MYSTIC EAST ...nuggets galore Vol 1 | Issue 2 | January - February 2015

FHRAI-HVS Survey 2013-2014 IS THE HOTEL INDUSTRY COMING OUT OF THE

TROUGH? 60.4% 4,729 60.9% 4,677 60.4% 4,507

62.1% 4,578

59.9% 4,149

2009-10 2010-11 2011-12 2012-13 2013-14

Average room rates ­— All Average occupancy rates — All India

A BI-MONTHLY MAGAZINE BY HRAEI

Inside

COVER STORY 30 January-February 2015

A COMPREHENSIVE PERFORMANCE ANALYSIS OF THE HOSPITALITY INDUSTRY IN 2013-14 BY FHRAI AND HVS INDIA AND ITS FUTURE OUTLOOK

Building world class News-National infrastructure holds 8 36 the key to overall 16 News-International tourism growth Products & NEIIPP, 2007-Is a new Services-Blue Star avatar of the scheme 20 targets 10% of 39 on the anvil? room AC market State-wise Tax 28 Food & Cuisine 43 Structure

MYSTIC EAST | 3 Inside 44 52

ARUNACHAL SURVEY The diversity of flora and fauna found in is amazing and it richly deserves to be among the world’s leading ‘Mega diversity hotspots’

Revised Hotel ASSAM SURVEY Classification Assam is ideally placed to capitalize on Centre’s ‘Act East’ policy 56 Guidelines

EDITORIAL BOARD SUDESH PODDAR, This issue of Mystic East contains 60 pages including PRESIDENT, HRAEI cover and back cover NAVIN SUCHANTI, TREASURER, HRAEI All information in HRAEI’s Mystic East magazine is derived from sources we consider reliable RAVINDRA KUMAR KASHUKA, MANAGING and a sincere effort is made to report accurate information. The publisher regrets that he COMMITTEE cannot accept liability for error and omissions contained in this publication that might have MEMBER, HRAEI crept in inadvertently. Similarly, opinions/views expressed by third parties in abstract and/ or in interviews are not necessarily shared by HRAEI magazine. However, we wish to advise EDITOR our readers that one or more recognised authorities may hold different views than those DHEER KUMAR KOTHARI reported. Material used in this publication is intended for information purpose only. Readers CHIEF DESIGNER are advised to seek specific advice before acting on information contained in this publication BIPUL BHATTACHARJEE which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Contents of this publication are subject to copyright laws.

Hotel and Restaurant Association of Eastern No part of HRAEI’s Mystic East magazine or any part of the contents thereof may be India, 18A/1, Everest , 18th Floor, 46C, reproduced, stored in retrieval system or transmitted in any form without the permission of Road, - 700 071; the publication in writing. The same rule applies when there is a copyright or the article is Telephone- +91 33 2288-1742/43, 40035993. taken from another publication. An exemption is hereby granted for the extract used for the E-mail: [email protected]; [email protected] purpose of fair review, provided two copies of the same publication are sent to us for our Website: www.hraei.co.in records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material, solicited ‘Mystic East’ magazine is printed or unsolicited, nor is he responsible for material lost or damaged. and published by Atikram Gupta on behalf of This publication is not meant to be an endorsement of any specific product or services offered. Hotel and Restaurant Association of Eastern India. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all Printed at CDC Printers Private Limited, No.45, advertisements without explanation. All advertisements must comply with Indian and Radha Nath Chowdhury Road, Tangra Industrial International Advertisements Code. The publisher will not be liable for any damage or loss Estate-II, Kolkata, 700 015 caused by delayed publication, error or failure of an advertisement to appear.

4 | MYSTIC EAST January - February 2015

PRESIDENT’S MESSAGE

Dear fellow members, This is not all. The bounty, apparently, is inexhaustible. The FM has announced a I am sure that by the time this issue reaches sports university in Manipur besides creat- you, the Union Budget presented by our fi- ing an annual sports event in which SAARC nance minister, Mr Arun Jaitly, would have member countries and Indian states in- been dissected threadbare. We are, howev- cluding north-eastern states will compete er, delighted that the budget has begun the for honours. Other measures announced in process of converting the hitherto ‘Look the Union budget include development of East’ policy to ‘Act East’ with gusto. organic farming on commercial basis and The proof of the pudding is in the eating a 24x7 dedicated TV channel to generate and this is clearly evident from the slew of awareness about the culture and traditions projects which have been announced by of north-eastern states. It is heartening to the FM in his budget speech. The big bang note that most of our constituent states, in- announcement, without doubt, is the estab- cluding the Andamans (Rs 150 crores have Sudesh Poddar lishment of a project development compa- been provided to sort out its communica- ny which will set up manufacturing hubs tion-related problems) have received due in Cambodia, Myanmar, Laos and Vietnam attention of the Central government. (CMLV) countries through separate spe- Before I sign off, I would like to inform cial purpose vehicles (SPVs) to channelise you that it is HRAEI’s privilege to host this investments from the Indian private sector year’s FHRAI Golden Jubilee Convention at and boost trade and commerce between the towards the end of Septem- land-locked Northeast India and Southeast ber. I will keep you posted with details as Asia. and when we tie up the loose ends.

Carrying forward the commitment of PM I also take this opportunity to wish each one The proof of the Narendra Modi to expedite all round de- of you ‘Happy ’. pudding is in the velopment of the north-eastern region, the eating and this is FM has earmarked Rs 1000 crore over and With warm regards, above the amount provided for in the inter- clearly evident from im budget for expediting rail connectivity. the slew of projects Other major takeaways for the eight states which have been of Northeast India from the Union budget include setting up of an All India Institute announced by the of Medical Sciences (AIIMS) in Assam, an FM in his budget Indian Institute of Science Education and Research (IISER) in Nagaland, and a Centre speech for Film Production, Animation and Gam- Sudesh Poddar ing in Arunachal Pradesh. President, HRAEI

MYSTIC EAST | 5 MESSAGE

SECRETARY’S MESSAGE

Dear fellow members, surrounding tourist destinations across In- dia. Not many would be aware that the Ar- The Union Budget for 2015-16 presented chaeological Survey of India (ASI) had then by finance minister Arun Jaitly promises agreed to ONGC proposal for adopting six to extend visa on arrival facilities to 150 monuments under the Clean India Cam- countries in a phased manner - up from paign. The six monuments/destinations 43 countries currently and also commence adopted by ONGC include: Taj Mahal, Agra, work on restoration of several world her- Ellora and Elephanta caves in , itage sites to attract more tourists to these Red Fort in Delhi, Golconda Fort in Hyder- destinations. This restoration work would abad and Mahabalipuram in Tamil Nadu. include landscape restoration; signage and What Mr Jaitly is now proposing needs to interpretation centres; parking; access for be pursued with vigour with active involve- the differently abled; visitors’ amenities; ment of corporate (as part of their CSR), illumination and plans for benefiting com- NGOs and the local community so that the momentum can be sustained through own- Pranav Singh munities around them. To begin with the following sites are being taken up for resto- ership and involvement of all stakeholders. ration work: At a later stage this campaign could be ex- tended to pilgrimage tourism as well. (i) Churches & Convents of Old Goa (ii) , Karnataka (iii) Elephanta Caves, (iv) Kumbalgarh and other Hill Forts of Rajasthan (v) Rani ki Vav, Patan, Gujarat (vi) Leh Palace, Ladakh, J&K It was part of (vii) Varanasi Temple town, UP government strategy (viii) Jalianwala Bagh, Amritsar, Punjab laid out in the 12th (ix) Qutub Shahi Tombs, , Telengana five-year plan for improving the quality It is worth recalling that a similar exercise was undertaken by the UPA government in of services and 2013 and the ‘Clean India Campaign’ was environs surrounding intended to bring our tourism destinations tourist destinations to an acceptable level of cleanliness and hy- giene. It was part of government strategy across India laid out in the 12th five-year plan for im- Pranav Singh proving the quality of services and environs Secretary, HRAEI

