go once in in India is incredible. To me, who Taking cue from what Manav and those trend lines come from has been doing regulatorily what a lifetime to go see a monument, but would think out of the box? Elec- said, as soon as you hit the 70% areas when you have a story to tell. they are supposed to be doing, but they go again and again to be a part tion tourism in India.

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VIKRAM OBEROI RAKESH SARNA ARUN SARAF MANAV THADANI

CHRISTOPHER J NASSETTA MARK HOPLAMAZIAN THORSTEN KIRSCHKE

MICHAEL ISSENBERG KURT STRAUB AJAY BAKAYA SUNIL GHADIOK

DEEP KALRA SURESH KUMAR KAPIL CHOPRA

RAJIV KAUL DIPAK HAKSAR DILIP PURI ASHISH JAKHANWALA

K.B. KACHRU PETER KERKAR RAJEEV MENON

RAJ RANA CHINMAI SHARMA NEERAJ GOVIL VIKRAMK.B. KACHRU MADHOK

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RITESH AGARWAL ANURAG BHATNAGAR SHANTHA DE SILVA FARHAT JAMAL HOSPITALITY LEADERS COME TOGETHER FOR HICSA 2017; FOCUS ON GLOBAL TRENDS

FINAL HICSA 2017 31 HICSA was back in Mumbai, as parent HVS celebrated its 20 years in India On the eve of HOSI/HICSA in Mumbai, we caught up with Manav Thadani, as he completed 20 years of HVS in India. Launching this year at HICSA is his newest baby, Hotelivate, the one-stop shop for customised professional solutions.

How many assignments has HVS India and was working in the New York office worked on? of HVS. It was a valuation we did during Difficult to quantify as we do consulting, Atlanta Olympic games and I was still learn- search and other types of assignments. How- ing and I messed up the valuation numbers ever it is safe to say we average close to 200 because I did not know the HVS models well different types of assignments per year. enough and when asked a few tough ques- Your most memorable feasibility tions I just froze. Fortunately the person on assignment? the other side of the phone was not our client A hotel that unfortunately never got built. but my boss at that time and now my partner Was in the plantations near Coorg and the Steve Rushmore and he did not fire me. developer owned 2300 acres of land. We Longest engagement of HVS for an spend two full days on a jeep just identifying assignment? locations for the two proposed assets. The 14 years and still counting... The hotel is at hotel unfortunately never got built as the the ground level currently. owner decided to develop other locations Any landmarks or turning points during start hearing more about it in the around the world. Its great to see the Taj Co- the launch of HICSA back in 2005. near future. org do so well which gives me some personal Finally, on the personal side the launch Anything else? satisfaction knowing we were right about our and success of SAMHI far. I think the strength of HVS has recommendations. What Next? always been its people. We have A feasibility you are proud of where the Well as you have noticed I loved doing many been fortunate to have brought in hotel has opened? new start ups over the past two decades. My and trained some of the best minds Many, however we count the Leela Ambiance newest baby is Hotelivate, which is being in the hospitality industry. I am in Gurgaon as a great hotel and Leela has done launched at HICSA this year. We hope to extremely proud of what are alumni a good job of managing the hotel and owner. make Hotelivate the hospitality industry’s have achieved and am very fortunate most comprehensive platform for customized to have some of them come back to An Assignment you wish to forget? manav thadani Well actually it was just before I returned to professional solutions. Hopefully you will us as well.

Ed ’ iTOr s note HICSA 2017 coverage Ajit Kerkar revisits his The recently concluded 13th edition of HICSA, held in Mumbai, was success saga with fellow attended by around 500 delegates and diverse issues were put under scanner by industry professionals. New-age challenges, emanating hoteliers and admirers from pervasiveness of technology, apart from traditional issues like skill retention and ROIs were deliberated at length. These 28 pages feature proceedings of those sessions. Unfortunately, chasing a close deadline, video recordings of the proceedings of some sessions could not be obtained in time. The balance sessions will be reported in the next issue of TourismFirst.

Contents HICSA 2017 45. Opportunities and Challenges in India, in his keynote HICSA was back in Mumbai, as parent Ashwini Kakkar 31. at HOSI HVS celebrated its 20 years in India t was a wave of mixed human ◗ On Rakesh Sarna, (his successor 45. It’s luxury at HICSA with Anuraag 32. Real estate cost correction bodes well, emotions. Recalling a saga of today): he is a warm person with a right will strengthen supply: Bhatnagar success, legendary among Indian fit for the Taj culture. Manav Thadani HICSA 2017 33. What Makes India Tick: In a challenging hotels, unlikely to be ever lived ◗ On the Taj Group foray into Goa: I was Marriott International to accelerate Iagain. Lifetime Achievement Award for born in Goa and my parents are Goan. environment, finding room for innovation 46. expansion across India Ajit Kerkar who left the Taj Group some At the airport I met the then CM on my 34. Andaz is a game changer for Delhi as Grand Hyatt was to Mumbai, says 4 7. Technology has altered hospitality 20 years ago. Emotions of nostalgia, way to Chennai. He took me around landmark events which saw opening personally to survey some 80 properties Arun Saraf landscape, says Manav Thadani of destinations, in fact, the opening of and allowed me to choose the Fort 36. The Leaders’ Panel at HOSI shares the 4 8. Densification of strategic markets a defining edge that makes for leadership corner-stone of our growth strategy: Destination India to the world. We bring Aguada for our first hotel. you a few excerpts which capture the ◗ On his one advice to fellow hoteliers, a Jean Casse 37. Hospitality industry must drive ‘Brand essence of last evening. question that he found tricky to answer: India’, lead the way: Rakesh Sarna 4 9. Hotelivate to plug in loopholes: to cater end-to-end planning of hotels be sincere in your work and continue 38. What differentiates a GM from a Super GM ◗ If I was born again I would like to work your hard work and success will follow. 5 0. Marriott sees exponential growth in 38. The Importance of Loyalty Point Programs again for the Tatas. (To a loud applause). ◗ With so much competition today, the mid-tier segment in India ◗ For all my success, I must thank first would they be able to develop in the 39. The Global CEO panel: Industry leaders talk about their hotels, the road ahead HOSI 2017 and foremost my colleague and wife, same manner as he did in his days: it Elizabeth. And my wonderful colleagues has all changed and it can’t happen the spotlight on 51. Loyalty for owners or operators: 40. Owner power house: General Managers bat for a balance like Camelia Panjabi, Pankaj Baliga and same way again. But human innovation growth of home-grown brands, between the two expansion plans so many others. and ingenuity will find its way. Our strategies are always focussed Mid-segment market is the big emerging 52. 42. around our guests, says Michael space, will drive per capita growth: Issenberg JB Singh 5 3. Carlson poised to lead the next wave 43. Innovative business models to drive of growth in the hospitality sector: Raj Carlson Rezidor Group in APAC: Tourismfirst is owned, published Rana editor: Navin Berry Thorsten Kirschke [email protected] and printed by Navin Berry and printed at HOSI 2017 5 3. Skill retention and sticking to project Anupam Art Printers. 6/14, Industrial Area, deadlines chief issues facing the senior writer: S hashank Shekhar [email protected] Kirti Nagar, New Delhi - 110 015. 44. Millennials set to define and set future industry It is published from 36-37, 3rd Floor, trends for the industry, says Nikhil Nath features editor: Priyaanka Berry Indra Palace, H-Block, Connaught Place, 5 4. Radisson RED’s positioning and [email protected] 44. Fortune Hotels: Let Fortune Take You appeal will attract young and New Delhi – 110 001. Places business development: Saurabh Shukla Tel: 011-43784444. discerning Indian travellers [email protected] Section 2: Pages 29-56 32 Ha ics 2017

Real estate cost correction bodes well, will strengthen supply: Manav Thadani Manav Thadani, Chairman, HVS-Asia Pacific believes that the blip in real estate prices will have a positive impact on the supply side in the coming years. Sharing his view on the growing trend of mergers and acquisitions, he notes that much of it is being driven by the need for streamlining operations and ensuring financial prudence. Excerpts of his exclusive interview follows:

at the cost of a house you buy in Gurgaon And what would you base this assertion and you compare that to the cost of an on? apartment in any other part of the world, do Well, because India is not too dependent on Well, I think you think we get world-class infrastructure? what happens around the globe. Domestic if there is a We do not. You go to Mumbai. Instead of consumption is strong; the government has correction in sea view, you get a slum view. You come to recently won assembly elections, meaning the real estate Gurgaon, instead of seeing greenery, you see reforms will carry on. People will still con- prices it is good dust bowls all over the place. So, why are we tinue to come to India; business travel will be for the industry. paying so much? It makes great headlines to up. All the indications, if you look at it, airline Land valuation say that real estate has been sold at a certain traffic is up. Record levels have been reached in India is much price, but it is actually bad for the economy. in, I think, January and February. More peo- higher than We have government’s policy saying ple are travelling, therefore more people will what they are ‘Make in India’, Invest in India, and oth- stay in hotels. I am very optimistic from that in many other ers, yet we are one of the most of the most point of view. I think there will be a growth; parts of the expensive places for some of the basic raw RevPARs might even touch low double-digits, world. So, if this material that we have. in terms of increases for the current year, in correction has many other cities. You initially talked about mergers and happened, it acquisitions. Do you think that this You have asserted on many occasions is good for us, phenomenon is being driven by the that the growth in the hospitality indus- good for the fact that a number of hotels are under try will be driven by the mid-segment. industry. It will stress and are finding it difficult to oper- We understand that rising disposable encourage more ate in the current milieu? incomes and increase in online penetra- potential supply No. The three examples which I gave you ini- tion is driving this. But where do we to come up, and tially, none of the three were under any kind stand in that segment and what is the India will need of stress to be taken over. It is happening future like? more hotels in because as Arne Sorenson of Marriott said I have always, historically, said that budget the long-term. that when you consolidate, you can then ne- and mid-segment market will be the main ,, gotiate better with the OTAs. As the CEO of drivers of the business. There is a slight Marriott said, we would have 200 million dol- change in my thinking. One thought is that M anav Thadani Chairman, HVS-Asia Pacific lars of savings by just combining things. The the lines between the budget and mid- development teams have been combined; a market, and the upper mid-market, are all lot of things have been combined. Imagine, blurring. There is not that much product By Shashank Shekhar for a base fee, an incentive fee, and market- if you could reduce 8-10 employees at the differentiation between a budget hotel and ing fee and you thought that the hotel or the corporate level in India. Now, imagine doing a mid-market hotel. For example, a Fairfield ince the last HICSA in 2016, brand will then take care of everything else. that in every country. You can suddenly Marriott and a Courtyard Marriott and the what has been the change in Today, you pay for that, and on top of it the reduce 800-100 people across the board. It is Hyatt place, you talk to all different brands the picture? How much has the hotel will take out 15-22%, and pay to OTA, basically streamlining of operations. and they will give you their explanation of industry moved? for something that they should have been where they are positioned. Whereas there SA lot has happened in the past twelve doing. So, what I am trying to get to is that How can the relationship between the may not be that much difference between months. There have been a fair number of the profitability of running a hotel has gone owner and the operator be improved? them. I still feel that, overall, that segment will mergers and acquisitions between different down – and the brand company, as a brand, You have mentioned that owners are continue to do well, and will be the drivers. companies. The Marriott, of course, acquired is not necessarily doing the job they are angry, at least some of them. What is the In the luxury space, what I am finding out, Starwood; Carlson got acquired by a Chinese supposed to be doing. Expenses have gone way forward? How can this conundrum and I did an article last year – we looked at company; closer home, Louvre Hotels up tremendously which is why we see a lot, be addressed? data points, saying that let us look at the top acquired Sarovar. So, a lot of mergers and I would not say disenchantment, but owners Unfortunately, we are heading in the way, 25 hotels in India by room rate. From highest combination of doing certain things together are upset and perhaps, rightly so. in the USA which is a more mature market, to the bottom. 23 out of those 25 hotels were – Taj and Shangri La has teamed up for a there are third-party operators. They are leisure hotels, and it was quite amazing for marketing alliance. R eal estate prices have taken a beating specialised operators and they do a very us. We had never looked at it like that, it was Interestingly, I may not able to track what post demonetization. How do you see good job of operating hotel assets. Brands in a pure coincidence. has happened in the last one year. Bu this is it impacting the hospitality industry, the USA do not operate hotels because they So, when you talk about luxury to me HVS’s twentieth year in India, and therefore given that the hospitality industry is do not do a good job of it. They used to do today, I say if you want to build luxury hotels, I did an exercise to see how things have intrinsically linked to how the real estate this in India, and they used to do this in Asia, if you can find a nice location for leisure, go changed in the last twenty years. We got moves? and in many other parts of the developing luxury. Because the Indian traveller today some very interesting data. A lot of expenses Well, I think if there is a correction in the real world, because they make good money off is willing to spend money and travel, and have gone up. Forget about NHG and payroll estate prices it is good for the industry. Land of it. I think, if they do not improve the way rather going overseas which could take more costs, I will give you examples of other valuation in India is much higher than what they are offering services they are offering to time, they would prefer travelling within the expenses that did not exist twenty years ago, they are in many other parts of the world. So, owners, there will be a time when the owners country. which today’s owners have to pay for. Internet if this correction has happened, it is good for either take upon themselves to operate these cost, for instance, did not exist. And, then us, good for the industry. It will encourage hotels, or hopefully someone who will come So, it is all good in the coming years as you have brand standard of certain internet more potential supply to come up, and India along and open a third-party management well? brands which says that you are supposed will need more hotels in the long-term. There company that will do quite well. I think it is I hope so. Certainly, for the next 2-3 years, to have a certain minimum bandwidth. is hardly any new supply coming in. Markets an opportunity for someone to come in and there seems to be stability of the government; Whether it gets utilised or not, as an owner are improving, so supply will come in for step into. people are now beginning to talk about five you are forced to pay for it. Then there are an industry to remain healthy. So, from that more years for PM Modi. If that happens, the costs associated with security. We did not point of view, I am quite happy that there has What is your sense of 2017? How will it hotel industry should clearly benefit from have any security in hotels twenty years ago. been a correction in the market. pan out for the hospitality industry? GST that. So, whether it is the manpower cost, or the might just be rolled out. While there is still some uncertainty as to technology cost, it has gone up significantly. So, do you think it is a temporary phe- There was a blip initially, but March has been where the GST will be pegged, we will know There were no OTAs twenty years ago. nomenon, or will it be here for some decent for the hospitality industry. Overall, how it might affect us, but if it is priced at Therefore, when one negotiated a contract time? we are pretty optimistic about the current 18%, what people are generally talking about, with the management company, you paid No, I hope it is more permanent. I mean look year for the India perspective. I think it will be good for the industry. Ha ics 2017 33

What Makes India Tick: In a challenging environment, finding room for innovation Moderator, Dilip Puri, Guidance Lead - South Asia, Marriott International, began the first session at HICSA on What Makes India Tick. He covered a variety of subjects in discussion with the panellists which included Arun Nanda, Chairman, Mahindra Holidays and Resorts India; Deep Kalra, Chairman and Group CEO, MakeMyTrip and Peter Kerkar, Group Chief Executive Officer, Cox & Kings. We bring you here excerpts from the session.

By Priyaanka berry Kerkar: Frankly people will still have enough? The answer is no. There is a lot impetus to travel, tell us what do you see access to alcohol in any case. For example, more to be done but I do feel the industry in the landscape pre-merger and where P uri: I am going to start by asking the panel in states that are alcohol free, we all know is equally to be blamed. One of my jobs you are now? today their views on the latest bomb shell of how many people still manage to find access. is to get the industry more involved and the liquor ban? Are these the kind of things People will find a way to get around it. It we have manged this to a certain extent. Kalra: It’s been a long journey and we we should continue to expect going forward? really is short-sighted and irresponsible. We are matching skills to requirements had been market leaders but we needed to Are these typically aberrations? in the market and matching biodatas of calibrate what we were doing. We decided Puri: Mr. Nanda, you are also the Chairman new graduates. We are also understanding on joining forces. The merger has worked out Nanda: How can you not blame the of the Tourism and Hospitality Skill from the industry what skills are required very well from a market perspective. The real government? Because the government could proof of this pudding will only be told about not control drunk driving, the court had to a year down the line. Mergers are all about do it. It is retrograde. Instead of stopping people, and we must make it work. something which is wrong, you have stopped How can you not blame the government? the whole system. Per rough estimates, Puri: Peter, how have you seen your space 100,000 people will lose jobs and the state Because the government could not control evolve since the OTS’s came? Any difference governments will lose at least 75000 crores in your strategy and plans? worth of revenue. We want to stop drunk drunk driving, the court had to do it. It is driving and this doesn’t make sense, you can retrograde. Instead of stopping something Kerkar: We are still making money, and still drink and drive. do about billion dollars of sales online. It which is wrong, you have stopped the is not like we haven’t looked at the online Kalra: It is of course regressive but the whole system. market space. The game that I see the big real problem is more deeply rooted. This OTAs playing right now is the last man shows that tourism is simply not priority. If it standing game and first mover advantage is was, then it would be plumb posting and not immense. We are playing a different game. a punishment posting. Secondly, if tourism Council. Tell us a little more about the work and focussing on those and pushing those We are looking at packaged holidays and was priority, how can something like this get happening there? skills. It is you, the hotel industry, who customization. We have a differentiator passed? Alcohol is not the bed rock of any needs this, so if we work together, we will in the complexity of packaging and hotel doing well but if you can’t serve alcohol Nanda: The numbers we are talking give you what you need. particularly dynamic packaging. If one we all know you will lose a lot of tourists. Is about is roughly 3 million short-fall in of the online companies can manage this only for vends or for hotels and restaurants skilled employees. After BPO’s, hospitality Puri: We have both the online and this, then they will be in a very powerful as well? There are legitimate businesses and has the highest attrition rates. There is offline part of business being represented position. So, I feel we are here to stay and huge investments being hit badly. a significant need. Is it being addressed here. Deep, the big acquisition, the so are the OTAs. Ginger promises a 100 strong delegation in two years

Ginger CEO Rahul Pandit, when we asked him if this was his army, confidentally asserted that his delegation would be 100 strong in two years time, reflecting the growth envisaged in the Ginger family! Pictured above is the Ginger family with Rakesh Sarna and Chinmai Sharma. 34 Ha ics 2017

Lobby Grand Hyatt Mumbai Andaz Aerocity, New Delhi Andaz is a game changer for Delhi as Grand Hyatt was to Mumbai, says Arun Saraf On the eve of HICSA, back in Mumbai after two years in New Delhi, owner of Grand Hyatt Mumbai talks of his passion of hoteliering, how he created a new landmark in Mumbai with the opening of this hotel. He believes his recently opened Andaz at Aerocity in New Delhi will also be a game changer for that location and city. Saraf talks in a free-wheeling interview with TourismFirst.