6 | MYSTIC EAST

NATIONAL NEWS

• Food Processing: 16 MoUs signed in the food processing sector with investment more than 1000 crore. • BAPL has signed a MoU with Scomi. Investment worth Rs 1000 crore. • Essel group: We are indenting to in- vest Rs 15000 crore in Bengal. • Government of West Bengal is working with BAPL to installing the air connectivity between Kolk- ata Durgapur Coochbehar and Bag- dogra. BAPL is also entering into an agreement with GoAir and Pinnacle Air. • The total investment proposals re- ceived for urban sector is about Rs 70,000 crore. 5 new townships will be created- Bolpur, Siliguri, Kaly- ani, Rajarhat, Baruipur. • A growth corridor will be build up from Kolkata to Raghunathpur via Dhanbad. Subarna group of Singa- pore will be making it. Proposed in- vestment worth Rs 1000 crore. • A solid waste management project BENGAL GLOBAL BUSINESS SUMMIT will be build up in Howrah with an investment of Rs 2200 crore. HIGHLIGHTS crore. • An agreement is being signed for • The total investment received • Investment by SAIL worth Rs a 500 MW plant for solar power in in two days of the Summit is Rs 40,000 crore. Purulia. WB CM calls this as a “gift 2,40,000 crore. • Kolkata Eye MoU signed with Port for my Jangalmahal”. • The investments finalised during the Trust worth Rs 300 crore. • MoU between ICOM UK and CRE- Summit will lead to job creation for 1 • Investment by Hiranandandi DAI Bengal for building of Kolkata crore people in the next three years. Group worth Rs 5000 crore. Siliguri Growth Corridor. • Expansion project of Xpro India • Kolkata Siliguri Corridor worth Rs • Development centre for Informa- Ltd. for manufacturing dielec- 500 crore. tion Technology along with Mono- tric films was inaugurated by the • Satellite Township on Hindmotor rail connectivity. Hon’ble Chief Minister of West Land by Parimal and Sriram Group • Anand Group to invest 230 crore in Bengal, at plasto worth Rs 8000 crore. a food park under Amul brand. Mi- steel park in Bankura with an in- • L&T will invest under PPP model crosoft’s Centre for Excellence. vestment of Rs. 200 crores. worth Rs 12000 crore. • Investments in the pipeline for poul- • TCS will employ over 20,000 peo- try, hatchery and organic farming. MAJOR PROPOSALS ple in their second campus in Ra- ANNOUNCED jarhat URBAN AREA AGREEMENTS • MoUs with Union Shipping Min- • NTPC is investing Rs 20,000 crore. • Rs 1500 crore from Y K Modi Group istry worth Rs 41,600 crore (this • Health Sector: Proposals made • Rs 1275 crore on 150 acre land by includes Bhor Sagar, Haldia Green worth Rs 2710 crore signed in Solarpuria Group Port & other projects). health sector, which will generate • Rs 4000 crore on 235 acre land at • MoUs regarding Deochala Pacha- 8990 employment. 7 MoUs to be Rajarhat by Group mi Coal Mines worth Rs 12,000 signed, which will provide skill de- • Rs 6000 crore on 135 acre land at crore. velopment to 90,000 people per 24 Parganas(North) by Highland • Investment by ITC worth Rs 3000 annum. Group

8 | MYSTIC EAST January - February 2015

• Rs 9000 crore on 100 acre land at Bishnupur by Ambuja Neotia Group • Rs 1200 crore from Mayfair Group • Rs 2500 crore on 138 acre land at Baruipur by Mani Group • Rs 2024 crore investment in Sports and Leather Complex from FS Group • Rs 260 crore on 60 acre land by Swarnaganga Realities • Rs 4000 crore on 50 acre land by Sherwood Group • Rs 700 crore on 57 acre land by MTEK Group • Rs 1000 crore on 60 acre land by Merlin Group • Rs 1200 crore on 50 acre land at 24 Parganas (South) by Dhoot Group UPCOMING PROJECTS • Rs 25000 crore on 600 acre land at Rajarhat by Greentech Group • Infinity to build two IT Hubs in the Kolkata Eye MoU worth state. One at Rajarhat worth Rs 5000 crore and the other at How- Rs 300 crore signed with rah worth Rs 1000 crore. • Rs 2000 crore to be invested by Un- imart Group. Kolkata Port Trust • Panchwati group to invest Rs 1500 crore in building a Textile Park mong major project pro- ple to a height of 100m (Shahid • South City Group to building a posals signed and an- Minar is 48m-tall, for reference). Gateway in Sundarbans costing Rs A nounced at the recently The , on the south- 1000 crore concluded Bengal Global Business ern bank of the Thames, is • Siddha Group will invest in 3 proj- Summit is the Kolkata Eye MoU 135m-tall. ects worth Rs 3000 crore worth Rs 300 crore signed with CMDA, Calcutta Port Trust, • Premier Group to invest Rs 1055 the Kolkata Port Trust. which will provide land for the crore in 100 acre land project, and the UK-based firm • Rs 2500 crore from Capital Singa- UK firm to build London eye have formed a consortium to set pore The bid to build a Calcutta Eye up the structure. The CMDA • Rs 1000 crore from Regent Gar- modelled on the London Eye has would provide Rs 81 crore for the ment been won by a UK-based firm. project. • Rs 2500 crore from Jalan Group Officials in the urban develop- A senior official of IL&FS, • Rs 1200 crore from INPA Group ment department said Sun Con- which is liaisoning with the stake- • Rs 1200 crore will be invested for sultancy Investment and Consor- holders on behalf of the CMDA, hosiery park tium, which won the bid would said Calcutta Eye would have 36 • Rs 15,000 crore to be invested for take about two years to build air-conditioned capsules made “Smart Cities” the gigantic by the of steel and glass that would seat • A solid waste management project Hooghly that would offer a bird’s- eight people each. Two of these will be build up in Howrah with an eye view of the city from the capsules will have sofas and allow investment of Rs 2900 crore with a height of a 30-storeyed building. meetings to be held inside. consortium of German Companies The wheel, to come up in Mil- (source: The Telegraph, lennium Park-3, would take peo- Kolkata) (source- bengalglobalsummit.com)

MYSTIC EAST | 9 NATIONAL NEWS

Kolkata Meghalaya House inaugurated

SHILLONG: The jinx associated with Kolkata Meghalaya House at Russel street has been broken after fourteen long years. The house which was initially leased out to Asian Housing Construction Limited (AHCL) in 2001 led to the downfall of the EK Mawlong Government, the turmoil in the state and litigations before it was agreed to finally con- struct on an agreement with equal terms. The newly constructed building was taken by the State Public works department in August 2013 and it was final- ly inaugurated by the Chief Minister of Meghalaya, Mukul Sangma on Monday. The inaugural function was attended the former Chief Minister and Chief Adviser to the Gov- ernment of Meghalaya, DD Lapang, Deputy Chief Minis- Victoria wing of iconic ter, Rowell Lyngdoh, other Cabinet ministers of the State, dignitaries from West Bengal, including Tourism Minister, Great Eastern Hotel to be Rajpal Singh, Moon Moon Sen, MP, Consul–Generals from various countries and invited guests from the State as well re-opened in mid-2015 as the city, stated the Press Secretary to the Chief Minister he 175-year-old Victoria wing of Calcutta’s best Sadina Sangma in a release on Monday night. known hotel, Lalit Great Eastern, will be reopened Delivering the inaugural address, the Chief Minister said after massive architectural and civil work. “It took that the asset will help provide the people of the State to T a lot of hard work to do up that wing, but I loved the toil connect with the people of West Bengal, of the country we have put into it,” according to Jyotsna Suri, chairper- and rest of the world. Stating that Meghalaya is known for son and managing director of Lalit Suri Hospitality Group many things and has many things to offer, he informed the who has been recently elected the president of Ficci. gathering about rich mythological stories associated with The Victoria wing, expected to be launched in mid- the State and ecological diversities, besides the presence of 2015, will have Maxim’s bar and restaurant, around 49 a number of natural wonders, adding that the intension of suites, including a presidential suite, and a pan-Indian the State is to create many more positive stories. restaurant Baluchi. Terming Meghalaya and the North East as a whole as the The Great Eastern, which had been bought by the Lalit catchment area of potential boys and girls who are good group, was launched sometime back as the Lalit Great East- in certain things, Sangma said this was the reason why we ern, with a part of the hotel and the famous bakery restored. see more and more young boys and girls coming out of the Suri said she was scouting for one more property in Ben- region in search of better opportunities. gal for a budget hotel chain. “It will be a riverfront property. The Meghalaya House at Russel Street has three blocks, It will be a signature property but not in the super-deluxe, Block I which includes a basement plus ground plus 5 rather nearer the luxury-budget category,” she added. structure comprising of a commercial block with a to- The Lalit group already has two hotels in this category tal built–up area of 80,950 sq.ft. Block II which includes in Jaipur and Khajurao and is looking to add 8-10 more at ground plus 5 structure with a total built–up area of 41,364 a cost of Rs 300-500 crore. “These would be in smaller cit- sq ft comprising of the guest house and the office block with ies such as Ludhiana and Pune, Buddhist pilgrimages, in- the reception area, estate office, dining room, 8 numbers of cluding Bodh Gaya, Khushinagar and Sarnath,” Suri said. double bedded ordinary rooms, 19 numbers of double bed- “These hotels will have a capacity of 40-50 rooms each,” ded VIP rooms, one VVIP suite and two dormitories, while she said, adding that they will be sold under the banner Block III comprises of a ground plus 5 structure, service “Lalit Travellers”. block for support staff with a total built–up area of 15,006 The 27-year-old-hotel chain, which operated under the sq. ft. comprising of 12 staff quarters, two officers’ quarters, brand The Grand-Hotels, Palaces & Resorts, was re-brand- one dormitory and drivers’ rest room. ed as “The Lalit” on November 19, 2008 as a tribute to Lalit Suri. At present, the chain operates 11 luxury hotels (source: sentinelassam.com) and resorts in the country. (The Telegraph, Kolkata)

10 | MYSTIC EAST January - February 2015

HVS hired to prepare comprehensive Vision Document for West Bengal

Assam to set up wildlife museum in Kaziranga ccording to A R Bardhan, countries,” he said. Principal Secretary to West Efforts are on to showcase Kol- Guwahati: Assam Chief Minister A Bengal’s Tourism Depart- kata as the “Cultural capital” and Tarun Gogoi announced that the state ment. Destination East is a very im- MICE (Meetings, Incentives, Con- government would set up a state- portant vehicle for attracting invest- ference and Exhibition) destina- of-the-art interpretation centre and ments in resorts, cruises, ropeways, tion, he added. Bardhan revealed wildlife museum with modern 3D etc. “We will offer cash-based incen- the state’s plans to go on a major shows at Kaziranga. tives on projects,” said Bardhan. brand-building exercise. Gogoi, who visited the park Thurs- Bardhan also disclosed that the “O&M, has been hired to do the day to take stock of anti-poaching state government will build mo- job. Bollywood superstar Shah measures, said this would keep the tel-cum-wayside facilities every 30 Rukh Khan is likely to feature in flow of tourists to the park, which is km along the routes to major tour- the forthcoming new tourism televi- also a Unesco World Heritage Site, ism destinations, including the Sun- sion campaign for West Bengal, he round the year. derbans and Digha. said, adding that the new TVC will The chief minister asked the park “This will be a reality in six be ready in three months,” said an authorities to explore possibilities of months’ time,” he said. official statement. promoting off-season tourism to the “A global consultant called HVS “One of our objectives is also to park through the eco-tourism and has been hired to help prepare a enable one to drive to Sunderbans traditional activities such as weaving comprehensive Vision Document within 2 hours from Kolkata at a handicraft etc. for West Bengal. HVS has provided speed of 80 kmph. Considerable Gogoi’s son and Lok Sabha member consulting services and solutions to money and energy is being devoted Gaurav Gogoi said an integrated tour- more than 60 countries for hotels, to improving roads,” said Vijay De- ism plan will be drawn for Kaziranga shared ownership and leisure as- wan, Mr Vijay Dewan, Chairman, and the adjoining areas involving the sets. The 10-year Vision Document Tourism Sub-Committee, CII East- forest, tourism, cultural affairs de- seeks to double the growth of 5% ern Region, and Managing Director, partments and the district adminis- in inward tourist flow from both Apeejay Surendra Park Hotels Ltd. tration. domestic market and international (Agencies) (source:sarkaritel.com)

MYSTIC EAST | 11 NATIONAL NEWS

Haldiram’s leads snack High air fares hit tourism in market; surpasses Andamans combined sales of McDonald’s & Domino’s