By Navin Berry largest. Point is that we are definitively more evolved and hat is the Andaz story all personalized when it comes to about? How is it unfolding guest experience. We are not a here in Delhi? mass hotel. We have discerning Andaz has a story. Every city guests who choose to come here. Wand every country is different. We have 401 As a hotel owner, stories here in Delhi. Every Andaz will have How are the price points at the I would say that this lounge where we welcome and check hotel? hospitality is a great in guests; like we do at home. Here we offer Heddo: Depends on demand. We opportunity but you you something to drink and bring you up to are leading in comparison to our have got to tread the room and we try to create rooms as how neighbours. carefully. It is not we see people live in the future. Its all on Saraf: Once this hotel stabilizing in something that every the Ipad, the booking and it starts with your the next 6 months, we will have the year there will be name or booking reference. highest rate by far. a 10% growth. We have to be prepared I have heard you use the word eclectic, You have been phenomenal for slowdowns. Now that is a very special word. Is that what in running the Grand Hyatt in it is looking up. Be you are using within the Andaz DNA? Mumbai with your stamp on Saraf: Absolutely. Andaz is a part of Hyatt, its it as the driver. How do you selective and location worldwide group. Andaz has been created as intend to put that energy here? is paramount. You can a brand to be much more and having its own Saraf: This hotel already has create a location but personality. It does not have to fall into line energy and I will tell you how. At be location centric. Be with any of the other traditional hotels, be it a the end of the day it is the people. where people want Hyatt or a Marriott. When you are an involved owner you to be. and you are supporting your ,, Is it sold on the Hyatt website? people, the energy flows. Now Saraf: It has its own website and is also we have 11 hotels across India sold on the Hyatt network. The underlying and Nepal and all these are run platform and back up comes from Hyatt. It is by professionals, by people who Arun Saraf a Hyatt brand. But when it is being presented are really imbibing the value of Managing Director, Grand Hyatt Mumbai and when it is being used by people it does driving passion in their work, in not have to conform to any other hotel website or character. Each of the Andaz don’t build hotels for 5 years, we build hotels hotels globally have their own character. for 50 years. That is why I have taken the How all the Andaz properties connect is Aerocity is going to be the centre of India courage to build such a large hotel. because they have their own stories, a DNA and not only the centre of Delhi. This airport which is being followed. Where is the stress factor coming in the Heddo: We call this touch points. Our touch next to us has three runways. It is going to hotel industry. points are different than other Hyatt hotels. be India’s gateway to the world. We don’t Saraf: Juniper and most of my hotels are fairly well settled. Leverage is 1:1. This is Taking this point further, in our build hotels for 5 years, we build hotels for 50 a comfortable one. Not aggressive but neighbourhood context, how does years. That is why I have taken the courage to conservative. Some of my hotels are less. Andaz stand out at Aerocity? Chennai market, I saw that the leveraging Heddo: That’s very easy. One is the look build such a large hotel. was not working 1:1, we have a .25 debt and and feel of it because we don’t fall into .75 equity. Point here is that when you are any classical hotel look. We are very talking about distress, most of the distress contemporary. It is also different just as creating memorable experiences. property that even Chennai people say, is is coming to new developers. They do not you enter the hotel, when you are being My point of view is very simple. We have like our home. have the hotel experience. They have in their welcomed, we don’t uniform people. We joined hands with Hyatt and they are also my enthusiasm and style gone and developed welcome people in our own personal style. partners in many of my properties. We work Tell me a totally different scenario, hotels. So what happens, they start making Its entire experience, including the rooms is together. It is a very cordial and supporting there are stressed assets across the hotels look like their homes and start very different. (This perhaps is very true. As environment where as an owner I understand country today, in this scenario you reflecting their own personalities and they we found out, this GM is wearing a Nehru what is required by my operating team. This build a grand hotel like this. Why are spend more money than they need to spend jacket, and folds his hands in a namaste, at generates energy and gives my team a lot of these assets getting stressed and in that market. every other opportunity when he wants to confidence. Grand Hyatt Mumbai has a team secondly, we also talked about this the say thank you!) that knows there is 100% backing from the last time Peter Fullton was here, the big What was the project cost here? owners to do something that provides the challenge is how is Hyatt shaping up in Saraf: Our cost was Rs. 1200 croroes and this You are the largest hotel here? cutting edge. this world of mergers and competition is all inclusive of land etc. This is a very well Saraf: We are the largest hotel in Aerocity, becoming bigger in size? You want to built hotel at a very reasonable cost. We don’t we have the largest room size in Aerocity and Every time anyone goes to the Grand remain boutique and be the best. So have extra money, we make every penny we have the largest convention and meeting Hyatt Mumbai, nothing about the how is that culture carrying forward count. Within this cost, is the cost of land at facilities in Aerocity. However, it is not a property looks even remotely jaded. keeping away the distress? Rs 250 crores. And this also includes interest. matter of being the largest. Largest is only Saraf: There are two reasons to this. Saraf: Talking about Aerocity, I was a way of defining yourself in terms of scale. One obviously, we design hotels that are the first one to buy this asset from GMR. I That control over cost will keep the hotel Our largeness comes more in the form of the timeless. And secondly you take care of came forward and made the deal. Other going…. experience we offer. them. You don’t let them run down. Not properties were only sold on the banner that Saraf: Yes it will. And will bring us into only Grand Hyatt, you go to my Calcutta Arun Saraf has bought here and that Hyatt profits. The distress is if you have the wrong But then you have more rooms to fill? property, you will not believe that it is 17 is coming here and then they followed. In leveraging or if you overspend. And the third Saraf: Yes. We have 401 hotel rooms and years old. It has been the market leader my view Aerocity is going to be the centre of point on distress is the sluggishness of the 150 service apartments. This is the largest for the past 5 years. GMs change but they India and not only the centre of Delhi. This market and over supply. Over supply that has inventory in Aerocity with the best location. all know that I am fully supporting them. airport next to us has three runways. It is come over the past four to five years and the But I don’t want to dwell upon being the Look at Hyatt Regency Chennai, that is one going to be India’s gateway to the world. We market has not grown so well. Ha ics 2017 35

Taragaon Museum alongside Hyatt in Kathmandu displays an unprecedented collection of heritage The Taragaon Museum, put together by the Saraf Foundation, is displaying contributions of artists and intellectuals who have spent decades in the Kathmandu Valley and whose work has never before been collected or recognised.

he Taragaon Museum in Nepal which was Topened to public in April 2014, exhibits urban sketches, ethnographic photography, architectural drawings of Nepal’s heritage, maps, old landscapes, drawings and etchings. The building project which was initiated by a group of women as a hostel for foreigners, was designed by an Austrian architect, Carl Pruscha. Arun and Namita Saraf, patrons of the Saraf Foundation for Himalayan Traditions and Culture had in 2009 expressed their wish to renovate and preserve the museum and turn it in to a documentation centre to preserve the legacies of the contributors of the museum. The voluntary opening of the museum’s doors to foreign aid organisations led to the entry and contribution of a large number of writers, artists, photographers and intellectuals. The museum aims to preserve the work of these contributors which would otherwise be lost. The museum is set on collecting and displaying the contributions of these individuals who have spent around three decades in Nepal, which is unprecedented. The museum also includes a Contemporary Art Gallery, Archiving Centre, Library, Amphitheatre, Café and Shops besides its permanent collection.

It is also being said, and very often that number out of 10,000 hotels. I rather be What special message would you like to not lose the customer. India needs another 2 lakhs rooms? part of a smaller global chain. Because share with your colleagues at HICSA? How do you reconcile this with the then they can give attention to me and the Saraf: As a hotel owner, I would say On Aerocity, it took all the while present situation of over supply? special needs of my property. I still feel that hospitality is a great opportunity but that it did. There is some talk about Saraf: Let me explain this. When you look hospitality is very individual and personal, you have got to tread carefully. It is not marketing of Aerocity. A few hotels at a macro level and then compare India’s so I prefer my operator also has that same something that every year there will be joined hands and went to IMEX. These size and compare Indian economy to other DNA. As a world, we are heading towards a 10% growth. We have to be prepared are not organized efforts though economies namely China or all of Europe, individually tailored programmes. for slowdowns. Now it is looking up. Be they are well meaning efforts.D o you so you start seeing that they have a larger selective and location is paramount. You see room for an established system percentage of hotel rooms. So, we do also Typically, your bookings at the Grand can create a location but be location where per room you put money in a need that number. Micro timing may go wrong Hyatt, where do they come from? centric. Be where people want you to be. joint marketing fund which is more but in the big picture, the tourism industry is Saraf: I would say 40% are still driven on organized? slated to become the biggest. In India, it still MICE and large group bookings through How to increase ADRs? Some are This is not something new. It is a global has not received enough attention from the practice. Where all the beneficiaries government because it was earlier times it of tourism come together under the was considered to be elitist. Now everyone is leadership of the state or city government travelling and everyone has a price point. The My aim is not to cover all of India but to cover or an organization having support of the scene has changed. areas where there is maximum opportunity. whole system. Delhi is prime example to start to marketing ourselves as one, What is going to be Juniper’s foray into We are focussed in our segment. I have as Delhi. We are marketing ourselves as mid-market? three properties in mid-market; there are Andaz and so are our neighbours. Here I Saraf: We do not want to be covering all would say it would have to be the tourism markets. Juniper and my other companies three which I had acquired for going into department of the city or the state that are focussed on revenue generation and the mid-market, but I have converted them will really have to be led by professionals profitability. My aim is not to cover all of India who understand tourism. I would but to cover areas where there is maximum to upmarket. I am an opportunist. If there is promote the idea of a tourism board for opportunity. We are focussed in our segment. another opportunity in Mumbai in the mid- Delhi city which can be a public private I have three properties in mid-market; there partnership. This board should be the are three which I had acquired for going into market, I will go into this. We have a huge one given the responsibility to promote the mid-market, but I have converted them Delhi globally. to upmarket. I am an opportunist. If there is appetite to acquire. another opportunity in Mumbai in the mid- What is holding this back? market, I will go into this. We have a huge different media. Other media is only a saying it is the industry itself who is to Where we are having a problem is the appetite to acquire. facilitator. 40% is corporates. And the blame? lack of understanding on the part of the balance 20% is other smaller leisure groups Saraf: We are not to blame. We live and work government. The government thinking that Any plans for Goa? and individuals coming directly. The in a free market economy where competition the hoteliers are all out there to cut each Saraf: We are building Goa now, before phenomenon of Grand Hyatt continues. is the real driver of price. When we were other, which we are not. The GMs of all the the end of the year we will have a 125 room It is the game changer hotel. It redefined competing a lot we had to dropdown the hotels at Aerocity got together not only to property in Goa. This is in South Goa, hospitality in India in 2003-2004 when price but now demand is coming back. ADR promote Aerocity but also Delhi and at least next to Taj Exotica. It is not branded yet we built it. People could not believe that is now rising. It is gradual. The idea is what the as an idea, it was supported by the tourism internationally. someone could put up such a large hotel. customer wants to pay. The customer now has minister of Delhi. Delhi being the centre It has 6-7 independent revenue streams. more choices and he decides. for business, centre for tourism and centre What would you like to tell others about It has the largest ballroom in Mumbai. for even the national tourism to provide a the Hyatt brand at HICSA? MICE market has grown so much that we Would it also mean that between gateway, it is a great opportunity to create Saraf: I am always of the view that an are putting in a new ballroom. We are competing properties, no one has the a tourism board of Delhi, promoting Delhi, operator and a branding company should renovating some parts - we will have two courage to say I will charge more? and setting an example for the rest of the be available to the owner to become more ballrooms of 500sqm, and 800sqm on Saraf: They will only have the courage when country to form their own boards and the best. I do not wish to just become a the same level. they know that at that price they will sell and emulating that model. 36 Ha ics 2017

T he Leaders' Panel at HOSI shares the defining edge that makes for leadership The Leaders' Panel at HOSI made for an interactive and engaging session with moderator Manav Thadani covering a range of subjects. The Panellists included Ajay Bakaya, Managing Director, Sarovar Hotels and Resorts; Dipak Haksar, Chief Executive Officer Hotels Division, ITC Limited; Kurt Straub, Vice President Operations, Hyatt Hotels Corporation; Neeraj Govil, Area Vice President - South Asia, Marriott International, and Raj Rana, Chief Executive Officer - South Asia, Carlson Rezidor Hotel Group

By priyaanka berry about 10% come back to us and say you are in terms of all parameters. We have owners that you see people grow. I have seen a lot of doing something wrong. And we go back to also, the investors – we need to give them a my colleagues and peers grow and take on Thadani: Beginning with the discussion, our forecast and amend it. It is not cast in return on capital employed and that is very new roles. I would like you to complete the sentence stone. However, I do feel forecasting must be clear. Rana: Of course travelling around the world - 2017 will be a year of what for the hotel challenging. I remember in large organiza- Thadani: Kurt, I am going to change the is good. But I still think the best part of the industry? tions where I worked earlier on, where you question for you a bit. What is the best and job, as CEO, is to be able to renew a contract Bakaya: Topic of discussion is definitely cur- owned all your properties, you could afford worst part of your job? I don’t know if this is with an owner. I get a real thrill from this. rently the liquor ban. Having said that we are to be a lot more optimistic because if you your first stint into India. Even after 10-15 years of wear and tear, the expecting sustained growth for all. didn’t reach your targets, heavens didn’t Straub: I have never been to India before. team from that hotel did such a capable job Haksar: It will be a good year, we are very collapse. And the company would have a The best part about it is that you meet new that the owner still wants to join hands with optimistic. policy saying target 10-15% more than what people, see new cultures, you see all sorts you. As far as the worst part is concerned, it Straub: We are looking forward to a you think you will achieve so you have a of new challenges. For me, it’s been the 10th is seeing deserving and aspiring talent leave fabulous year; let’s see what Mr. Modi has for the hotel. Because if you don’t have the posi- us in the next couple of months. tion for someone who is deserving, if that Govil: For us it is the year of integration person to fulfil his or her aspirations has to more than anything else. We have a lot of You can make all the revenue in the world but leave. That is very heart breaking. brands now and it is about positioning these Thadani: Raj, do you think hotels in India brands in different markets. you can’t take revenue to the bank. Ultimately, should focus more on profit management or Rana: I think for the industry it is going to what you take to the bank is the profit you revenue management? be the year of red carpet and red tape. For Rana: They are of course linked. You can our own company, we continue to open a make. I think the profit journey starts with make all the revenue in the world but you hotel every 6 weeks and sign a hotel every 4 revenue. You also have to factor in good cost can’t take revenue to the bank. Ultimately, weeks. We are happy with that run rate and what you take to the bank is the profit you that run rate is likely to sustain this year. control and asset management. make. I think the profit journey starts with revenue. You also have to factor in good cost Thadani: I wonder what the answers would control and asset management. have been in say January or February with strong motivational tool for the staff to work time moving countries; this exploring of Bakaya: Profit is the key. But you can’t do owners sitting here. The focus would have towards. When you are working with an places and people is the best part. The worst one without the other. If you don’t have a been on the budget for the year. Why don’t owner, he is planning all his cash flows on part, if you can call it that, is that every time top line and you only focus on the expense we hear these same buzz words when we what you are saying in your forecast and you you go somewhere new, you basically start part, you won’t have a great bottom line. I are doing budgeting exercises? Why is it that need to be that much more on the spot than afresh. You don’t know the people and you think in the mid-market bracket it is critical the numbers are always held back? Is there be optimistic. don’t have things in place. Which again can that you watch every expense very carefully. something we can be doing as leaders out Haksar: We have a very strong budgeting be a good thing which helps you also build How to gainfully employ your people from here to ensure that the budgeting process is exercise. Every year in the month of February your skills. the minutest job position? Making sure that more fair? we go underground, where we go through Govil: I agree with what Kurt said. I am an people that you hire have enough to do and Bakaya: I disagree that the budgeting pro- the macro-economy and look at the markets inherent hotel junkie. I love staying at hotels, you don’t have floaters. A larger hotel can still cess is conservative or tight. In our case, we etc. The budget is actually monitored at the going to the spa, eating at hotels. I love that afford floaters. Next is energy costs, which have a very strong to and fro on the forecast. corporate level on a monthly or quarterly part of my job and the travel that comes with is a large thing in India. How to optimally When you see the forecast for 75 hotels, basis and that is a very strenuous process it. I get to do what I like to do. I enjoy the fact manage this?

e speak with Darshan Rawal, Business Development Head India at O2 Spa, to Wlearn more about this brand and understand what brings them to HICSA 2017. “We started 9 years ago, and are today one of Asia’s largest spa operation companies based out of Hyderabad. We have 109 spas present in India and UAE and our target is to have 200 outlets by the end of this fiscal year. We are launch- ing a retail brand, Ode, a luxury wellness product line and International House of Wellness, a high end tea brand. We are getting into boutique wellness resorts where the spa is the main attraction. We are present as stand-alone spas, large villa spas, at airports, at malls and in highstreets. We are here at HICSA as we are operating spas in approximately 75 hotels across the country and the Gulf It is fraternity time with Sunil Ghadiok, Dilip Puri, Suresh Kumar and Dipak Haksar. and are here to meet the hospitality industry and work in tandem with them”. Ha ics 2017 37 Hospitality industry must drive ‘Brand India’, lead the way: Rakesh Sarna R akesh Sarna, Managing Director and CEO, Taj Hotels Palaces Resorts Safaris recommends a pro-active role, as a responsible society and as an industry in contributing to building a formidable Brand India. First by addressing the basics of focussing on our people and skill development, and of valuing their role in Brand India. And lastly, of playing an active role in keeping India clean. In presenting the nation in the best light, in the best manner possible.

By priyaanka berry and this is a cancer to our future prosperity. am here today to take your time, to We can afford the best Are we raising the ask myself some questions – and of marble and crystals and self-esteem of our the fundamental question is: Are imported foods and goods countrymen and of “ we Brand India? I hear a lot of angst and the best chefs, but the one our demographic aboutI how do we become a great country? critical ingredient in this society dividend? They are I can’t help but feel maybe it is time I ask and in this industry, in making a not literate. They don’t myself what am I doing for this? Do I own wholesome Brand India, is first have a skill. When you Brand India? Am I Brand India? looking after our own people. don’t have a skill and What is Brand India? It is commonly People are our true Brand you are not literate seen as a campaign to promote India as an guardians of the hotel industry of you cannot have a emerging market and destination for visitors India. healthy self-esteem. and investors. My humble question is: Are People across the globe speak So, what are we going we mere spectators or are we going to be of India as so exotic, the food, to do to make ‘Brand active participants to build Brand India? the culture, the diversity and the India’ proud? Are we It has so many dimensions. Brand India is heritage but they always finish about making India a country that can hold off that it’s so dirty. This breaks going to get involved? its head high on a global stage, it is about my heart. Is this Brand India? Can And raise their self- cleaning up our country and not waiting we let this be Brand India? Or are esteem; give them a for the government to do it for us. We are we going to say that we will make skill? As an industry living Brand India? Do we take Brand Brand India, because we own it, that is so keen to India seriously each day? Are we raising because we are Brand India. provide sincere care the self-esteem of our countrymen and of If we all get together and take to our guests, are we our demographic dividend? They are not a pledge to clean our country, to also going to sincerely literate. They don’t have a skill. When you give our people a skill and raise care about the people don’t have a skill and you are not literate their self-esteem, this will define who are meant to you cannot have a healthy self-esteem. the future of Brand India. This will provide this sincere So, what are we going to do to make make Brand India. Let’s work on care? Brand India proud? Are we going to get making Brand India powerful. Re ak sh Sarna ,, involved? And raise their self-esteem; give 780 aircrafts are on order MD and CEO, Taj Hotels Palaces Resorts Safaris them a skill? As an industry that is so keen to be delivered in the next 36 to provide sincere care to our guests, are months. Small problem is that we also going to sincerely care about the we don’t have enough runways, but we will that. Let’s get the basics right. And those but please don’t take Brand India lightly. people who are meant to provide this come to it. We can do it. We can have so basics are our people and our environment. We as a collective body, we have a sincere care? And accept them as who they much potential for intra-India travel. The Just keep the environment clean, as basic responsibility to our future generations to are. But if we don’t have the demographic purchasing power of Indians is increasing as that. set the right example. We owe it to Mother dividend literate, with a healthy self-esteem, every day. This doesn’t mean we don’t value Today, India stands on the cusp of India to present it in its best grace and then this culture of servility will not go away the foreign guests but let’s not just bank on transformational change to good fortunes, beauty. No one can do it but us.

Thadani: Neeraj, you said that you were inte- individual. ITC looks at talent in a very also see the demand for leisure and resort have over 100 hotels. What is a deal breaker grating two chains and that it is challenging to holistic manner. The entire compensation destination growing. As far as MICE goes, with an owner? Or is everything possible say the least. I would imagine that potentially package ensures that at every stage you it has tremendous potential, we need to with owners? Starwood and Marriott had different cost are looked after including the medical. The have world class convention centres and Rana: For me flexible is being practical structures, when you start adding all the hid- organization goes to any extent to look after we need hotels close to those centres. If and relevant. And there is slight difference den cost, that difference can be up to 200-300 people and their families. This keeps people what the government is planning in terms between the two. Flexible is bending base points…. Now that you have them all wedded to the organization with a huge of opening large convention facilities in backwards in terms of standards, design, under one umbrella, how do you deal with amount of loyalty. India, if implemented, then this segment will etc and we don’t do that. But we certainly owners who have both your products? Thadani: Neeraj, I think post the merger, explode as well. are practical and relevant. For example, if Govil: We have several ownership groups now you have 15 operating brands in India. Thadani: Kurt, why do you think customers we are building a hotel in the secondary that have brands on both sides. If you were Which brand do you think will lead the should chose Andaz at Aerocity over a JW market, it might be only an 80 room property to ask me today that when we merged on combined entities growth in India? Marriott? but knowing that F&B potential is good, you 23rd of September, we would be where Govil: With the integration now, we have a Straub: These are two completely different would still allow extensive banquet space. we are on 31st of March and would we be very good distribution across the segments. brands. The Andaz really is for the creative Giving value to the realities of the landscape satisfied with that? I would say, yes. We We have luxury brands with St Regis, Ritz class who is looking for something different that is going to make the hotel successful have made a lot of progress on multiple Carlton, JW Marriott and the W that are and have their own style. Neither is better and get a return for the owner, helps us be fronts in terms of integration. What we are well distributed geographically as well. or worse, they just attract different kinds successful in the overall game. doing right now is honouring the current We have a good portfolio in terms of full of guests. Also, the days of the glitter and Thadani: What is the one advice anyone has agreements which we inherited as part ever given you that you will never forget? of the merger. Having said that people do Bakaya: Always take your work seriously, compare the cost structure and want the but never take life too seriously. It’s the best best. We are looking at what processes we Currently, it is the business segment without advice I ever got. can streamline. We made a considerable Haksar: I remember the Chairman when I amount of progress on the loyalty a doubt. Business travel will determine had newly joined the company saying, you programme where we linked both on day where our revenues go in the future. A lot must have integrity – with myself, with my one itself. We are also working on similar people and be honest with your guests. You lines across the cost structures. There is a of our brands are positioned to cater to the can only show empathy if you are a man of lot of work on procurement, on IT costs etc. integrity and honesty. Thadani: Kurt, could you tell us your business traveller. Straub: Don’t take life too seriously and don’t management style? Do you have a particular always react to everything you see and hear way of doing things? right away. It is ok not to respond to an email Straub: It is all about care and looking out service premium brands, moderate and glamour are over, so in terms of design, it is right away, or to say, Manav can I think about for people. We can’t do it alone and we need mid-tier brands. All three segments are very important we design hotels for the people this and get back to you. It solves half of the our teams to perform. We care for people, important for us. There is more development that want to see something different. But problems on its own. And remember to have so that they can be their best. And it is not today in the resort category of hotels, every hotel type has its space in the market. some fun when you work! only about employees but also our guests. moderate and mid-tier markets. As we open Aerocity has evolved a lot in the past years Govil: I think it important to enjoy what I believe you give guidance, support them hotels now, a lot of our hotels are in the and for us it is very exciting to be there. A you do and its different things for different and bring them back on track if need be but tertiary markets while there continue to be lot more coming up at Andaz and we are people. If our industry is all about people basically be there as a coach, rather than as openings in Bangalore and Hyderabad and looking to expand the brand in the Indian and it is very important that you listen. I say a boss. such cities. You will see growth across all sub-continent. this to all the GMs, very important that you Thadani: Dipak, you have been with ITC for three segments for us. Govil: To add to that, I feel there is a lot to be believe in people and that they will get it 4 decades, what do you like most about that Thadani: What do you think is going to lead gained from the synergy of the two hotels. The right provided they get the right environment. company and if could change something, business? Is it business, MICE or leisure that GMs of the two hotels, along with Pullman Rana: Two things come to mind – I know what would that be? will bring room nights to your hotels? went and got a lot of MICE business into you alone can do it but you can’t do it alone. Haksar: Close to 4 decades now. It is very Govil: Currently, it is the business segment, Aerocity as a destination. So yes, while we It speaks to team work. And the other is from difficult today to say something I would without a doubt. Business travel will may compete at some point for the customer, Steve Jobs, that the musician is playing the change. ITC as a company really nurtures its determine where our revenues go in the there is more to be gained in working together. instrument and I am playing the orchestra. talent. People are the most valuable assets. future. A lot of our brands are positioned to Thadani: Raj coming to you, Carlson has a I feel the GM is playing the orchestra and It is the management’s responsibility to cater to the business traveller. Close to 75% reputation, at least in India of being a flexible putting things together while all department create a work environment of empowerment of our revenue comes from this segment brand when it comes to dealing with hotel heads are excellent musicians in their and innovation and development of the and it is expected to double by 2025. I do owners. That’s probably also the reason you departments. 38 HOSI 2017 FINAL

What differentiates a GM from a Super GM

What qualities constitutes a Super GM? The panellists came to an agreement that it is the ability to successfully multi-task, to think one step ahead as well as the personal characteristics and traits of an individual. Excerpts from the session.

By anagat choudhary resources to achieve what you want to achieve. to see what are the expectations from this the best education, training and background identity? The expectations are from the asset but if it is not in you, then the rest of it will not Ahishs Jakhanwala, MD & CEO, Devendra Bharma, Executive VP, management, the owner, the guests, from help. You could be a GM but not a Super GM. SAMHI Oberoi Hotels & Resorts Mumbai your colleagues, the corporate office and Today we are talking about super GMs. So, how To begin with, you have to be a normal from yourself. So, let us take the DNA of all Farhat Jamal, Sr. VP Operations - do you really talk about a Super GM? Is it about person. I do not thing that in order to be a these people and put it in a blender. The one Western India & Africa, Taj Hotels Palaces the personality of the individual or is there a Super GM, one has to be extraordinary. One DNA that comes out still does not make a Resorts Safaris process that can be followed and which can be just needs to have immense passion for this Super GM. A person who has these qualities, I think being a General Manager is one of the successfully implemented across the spectrum business and it is a growing process. It takes is the person who looks at the DNA, picks up most difficult jobs that you can have. It is like which can help hone Super GMs? Let us have years and years of work, detailing, learning the particular residue of what is required in a being a film director. When you are directing a conversation with our super GMs here about the business and I firmly believe that the particular situation and applies it to that situa- a film, you have this whole task in front of what they think is a Super GM and how is it mantra should be to learn a new thing every- tion. Yet, that does not constitute a Super GM. you. You have to find actors, talent across the different from a normal everyday GM? day. Putting your best forward is the key, it A Super Gm is a person who can actually be spectrum and then you make a film for the might seem like a basic but is very important. available to people, to care for them and be audience to see, which is our guests in our Tristan Beau de Lomenie, GM Also, it is very importance to enjoy what you there for them and replicate what he has got case. How do you make sure that everybody Delegate, Pullman & Novotel Delhi Aerocity are doing. It seems easier said than done but in the people who are around him. That is performs and that you get the best out of the A Super GM, before anything, is a superman. if one has to enjoy meeting people, inter- what makes a person a Super GM because team? The Super Gm is someone who gets the To me a Super GM is someone like a circus acting with team members and raising the that is how you spread talent. You need to best out of people. A person who can make man who can juggle at-least 5 balls. One is the standards. A Super GM must have the ability need to satisfy your moral responsibility of sure that the team members are compliment- owner, another one is the corporate office, one to leave the past behind, look ahead. The creating and making people like a Super GM. ing each other, enjoying what they are doing is the guests, this is followed by the staff and yet Super GM cannot get used to mediocrity and and giving in their best performances. 89% of another one being the person’s own personal must raise the bar. It is extremely important Sanjeev Pahwa, Sr. VP Operations - South our colleagues in hotels are on stage most of life. And yet, the GM has to deliver a profit, has to continuously concentrate on your own Asia, Carlson Rezidor Hotel Group the time, they are being watched by people. to be aware of what is going on in the market, operations and not just look at the competi- Putting it in one line, it would be a charis- They need to be great performers and that should have excellent business acumen and tor because I think over a period of time you matic leader, one who is very well informed, performance must not come out of being have the ability to deliver to the expectations have got to just sense how good you are. takes total ownership and uses common under pressure but passionately doing what of the company. You either have it or you don’t sense. I think if you can do this, most proba- they are doing. I think the Super GMs job is have it. It is your personality, your charisma, Sunjae Sharma, Area Director - Western bly you will be able to deliver to expectations to get the best out of these people, identify your vision, how well you can see one step India, Hyatt Hotels Corporation; GM, Grand and as long as you can deliver to expecta- those stars and make sure that they excel and ahead of the others. It is also about how well Hyatt Mumbai tions, I think you are a Super GM. I think it is understand that unless you love your job, you you can use the organisation and pool in the When we talk about a super GM, we need the individual that matters. You could have can never be a Super GM.

T he Importance of Loyalty Point Programs Speaking with Sudhir Gupta, Founder & CEO, TLC Relationship Management, panellists speak on the importance of Loyalty Programs and the strategies needed to ensure that the programs reap the benefits that they are intended for. Excerpts from the discussion.

Vikasu Ah ja, Sr. VP Marketing, Taj Hotels Palaces Resorts Safaris realised that they are pre-dominantly Indian. really well and in-fact we started seeing traction The Oberoi Group We went through a major change in our So, we went ahead and started working with on the website within minutes of its launch. Basically, we have two brands, The Trident and loyalty program in 2017. We ran the re-birth them. The program is a new born baby and There has been a lot of buoyancy and positive The Oberoi. For both these brands, we have got campaign which was actually the re-birth of we are very excited about it but we do believe acceptance. Now the customers can enjoy a different strategies. For The Trident, we have our loyalty program which included perks that this is really going to add a lot of value to huge portfolio of brands and the power of such something called the Trident Privilege that like no blackout days and no expiry period both the brands. a past global footprint. 3 programs under one has been up and running for the past 9 years. for points etc. We have recently announced a roof provide excellent benefits and an unparal- This is the program that incorporates the three new plan called the Warmer Welcomes pro- Khushnooma Kapadia, Area Director leled customer experience. tiers and various options to earn and burn and gram, which in a way is one of the first. Under Marketing - South Asia, Marriott International various scheme divisions. But for The Oberoi this program, two Asian brands, Shangri-la Marriot has been really lucky when it comes to Arif Patel, VP Sales, Marketing, brand, we have not had a loyalty program and and Taj, are for the first time ever, joining loyalty programs. Now with the combination Distribution & Loyalty - India, AccorHotels the rationale for this is that that at the upper end hands and will provide members reciprocal of three programs under one roof we see 100 We are the youngest amongst everybody. Every of the country’s spectrum, you do not neces- and seamless benefits at a scale never seen million members globally. So, Marriot loyalty program has its own strength and weaknesses sarily need a loyalty program. Loyalty at this before under a hospitality alliance. We focus a programs are very unbeatable as of now and but I think experience is needed. I think as an spectrum is defined by customer experience. lot on brand engagement and brand experi- we have seen that customer adoption platforms industry we need a major disruption and when Talking about The Oberoi, basically there are ences and we work towards ensuring that not have grown rapidly. These are exciting times it comes to technology, we still have work to two things we look at as a small 10 hotel chain. only do we give benefits but a huge amount of for us post the merger with Starwood Hotels do. We are still catching up and that is an op- Being a small hotel chain, one thing that works experiential benefits which get built in to the and we have been continuously striving for portunity for everybody. I think apps are a little for us is flexibility. We have been very clear program itself. The discussion for this alliance the harmonisation of the three programs and over rated when it comes to loyalty programs. that it is one of our strengths and we have to started around 8 months back and one of the ensuring that our philosophy of customer first What is important is to lead the marketplace in play to that strength. When I say flexibility, it is things we realised was that the two brands, is integrated in to the programs. A lot of work experience which is beyond booking hotels. simple things. We have rules but we ourselves which have a very strong value system, are has gone since day one and we are sending Why can’t I as a customer be shown my room can break those rules. Waiver of conditions, complimentary to each other. The second out a very strong signal to our members and via VR technology? If you want the apps to extension of days and so forth. The fact is that thing was that we were talking about markets are taking a very additive approach to merg- work, there has to be stickiness beyond reason. we have this ability and we must use it to our which were the fastest growing markets in Chi- ing these three programs without having to I am expecting this to happen soon enough advantage. We, along with experience can also na. There was a lot of similarities in terms of face any loses. We have launched a website, and these will be the deciding factors when we offer personalisation. It is a much larger and culture and the entire program has been very members.marriot.com, where people can just talk about taking experience to the next level. holistic experience. complimentary. So, I think these were some log in and access their accounts, transfer their It is only platinum customers that are loyal. of the very important things that we looked at. points etc. We were a little apprehensive about So what is important here is to improve the Rajshree Bakshi, VP Marketing, We looked at markets of dominance and we this transition but our customers have taken it engagement. FINAL Ha ics 2017 39

T Ohe Global CE panel: Industry leaders talk about their hotels, the road ahead It was a heavyweight session, involving some of the senior leaders in the hospitality industry space, domestic and international. It is merely an excerpt from the engaging session which saw serious discussion on the road ahead for these hospitality giants, besides them delving into how to maintain distinctive brand identity.