MUMBAI: Bhelpuri beats burgers just as comprehensively as farsan beats fries. Haldiram’s revenues, at Rs 3,500 crore, is more than the combined revenue of Domino’s (Rs 1,733 crore) and McDonald’s (Rs 1,390 crore; adding toplines of the two separate operations in India). Or take that popular two-minute snack, Maggi, which netted a revenue of Rs 1,200 crore; Haldiram is almost three comtimes bigger. These figures — for 2013-14; the latest available in official records — when combined with the fact that igh cost of air travel and that the government intervenes to Haldiram’s commands 40 per cent of irregular air services are regulate airfare to Andaman Is- the Rs 5,500-crore traditional snacks H dissuading tourists from lands,” he has noted. business, conclusively demonstrates visiting the alluring Andamans, Mr The letter says there have many one thing. Whether in fast food or Sudesh Poddar, president of the instances in the recent past when munchies, and despite the profu- Hotel & Restaurant Association of airlines have cancelled flights from sion of MNC brands with high cool Eastern India (HRAEI) has pointed Port Blair “leaving passengers high quotient in both categories, good out in a recent letter to the Minister and dry”. These passengers are left old-fashioned Indian offerings from for Civil Aviation, Mr Ashok Gajap- to fend for themselves as they do not Haldiram’s still dominate the market. athi Raju Pusapati. get accommodation either in flights First, the brand has survived dis- Good connectivity is a prerequi- of other carriers or in subsequent putes and break-ups in the original site for tourism to prosper and this flights of airlines which have can- Agarwal family that started with a is particularly relevant to the An- celled certain flights earlier. small shop in Bikaner in 1937. daman & Nicobar Islands, which Tourism is a major economic ac- Second, Haldiram’s itself has suc- tourists mostly access by air. A large tivity and source of revenue for the ceeded as a national brand although number of people from the main- Andaman and it is only reasonable the business is broken into three dis- land and abroad are keen to visit the and proper to ensure that the tour- tinct geography-based entities. picturesque island, a phenomenon ists to the island get a fair deal and Third, owners remain old-fash- which the airlines are “exploiting’ this can be achieved by fixing a price ioned in that they aren’t looking at by increasing airfares to such high ceiling for inbound/outbound air exiting. levels that makes it almost unafford- tickets for Andaman. Besides, Mr Fourth, every savoury and sweet able for tourists to visit Andaman, Poddar has urged the civil aviation items sold by Haldiram’s is made in- says Mr Poddar. minister to direct airlines that “in house, in units closely monitored by Explaining this phenomenon, the the event of flight cancellations at family-dominated management. “De- president of HRAEI adds that one Port Blair, they should make alter- veloping and manufacturing products way ticket from Kolkata and Chen- native arrangements for stranded in-house in over ten dedicated units nai to Port Blair is as high as Rs passengers and not just leave them has also helped the company exper- 20,000 and above. “It is high time in distress.” iment with a host of new products,” Agarwal says.

12 | MYSTIC EAST January - February 2015

land-based hotels aggregator ITC MakeMyTrip invests in digital Group for $3.2 million, and also ac- quired South East Asia-focused Hotel hotel marketing solutions Travel Group for $25 million. – SAIF Partners & MakeMyTrip had acquired a majority stake of 76.6% firm Simplotel for $18.5 million in online travel meta search engine iXiGO for $18.5 million, in August 2011. – In February of the same year, the company had acquired a 79% stake in Singapore-based Luxury Tours & Travel Pte Limited (LTT) for around $3 million. – MakeMyTrip had also entered into a shareholders agreement and share subscription and purchase agreement to acquire Delhi-based MyGuestHouse in November 2011. (source:Medianama) Hospitalitynet adds: But the bigger picture still looks good for MakeMy- nline travel agent MakeMy- Goyal and Savan Bellur, Simplotel Trip, with CEO Deep Kalra noting the Trip had acquired a minori- is a SaaS-based platform that offers “improved macro-economic environ- O ty stake in Bangalore-based hotels solutions like content manage- ment in India.” The OTA is confident digital hotel marketing solutions ment, web design, hotel booking en- enough to lift its FY guidance, predict- company Simplotel on December gines, and search engine optimization ing a 30-31% year-on-year increase in 15,2014 for an undisclosed amount among others. Simplotel offers its revenues to around $137/138 million. as a part of Innovation Fund invest- clients flexible payment options, in- Air did well in the quarter for Make- ments, the company revealed as part cluding performance-based payments MyTrip, with an “impressive” lift in of its Q3 FY15 earnings release (pdf). and subscription plans. Some of its domestic market share from 13% last The company also informed that they hospitality clients in India include quarter to 15% this time. Kalra said have committed to make a further in- The Grand, New Delhi, Aloha On The that this improvement was thanks to vestment in Simplotel by June 2015, Ganges, North 16 Goa Resort, Jus- “internal rather than external factors”, which would increase its stake to 25%. ta Hotels & Resorts, and The Orchid namely improvements to MakeMy- MakeMyTrip had set up a $15 mil- Ecotel among others. Trip’s mobile capabilities for air book- lion Innovation Fund for investing in Goyal that the ings – seat selection, itinerary man- early-stage companies in the travel funds will be used to double Simplo- agement, single click payment to name technology space, with a special focus tel’s team size to 30 by the end of but a few. He noted that MakeMyTrip on mobile and IP-based companies, 2015, and to improve sales & support has “grown share with each and every and to explore M&A opportunities, services for its clients. airline individually. It’s not concentrat- in September last year. The company ed on a couple of carriers, it’s across had said that it will invest up to $3 MakeMyTrip acquisitions the board.” The MakeMyTrip app had million in such companies. ­‑ MakeMyTrip had acquired the entire a blockbuster quarter, with the total Given that the Hotels & Packages equity interest in EasyToBook.com for number of downloads at end of Decem- business has been driving MakeMy- around $5 million, in February last ber coming in a 5.5m – a big leap from Trip’s revenue growth for the past few year. At the time the company had said the 4.1m at the end of September. Kalra quarters, and had even overtaken Air that the acquisition was to strengthen added that 40% of monthly unique vis- ticketing revenues for the company in its travel technology stack and im- itors now come to MakeMyTrip via Q1-FY15, this acquisition comes at the prove its hotel offerings in Europe.. apps or the mobile web, and that 20% right time for MakeMyTrip. ‑ In November 2012, the company of domestic air and 34% of domestic Founded in August 2013 by Tarun had acquired majority stake in Thai- hotels are bought via mobile.

MYSTIC EAST | 13 NATIONAL NEWS

Fourth HRAEI managing committee meeting

Committee members who attended the fourth managing committee meeting held at Hotel Monotel on February 7, 2015 (Pic: Swapan Kumar Paul)

FTAs grow by 4% in January 2015 over January 2014 EEs in rupee terms show an important highlights regarding FTAs • The Percentage share of Foreign increase of 4% in January and FEEs from tourism during the Tourist Arrivals (FTAs) in India F 2015 over corresponding pe- month of January 2015. during January 2015 among the riod last year Ministry of Tourism top 15 source countries was high- compiles monthly estimates of For- Foreign Tourist est from USA (16.35%) followed by eign Tourist Arrivals (FTAs) on the Arrivals (FTAs): UK (11.82%), Bangladesh (9.29%), basis of Nationality-wise, Port-wise FTAs during the Month of January Canada (4.70%), Australia (3.63%), data received from Bureau of Immi- 2015 was 7.90 lakh as compared to Russian Federation (3.50%), France gration (BOI) and Foreign Exchange FTAs of 7.59 lakh during the month of (3.16%), Germany (3.12%), Sri Lan- Earnings (FEEs) from tourism on the January 2014 and 7.20 lakh in January ka (2.93%), Malaysia (2.91%), Ja- basis of data available from Reserve 2013. There has been a growth of 4.0% pan (2.63%), China (2.30%), Rep.of Bank of India. The following are the in January 2015 over January 2014. Korea (1.89%), Afghanistan (1.76%)