By Anagat choudhary have crossed our customer base to markets Mark Hoplamazian, President and On Taj collapsing all its brands and in South East Asia as well. There is much CEO, Hyatt Hotels Corporation merging them in to one brand C hRISTOPHer J Nassetta, President & to do going forward. We have world-class I would say that the best part for me is the Rkha es Sarna, MD & CEO, CEO, Hilton hotels across all brands and need to price hospitality that we receive throughout the Taj Hotels Palaces Resorts Safaris I think most people know Hilton in the our products accordingly and make sure world, during the travels that entail our jobs. I believe that you need to choose what global context. At this point we have around we continue to grow consistently. Specially in India. There is this incredible game you want to play. The world is large 8,00,000 rooms and about 1,000 hotels sense of warmth that I feel every time I enough for everyone to get a slice of the around 105 countries across the globe. We Vikram Oberoi, MD & CEO, come here. There is no other market in pie and make an impact on their guests. just reached a major milestone in the history The Oberoi Group the world in which I go to where I end up We have to effectively communicate to of our company by splitting from real estate, I think what makes us slightly different, is that in people’s homes for meals more than I our customers that we do not take their which is a huge part of our legacy. We now we have hotels that have loads of guests of do here. That is really special. The worst faith in our brand lightly. We did a lot of are a pure consumer branded company, the graft kind of luxury segment, both pleas- part for me is probably the same as what soul searching, introspection and spoke to which has been the goal for some period of ure and business. We operate distinctive Christopher earlier mentioned. The job thousands of people. It became clear very time. In addition to having some success in hotels which give guests great experience tends to take a lot of time away from friends quickly that our core stakeholders which getting that done, we have seen record levels and by doing that what we see is a good and family. is our guests, colleagues and potential of growth having opened a hotel a day on number of return customers. partners, all wanted a single brand. The average last year. On the Marriot Starwood Merger easy thing would have been to ignore this On the best and worst parts of their jobs Vikram Oberoi, MD and CEO, and continue with what we are doing but Mark Hoplamazian, President & CEO, C hRISTOPHer J Nassetta, President The Oberoi Group we took the difficult path and went in the Hyatt Hotels Corporation and CEO, Hilton I think the merger is quite significant and opposite direction of the industry trend. We We have a large base around the world and I would say the worst part is that it takes time will tell how things pan out. From strongly believe that now we will be able about 7,000 properties. We are thrilled to be a lot of time away from the family and our perspective, it is important that we are to attract the kind of numbers we deserve, long-time passengers with about 40 years in friends because when you are running a distinctive and focussed on our guests. have discussions with owners who have the industry and are excited about the growth global business which is travel branded, faith in us and improve ourselves. that we see coming in the future. We got 5 you can imagine that one must travel a Christopher J Nassetta, President hotels in India and we plan to have a lot more. lot to run it well. That has a consequence, and CEO, Hilton On competing with Loyalty Programs The new Andaz in Delhi just opened up and travelling back to back, and needs a lot of We tend to concentrate on the portfolio we Vikram Oberoi, MD and CEO, it is helping us establish a different kind of balancing. The best part of my job I would have and one that continues to expand. The Oberoi Group position as far as contemporary luxury is con- say is the people. Meeting people from the Our large strategy is one that is focussed on Actually, we choose not to have loyalty cerned in that category and location. Overall, industry everywhere I go, talking about the organic growth and making sure that we are programs. We are a small and niche it has been a good time for the company and future of our company; talking about the giving the customers products that they want. brand and have a high number of guests we have had significant growth. purpose of the company; the impacts that We have a very customer-centric approach. who use our hotels regularly. If you we are having on people’s lives, and most Continuing to do that and maintaining see research on the loyalty programs, Rakesh Sarna, MD & CEO, importantly talking about how the work we the existing brands and ensuring that the it actually talks about entitlement. If Taj Hotels Palaces Resorts Safaris do is creating opportunities for our people. customers get what they want seems to be you are entitled to something it doesn’t We have rolled back our brand architec- So, the best part about what I do is seeing working for us, from an organic growth point necessarily lead to loyalty in fact leads to ture to a smaller brand. Our focus remains the pride that comes with our association at of view. I think we are leading the industry dissatisfaction because my expectations to grow responsibly and we remain India every level throughout the world and seeing and our focus is to have the purest brand become considerably higher. We approach centric. We only go outside the borders people feel inspired by the work they do, portfolio out there. We want every one of our the situation differently. We believe in of India into areas which are married to whatever that work may be. It makes me brands to be the category leader and that is achieving loyalty through experience and our brand, areas where our brand gets the really happy on being part of something that what we are here to do, whether it is here in we do not believe, for us at least, that the respect and recognition it deserves. We are is having such a positive effect. India or anywhere else in the world. answer lies in loyalty programs.

N etworking on the sidelines

Senior leaders pose for a group photograph. (L-R): Michael Issenberg, Ajay Bakaya, Dinesh Khanna, Rajiv Kaul, Jean Michel Casse and Nikhil Nath 40 Ha ics 2017

O wner power house: spotlight on growth of home-grown brands, expansion plans The session focussed on some of the domestic successes, hotel ventures that have, over the years, grown into formidable brands in their own right. Panelists discuss their growth story and what lies ahead for their brands. Excerpts from the session:

By Anagat choudhary and if you compare it to where we stand is inevitable. We intend to grow responsibly 5 operating Hyatt hotels and have 3 under today, the scenario is completely different. and I think that financial discipline is a development. We expect to open up with Aannachin Kh , MD Consulting and When the brands come in to your city, you very strong metric in whatever we do. In 350 rooms in about 2 years. In 2012, we went Valuation, South Asia, HVS cannot compete with them in terms of retrospect, I would say that we have found ahead in the mid-market space and operate 3 Usually at HICSA, we spend a lot of time and technology, sales and marketing but as far very unconventional ways in which we assets today with 250 keys. We have another effort listening to industry leaders from the as the customer experience goes, that can have been disciplined. If one were to just 400 keys under development. Ours is a global brands, from the large Indian brands be well defined. You can have your own look back at our history, we have made very strong operations company and also and very rarely is there an opportunity style of operations. There are some unique very unconventional choices and very operate third party assets. So, typically we for us to showcase and highlight some things that makes the brand different in that unconventional project specifications. It all are in the hospitality space and are looking powerhouses and some home-grown hotel particular market. boils down to being financially disciplined. at value creation. When we went to deal with companies that are doing phenomenal work A finically mismanaged project cannot be Hyatt, the concern that they had was that in their own right. Yet, for some reason we Gautam Birudavolu, CEO, GreenPark saved by a great market. That is the core of can a company like ours deliver the guest have not heard their side of the story and I Hotels our development philosophy. experience that Hyatt delivers. What we have know there are some great business houses In many ways, we are similar to The to do is deliver the guest experience that the here on the stage with us. Our intention Residency Group. We are 25 years old. We Gurmeet Uberai, Director, Shanti Hyatt brand intends to deliver. The truth is that was to learn a little bit from them and see started off with a mid-scale brand called Hospitality we aspire to be a strong operating company what they have been doing in their world of GreenPark and now we have 5 hotels across Shanti Hospitality is a brand in which the as well. We want to be in the business of business and how perhaps maybe some of operating hotels and that is why mid-scale the larger companies could draw a lesson hotels, and we demonstrated to Hyatt that we or two from there. So, with that background are capable of doing a good job, both, with I am going to request the panellists to give a Our intention was to learn a little bit from our own as well as third party assets. We have brief introduction to us about yourself and them and see what they have been doing 3 third party assets as we speak. your organisation and really what it is that you do. in their world of business and how perhaps Souvagya Mohapatra, Executive maybe some of the larger companies could Director & COO, Mayfair Hotels & Resorts B Gopinath, COO, The Residency Group We started a small restaurant called Tandoor of Hotels draw a lesson or two from there. in 1982. From there we saw the demand of The residency is about 25 years old. I should the rooms and started with 5 rooms. Now we tell you that the time that it came in to the 3 cities. We have over a 100 rooms under owners have actually aggregated product have almost 10 properties in our chain with market, we had deluxe 5 star hotels and then management. Apart from the mid-scale companies under it. Ananda is one of 500 rooms. We aspire to provide the best there were lodges. That is the time when segment, we also operate 2 upper mid- them. Ananda was opened in 2000 and is a occupancy and personalised guest services. we entered the market and provided 5 star scale brands. We also have an institutional destination spa. We went in to city hotels in We manage our own properties and we hotel service at a very reasonable price. management business which runs the 2006 and over 6 years we developed over 6 have our own project team. We have 4 more We have been around before the whole operations of the Indian School of Business ISTAs in different cities. We then engaged hotels in the pipeline. Earlier, we used to be concept of budget hotels existed. Recently, in Hyderabad. We also manage the facility with the Hyatt group in 2013 and converted known as regional players and now we have we had our international foray at Maldives. for HITEC in Hyderabad. We see ourselves the ISTAs to Hyatt because we believe that our footprints in 5 states and are growing We have leased an island where we have growing in two distinct streams of business. in going forward with the number of keys continuously. We are very fast movers done a luxury product which was launched One is expanding to other metros in India that come in to the market, we will have and are always on the lookout for new sometime in November. We have plans to with the GreenPark brand and also build distribution issues. So, either you decide destinations. We always tap the places we grow our own brand in various locations our facility and institutional management that you want to do thirty to forty hotels and feel or not being tapped to their full potential. pan- India. For us, customer experience business. We are a zero-debt company. grow the brand, or you decide that you want Wherever the footfall has been little, or and loyalty are the biggest factors which Having said that, I also want to add that as to actually grow plural brands in different infrastructure missing, we have converted in define success. When we started the hotel we are a capital heavy industry, borrowing parts of the market space. So, we have now to destination tourism.

Catching up during the networking break, seen together from Chefs compete for the Mystery Box Challenge. Senior chefs from top hotels L-R: Rajeev Menon, Neeraj Govil, Ranjit Batra and Ashish Jakhanwala took part in the competition.

42 Ha ics 2017 FINAL

Mid-segment market is the big emerging space, will drive per capita growth: JB Singh Any hospitality player intends to find a footing in the mid-market space, it must scale its presence to make itself relevant, says JB Singh, CEO, Interglobe technology quotient. He is of the opinion that the recent spate of M&As are an outcome of consolidation. ou are undoubtedly one of the of interested individuals who are strongest players in the mid looking at India but I think the key segment. You have introduced is for people to understand and concepts like self-service. Do know their return on investments. The big wave will youY think that this could be an answer We have to just build efficiently continue to happen in from the hotel industry to some of the and make sure that we are giving the mid-market space disruptors in the market? all the right quality products. because that is the We do not look at ourselves as being in big emerging space. the budget segment as much as we look at Coming back to Ibis, could That is the segment ourselves as being part of the mid-market you just tell us what it is that it that will actually segment. I think, more importantly than stands for? raise the national per that, we are today in an area, if you see the Ibis stands for great quality and capita, and, therefore, quality of our hotels, where our hotels attract great value. You can actually stay those numbers will all kinds of clients. We have young clients at an Ibis which is an absolutely be large. So, anybody ranging from students traveling, to chief international class hotel, providing who wants to play in executives of companies. The hotels are built an international class experience this space must think to cater to people who want quality hotels at which begins right from the point of scale to make their great value, and quite often, I struggle with of entering the hotel and other which sector we want to place our hotels aspects like the quality of check- presence felt. because we are actually quite unique and in or the food. Apart from the I think in India we different, and are very happy to be in that fit-outs, it is the quality of the staff will see a fair amount space. Also, I think there is a lot of confusion ultimately makes the main differ- of consolidation over anyway between hotel owners and hotel ence in any hotel. Our entire staff time with entrance of aggregators. These are two different kind of is trained at an international level new players and we businesses with different business models. by ACCOR and customer service will see scale. As a hotel owner, I do not want to be seen as is a priority for us. All the aspects ,, an aggregator. I think it is the aggregators that including the ambience, the music, want to be seen as hotel owners. the quality of our air-conditioning My concern with that is that people must is all top notch. The amount of understand if that is the right messaging investment we make in just get- J B Singh or not. We are clearly hotel owners. Our ting the acoustics in our rooms CEO, Interglobe technology quotient investments are in to infrastructure, land and correct is something I always talk building, providing quality service, quality about. These are small areas where hotels as well as brand promise on safety, people do not tend to spend a lot of time. Any plans for that region? felt. I think in India we will see a fair amount security, hygiene, comfort and so forth. We We on the other hand even spend time on We believe it is a great market to be in, but of consolidation over time with entrance of are a committed hotel player. I think that things like branding the beds people sleep India is a very large country. Northeast is a new players and we will see scale. So, I am the uniqueness that we bring is that we on (The Sweet Bed). What I can say is that great market to be in, as are so many. We not so sure how many people are betting on are able to sort of give a product which is the service and the product that we offer has want to have a greater presence in Gujarat, but it. I am sure people believe that the space has right now non-existent in the whole space. been researched so much that it is absolutely we already have so much on our plate right a future, which in turn means scale. There is currently no hotel in the area where relevant to the young, discerning traveller. now – last year we opened five hotels. At the we are positioned currently that brings in Someone who has travelled a lot, gets this moment, we are not looking at anything in the What is your take on mergers and the consistency with which we do, across product in a flash because it has exactly region, but we are open to that possibility. acquisitions and why do we see an the country. Our rooms are standardised, what you need when you travel. increasing number of mergers and our menus are standardised, our quality The recently released HVS report acquisitions in the hospitality space? of service, service levels, brand promise, You have been opening multiple outlets says that the leisure segment and Mergers and acquisitions happen in every everything is standardised. Today, we are to cement your position in the cities that the mid-market would be the driver industry over time as the industry consolidates possibly the only one who is able to execute you are placed in. What is the modus of India’s domestic tourism. Why is it itself and moves from single ownership to it that fast and efficiently. Almost in excess of operandi? Do you want to establish that everybody is placing their bets on institutional ownership. You will see it in hos- 50 percent of our customers today are repeat yourself at the pole position and acquire this segment? Do you see the 5-star pitality, retail, and all other industries. We as a customers which is very good retention. the mid-market space completely? segment also being a driving factor country are consolidated; smaller businesses The hotel industry is such it just takes so given that Indian incomes have been will become mid-sized businesses. This is typi- Being a part of a bigger company, you much time to sort of get there but what we seeing a consistent rise? cally known as the barbell effect. It means that have very deep pockets but a lot of believe is that we need to be aware of where I think if somebody is saying that the luxury when you operate on two sides of the industry, international companies have invested the customer is. These cities are no longer space does not have a future, then they so the middle piece starts to drop off. So, to re- in the market, especially in some of the just cities, they are metropolises and the are completely wrong. Something that is main relevant, the middle pieces have to go in aggregators, to the extent of having demand in these cities is just great and we really important here is that the markets get and join either of the sides. The product defini- outspent some of the big brands and want to go where the demand is. That tends mapped correctly. The luxury segment will tion needs to become very clear. Although, as their cumulative investment in the past to work well for us as well as our customers definitely continue to grow. I think what will India is a really big country, it might take some decade. Do not you think that this is also – which is why we want to make sure that happen is that luxury will get redefined. time for this effect to be visible in some of the a challenge for some of the institutional we isolate the markets well. We want to be Hotels will have to stack up to be able to give smaller markets. players who might not have that kind of in the markets where immediate demand that level of hardwares, softwares, services backing? is available but having said that it is not etc. to actually be able to position themselves What are your expectations of HICSA? I think the two models are completely differ- something that keeps us away from upcom- in that segment. Another trend that we may What do you think would be some of the ent and I think it is important to understand ing markets. As much as we will continue see is how luxury hotels will get stacked up. pressing issues that will be discussed? that the play the aggregators have is driving to keep investing in markets which have Large, expensive spaces do not make pro- From the top of my head, expectations of these volume and revenue through a business immediate demand, we will also continue to jects viable. This industry is resource hungry conferences are largely around issues that pla- model that is completely different. How have a lookout for upcoming markets as well, and we have to create assets that are very ef- giarise the industry. One issue that is always with investors see that is completely up to them. for instance, Coimbatore, Nashik and Jaipur. ficient on resources. How luxury will get built us is developmental challenges. I think today the We are more on the assets side of the busi- Broadly speaking we want to be in the high- up will probably be need to looked at. industry’s developmental challenges are still ness. We too have access to funds, in-fact density markets where the customers are. The big wave will continue to happen in not over. Government licensing still continues most industry players today have access to If we have a presence in the market and we the mid-market space because that is the to be a matter that needs more resolution. funds and they will continue to have access believe in that market, we commit ourselves big emerging space. That is the segment that Laws pertaining to land records continue to to funds. Today, the hotel segment is mas- to the market. This really is great for the will actually raise the national per capita, be different in different states. These are some sively under penetrated in the country. It industry, the customer and us as well. and, therefore, those numbers will be large. impediments to growing fast. If GDP must grow, will always remain as an area where people So, anybody who wants to play in this space then everyone must grow. These are some of would be interested in investing. We get a lot Just curious, what about the Northeast? must think of scale to make their presence the issues which are very worrying. Ha ics 2017 FINAL 43

Innovative business models to drive Carlson Rezidor Group in APAC: Thorsten Kirschke Thorsten Kirschke, President, Asia Pacific, CarlsonR ezidor Hotel Group is betting big on Asia Pacific as the region continues to outperform most markets in the world. Having considerably expanded their footprint in China, the group’s strategy in India continues to maintain its pole position by boosting its presence in secondary and tertiary markets.

017 is off on an exciting start as expected to increase in the Carlson Rezidor Hotel Group recently foreseeable future. became part of China’s HNA Tourism In China, the market is The trend of a shifting Group, the core subsidiary of HNA experiencing an oversupply and economy is evident 2Group, a Fortune Global 500 company. saturation in the mid-term with in the hospitality With over $90 billion in assets and 200,000 ultra-luxury brands. For this industry and is employees, HNA Tourism has deep roots in reason, we see the popularity of largely facilitated hospitality, including business in airlines, humble investments and believe through technology baggage handling, catering, tour groups and Radisson RED, our upscale and and processes. travel agencies. HNA also owns a fleet of technologically focused brand, New platforms 1,250 aircraft that fly more than 90 million makes a perfect fit for the market. are content and passengers annually to 260 international Over in India, we continue transaction oriented, destinations. This vertical integration in as one of the country’s leading as we see the hospitality, coupled with the record number international hospitality groups proliferation of social of Chinese consumers travelling abroad, and our strategy remains focused networking platforms will have increased ability to accelerate on expansion into secondary and crowdsourcing growth through investments in various tertiary markets. Good traction is areas of development and operations such seen in the midmarket and upscale content and de- as IT systems, digital, brand development brands, of which we believe the integrating verticals. and acquisitions as well as owning assets Radisson, Park Inn by Radisson Platform models around the world. As we continue to grow, and Country Inns & Suites brands will continue to we aim to maintain our DNA as a company of are well suited. converge and will being approachable, flexible and easy to do These markets are a core potentially be a game business with. expansionary priority and with our changer for hotels as Asia Pacific continues to be the most well-placed dedicated resources, personalization and promising and energetic region of the world, we are optimistic and in a good customer relationship outperforming most of the world’s markets. position to double our portfolio management Carlson Rezidor Hotel Group continues size in the mid-term with future becomes increasingly to see a very healthy underlying business opportunities in anchor markets as important. performance with a strong growth trajectory. well as portfolio deals identified. T horsten Kirschke ,, The growth momentum has been steady, With the industry evolving, president, Asia Pacific, Carlson Rezidor Hotel Group which we have benefited from qualitatively it is essential that as a global and quantitatively. We opened 14 hotels hospitality brand, we are last year, including Park Inn by Radisson leveraging the use of technology well. and processes. New platforms are content our strategy of driving owners’ Return Libo, our first Park Inn hotel in China, and Being at the forefront of the industry, and transaction oriented, as we see the on Investment (ROI) through improved Radisson Blu Resort Hua Hin, a stunning we see the need to find new avenues to proliferation of social networking platforms operating margins while introducing beachfront resort in Thailand. We also bring hotels to “life”. With vested interest crowdsourcing content and de-integrating innovative business models that have achieved significant hotel signings, including in building our competitive digital verticals. Platform models will continue to delivered excellent traction. Radisson RED Kuala Lumpur City Center, capabilities, digital invest into Virtual converge and will potentially be a game As we think globally and optimize marking our entrance into another key Reality (VR) is now used as an additional changer for hotels as personalization and integration opportunities, our focus gateway city. avenue for us to provide the visual impact customer relationship management becomes continues in differentiation and agility to Growth opportunities abound in several to our developers and owners. increasingly important. accelerate our growth. We will also continue key hotel accommodation markets where The trend of a shifting economy is On track to achieving our goal of to enhance the guest experience by focusing Australia and New Zealand are experiencing evident in the hospitality industry and attaining 200 operating hotels in our Asia on our people, nurture talent and promote record occupancy rates and RevPAR is is largely facilitated through technology Pacific portfolio by 2020, we continue talent from within.

he idea of catering to an exclusive market of cuppa aficionados, by specialising igivalet is here at HICSA. Guestroom digital solutions, based out of Tin gold coffee and premium coffee is finding many takers, including top five- DIndore, catering to the world. They have installations in over 12000 rooms star hotel brands in the country. ‘Devi’ is a speciality Gold Coffee company’ which worldwide, out of which some 5000+ are in India. They are popular in Dubai, has focussed on gold and premium coffee, sourced from over 15 states across the Singapore and are the brand standards for Emaar Hotels. In India, The Oberoi country. Having been in business in India since 2011, it has become the leading Hotels have begun to use them, at Sukhvilas among others. gourmet coffee-maker in the nation. It is an intricate process of selection, and Digivalet does not come cheap. A topline package may cost upto US$4000 roasting of coffee beans to maintain quality, before it reaches the consumer, all but this is a one time cost. done here, domestically– adding muscle to ‘Make in India’. Internationally, At HICSA, you can meet Ankit Bakliwal, Director Engineering & Client ‘Devi’ imports coffee from Brazil, Sumatra, Kenya and Ethiopia, giving more Relations and Ajay Joshi, Regional Director. options to consumers. Digivalet is a worthy example of Make In India, made for the world! 44 HOSI 2017 Millennials set to define and set future trends for the industry, says Nikhil Nath Speaking at HOSI, Nikhil Nath, Founder and CEO, Knowcross Solutions shared his views about how the industry was going to operate in a seemingly more complicated environment, creating more challenges in operations by 2030, as technology takes centrestage.

then wake up. Pretend you are in 2030 and entire travel experience, be it booking hotels we are looking at what’s going on around or flights, will become seamless and custom- us. To start with, India is going to be the 3rd ised for individuals. There is not going to be largest economy in the world. That means a supermarket of rooms anymore. Hotels are that it will be three times the size it is today. going to price themselves for each individual Imagine the kind of wealth creation that is traveller and they are going to base that on going to happen between now and then. the travellers history. Depending on which scenario you believe, Another thing that is about to happen the number of planes in the sky are going is that rooms will not be sold by number of to double if not triple. Tourism, no surprise, nights. Bookings will get more flexible and is going to double in size. That doubling we will be able to book rooms for however though, will not be proportionate through- long we want, in context of the number of out the world. Asia is going to be one-third hours. I would say that we will have around of the world market, which is huge. 8-10 staff members per hotel due to automa- Speaking about properties, I do not think tion. Everything else will be a part of the that it is only about Airbnb alone. I think it is ecosystem. There will not be any permanent about the power of disruption. Whether it is staff but on-demand staff, much like an Uber an Airbnb or an OYO, it certainly shows the cab. People will be looking for unique travel N ikhil nath power of what disruption can do. Airbnb has experiences and will be looking for these more many to spend than any single hotel kind of traits as the millennials are about to chain in the world. So, if you project out, be richer than any previous generation. Only By anagat choudhary fact that the mouse was eating the lunch. Airbnb still ends up on top. By 2030, Airbnb if you have a unique product will you able The mouse being the OTAs. The industry will not be the only player on the field. There to have some control over your pricing. You ne of the things that struck was aware and did nothing about this. I are going to be a number of such companies will have to re-skill and re-learn in order to me when I joined this think it is fair to ask that has this industry having the same amount of money. Book- keep up with the present generation who are industry was that somehow really learnt to look at disruption and feel ing hotel rooms is going to get completely all set to be the leaders of the world. Anyone this industry was getting its threatened? Do any of you guys feel threat- automated with the integration of Artificial who has ever said that change is not going to “Olunch eaten and had not opened up to the ened by Airbnb or an Oyo right now? If not, Intelligence. Technology will ensure that the happen has been mistaken.”

Fortune Hotels: Let Fortune Take You Places One of the fastest growing hotel chains in the country, Fortune Hotels with 61 signed properties, more than 4500 rooms spread across 50 cities in India, is operating 43 hotels at present. While providing business and leisure travellers a comfortable sojourn, it has won accolades for being the best ‘first class full service business hotel’ chain.

wholly-owned subsidiary of ITC Ltd, Fortune Park amenities to make for a delightful stay. The Fortune Park Hotels Ltd was created Sishmo has easy hotel features 45 beautifully-furnished rooms to cater to the mid-market to upscale Fortune Hotels has connectivity to and are complete with modern amenities to segment in business and leisure des- grown exponentially the airport and complement the taste of the new-age traveller. Atinations. Today, the Fortune brand has made in the past 9-10 the railway sta- To add to its charm, the property is situated is at its presence felt across the length and breadth years. The company tion. The hotel is an advantageous location, just 200 metres from that was established of the country and is widely recognized for with a clear mandate very near to the the famous Miramar Beach and well-connected the quality of its service. The chain operates of being a Hotel famous temples to the airport, local shopping district, casinos, through clearly defined sub-brands - Fortune Management including Shri beaches and other areas of interest. Select, Fortune Park, Fortune Inn and Fortune Company, redefined Lingaraj Temple The dining options at the hotel include Or- Resort. From capitals of various states, big its vision in 2007, of and the commer- chid – a multi-cuisine restaurant with all day unfurling a Fortune at and small metros to bustling business towns, every 180 km, to cater cial centre of the dining, Neptune – bar & lounge and Fortune it has mapped out a growth plan to cut a wide to the mid-market city which make Deli – offering confectionery and delicious swathe across the country. to upscale hotel it a preferred breads. The other offerings at the hotel Its strategy rests on competitive pric- segment. Today, we destination for include a gymnasium, swimming pool and a have come closer to ing and full-service without compromising realizing our vision the leisure as fully-equipped Board Room for conducting on quality. Giving a boost to its appeal are and I feel truly happy well as business conferences, discussions and brainstorming convenient locations, well-appointed rooms and proud to have traveller. sessions for up to 10 guests. that are tastefully designed, modern décor, been a part of this The hotel Suresh Kumar, Managing Director, For- excellent cuisine, efficient service and state- growth. features 72 tune Hotels says, “Fortune Hotels has grown of-the-art facilities. ,, well-appointed exponentially in the past 9-10 years. The Fortune brand draws its strength from se ur sh kumar rooms, Orchid – company that was established with a clear the proud lineage-ITC Hotels, which is a a multi-cuisine mandate of being a Hotel Management Com- pioneer in the hospitality industry in India. restaurant pany, redefined its vision in 2007, of unfurling As it continues its sweeping growth through towards growth, expansion, brand exten- offering all day dining, Neptune bar & lounge a Fortune at every 180 km, to cater to the mid- its well defined sub-brands, the focus of sions and providing the same assured quality that serves excellent spirits and snacks in a market to upscale hotel segment. Today, we Fortune Hotels is holistic in its development. of product and service across the country. contemporary setting and The Oriental Pa- have come closer to realizing our vision and The properties are being set up in major The last year saw the addition of 2 new vilion – serving the best of Chinese and Thai I feel truly happy and proud to have been a metros, mini metros, state capitals and busi- hotels to the bouquet of Fortune Hotels – the cuisines. Other offerings at the hotel include part of this growth.” ness towns. Each hotel is created to suit the first hotel in the city of Bhubaneswar - For- high speed Wi-Fi connectivity, swimming Fortune Hotels has successfully drawn on business needs of a particular environment tune Park Sishmo and the third Fortune in pool, well-equipped gymnasium and 24 hour the strength, resources and talent pool of the leading to a perfect economic fit, and with Goa - Fortune Miramar. currency exchange. The hotel also offers ITC Hotels brand to extend these synergies each property taking its roots in one location various options for meeting and banquet to a wider audience - all at a very attractive it further opens up the possibilities at another Fortune Park Sishmo, Bhubaneswar requirements for up to 150 guests. price, thus creating ‘Affordable Alternative’ level in a neighbouring hub of development. Fortune Park Sishmo has been tastefully for the end user. It provides the customer a Fortune Hotels has undoubtedly established designed as a contemporary hotel that offers Fortune Miramar, Goa perfect combination of efficient service and itself as a leading first class, full service busi- a wide range of facilities and amenities for Located in the heart of Panaji city, Fortune great value, thereby creating the distinctive ness hotel chain and it plans to maintain this the guests. Strategically located in the heart Miramar is aesthetically designed to infuse the advantage. position by following a balanced approach of Bhubaneswar - the temple city of India, Goan vibes in accordance with modern-day For details, visit: www.fortunehotels.in HOSI 2017 45 Opportunities and Challenges in India, Ashwini Kakkar in his keynote at HOSI Speaking at HOSI, Ashwini Kakkar, Executive Vice Chairman, Mercury Travels, gave an industry insiders insight in to the challenges and opportunities available in the Indian scenario.

arrivals around the world. These figures are traffic. Consider that the United States is pos- going to lead to a business of 10 trillion dollars. sibly one-fourth of our population but we are Putting this in context, when we understand at 12% of that traffic. that the United States economy, every year, is a If we look at the growth factor in the last 14 trillion-dollar economy. So, at a worldwide few years, I think LTC’s have led the way. There level, the travel and tourism business is moving is Indigo which has grown at over 40% per an- in the direction of becoming a 10 trillion-dollar num on a cumulative growth factor and today business, per annum. On the domestic front, it controls almost 40% of the market share. If last year we had 1.1 billion trips across the international is to be looked at, Jet Airways has country. But in the next 10 years, that number grown at 28% per annum cumulatively and they is going to reach 2.3 billion domestic trips. Part control a substantial second part of the business of the reason why this is also happening is the both internationally and domestically. What is increase in affluence. While the people who most interesting from our point of view is the live below the poverty line are decreasing, af- future orders of aircrafts because that effects our fluence is rising and the number of households business directly. Today all the aircrafts flying that have substantial incomes will go up from in the country number 430. But the number of 24 million to 49 million. These are very large planes on order are 783 and these planes are numbers, close to 300 million people will join going to get delivered within the next two and a As hwini kakkar the elite and the affluent. half years. Imagine what that is going to do to our Looking at some more trends, corporate hotel business. If you look at Spice Jet and others travel, which is today a 30 billion-dollar busi- who are waiting in the wings, there is a plan By anagat choudhary that whole environment, all of us are called ness in India, is likely to continue growing to order 250 more planes that will get ordered upon to manage risks, to solve problems, to at 7.6% per annum compounded over the within the next 6-8 months and the government et me start in a completely crazy plan forward and to look after our customers next 10 years. In-bound, which has currently just announced that 33 unused regional air- way. Let us look at the world, in any kind of situation as the business moves about 8 million visitors coming in to India, is ports will be put in to play and flights will start in the same fashion that the forward. It is this ability that all of us have which likely to cross 20 million in the next 10 years. connecting to these centres very quickly. American military looks at it. when coupled with an asset-light strategy, Asia, which today accounts for 21% of global In the last 20 years the supply side has gone “What Lkind of impression does the American is likely to define sustainability of our won traffic is likely to move from 21% to 33%. up from 18,000 rooms in 120 hotels to 1,15,000 military have of the world that we live in? They properties, companies and of the industry as One-third of all the arrivals and departures rooms in 887 hotels. This is good growth but call it a VUCA world. It implies that the world is a whole. Even in this VUCA world, I think we in the world are going to be from Asia. Now when you compare it to downtown Manhattan, volatile, uncertain, complex and ambiguous. are hugely blessed. Why I think so is because talking about the impact of various segments we probably are still at about 40% of that This is how they define the world. But why do we belong to the fastest growing business of our industry on our business, I think let number. These are really small numbers but we need to worry about what the American opportunity in the world. There are major me start with the airline industry. India just going forward in the next 4 years, it is hoped military thinks of us? The news is that large mega-trends that are around us and we do became the third largest domestic market for that 60,000 more rooms will be added to this corporates are now starting to come around not consciously think of them but I thought it airlines in the world. We just displaced Japan huge capacity and a lot of this activity has to that world view and building it in to their may be a good idea to just enumerate those by crossing 100 million passengers in 1 year been happening in tier-1, tier-2 cities. I believe strategic plans and building it in to the way that mega-trends so that you have a fair idea of what and we are just behind the United States and that the industry is now looking at a virtuous they are now looking at business. And ours is going on. China. And if you combine the international cycle of prosperity. For the next few years, is the industry that gets most affected by this The first mega-trend I want to talk about and domestic traffic, then we are tied at the we can expect a really positive cycle for our VUCA world. We haven’t even thought about is the billion travellers that we had around fourth position with the United Kingdom industry. Leisure, which most people decry, it consciously but if anybody in the world the world in 2015. International arrivals were at 131 million passengers annually. While produced better areas than 5 star deluxe hotels sneezes, it is the travel and tourism industry 1 billion passengers in that year. But going these numbers are fairly substantive and the but unfortunately the occupancies were much that captures a cold. If you look at what is forward, while it took centuries to get to that growth patterns are very high, it is interesting lower. This whole growth has been due to a going on, viruses, wars, terrorism etc. all kinds 1 billion number, in the next 10 decades that to know that they are only at 23% of China’s large number of factors and according to me of things are rearing their ugly heads and in number is going to reach 2 billion international traffic and about 12% of the United State’s these factors are here to stay.” It’s luxury at HICSA with Anuraag Bhatnagar We catch up with Anuraag Bhatnagar to discuss the mood of luxury and how his new portfolio as Multi- Property Vice President – Luxury, Marriott India is shaping up. Under his charge are currently three properties in the country: the Ritz Carlton Bangalore, the St. Regis Mumbai and W Goa.

brands. At W, globally we start with the design departmental heads are mostly millennials, and architecture of the building. It is a design born in the late 80s or 90s. Most of our associ- led brand. It is eclectic, quirky and has a sense ates are also in that age group. Also, many of edginess which is translated even to our tal- our gusts are of the same age. We now have ent. We have a service core value of Whatever millennials, being led by millennials, serving Whenever and the W Insider Programme. She millennials. Which is fantastic to see because is the person who has an intuitive sense of they get it. It makes my job much easier service, who delivers the Whatever Whenever because I may or may not get it but my team experience. This is beyond a concierge or a gets it. The challenges this comes with are butler. We focus on the mood, the lighting high aspirational desires and sometimes our and the music. We are probably the only hotel work life balance is not ideal. company which has a music programmer on Post integration we have become not just your pay role. At the St Regis we have rituals the largest operator globally with 5700 hotels such as Champagne sabering, afternoon tea and growing, we have also become the largest and an art programme. The Ritz Carlson is all luxury operator in the world. This necessitates about serving Ladies and Gentlemen. Our job a different level of attention to detail and a and the job of my team is to ensure that we dedicated team to ensure that we live not just live these experiences and bring them to life our core values but maintain our positioning anuraag bhatnagar every day for our guests. at the premium luxury operator here. Regarding the client profile, we have Speaking further on post integration, I be- seen clients having a different trip persona lieve the benefits far outweigh the challenges. By priyaanka berry exposure that the millennials have and the in different locations. The same guest who Initially there was some apprehension but Mar- fact that India’s outbound is so strong. They will stay at a St Regis on a business trip will riott as a company really cares for its people laborating further he adds, in the experience these products internationally chose a W for a vacation to Goa. Overall the and they walk the talk. Earlier our biggest luxury segment, all three operational and now they have easy access in India. We luxury clients are not necessarily driven by challenge was managing the aspirations of our hotels, we have seen a high double are extremely positive and see this continu- their net worth either but more by the level of young and restless workforce but now we have digit growth year on year. The St ing in the coming years. exposure and the desire to want to relive and enough opportunities. We expect our attrition ERegis has seen a growth of almost 20% in Our clientele is mixed. It is not just the savour luxury experiences. rate to come down. Secondly there are tremen- RevPar driven by both occupancy and ADR. younger generation. But at the St Regis In India, we have an advantage that dous benefits in terms of succession and career W Goa has been a game changer. In the first Mumbai for example, four days of the week is culturally service is part of our DNA and planning. The integration took place, from a month, it upstaged established hotels in both the quintessential St Regis guest, but then on value. This is why our home-grown luxury guest point of view with zero disruption. Today North and South Goa and W is currently the weekends the mood of the hotel changes chains have done exceedingly well and have you have access to the best of both worlds. We trading at an extremely top position in terms and we attract a younger audience as we have become benchmarks globally. When we are making more progress than we envisaged of the RevPar and ADR. It has really taken some of the best night clubs in the city. Like- entered the market, we took the advantage and I think just the first quarter results across the luxury segment by storm in the city. And wise, in W Goa, almost 60% of the clientele is of our home-grown talent which already had the globe have been phenomenal. the Ritz Carlton in Bangalore is also showing from the domestic market and they are paying the luxury trappings and yet had the positive Up next we have, in the pipeline, we have high double-digit growth year on year. top of the line rates for the experiences. approach and outlook and the genuine three other openings which should happen in “I think today India as a market has All our brands are experiential led. Of desire to serve and please without having the the next 18-24 months and another 2 open- really evolved into a luxury market, given course, it is important to get the product and sense of servitude. ings in 24-36 months. This includes the signed the aspirational value and the growth of the the services right, but what we aspire to is Today, our best challenges and opportuni- deals we have for the Ritz Carlton Mumbai, high-net worth individuals year on year and creating and crafting experiences which are ties is having the next generation associates Ritz Carlton Pune and Ritz Carlton New Delhi. most importantly the level of awareness and driven by rituals and values in each of our serving the next generation guests. Our There is a W coming up in Mumbai.” 46 Ha ics 2017 Marriott International to accelerate expansion across India The hospitality major, combining the strengths of Marriott and Starwood will touch 100 hotels in India by 2018.