14 | MYSTIC EAST January - February 2015

and Oman (1.54%). (1.79%), Tiruchirapalli Airport uary 2014 was 4.0% as compared to • The Percentage share of Foreign (1.34%), Gede Rail (1.14%), Attari 2.8% in January 2014 over January Tourist Arrivals (FTAs) in India Wagah Land check post (0.92%) 2013. during January 2015 among the and Sonauli Land Check post FEEs in US$ terms during the top 15 ports was highest at Delhi (0.86%) month of January 2015 were US$ Airport (28.72%) followed by Mum- Foreign Exchange Earnings (FEEs) 1.854 billion as compared to FEEs of bai Airport (21.87%), Chennai Air- from Tourism in India in rupee terms US$ 1.786 billion during the month of port (8.39%), Bangalore Airport and in US$ terms January 2014. (5.83%), Goa Airport (5.09%), Ha- FEEs during the month of January The growth rate in FEEs in US$ ridaspur Land check post (4.99%), 2015 were `11,529 crore as compared terms in January 2015 over January Kolkata Airport (3.60%), Cochin to `11,082 crore in January 2014 and 2014 was 3.8% compared to a nega- Airport (3.56%), Ahmedabad Air- `10,785 crore in January 2013. tive growth of 10.0% in January 2014 port (3.33%), Hyderabad Airport The growth rate in FEEs in rupee over January 2013. (source: Tourism (3.05%), Trivandrum Airport terms during January 2015 over Jan- ministry) Govt keen to promote pilgrimage tourism Tomb in New Delhi besides a 24x7 ‘Incredible India’ tourist helpline along with special welcome cards for foreign tourists arriving at nine inter- national airports. Launching a slew of schemes for promoting tourism and cultural sites, he said 50% of the monuments in the world were in India, which is also blessed with Buddhist centres, Ganga and Himalayas. “The prime minister has earmarked Rs 500 crore for de- velopment of five tourist circuits such as Ganga, Krishna, Buddha, northeast and Kerala. This apart, seven pilgrim- age destinations including Gaya, Am- ritsar, Mathura and Velankanni will be developed,” he added. The minister also launched Swa- chh Bharat Swacch Smarak E-Poster, a booklet on ‘Badhte Kadam - Hunar Se Rozgar Tak’, Swachh Bharat Swa- chh Pakwan (Hunar Zayka), Braille book on Delhi monuments and Adarsh Smarak, which aims at devel- NEW DELHI: Religion is the opium throughout the world, it is very big. oping 25 monuments with wi-fi, dis- of the masses and the tourism minis- There is huge footfall in Rome and same abled-friendly facilities and interpre- try is keen to exploit just this in In- is the case of Mecca and Medina... In a tation centres. dia. The government is preparing a similar fashion, we should also explore Meanwhile, the government is multi-pronged programme to attract our rich potential aspects comprising discussing including Malappuram, tourists to the country’s pilgrim sites, epics and spirituality,” tourism and cul- Wayanad and Kannur districts of Ker- modeled on world famous pilgrim ture minister Mahesh Sharma said. ala among the 106 districts covered spots like Italy and Saudi Arabia. He was launching e-ticketing for under the security-related expendi- “If you look at spiritual tourism Taj Mahal in Agra and Humayun’s ture reimbursement scheme. (ToI)

MYSTIC EAST | 15 INTERNATIONAL NEWS

Hotels add art, humour another is a library with an electric crease in the number of jobs is ex- fireplace and cozy chairs, and yet an- pected, from 266 to 347 million by to spruce up other is a studio that can be used for 2024. By the same year, the indus- conference centres yoga or other activities. try is expected to bring in 11 trillion “We noticed that groups were incor- U.S. dollars, as opposed to the 7 from porating interactive, fun and non-cor- 2014. porate activities into their meeting Without improved ways to hire format and didn’t want to spend their and keep talent, the tourism indus- entire day in the boardroom,” says Mary try is estimated to lose 14 million Hutchcraft, director of sales and mar- jobs globally according to WTTC in keting at B Resort and Spa. “We created the coming decade. The industry is these unique, customizable spaces to likely to contribute $610 billion less meet the demand of these groups.” in GDP as well. The 4 percent de- Many of the hotels are also trying crease in jobs, compared to the ini- to design their conference centers to tial estimates of 347 million by 2014, blend in with the destinations. was reached by quantifying the scale For instance, the Onmi Nashville of challenge in regards to human re- Hotel is connected to the Country Mu- sources, a process performed for the sic Hall of Fame on three levels and first time. has a pedestrian pathway between the In a gargantuan effort, the study two structures. considered the countries that cre- Meeting spaces at the Alexander ate and hold 80 percent of jobs in otel conference centres are Hotel in Indianapolis showcase art cu- the travel and tourism industry and getting major makeovers to rated by the Indianapolis Museum of thus, contribute the most to glob- H become spaces for both work Art. The rooms are named after local al economy. Out of the 46 countries and play. neighborhoods. The wallpaper is a grid researched, the WTTC developed The Mandarin Oriental, Las Vegas, of Indianapolis streets. And the con- a ranking, meant to show which of has introduced a new meeting and ference space has a communal area for them have the most problems in cre- event venue known as The Gallery. attendees to try locally sourced food ating an encouraging, friendly envi- The 1,900-square-foot loft-style space and drink. (source: USA Today) ronment for future and current tour- has a 16-foot ceiling, frosted floor-to- Designers say they are responding ism employees. ceiling windows and a painted cement to a demand from meeting planners David Scowsill, president and CEO floor. It can be used for meetings, for more cool and dynamic spaces. of the World Travel and Tourism seated dinners or cocktail receptions. (source: usatoday.com) Council underlined the importance Pullman Hotels and Resorts, part of of the tourism industry at a global the Accor hotel brand, has created the level, not only by being an import- Business Playground by Pullman con- Tourism to lose 14 ant catalyst for economic growth, but cept. The conference table is actually million jobs by 2024 also for offering jobs to what Scowsill a poker table that encourages people names “marginalized” individuals in to place their hands or elbows on it for nce the figures are added, the society, like youth and women. This easier conversations. Canopy Break is number of people around the stands especially true in areas where a space that promotes informal dis- Oworld who work in one indus- tourism is the only way to earn a sal- cussions before meetings. The whole try tends to be impressive. When it ary. area has free wireless Internet, a large comes to Travel and Tourism, this Scowsill also expressed worry over HD LED screen, and a mini-tablet to number now stays at, roughly 266 the fact that 37 out of the 46 coun- automate everything in the room. million. However, when we look at tries considered to be tourism giants The new B Resort and Spa in Or- the amount of money that the tour- will show deficits by 2024. He goes lando has eight interior rooms for ism sector brought to the global on to caution both the private sector outside-the-box meetings, in addition economy in 2014 (a head-spinning and governments over the impor- to its 25,000 square feet of tradition- 7 trillion U.S. dollars), 266 million tance of careful planning in order to al conference facilities. One room is jobs start to make a lot of sense. prevent the loss of 14 million future a theatre that seats about 30 people, In the incoming decade, an in- jobs by 2024.