ast year when the who’s who gathered elegance of a Ritz Carlton to the wellness for the 12th edition of HICSA, there was oriented Westin or the category innovator an air of anticipation for something W hotels, the brands are not differentiated ‘game changing’ for the hotel industry, on price point but the lifestyle experiences Lnot just in India but worldwide. That historic they offer- a huge advantage in a market moment took place on September 23rd, cluttered with ‘cookie cutter’ approach 2016, when the world’s two hospitality giants to brands. Additionally, this also allows merged to create a mammoth company, Marriott to operate multiple brands across Growth and with 30 brands and 6,000 plus hotels in 122 segments in the same market or in micro expansion aside, countries around the world; from Chicago to markets within major cities. And this can what has been the Cape Town, Tokyo to Bali. only mean good business! underlying driving Closer home, Marriott’s current portfolio is With a record RevPar growth for the year force behind this is equally enviable. 84 operating hotels across 2016, Marriott International expanded in the vast workforce 15 brands and 19000 rooms, making it the developing markets such as Pushkar, Raipur, and associates. What largest hotel company here too. Jaislamer, Lucknow and Goa to name a truly helped the India remains an important ‘growth few. The company also saw the launch of merger, and for some, engine’ in the global growth strategy. This its 15th brand in the country with the debut the best bit has been year alone, the company will open close to of W Goa thereby expanding its luxury coming together of 10 new hotels thereby inching closer to the portfolio. With close to 10 hotel openings talent, excellence and 100th hotel mark in early 2018. and several new agreements this year alone, people. With a portfolio of 15 distinct brands in India, Marriott continues to strive at providing ,, there is an opportunity to grow in every segment- unique experiences to all its guests in newer luxury, premium or upper upscale and mid-tier locations – Pushkar, Kolkata, Vishakapatnam or select service segment. And underlying all of to name a few. This year will see some these is the power of 3 strong loyalty programs- key openings, including the sprawling JW Marriott Rewards, Starwood Preferred Guest and Marriott Jaipur, Marriott Indore, Four Points Ritz Carlton Rewards which provide benefits by Sheraton, Srinagar (first entry into the rajeev Menon across the three including reciprocal status Valley for the company), Le Meridien Goa Chief operating officer, apac (ex greater china), Marriott inC. and linkage of accounts. Industry observers and Westin Kolkata. A Sheraton Grand in are waiting eagerly for what is next in the Whitefield, Bengaluru is on the cards as portfolio in Bhutan and Bangladesh. are harping upon anymore. loyalty space and how these programs will be well. The year will also see debut of Marriott This growth coincides, and is aided by Growth and expansion aside, what has combined, moving forward International in Sri Lanka with the opening the growth in the domestic demand and been the underlying driving force behind this Most customers, owners, and associates of Marriott Welligama Resort & Spa later travel, new airline routes and of course a new is the vast workforce and associates. What truly will tell you that Marriott has the most this year. The company opened its first optimism in the economy post the recent helped the merger, and for some, the best bit distinctive, innovative and lifestyle-oriented hotel in Nepal with Fairfield by Marriott in assembly elections. The short-term effect of has been coming together of talent, excellence brands in their portfolio. from the classic Kathmandu. This adds to the South Asia demonetization is not something hoteliers and people. HICSA Awards presented by MakeMyTrip

Luxury/Upper Upscale Resorts Segment: The Oberoi Sukhvilas Resort & Spa, New Chandigarh Luxury/Upper Upscale Hotels Segment: Taj Santacruz Mumbai

Upscale Hotels Segment : Hyatt Regency Chandigarh Upper Mid Market Hotels Segment : Hyatt Place Goa/Candolim

Mid Market Hotels Segment: Mercure Hyderabad KCP Budget/Economy Hotels Segment: Ibis Styles Goa Calangute

Louvre Hotels Group bags HICSA Deal of the Year Award Louvre Hotels Group bagged the HICSA Deal of the Year Award for successfully acquiring The Sarovar Hotels & Resorts portfolio in India. The acquisition has been a significant development in the Indian hospitality space, adding more weight to Louvre Group’s profile in the mid- segment space. The award was received by Saurabh Chawla, Chief Development Officer, Louvre Hotels Group. Ha ics 2017 47 T echnology has altered hospitality landscape, says Manav Thadani Manav Thadani, Chairman – Asia Pacific, HVS threw open the 20th edition of HISCA yesterday. In a free-wheeling address to delegates, in the inaugural address in session titled ‘Manav Thadani: Unplugged’, he pointed towards the sea change in the world which has had a direct bearing on the hospitality landscape, aided and catalysed by infusion of technology in our midst.

T ravel and Tourism Sector Poised to Outpace Global Economy Yet Again, says David Scowsill Speaking at HICSA, David Scowsill, President & CEO, World Travel and Tourism Council talked about the profound and ongoing impact that the travel and tourism sector has been having on the global as well as the regional economy.

By shashank shekhar was not a rosy one for the industry, and the need for course-correction was essential. alling infusion of technology the He reflected on how hotels had failed in biggest change in the marketplace taking the lead in creating new trends, instead in the past twenty years, Manav following what had been catching on in the Thadani argued that the change marketplace. “We are always followers. The Ccaused by technology had created new chal- challenge for the industry would be to take the lenges for the industry to take notice of, and lead in this. There are sectors that have done respond to for staying in the game. far better than us and we have not” he said. e are looking at hospitality as a part of a much wider travel and tour- “The population has risen in the past twenty Elucidating his argument, he noted that ism sector. Globally, our industry is in very good shape. Every year, years. More importantly, a third of the popula- today’s research was bereft of brochures and at the end of March we publish definitive research on the economic tion in the world today is now online – and this depended on blogs, while the traditional “ impact of our sector across 185 countries and around 25 regions of could probably be the single biggest change travel agent had been replaced by online theW world. According to this year’s research, which has just been published, travel that we could have in the last twenty years, ones, like TripAdvisor. and tourism grew by 3.3% in 2016 generating some 7.6 trillion dollars worldwide. This because how we market and sell, what we do Taking stock of international footfalls into amounts to about 10% of the global GDP when all the indirect induced impacts are and talk about is all related to this,” he said. India, he placed his wager on China, given considered. We supported a total of 292 million jobs in 2016, which is now one in ten Much had changed in the past twenty the lack of adequate direct connectivity jobs on the planet. Global visitor exports, which is money spent by foreign visitors, years, including the cost of operating a between the two countries was addressed by accounted for almost 7% of total world exports and 30% in terms of global service hotel, with newer challenges like addressing respective governments. “The day we have exports. This is the 6th year in a row that travel and tourism has outpaced the global security concerns, while incomes had not more flights your hotels will be full. So, as an economy, demonstrating yet again the resilience of our sector and the enduring desire of risen in proportion, he highlighted. “Unfor- organisation, whether it is the WTTC, or any people to travel and discover new places. We forecast that travel and tourism will grow tunately, we have to pay for internet cost other organisation that are right here, we re- around 3.8% in 2017 which will be a higher growth than 2016. The sector is also poised which was not there twenty years ago. We ally need to start pushing the government for to outpace global economic growth, yet again. All this is despite the growing impact of have to pay for security that is needed. We more flight infrastructure between India and terrorism, the refugee crisis, economic difficulties and a growing sentiment which some did not need that twenty years ago, and also China, and direct flights, not via Singapore, politicians have, to close borders instead of keeping them open. The picture is the same we never thought about the fact that brands Hong Kong, or anywhere else.” at a regional level. Our research shows that travel and tourism in South Asia supports 48 will further outsource how to fill rooms and Adding that while footfalls from the Middle million jobs or one in eleven of all jobs in this region. It contributes around 252 billion give money to OTAs, and other third party East, USA and Asia was up, the government dollars, or 9% to the regions GDP. This is due to another 7% increase in 2017, making members – which has, in many cases, led to needed to allocate resources commensurate South Asia one of the fastest growing regions in the world. A research also shows that depressed bottomline,” he said. to gains that the investment was to generate. globally travel and tourism employees more people than the automotive manufactur- These changes in the landscape had “We need to know that as well, because the ing, mining and financial services industries combined. Worldwide, the companies and created anxiety in owners “who were government is still spending money in France, organisations which make up our sector, employee seven times more than the auto- constantly complaining, creating a need for Germany and Japan, and I do not say that you motive manufacturing industry, four times more than the banking industry and twice hotel industry to find ways of balancing that do not spend the money, but we need to see the number of people in financial services. These are extraordinary numbers which relationship, he added. where that business is coming from, and there- demonstrate the huge importance of travel and tourism and why governments need to He asserted that judging the parameters fore, we need to allocate resources to the right prioritise maximising the long-term growth of our sector.” in the past twenty years, the overall picture countries,” said Manav Thadani.

In the Grand Hyatt lobby yesterday, Navin Berry with K.B. Kachru, HH Udaipur Kapil Chopra and Rajeev Menon pose for our shutterbug. and Shashank Warty. 48 Ha ics 2017

Densification of strategic markets a corner- stone of our growth strategy: Jean Casse AccorHotels is adding more teeth to its luxury and upper upscale brands by unveiling its famous Fairmont and Swissôtel Hotels in India. The group will continue to focus on delivering top-notch guest experience and a key part of their guest strategy will remain focussed on robust loyalty programme, says Jean Michel Casse.

pristine state of Kerala. developments. Combined with the ibis New Through strategic Our focused development Delhi Aerocity, we are by far, the largest investments, a focused strategy for the midscale and operator at Aerocity with a total inventory economy segments has led of 1,115 rooms and 3,602 square metres of brand strategy and to the fruition of a significant dedicated meetings space. We continue to effective business number of Novotels with the drive innovative development formats with operations, AccorHotels brand now boasting 14 hotels the aim of creating superior experiences has established itself in India, in locations such as for our guests, growth for our strategic as a leader in the global New Delhi, Mumbai, Bangalore, owners and partners and market leadership luxury hotel market with Goa, Pune, and Hyderabad. The for AccorHotels. From a development a dedicated portfolio Novotel brand also completed a viewpoint, we have a concerted strategy which includes many momentous decade in India last for all segments which is predicated on of the world’s most year and we are excited with increasing our global presence and on prestigious luxury, our current roadmap of more continued expansion in emerging markets, upper upscale and openings this year and beyond. particularly India. upscale brands. In India, Through strategic Our leadership also extends to the MICE we are excited to add investments, a focused brand segment in India. AccorHotels has the the iconic Fairmont and strategy and effective business distinction of being the largest operator of Swissôtel brands to operations, AccorHotels has convention centres and meeting spaces in our network (located established itself as a leader in India with over 500,000 square feet under in Jaipur and Kolkata the global luxury hotel market management. We currently manage the respectively). These with a dedicated portfolio which Hyderabad International Convention Centre, brands add significantly includes many of the world’s the Lavasa International Convention Centre to our luxury and upper most prestigious luxury, upper and the Novotel Visakhapatnam Varun upscale portfolio, upscale and upscale brands. Beach, the largest all-sea facing convention In India, we are excited to centre on the East coast of India. complementing the add the iconic Fairmont and All of us at AccorHotels are focused on Sofitel Mumbai BKC Swissôtel brands to our network delivering compelling guest experiences and the Pullman New (located in Jaipur and Kolkata and an intrinsic part of our guest strategy Delhi Aerocity. respectively). These brands is focused on loyalty. Le Club AccorHotels Jean Michel casse CEO, India & South Asia, AccorHotels group ,, add significantly to our luxury is one of the most powerful loyalty and upper upscale portfolio, programmes in the world with 36 million

e continue our strong growth resorts and residences across 95 countries momentum in 2017 as we with India as one of our significant growth expand our network of markets. AccorHotels is investing $225 million over a hotels in the country across a Our sizeable network means that we now period of five years for a comprehensive digital Wportfolio ranging from international luxury, have a rich offering of our internationally transformation. upscale to midscale and economy brands acclaimed brands across segments dotting and are well positioned to cross the 10,000 India’s leading tier-one and tier-two We look forward to welcoming at least another 1,000 rooms threshold. 2016 in particular, was locations with the increasing addition of a milestone year for us, adding ten hotels newer cities. We started the year with the team members in 2017. and approximately 2,000 rooms to our opening of the ibis Kochi City Centre which portfolio. Globally and as a leading operator, is our 15th ibis hotel in the country and complementing the Sofitel Mumbai BKC members globally, almost nine million of AccorHotels now has over 4,000 hotels, the first AccorHotels’ hotel to open in the and the Pullman New Delhi Aerocity. whom are in the Asia Pacific region. In Interestingly, the 270-room Pullman which addition. AccorHotels has access to more opened in 2015 was the 100th Pullman to than 70 million members of the Huazhu open globally, joining 117 Pullman hotels in Hotel group’s loyalty members in China Govt awards 128 air routes under UDAN 31 countries. through our strategic alliance with them. The government has announced that it is very close to resolving a dispute with We look forward to accelerated growth There is no greater testament than the The Federation of Indian Airlines over regional connectivity charges. It also opportunities for our luxury, upper upscale loyalty of our guests and we are pleased announced a list of routes and successful bidders under UDAN. and upscale family of hotels in India over to say that over 50 percent of our business the next few years. This is an area we are in India comes from Le Club AccorHotels. proposals from five airlines to connect generating funds to set up a corpus for UDAN. particularly excited about given our lineage Knowing and recognising one’s guests is a 128 routes across the country have The aim of the government is to enhance the of iconic luxury and renowned upscale deep-rooted philosophy at AccorHotels. 27been selected by the Aviation ministry grass-root adoption of aviation as a transport brands setting the benchmark for the Leading with digital hospitality is a under the policy UDAN, to make air travel acces- medium under the UDAN policy. “This is a unique industry. strategic imperative for us and AccorHotels sible to the common man. The first flight is set scheme, which is completely market-driven,” A cornerstone of our growth strategy is investing $225 million over a period to start next month and these flights will save Jayant Sinha, minister of state for civil aviation, in India is the densification of strategic of five years for a comprehensive digital time and enable the middle class in small towns said. “Through a corpus of only Rs 205 crore, we markets for establishing market leadership. transformation. The cornerstones of our in India to travel via air. These flights will also will create around 1.3 million seats, which will A combined room inventory of 1,000 rooms digital strategy are driving operational connect 31 unserved airports. Each flight will kick-start the underdeveloped regional aviation across five hotels in Hyderabad makes us excellence, boosting hotel revenue, have a Rs2,500 cap for 50% of its seats and the market.” They will connect metros such as operators will be receiving viability gap funding Delhi, Mumbai, Bengaluru and Hyderabad with among the largest operators in the city optimizing distribution through more under the UDAN policy. The five airlines awarded 70 small cities including Kanpur, Shimla, Agra, while in Chennai, the planned addition than 100 different channels and most the rights to fly are Air India, SpiceJet, Turbo Bathinda, Pathankot, Gwalior, Ludhiana, Bhavna- of another four hotels to our existing four importantly, enhancing guest experience Megha, Air Odisha and Air Deccan. gar, Diu, Jamshedpur and Puducherry. Airports will make us the largest operator there. and retention. Earlier, The Federation of Indian Airlines, have been asked to provide slots on priority to Similarly, Goa is home to the Novotel Goa Lastly, none of our growth and which consists of Jet Airways, GoAir, IndiGo airlines trying to connect airports with no flights Resort & Spa, the Novotel Goa Hotel and development would be possible without and SpiceJet had moved court contesting the which is a mandate under international rules. in 2016, saw the opening of India’s first our more than 7,500 talented employees in government’s authority to impose a levy in the Media reports have suggested that Bathinda ibis Styles, the ibis Styles Goa Calangute. India, who are key to our success. We look nature of tax on air services. The airlines had which is currently served by Air India’s regional This strategy also works well at New Delhi forward to welcoming at least another 1,000 raised a question on the viability of the scheme arm Alliance Air, could be the first destination Aerocity, Delhi’s newest hospitality precinct. team members in 2017 to be a part of the and the government was facing difficulties in followed by Shimla. Our presence there is led by the dual AccorHotels family for what promises to be Pullman and Novotel New Delhi Aerocity another exciting year ahead! Ha ics 2017 49