16 | MYSTIC EAST January - February 2015

Spain: Study shows increased Indonesia’s coral reefs interest in sustainable threatened by climate destinations change ndonesia’s once pristine coral reefs have been seriously threat- I ened by the rise in temperatures that has been caused by climate change. According to the Intergov- ernmental Panel of Climate Change (IPCC) 2013 report, in the last cen- tury the average surface temperature had increased worldwide by approx- imately 0.8°C and is projected to increase by between 3 °C and 4°C in the next century over the Southeast Asia region.

wo Spanish studies conducted However, this is changing,” said the jointly by researchers from the researcher, who has expressed the T Universities of Extremadura view that tourists demand unforget- and Jaén have revealed that tourists table experiences in destinations that are increasingly showing appreciation are not overcrowded or over-exploit- for sustainably managed destinations. ed, destinations that preserve their The studies by these researchers uniqueness and identity” and that have indicated that, when taking a are “able to provide authentic experi- trip, tourists are opting for destina- ences. Countries should take this into tions that are part of a scheme of pol- account in their destination offer- icies for environmental or heritage ings.” These studies have shown that sustainability, for example, because “sustainable tourism management there they enjoy “more satisfying ex- promotes a country’s socio-economic Indonesia’s coral reefs are home periences.” development by preserving resourc- to 75% of the world’s coral species, Lidia Andrades, a professor in the es and generating employment,” the 3,000 different kinds of fish and a Department of Business Management UEx stated in a press release. host of other unique marine life. They and Sociology at UEx and co-author Also along these lines, the studies also provide important coastal pro- of this work, acknowledges that the have produced other findings, such as tection functions as they reduce wave purpose of the study was to “demy- the fact that the tourist experience is energy by approximately 97 %. They stify” certain beliefs or social myths, significantly worse when destinations are now suffering from bleaching, “such as the view that investment in are overcrowded. hence instead of their natural myriad sustainability is less profitable in the The UEx also notes that the re- of colors, they are turning white. short-term.” searchers emphasize the need to re- Corals and most of the other reef According to Andrades, this has visit the strategies to improve the organisms depend on symbiotic al- therefore demonstrated that, from competitiveness of a country or area, gae that live in the polyps. These al- an economic standpoint, meeting the especially because despite these find- gae provide up to 95 percent of the tourist demand, while protecting the ings, it has become clear that during coral’s energy for feeding, growth areas for the future, is viable. the sampling period (between 2008 and reproduction. The algae are “Until a few years ago it was ob- and 2011) out of a total of 128 coun- known as zooxanthellae and they served that tourists did not know tries, only eleven had improved rat- give the coral reefs their attractive the difference between a sustainable ings for sustainable tourism, “which color. destination and one that was not. is worrying,” the professor noted.

MYSTIC EAST | 17 INTERNATIONAL NEWS

Phuket Light Rail BAROMETER System Absolute Share Price Performance, as on 30 January 2015 30 Jan 23 Jan % Closing Share Price as at Phuket, one of the region’s most popular 2015 2015 Change tourist destinations, will see improve- Australia Stock Exchange (ASX) Amalgamated Holdings Limited 11.76 11.23 5% ments to its transportation infrastruc- General Property Group 4.52 4.42 2% ture in an attempt to ease congestion. Mirvac Group 1.94 1.88 3% The new 24 billion bhat (US$736.2 Mantra Group 2.66 2.76 -4% million) light rail system will consist of Bangkok Stock Exchange (THB) 20 stations spanning 60 km across the Central Plaza Hotel Public Co Ltd 34.00 34.00 - island. The system, due to commence Dusit Thani Public Co Ltd 58.00 59.50 -3% The Erawan Group Public Co Ltd 4.84 4.86 - operations in 2021, will traverse from Grande Asset Hotels and Property Public Co Ltd 2.14 2.20 -3% Tha Noon, across Sarasin Bridge, to Laguna Resorts & Hotel Public Co Ltd 29.50 30.00 -2% Phuket Town and to Chalong Circle; the Minor International Public Co Ltd 36.00 35.00 3% line will also be connected to the Phuket China Shanghai Stock Exchange (RMB) International Airport. Commuters will Jinling Hotel Corporation Ltd 12.62 12.49 1% China Shenzhen Stock Exchange (RMB) benefit from a much reduced travel Huatian Hotel Group Co Ltd 6.26 6.11 2% time of about 1.5 hours from Tha Noon Guangzhou Dong Fang Hotel Co Ltd 12.66 12.94 -2% to Chalong. Concerns have been raised NASDAQ (US$) over the rising number of tourists to the China Lodging Group Ltd 21.51 21.68 -1% resort destination and the lack of ade- Home Inns & Hotels Management Inc 24.43 24.74 -1% Hong Kong Stock Exchange (HK$) quate infrastructure to cope with this Miramar Hotel & Investment Co Ltd 9.81 9.81 - influx of visitors. This new development Regal Hotels International Holdings Ltd 4.81 4.88 -1% is expected to ease congestion and im- Sino Hotels Holdings Ltd 2.50 2.50 - prove visitor experience. The Hong Kong & Shanghai Hotels Ltd 11.10 11.00 1% Shangri-La Asia Limited 10.00 10.20 -2% Dorsett Hospitality International 1.28 1.27 1% Bvlgari Enters The National Stock Exchange (INR) IHCL (Taj Hotels, Resorts & Palaces) 120.50 119.95 - Maldives EIH (Oberoi Hotels & Resorts) 114.00 117.00 -3% Hotel Leela Ventures 22.50 22.55 - Marriott International together with In- Korea Exchange (KRW) dia’s Panchshil Realty plans to open an The Shilla 104,000 105,000 -1% 82-room Bvlgari resort in the Maldives. Singapore Stock Exchange (S$) The luxury resort, expected to com- Amara Holdings Ltd 0.53 0.53 - mence operations as early as 2018, will Ascendas Hospitality Trust 0.685 0.685 - Ascott Residence Trust 1.26 1.295 -3% be Marriot International’s first proper- Banyan Tree Holdings Limited 0.525 0.525 - ty at this resort destination and will be CDL Hospitality Trusts 1.81 1.785 1% located within the Raa Atoll, Northwest Far East Hospitality Trust 0.845 0.84 1% of Malé. The Maldives has long been Hotel Grand Central Ltd 1.32 1.31 1% regarded as a luxury getaway, with a Hotel Properties Ltd 4.12 4.10 - number of resorts vying for the high- Mandarin Oriental International Ltd (US$) 1.63 1.65 -1% OUE Hospitality Trust 0.92 0.925 -1% end luxury segment. The market within Stamford Land Corporation Ltd 0.565 0.555 2% the Maldives has remained strong with Taiwan Stock Exchange (NT$) 1.2 million visitor arrivals to the desti- Formosa International Hotels Corporation 320.00 324.00 -1% nation in 2014, an increase of 7.1% as The Ambassador Hotel, Ltd 28.10 28.20 - compared to 2013. Chinese travellers, Tokyo Stock Exchange (JPY) who make up 30% of all travellers in Japan Hotel REIT Investment Corp. 77,800 78,500 -1% Imperial Hotel, Ltd 2,570 2,640 -3% 2014, accounted for most of this growth with an increase in visitors by 9.6%. Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on Similarly, South East Asian travellers the information as statement of facts and are advised to make their own independent checks to verify who constitute 4.7% of the market also the information provided. For further information, please feel free to contact HVS Asia Pacific. (source: saw a robust growth of 37.3%. HVS Global Hospitality Report)