Hotelivate to plug in loopholes: to cater end-to-end planning of hotels

idle contractors for lack of drawings, ◗ 70% of construction costs lie in the total hotel project, our client came to us with By Cyril Jacob, Managing Director, purchase of sub-standard materials and, area built and hence can’t be reduced after approved plans and drawings. The hotel PEPA, Hotelivate & Megha Tuli, Co- most importantly, award of works to the concept design is finalised. operator had just come on board and founder & Executive Director, Hotelivate unqualified contractors at unsustainable Then, one might wonder, why are so given its mandated checklist of minimum rates. Poor quality will affect not only the many hotels planned and designed on requirements for its mid-market hotel ost over-runs on hotel projects guest experience and the hotel revenues, the simplistic and false principle of a cost brand. A renowned architect was on the have been common across the but can also drive the hotel energy bill and per key, which has not been under-written team and the project was primed to go into region. However, a look at cost maintenance costs to unsustainable levels. by anyone or confirmed by any technical design development. We were brought in data collected from various hotels Our survey has also revealed another feasibility study? If the hotel operator is on as project advisors and our findings were Cbuilt in India over the years reveals a certain hidden cost in poor hotel planning. Very board early enough, its technical services as below: homogeneity in construction costs for similar often, there is a disconnect between the team will surely draw the owner’s attention ◗ A gross area per room of 134 sq. m. while hotel products. Rather than cost over-runs, initial market survey and its revenue-mix to the risk of over-building – however, the mid-market hotels are in the range of 65-75 this points indeed to a poor budgeting recommendations and the actual spaces operator’s attention is on GOP whilst the sq. m. per room; process in the initial conceptual and design designed. Costs are often cut by reducing the owner’s incentive is ROE. A fancy specialty ◗ 46% of non-revenue generating areas in the phase of hotel projects, overoptimistic cost size or the functionality of genuine revenue- restaurant may marginally improve GOP and approved plans and designs; projections, and overdesigned hotels. generating areas (e.g. meeting rooms) whilst the hotel brand, but damage ROE. ◗ Estimated cost per bay of INR 1.1 Cr. Under-budgeting leads to lower return other non-revenue or low revenue generating Planning and designing the right whereas a typical mid-market hotel should on equity than originally thought and spaces (e.g. F&B) are over-designed. hotel is difficult enough for a green-field be around INR 0.60 Cr. per bay; difficulty to service debt. Evidence shows Operational costs later soar as much as development but it becomes particularly ◗ Several functional issues, that include that it also leads to construction delays capital costs. complex for a brown-field or a conversion restaurant layout in relation to number of and poor quality, all further contributing to project. Estimating the cost of works to rooms and expected house count, lack of higher IDC and eventually a Non-Performing D id you know: complete a partly-built hotel or the cost ◗ elevators near key outlets, inadequate Asset or even financial distress. Indeed, ◗Unlike a cost per bay (standard room of works associated with the Property storage space, and guest and service with the current practice of starting works module), the cost per key will vary Improvement Plan (PIP) of a running crossings. before the design is complete, the reckoning depending on the ratio of suites to rooms property requires a thorough technical due of 'cost over-runs' only comes late in the even though the overall hotel cost remains diligence. It is a complex balancing act of the Ultimately, the plans had to be construction process when, in fact, most unchanged. building’s technical limitations and the new completed redesigned with a fresh and of the costs have already been built into ◗ The cost per bay can vary by up to 30% owner’s business objectives. clear project brief in order to make the the areas constructed. This late 'wake-up depending on the number of rooms, the size project feasible. The results were: call' typically leads to hurried re-design of of F&B and public areas, the shape of the Case Study ◗ Public areas were reduced to increase the interior spaces, delays in award of works, land, the local by-laws, and soil conditions. One and a half years into planning a overall efficiencies in the design. The gross area per bay was reduced to 72 sq. m. ◗ Revenue generating areas were increased by 11% by adding meeting rooms and additional grab-and-go F&B options. ◗ Budgeted cost per bay was frozen at INR E levation through Innovation: Why Hotelivate? 0.70 Cr. (due to a low room inventory) as a result of reduced public areas. A cost saving By Manav Thadani of 25% was achieved just by rethinking the area allocation. s an entrepreneur, one needs ◗ Functionality issues were corrected based to learn to adapt and innovate on each specialised consultant’s inputs. Afairly quickly. Twenty years is Hotel development is complex in a long time and I have had the good nature and solid expertise is needed, fortune to be able to experiment most of all in the early stages of planning with and establish several new and development, the lack of which will services and businesses in these related to hospitality. At Hotelivate, we want to provide stages of a hotel project. A unique most definitely result in cost over-runs and past two decades. The phrase (See Table) the best of service: if not in-house partnership that brings to fore ultimately poor financial returns for the “ease of doing business” refers to One thing that came to me then in a tie-up with the best in the experience of professionals project. With this in mind, HOTELIVATE a fairlyrecent phenomenon in state early on in my career was that class. We call this elevation through in the spheres of area & space and ASCENTIS have brought together their and government circles. Back in one must learn to specialize to innovation. At the core of this is configuration, design planning, respective business and technical expertise 1997, when we started as HVS, the increase one’s success quotient. our existing relationship with HVS capital budgeting and pre- to offer advice to prospective hotel owners exact opposite was in place and Globally, HVS was (and is)the and its current service offerings, construction planning. The PEPA in those critical first months of development, every hurdle that was available was largest hospitality consulting firm namely: service plays a critical role in the with four major objectives: thrown at us. It took me months to specializing in hotel valuations and ◗ Feasibility studies, timely and cost-efficient completion ◗ To confirm the technical feasibility of the set upa simple business entity and we wanted to replicate its success ◗ Valuations, of hotel projects. hotel programme envisaged in the marketing at least two months to get a simple in India. However,we soon felt the ◗ Management & Operator The second; Hotelivate’s Debt feasibility and ensure its cost meets the ROI phone landline. Fortunately, mobile need to dig deeper: HVS started Searches, Syndication is in partnership with objectives of the business plan; phones had just arrived. And, Executive Search in hospitality; then ◗ Asset management and Executive Pankti Management Consultancy ◗ To get the right team of consultants on although the cost was a formidable started conferences and suddenly search. and is focused on debt syndication board to design the hotel; Rs. 16 per minute, the facility HICSA was born; and Marketing & However, we see scope to do a for Real Estate, Hospitality and ◗ To lead the concept design phase to was at least available, allowing Communications followed shortly lot more, as demonstrated by our Infrastructure projects. The scope develop a hotel that not only meets all the my entrepreneurship to be open thereafter. Clients started coming successful innings with the HOSI of the debt syndication practice objectives of the business plan for costs for business and grateful for the to us for things we had never done and HICSA conferences in India includes project finance, working and revenue-generating areas, but also small mercies of the great Indian elsewhere globally. So much so, that and the THINC conferences in capital finance, mezzanine finance, outperforms its competitors with a superior bureaucracy. an organization even approached us Bali, Colombo and Cape Town. We refinancing and recapitalization guest-experience and higher RevPAR; Fast forward to the present. So for afeasibility study for a hospital. recently also launched Professional activities. Loans are designed and ◗ To prepare a Project Execution Plan which much has changed in all spheres of When we wanted to turn it down, Skills Development where we may structured to meet the cash flows of will form the baseline for costs, timelines, the hospitality industry across the their management responded be tying up with a well-known the company and the debt servicing and quality. globe. In India, we moved ahead saying we had the right credentials international partner. Hotelivate has capacity of the investor company. The PEPA services play a critical role from 120 branded hotels in 1997 to and even the right name: “Hospital also tied up with two other partners Additionally Hotelivate’s in the timely and cost efficient completion approximately 800 branded hotels Valuation Services”, and that was for the following services: partners are looking to explore of hotel projects. Along with detailed today. Words and phrases unheard as good as Hospitality because The first; Hotelivate’s Project opportunities for us to potentially planning and proactive management of of back then are now our day-to-day there were no other specialized or Execution Planning & Advisory become incubators of new busi- risks and opportunities, we build effective vocabulary and part of our survival reputable consultants in that field. (PEPA) service is in partnership nesses linked to hospitality and relationships with all project stakeholders kit. Imagine today not knowing Today, we see an opportunity with Ascentis that provides technology; where we step in to to leverage their expertise and produce phrases or words below because to become a 360-degree solution strategic guidance and leadership help ‘elevate’ through innovative innovative solutions that build value for the they simply did not exist as they providerfor the hospitality sector. throughout the initial development ideas and team support. project and our client’s business. 50 Ha ics 2017 Marriott sees exponential growth in the mid-tier segment in India Given half of Marriott’s total properties are in the mid-segment category, its focus on the segment is amply reflected. It is expected to be a game-changer for the hotel company, and will fill in the gap between India’s luxury and budget segment hotels.

he demand for branded, quality lodg- the mid-tier segment that is a ‘game changer’. ing in Tier 2 and 3 markets in India This is the segment that has and continues to offers a great opportunity to hotels script the growth story for Marriott in India. companies with mid-tier brands. While India boasts of great domestic While India boasts TMarriott International, post its historic merger brands in the luxury and the budget hotel of great domestic with Starwood Hotels & Resorts last Septem- segment, there exists a gap between luxury brands in the luxury and the budget hotel ber, has in its kitty four distinct brands in the hotels and quality mid-tier hotels in the segment, there exists mid-tier segment (or select service segment). country and Marriott’s select service brands a gap between luxury These include Courtyard by Marriott, Fairfield fill that gap perfectly with brands like Court- hotels and quality By Marriott , Four Points by Sheraton and the yard by Marriott, Fairfield By Marriott, Aloft mid-tier hotels in the savvy Aloft hotels. Together the footprint is 32 and Four Points by Sheraton Hotels strongly country and Marriott’s hotels and nearly 40 in the pipeline, to open positioned in this space. select service brands in the next few years. Given that the total foot- And for those who feel the mid-tier fill that gap perfectly print of Marriott in India stands at 84 hotels segment cannot be stylish or glamorous, with brands like at present, the mid-tier constitutes nearly half walk into a Fairfield or an Aloft and you Courtyard by Marriott, of that; reflecting the increased focus on this will be surprised. Each brand under the Fairfield By Marriott, Aloft and Four Points segment for the company. Marriott portfolio has a distinct personality by Sheraton Hotels Industry experts also agree that most de- and a unique DNA and caters to a certain strongly positioned in velopers favour the mid-tier segment as these psychographic or lifestyle. Gen Y’s hotel this space. are usually quicker to open, moderate in size of choice, Aloft delivers the latest in tech- ,, and scale, have a reduced cost of construc- nological advances, ensuring that today’s tion and resonate in markets which are now savvy travellers are always plugged in and N eeraj Govil demanding branded, quality lodging or have connected. Four Points by Sheraton on the Market VP – South Asia, Marriott international

so far been ‘under-hoteled’. Moreover, these other hand, is a brand that understands the brands also offer distinct lifestyle experi- needs of the business traveler – an uncom- ences for stays, meetings and functions and plicated friendly approach to hospitality and hence are great options for cost-conscious service – all at a great value. Courtyard By corporates and frequent mid-management Marriott, the team will help you put ‘more business travelers. Even for leisure travelers play in your stay’ and a Fairfield By Marriott looking for great value, these hotels are fast hotel is designed to provide both business becoming the preferred choice. A growing and leisure guests with just what they need to middle class has created demand for afford- make travel uncomplicated and successful. able avenues for the domestic traveller. The Seen as game-changers, developers in India need for affordable quality lodging is fuelling understand and appreciate the penchant for the growth of Hotels in this segment. innovation which makes the brands more For Marriott, while their growth strategy competitive and poised to play well in this is across all segments, insiders believe it is fast evolving market. Hotel Industry today and what to expect in 2017, Achin shares HVS data Understanding growth, supply and markets across segments and cities Achin Khanna, MRICS, Managing Director Consulting and Valuation - South Asia, HVS, takes us on a journey of graphs and charts and across market segments on the industry at large across India and what hotel owners really look at.

have great scope for growth and the luxury segment. Next we look at market snapshots increase in numbers. Another parameter is City ADR Occupancy Existing Proposed Inherently our business gross floor area per (2016/17)* (2016/17)* Supply Supply is cyclical. And currently we key – the total built up are in an upward trend. 2015 area divided by the total Bengaluru 5700 69% 11799 3490 onwards we saw trickles of number of rooms. Here Chennai 4775 64% 7787 2312 improvement. It is our view the economy segment New Delhi 6600 70% 14,035 2568 that this upcycle could well would be 350-450sqft; continue till 2020. Occupancy midmarket 600-700sqft Gurugram 6500 69% 5323 1371 will grow before the ADRs do while luxury would be Goa 7700 73% 5596 1856 over 1250sqft. Another in a moderate fashion. Hyderabad 4800 61% 6262 788 Coming to Indian business good yardstick is the destinations, some 54% of the rooms to total area Jaipur 4950 61% 5040 854 destinations in the country ratio. Economy would Kolkata 5750 69.5% 2701 2053 primarily cater to business de- be 70-75% (there isn’t a Mumbai 7800 77.5% 13,054 1625 mand whereas 46% are geared spa, large banqueting, towards leisure. While 20% of large F&B options etc); Pune 4150 68% 6287 1434 the rooms in the country are for mid-market would be *Gross Yield. *Net Yield achin khanna leisure and 80% are geared for 65-70% while luxury business demand. We are pri- would be 45-50%. Base room size is another tional averages). From a RevPar stand point marily a corporate commercial good criterion. Economy is 15-18sqm, while there is not a whole lot that is differentiating By priyaanka berry market. We looked at the top 25 hotels by ADR mid-market is 24-28sqm and luxury is over an economy, mid-market, upscale hotel. This and 23 of 25 are leisure hotels and their occu- 50sqm. is because of our strategy of discounting and tarting with the big numbers on the pancy was fine too with a higher RevPar. So, Coming to how hotels have performed by rate wars. Value proposition has taken a back 10year occupancy ADR trend. Safe to they do make money. The bottom line here is positioning in the last year. What is interest- seat. The select few who said we will main- say that about 65% occupancy was that there are things happening in the leisure ing to note is that occupancy is not that tain the sanctity and integrity of the ARR are achieved in the last fiscal. First time segment also. We are also a leisure destination different across segments, it ranges around those with higher RevPar and they have not Sin close to a decade we have reached this and these hotels are performing well. 63-67% and ARR from 1900 to 10400 (na- lost their occupancy either. figure and it is the third or fourth consecutive How to really define year that we have seen an occupancy jump and categorize a 5-star across the nation. ADR hasn’t moved much hotel? What is the star clas- GROSS YIELD NET YIELD yet, but what is important is that it has not sification? There are a lot of declined in the past two years either. parameters one could look Coming to growth of supply, in 1983 India at. Such as development first crossed its benchmark of 10,000 rooms cost per key. This is the in the branded and organized sector with 9 cost per room to build and operators. In 2009 we crossed 50,000 rooms does not include the cost with 36 operators and by 2016 came to 1,13,622 of land or cost of borrow- rooms with 50+ operators across the country. ing. For an economy hotel, Projection for 2021 is 1,52,000 rooms. While this could range from 18-25 this may seem like a large number, in a global lakhs, for mid-market 45-55 comparison, we are certainly not saturated and lakhs and over 150 lakhs in HOSI 2017 51

Loyalty for owners or operators: General Managers bat for a balance between the two One of the key conundrums facing the modern day GMs is whether to place their loyalty towards the brand, or towards their owner. The issue came to fore in the session titled ‘GM’s dilemma: Loyalty to Owner or Brand. Industry insiders shared their understanding on the tricky issue, invariably conceding that a delicate balance between the two, with focus on realising owner’s expectation on financial returns was the way forward.