18 | MYSTIC EAST

PRODUCTS & SERVICES BLUE STAR TARGETS 10% SHARE OF ROOM AC MARKET

Inverter ACs will be the game changer... It will knock out lower-priced air- conditioners from the market as they are more efficient (Left) Mr. B. Thiagarajan,Executive Director & President -AC & R, BlueStar launches new and eco-friendly range of room air-conditioners. On his right is Mr. C. P. Mukundan Menon, Executive Vice President-Unitary Cooling Products

KOLKATA: Blue Star is aiming to 50 per cent of its sales in the country. He added that inverter ACs would capture ten per cent of the room AC “We want to set up a new plant knock out lower-priced air-condition- market in the next fiscal. in the South. We have the capacity ers from the market as they are more “Our market share in the room AC which can be managed till May 2016”, efficient and eco-friendly. segment is around nine per cent. We Thiagarajan said adding, the compa- The company has so far registered a aim to take this to ten per cent in the ny had shortlisted two or three sites, revenue of Rs.800 crore from domes- coming financial year,” B Thiagara- and a final call would be taken in July tic operations and expects to close the jan, president and ED of AC and Re- or September, 2016. The AC segment ongoing fiscal year at Rs.1,000 crore. frigeration Products division of Blue was expected to contribute Rs 1,000 It has billed 300,000 units till now Star told reporters here recently. crore to overall sales in the current and they expect to bill another 40,000 He said the company was expecting fiscal, he said. units before the financial year ends. to grow at 25 per cent in the next fis- Inverter ACs will be the game As of now, the company has regis- cal, while the industry growth would changer, Mr Thiagarajan claimed. tered a growth of 30 percent in reve- be in the region of 15 per cent. With an “Inverter ACs save 30 percent more nue and 19 percent in volume. annual capacity of four lakh units per power than five-star rated ACs. How- AC exports of the company to the annum, the company was planning to ever, their market share is merely SAARC countries, Middle-East and Af- set up a new plant in South India as eight percent. That is likely to triple in rica account for about ten percent of its the region contributed to more that the coming two years,” he maintained total billed products. (PTI and IANS)

20 | MYSTIC EAST SERVING AUTHENTIC CHINESE FOOD Since

1965-2015

A unit of Satya Hotels (P) Ltd Hotel | Banquets | Restaurant 3, Waterloo Street, Kolkata 700 069 P +91 33 2248 9577/0442 TRAVEL & TOURISM WEST BENGAL INCENTIVE SCHEME, 2015

he new incentive scheme an- nounced by the West Bengal T government is clearly intend- ed to fast track bankable projects in new and high potential tourist desti- nations. As the state government has selected the PPP mode for implemen- tation of these projects, the incentive scheme is expected to give serious in- vestors an opportunity to create world class tourism products for healthy and sustainable development. A new incentive scheme for promo- tion of tourism units called the West Bengal Incentive Scheme, 2015, an- nounced by the state government vide notification no. 36-TW/5T-06/2015 dated January 6, 2015, has become effective from January 7, 2015 in the state of West Bengal and shall remain valid up to December 31, 2020.

Applicability of the 2015 scheme The 2015 scheme shall be general- ly applicable to all eligible tourism projects/units and also to expansion projects of existing units set up on or after the effective date of this incen- tive companies/undertakings owned or managed by the state government.

Non-applicability of the 2015 scheme The West Bengal Incentive Scheme, 2015 shall not apply to those tour- ism units that have been registered for and have been sanctioned incen- tives under any previous scheme. It is further provided that any unit which may have applied for registra- tion with the Directorate of Tourism under WBIS’2008 before the date of Royal Bengal Tiger taking a bath at algae pond in Sundarban National Park

22 | MYSTIC EAST January - February 2015

BENEFITS FOR ELIGIBLE GROUP GROUP GROUP GROUP UNITS UNDER NORMAL PROJ- ‘A’AREA ‘B’AREA ‘C’AREA ‘D’AREA ECTS

STATE CAPITAL INVESTMENT 20% subject to a limit SUBSIDY* 7.5% of fixed capital invest- of Rs 150 lakhs. In spe- *In no case the subsidy in re- 10% subject to a limit of Rs 15% subject to a limit of Rs ment subject to a limit of cial area it would be spect of the building component 100 lakhs. 120 lakhs. Rs 100 lakhs. 25% subject to a limit will exceed 50% of the total of Rs 175 lakhs subsidy given

60% of annual interest liability on term loans INTEREST SUBSIDY* 50% of annual interest lia- 50% of annual interest liabili- subject to a limit of Rs 60% of annual interest liability *Not for term loans for second bility on term loans subject ty on term loans subject to 25 lakhs for 7 years. It on term loans subject to a hand plant & machinery or hire to a limit of Rs 25 lakhs for a limit of Rs 25 lakhs for 5 would be 75% in spe- limit of Rs 25 lakhs for 7 years purchase equipment 5 years years cial area subject to a limit of Rs 30 lakhs for 7 years

Waiver of duty on elec- Waiver of duty on electrici- Waiver of duty on electricity Waiver of duty on electricity tricity consumed for 5 WAIVER OF ELEC. DUTY ty consumed for 5 yrs from consumed for 5 yrs from consumed for 5 yrs from date yrs from date of comml date of comml production date of comml production of comml production production

ADDL INCENTIVE ON 60% of contribution to GENERATION 60% of contribution to 60% of contribution to 60% of contribution to ESI,EPF ESI, EPF for 5 yrs. In OF EMPLOYMENT ESI,EPF for 5 yrs ESI,EPF for 5 yrs for 5 yrs special area incentive will be for 10 yrs

ADDL INCENTIVE FOR ADVENTURE Reimbursement of 90% TOUR OPERATORS* Reimbursement of 50% VAT. In special area, *For purchase of tents/dingy/ Reimbursement of 60% VAT Reimbursement of 80% VAT VAT 100% VAT will be adventure & reimbursed. sports equipment/ related accessories

REIMBURSEMENT OF STAMP 60% DUTY & REGN FEES* 50% 50% 60% In special area, it will *For new purchase of land/ be 70% buildings

commencement of this 2015 scheme tourism unit to which this scheme ap- arrangement of finance from own re- and whose applications may not have plies, shall be eligible for securing an sources, issue of eligibility certificate been disposed of prior to the com- eligibility certificate provided: shall be considered provided the West ing into effect of this 2015 scheme (a) The project is covered by a detailed Bengal Tourism Development Corpo- or deemed to have been disposed of feasibility report/project prepared for ration (WBTDC) is satisfied about the shall be entitled to all benefits under the purpose, arrangement of finance as per condi- WBIS’2008 only. (b) The project has been approved tions stipulated above. and sanctioned by a central finan- The eligibility certificate shall be Eligibility criteria for cial institution or commercial bank issued by WBTDC on fulfilment of incentives or state financial institution, as the conditions stipulated above and on Any unit within the meaning of a case may be. In case of projects with the basis of a registration certificate