By shashank shekhar management contract that makes him hotel has become a managed property others are more difficult. Things have changed not sign it. On elements therein. I was very fortunate that right at the time now. In the old days, the development depart- Auragn Bhatnagar, Multi-property As mentioned before, the management con- when we started our discussions with ment used to do all the negotiations and the Vice President Luxury – India, Marriott tract has been drafted many years before, but prospective owners, I was involved in the General Manager used to come at the last International when you take on a role, you actually sign on process. So, I had a chance to prepare my minute and take over. That has changed now. On reading the management contract a new management contract – which will be team. We had discussions with owners to On Indian owners and how different and key issues that they flag off signed on the budget – because the manage- make sure that there was no turbulence, they are from the owners in the west Yes, we do read the contract. One has to under- ment contract part is already been done and as far as team’s morale is concerned, even I think in the USA it is pretty much easier, stand that management contracts are signed delivered, by the owner and the brand. That while the transition was happening. We were because there you meet them at the begin- 4-5, sometimes 10 years, before you move into is where your thinking starts. You do not very fortunate that the need for the property ning of the year, you do your budgets and the hotel. It was very relevant at that point of need to refer too much to the management to maintain its standards, even during the they see you at the end of the year. That, time. Although the relationship is driven and contract, because that is just the guiding line, transition, was understood. And, when I got now, is also changing. Owners have become foundation is laid through the management in terms of what you are supposed to deliver. on to preparing my team, one of the biggest more savvy in the hotel business. Their contract, then you will live, breathe, interact When the owner sees you, he expects a lot challenges was to prepare the team mentally expectations are high, and they are more with the ownership, but coming to your second more than what is just written in the manage- for the sale that was to happen. The transi- actively involved, but I find that when you part of the question, the dilemma starts, in ment contract. tion between the ownership perspective, to engage your owners in a positive man- terms of, brand vs. the GM. I think you are used the operator perspective. Your perspective ner, it makes your life easy. To give you an to not think like the owner. Sridhar B Nair, General Manager, The changes overnight. Your targets change; example, sometimes, owners come and say Management contract for us is, obviously, Leela Goa people have to be sensitized. whether can you try this new thing in your a guiding light. To us, it is there. I really hope On reading the management contract hotel. In the old days, you could say that we and pray that necessarily we do not have to and key issues that they flag off. Larger Vikram Reddy, Regional Vice President cannot do that, it just does not go with the evoke the management contract. For any Gen- issues related to management contracts. and GM, Four Seasons Hotel Mumbai brand. But today, you cannot do that. eral Manager. That is not the best thing to do. While I do agree with Anuraag in parts. I On top three conflicts that happen be- On the process of Pre-opening and its was also a part of the team that drafted the tween an owner and an operator which Vishal Jamual, GM, Radisson Blu importance management contract and I think the more involves the General Manager. Resorts & Spa Alibaug It is where you lay out the foundation of your you put it in print, there is greater under- It starts when you are talking to the hotel On managing expectations of the owner future. Not only in terms of logistics and fi- standing and clarity between the owner and on returns on their investment, managing Owners are very ambitious. They feel that nances, but also in terms of getting the brand operator. So, in that sense, while I do agree their expectations, because owners come they know the business well. The first chal- component right. It is also to ensure that that they are more of guidelines, but I think it with certain expectations. I think we need to lenge that everyone faces is, obviously, there there is a lot of interaction with the owner- helps us, helps General Managers, definitely, manage the expectations of the owner from should not be a case of overpromise and ship, to develop a bond of trust, commitment to make sure that there is no ambiguity in day one. We need to manage the financial under-delivery, in terms of finances. That is and transparency. understanding between the owner and the expectations of the owner. the number one issue. Another challenge for operator – and that can only happen when On whether life is easier for him as the General Manager is to ensure that brand Chetan Bhatnagar, General Manager, the management contract is comprehensive investors look at the larger picture promises are delivered. When the guest Fortune Select Exotica, Navi Mumbai and it is as clear as it can be. I mean, life is never easy in business. You comes, he expects a certain standard which On whether he finds anything in the On how things have changed since his have ups and down. Some cities are easier, is based on his trust on the brand. And the Winner is JW Marriott Sahar

Mystery Box Challenge, co-branded by EazyDiner, saw some exciting moments with 6 participants and 3 jury members getting together. HVS founder Steve Rushmore alongwith Camellia Panjabi and Vir Sanghvi were the judges. JW Marriott Mumbai Sahar walked away as the meritorious winner. 52 Ha ics 2017

O ur strategies are always focussed around our guests, says Michael Issenberg Giving insight in to the new age disruptors and their impact on the industry, speaking at HICSA, Michael Issenberg, Chairman & CEO – APAC, AccorHotels, spoke about the current changing trends in the tourism and travel space. He shared his views on how these trends will be the driving force in the sector and are here to stay. Excerpts:

sometimes refer to the OTAs as decides to make a major move in to travel, it partners, if you will. Being online, would be the biggest disruption that we have OTAs have become more aggressive had. This is something that might happen We wanted to make and taken a bigger piece of the and is definitely something we need to be sure that we have the puzzle. The biggest concern about aware about. Let us talk about big data and right people focus the OTAs is the level of commissions artificial intelligence. In the last 5 years, on that. I want to talk and what is has done to our profits. there has been more and more information about responding Rise in mobile, we have all heard available about all of us and about the travel to the rise in China. about it, and it is important because space. What do we do about that? The power We made a move in it has brought our product to the of China and what is going on over there is to China was about masses. Obviously, now it is so extraordinary. You hear about the slowdown the future and about easy to know what is going on in in growth but I personally do not believe outbound travel. It the world and what that is doing it. Certainly, the travel market is growing was a 120 million last is that it is fuelling the demand exponentially. The other thing that we have year and will be 140 for tourism. Because if you are to be aware of is from a political sense. The million in the not so planning to go to any city, it is now Chinese government tends to use its tourism very easy to research the book, the industry’s strengths as a political weapon. distant future and will look and finding out what to do. For example, there have been some overtake the US as Private rental, is a very important tensions going on with the Koreans and the the most important trend. I think sometimes, some of Chinese have turned off the tap of tourism travel market in the our competitors do not think the to Korea and the impact is dramatic. So, in world. What we same way and do not look at the India, I think one of the great opportunities wanted was our brand private rentals as competitors but is the Chinese market which is not really to be more present if you look at Airbnb and OYO, coming here at the moment. Consolidation, in China and so the their growth rate is ferocious. no question about it, is going to continue focus is on making Particularly, if you see some of and again coming back to China, I think the the brand increasingly the key capital cities around the Chinese are going to continue playing an known. world, the growth of Airbnb has important role in what is happening in the ,, taken away a significant amount industry. Now, the industry has become Michael Issenberg of demand. When you are trying about experience. What people want when Chairman & CEO, Asia Pacific, Accorhotels to grow average rate in particular, they travel now is that they want something this has a significant impact. So, different, they want to experience the local the growth of private rental is a culture, they want to try something new and verywhere around the world, of the middle class. When asked about what trend that is going to continue. If the next step that we think is actually going tourism is growing faster than they would want to do with their time, the you look at other industries, players like to be is transformation. the GDP. This is certainly answer invariably is travel. That is excellent UBER, these are the real digital disruptors. Beyond experiences, when people the case in the APAC region, news for us and indicates the growth of the Essentially demand is now going online and travel, they actually want to learn, they “whereE tourism is growing even faster. If you travel industry. On the other hand, there that is something that is going to continue want to come back. That is going to be the ask anybody whether they would like more have certainly been a lot of disruptions in the because the digital enabler is going to ensure next revolution in this sector. How have we time or more money, most people ask for industry over the last five to ten years. We that happens. Then we have the arrival of responded to this? About 3 years ago, we more time. We are all aware of the growth have heard about the OTAs. We operators the tech giants. The reality is that if Google split the company in to two. We wanted laser focus on our hotel services which is franchising, the operations, the branding, the marketing etc. We wanted to make sure that we have the right people focus on that. I want to talk about responding to the rise in China. We made a move in to China was about the future and about outbound travel. It was a 120 million last year and will be 140 million in the not so distant future and will overtake the US as the most important travel market in the world. What we wanted was our brand to be more present in China and so the focus is on making the brand increasingly known. It is just the beginning but the early signs are very encouraging. Coming back to one of the other major trends, OTAs have been driving business directly to our hotels and has helped us in reducing acquisition costs. They have not just helped us in terms of loyalty and reward points but also increasing brand loyalty by targeted marketing. In terms of global operations, what we did is that we took a relatively expensive bet and placed our teams as close to the countries as possible. We want to multiply globally as much as possible. Our strategies are always focussed Team HVS that brings together the hotel industry at HICSA! around our guests as we realise that they are Pictured together with Manav Thadani by our photographer yesterday. the main element of our business. We make Not everybody is here naturally, as it is always difficult to ensure the sure that we are always aware of the needs entire team in one place for an impromptu photograph. of our customers along with focussing on our own needs. Ha ics 2017 53

Carlson poised to lead the next wave of growth in the hospitality sector: Raj Rana Buoyed by the growth in India’s tier-2 and tier-3 markets, Carlson Rezidor has set itself a target of growing its India portfolio to 170 properties by 2020. Much of this growth is stemming from the mid-market and the upscale market. Raj Rana, CEO-South Asia, Carlson Rezidor takes stock of India’s opportunities and the group’s resolute foray therein.

India and 40 more in the pipeline. management contract and matures into a improvement and road connectivity, good On track to open eight hotels this franchise agreement. This flexible approach opportunities abound for the Country Inns & year, the Group recently launched and our commitment to aligning with our Suites By Carlson brand. Radisson Blu Jammu and Radisson owners’ objectives has opened the door to Radisson RED is an exciting new hotel Blu Atria Bengaluru in Q1. many new opportunities and new project concept that creates a uniquely engaging, Carlson Rezidor is committed to negotiations in strategic locations. personalized guest experience. This this market and keen to reinforce In addition to signing new build hotels, we innovative lifestyle elect brand, which is our leadership position, further have also successfully explored the benefits inspired by design, art, music and fashion, extending our brand portfolio and of conversions, which enables us to establish will have strong resonance in India, where geographic presence. Our goal is to a strong brand presence efficiently and 64% of our population will be of working grow the India portfolio to 170 hotels expediently. Given that, India has a cohort age by 2020. Radisson RED is a brand that by 2020 with the vision to have a Carlson Rezidor hotel in every major city and landmark hotels in every state capital Our goal is to grow the India portfolio to We are focused to the robustness of our hotel pipeline and talent pool. 170 hotels by 2020 with the vision to have a With a strong workforce of about Carlson Rezidor hotel in every major city. 15,000 committed employees, our growth promises rewarding career opportunities. To drive organic growth, we are of branded hotels, which have agreements speaks to this tech-savvy, millennial-minded strengthening our presence in state that are approaching the end of their life segment. This brand has generated immense Raj Rana capitals, while also accelerating cycle, a surge in conversion opportunities is interest due to its simplicity and fresh chief executive officer, South Asia, Carlson Rezidor growth in emerging secondary and expected. approach. Radisson RED Chandigarh Mohali, tertiary cities. Our current portfolio We will continue to grow our business India’s first Radisson RED new built hotel is arlson Rezidor was one of the first is a good mix of franchised and managed with existing strategic partners, and forge new expected to open next year. international hospitality groups to hotels. While our core business model partnerships. Strong demand for mid to upscale The opportunities in India are more enter the India market, and over the is in hotel management, our innovative hotels are expected in India in the near future. varied and vast than when we started out last 15 years, we have successfully and scalable development platform Carlson Rezidor has three well-suited brands 15 years ago and we are excited to be Cestablished a strong nationwide presence. encompasses other business models, such to offer - Country Inns & Suites By Carlson, part of the transformational force that is Today, we are the leading international hotel as selective franchising, and the hybrid Park Inn By Radisson and Radisson RED. With shaping the hospitality landscape of this chain in India, with 84 hotels in operation in manchising model, which begins as a the government’s emphasis on infrastructure key market. Skill retention and sticking to project deadlines chief issues facing the industry Sunil Ghadiok, CEO, NIDRA Hospitality shared his views on his group, its undertakings and challenges facing the hospitality industry.

s a management company, we own hotels which understand brand’s culture, were owned specifications, style and ethos, assets, beside “ and we completely immerse taking third- party ourA people to understand brands at the same contracts where level as we do. So, they are able to operate they brought these hotels within all the parameters of the in brands, and brand, meeting all expectations of the brand also managed itself,” said Sunil Ghadiok. their hotels for Asserting that as a part of the Shanti them. “We are Hospitality Group Management Services currently looking Company, NIDRA Hospitality Company at acquiring more had made a mark in terms of its ability to hotels to manage. manage multi-branded hotels, he pointed And, also, towards an array of hotel companies NIDRA exercise some Shanti Hospitality in Mauritius Group had been associated with. “As a amount of equity management company, we are associated participation,” he shared. “There are only two challenges today. with brands like Hyatt, with Hyatt Regency; “This is what encompasses NIDRA They are related to, and I would say that with Marriott Group, we have Four Points Hospitality and its entire growth. We are also is the biggest challenge, acquisition and By Sheraton and others. We hope we will constantly concentrating on acquisition of retention of good skills. And, of course, make inroads in the AccorHotels Group good skill, training, and retaining people. completing the project within the desired for managing Grand Mercule and Novotel Our strength lies in project management and projected time frame,” he said. Arguing Hotels,” he said. and development,” he added. that if companies were able to address Noting that, as a management group, Taking stock of challenges ahead for the these concerns, he said “I think if these two s unil ghadiok they had been growing by leaps and industry, he reasoned that skill acquisition challenges are met by any company, there is CEO, NIDRA Hospitality bounds, he explained that the group had its and retention was a chief cause of concern. no reason of it to not be successful.” 54 Ha ics 2017

Radisson RED’s positioning and appeal will attract young and discerning Indian travellers Andreas Flaig, Executive Vice President, Development, Asia Pacific, Carlson Rezidor believes that Radisson RED has all that it takes to attract young, tech-savvy and adventurous Indian travellers. He asserts that the brand will add strength to the group’s presence in India.

many will be in India, where the with Bestech Hospitalities. Accelerating the By 2020, Carlson growing millennial population is growth of the brand in Asia Pacific, Radisson Rezidor expects to one of the largest segments in the RED Kuala Lumpur City Center was signed have 60 Radisson country. last October. The 166-room new built hotel is RED hotels Radisson RED is an innovative strategically located in close proximity to the worldwide. About half hospitality concept with a focus icon Twin Towers in Kuala Lumpur, Malaysia. of these hotels will on design and the technologies of We also see great development potential be in Asia Pacific and tomorrow. It addresses changing in India for our midscale Park Inn® by Radis- many will be in India. consumer behavior and delivers a son brand, across primary, secondary and We are confident hotel experience that is enhanced tertiary markets. Given the brand’s construc- that Radisson RED’s by art, music and fashion. tion cost and development specifications, it positioning and We are confident that Radis- is a particularly good fit for secondary and lifestyle appeal make son RED’s positioning and lifestyle tertiary markets where an infrastructural it the right brand for appeal make it the right brand renaissance is currently taking place. India’s tech-savvy, for India’s tech-savvy, adventur- Accessible and inclusive, Park Inn by ous and price-conscious younger Radisson is a bright, bold, fresh, uncompli- adventurous and generation. The brand is a great fit cated and friendly brand, with unexpected price-conscious for high-traffic urban markets such touches of contemporary design. To cater younger generation. as Delhi, Mumbai, Bengaluru, Pune, to the preferences of the Indian market, we The brand is a great Hyderabad, Kolkata and Chennai, have fine-tuned the specifics of this other- fit for high-traffic where demand is well supported by wise limited-services brand to include an urban markets such demographics. all-day dining restaurant, banqueting options as Delhi, Mumbai, And for property owners, Radis- and room service as well. We celebrate the Bengaluru, Pune, son RED offers a lower per-key entrance into a new market, Sri Lanka with Hyderabad, Kolkata and Chennai, where demand is well supported by R adisson RED is an innovative hospitality demographics. concept with a focus on design and the Andreas Flaig ,, technologies of tomorrow. executive VP, Development, Asia Pacific, Carlson Rezidor

e are in the business of curating brand, addressing the right audience, in the construction cost than traditional upscale the groundbreaking ceremony of Park Inn by guest experiences and creating right place. hotels. Radisson RED can be developed as Radisson Colombo in January this year. The memories that solidify into In anticipation of the rise of the millen- a standalone hotel or as part of a mixed-use 199-room hotel is scheduled to open in Q2, guest loyalty. Guests come nial segment, Carlson Rezidor developed development, where the hotel can be syner- 2019. Wback to stay at our hotels repeatedly because the upscale, lifestyle select brand, Radisson gized with the office and retail components. In India, the Group currently has five Park we have successfully delivered compelling RED, which appeals to millennial-minded The return per square foot on a Radisson Inn by Radisson hotels under development propositions. travelers, across age groups. The Radisson Red is expected to be strong in a mixed- and seven that are already in operation, In a crowded market, we interest and RED brand is certainly gaining traction and use development. In addition, the brand’s including Park Inn by Radisson Bilaspur and engage increasingly sophisticated consumers we can anticipate several new hotels in top multi-functional approach and efficient use Park Inn by Radisson Amritsar. through innovation and careful positioning. destinations across Asia Pacific emerging in of space also reduce operating cost signifi- With Park Inn by Radisson and Radisson Today’s travelers have complex expecta- the coming months. cantly, driving higher margins. RED, Carlson Rezidor is well positioned to tions and as the guardians of a differentiated By 2020, Carlson Rezidor expects to have It will not be long before we unveil India’s meet the changing expectations of the Indian brand portfolio spanning all major segments, 60 Radisson RED hotels worldwide. About very first Radisson RED hotel, now under market and to fuel the Group’s continued we recognize the need to have the right half of these hotels will be in Asia Pacific and development, as part of our collaboration expansion in India.

Government further relaxes e-visa norms; medical and business visa included in purview tarting April 1, the visa regime Mangalore. years will now be available to NGOs, subject to certain checks in India has been further re- ● The window for application nationals of most of the countries. and conditions. The period of Slaxed by the government. The under e-visa scheme has been Upon urgent requests, business visa visa is restricted to the duration of move is aimed at attracting more increased from 30 days to 120 days and medical visa will be granted internship programme or one year, tourists and business travellers and duration of stay on e-visa has within 48 hours of application. whichever is less. The intern visa in to the country. Here is a list of been increased from 30 days to 60 ● 94 Indian missions having bio- will be granted immediately after changes approved by the cabinet: days with double entry on e-tourist metric enrolment facilities have completion of graduation/post- ● With effect from April 1, e-visa and e-business visa and triple entry started giving 5-year long-term graduation. has been sub-divided into 3 catego- on e-medical visa. tourist and business visa from ● Intern visa, however, will be is- tion of one year with multiple entry ries – e-tourist visa, e-business visa ● Separate immigration counters March. The remaining missions will sued with prior clearance from the facility. and e-medical visa. Till now, e-visa and facilitation desks to assist provide this facility in due course. home ministry in case of internship ● The minimum salary limit of for was only for tourists medical tourists have been pro- ● A new category of visa titled in NGOs or internship involving grant of employment visa, which is ● E-visa facility has been extended vided at airports in Delhi, Mumbai, intern (I) visa has been rolled out visit to protected and restricted presently US $ 25,000 per annum, to nationals of 161 countries for Kolkata, Chennai, Bengaluru and with effect from March 1, 2017 to areas. has also been modified. This will entry through 24 airports (earlier Hyderabad. a foreigner intending to pursue ● Another new category of visa, facilitate foreign nationals engaged granted through 16 airports) and ● The multiple-entry tourist and intership in Indian companies, titled film (F) visa has also been as teaching faculty by the central three ports: Cochin, Goa and business visas for a period of 5 educational institutions and introduced with maximum dura- higher educational institutions. Marriott Development AD.pdf 1 30/03/17 6:35 PM

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