MYSTIC EAST | 23 TRAVEL & TOURISM

BENEFITS FOR MEGA GROUP GROUP GROUP GROUP PROJECTS ‘A’AREA ‘B’AREA ‘C’AREA ‘D’AREA

STATE CAPITAL INVESTMENT 20% of fixed capital SUBSIDY* investment. Upper limit 7.5% of fixed capital 10% of fixed capital 15% of fixed capital *In no case will the amount of of Rs 1.75cr investment. Upper limit of investment. Upper limit of investment. Upper limit of Rs subsidy in respect of building Special area- 25% Rs 1.50 cr Rs 1.50 cr 1.75 cr component exceed 50% of total with upper limit of subsidy Rs 2 cr

ADDL INCENTIVE ON GENER- 60% for 5 years ATION 60% for 5 years 60% for 5 years 60% for 5 years Special area- 60% for OF EMPLOYMENT 10 years

REIMBURSEMENT OF STAMP 60% 50% 50% 60% DUTY & REGN FEES Special area- 70%

Waiver of duty on elec- Waiver of duty on electrici- Waiver of duty on electricity Waiver of duty on electricity tricity consumed for 5 WAIVER OF ELEC. DUTY ty consumed for 5 yrs from consumed for 5 yrs from consumed for 5 yrs from date yrs from date of comml date of comml production date of comml production of comml production production. Special area- 7 years

CAPACITY UTILISATION* *An approved mega project of Addl FAR of 1.0 an eligible unit shall be entitled Addl FAR of 0.25 Addl FAR of 0.25 Addl FAR of 1.0 Special area - Addl to additional floor area ratio FAR of 2 (FAR) as may be fixed by the competent authority

ADDL INCENTIVE FOR ADVEN- TURE Reimbursement of 90% TOUR OPERATORS* Reimbursement of 50% VAT. In special area, Reimbursement of 60% VAT Reimbursement of 80% VAT *For purchase of tents/dingy/ VAT 100% VAT will be adventure & sports equipment/ reimbursed related accessories

LUXURY TAX EXEMPTION* *All new tourism units shall be given 100% relief on paying luxury tax for a period of three years from the year of commencing operations if locat- ed in ‘special areas’ on reimbursement basis. Homestay tourism units coming under the scheme will also be exempted from paying luxury tax for three years on reimbursement basis.

TOURISM PROMOTION ASSISTANCE IN LIEU OF INTEREST SUBSIDY* *An eligible tourism unit will be entitled to a tourism promotion assistance at the rate of 75% of VAT for five years irrespective of the location of the project, which will be in lieu of interest subsidy.

issued by the Directorate of Tour- poration (KMC), Bidhannagar Mu- ing Durgapur & Asansol Municipal ism. All necessary clearances from nicipality (BM) and New Town Kol- Corporation areas), Nadia, Pur- appropriate authorities have to be kata Development Authority. ba Medinipur, Murshidabad, Bir- obtained before a registration certif- • Group B- North 24 Parganas (ex- bhum, Malda districts. icate is issued by the Directorate of cluding KMC, BM, New Town Kol- • Group D- Darjeeling, Jalpaiguri, Tourism. kata Development Authority and Coochbehar, Uttar Dinajpur, Dak- Classification of areas blocks under Sunderbans area), shin Dinajpur districts. The type and quantum of incentives South 24 Parganas (excluding • Special area- Jungle Mahal (Dis- under the scheme shall be determined KMC and blocks under Sunderbans tricts of Purulia, Bankura, Paschim as per the following classification area), Howrah, Hooghly, Durgapur Medinipur) & blocks under Sunder- based on location of a tourism unit: & Asansol Municipal Corporation. bans area in both North 24 Parga- • Group A- Kolkata Municipal Cor- • Group C- Bardhhaman (exclud- nas & South 24 Parganas districts.

24 | MYSTIC EAST January - February 2015

Application for grant of shop and fuel-filling stations for vehi- alley; golf; angling; nature cure facili- incentives cles may be included as desirable ac- ties e.g naturopathy, yoga, ayurvedic/ All applications for grant of incentives tivities. About a hectare of land will be herbal cures; beauty parlour including with necessary documentation shall needed for a standard motel. barber shops and massage facilities; have to be submitted to the managing children’s corners including crèche, director, WBTDC Ltd. The total value 3. Heritage Hotel park, indoor games and other recre- of incentives shall not exceed 100 per A heritage hotel project shall be lo- ational facilities; landscaped gardens cent of the fixed capital investment in cated in a palace/castle/fort/build- and orchards; jogging tracks/nature any case. ing or architectural excellence which trails; convention/conference facil- No claim under the incentive was built prior to 1950 and which is ities; shopping arcade; well-stocked scheme shall be entertained, if the being converted into a hotel with a library including video library and tourism unit has defaulted in payment minimum of 10 rooms to let. The fa- auditorium. of any applicable taxes. It is to be not- cilities and the features along with the A tourist resort requires a sprawl- ed that all reliefs granted under this services should be as per classifica- ing area and is usually located in incentive scheme to any tourism unit, tion guidelines of the Department of countryside. both under normal and mega projects Tourism, government of India as ap- will be on reimbursement basis. plicable to heritage hotels from time 7. Camps and facilities en- All applications for grant of incen- to time. A heritage hotel will have all couraging adventure tour- tives shall be disposed of in accor- the facilities available in a usual hotel. ism dance with the operational procedure The project of camping and tent facilities of WBIS, 2015 for tourism units to be 4. Yatriniwas should have minimum 5 tents located in notified in due course. Yatriniwas is actually a low-bud- an area not less than one acre of land, at get hotel of 10 or more rooms to let least two toilets and two showers sepa- ANNEXURE-I located near airport, railway station rate for men and women with running 1. Hotels and central bus terminus for transit water and a restaurant. The camping Hotels should have facilities expected accommodation and will have all the sites should have specific sewerage dis- of the establishment in 1 to 5-star cat- facilities available in a usual hotel. posal points for campers. There should egory or approved non-star category 5. Yatrika be proper arrangements for disposal of according to the guidelines issued/ Yatrika is actually a low-budget ho- sullage, sewerage and solid garbage. Ad- to be issued by the Department of tel of 10 or more rooms to let located venture tourism comprises trekking in Tourism, government of India or gov- near a centre of pilgrimage mainly for the forest and the hills, mountaineering, ernment of West Bengal from time accommodation of pilgrims and will mountain biking, rock climbing, canoe- to time. Their size should be as per have all the facilities available in a ing, kayaking, water skiing, yachting, norms prescribed by the Department usual hotel. river rafting, long distance swimming of Tourism, government of India/ and para-sailing, car rally etc. government of West Bengal for such 6. Tourist resort units. A hotel should have minimum A tourist resort means a unit which 8. Aerial ropeway 10 rooms to let, reception centre- has at least any eight of the following Aerial ropeway means a system of cum-lounge, restaurant, bar, a small activities/facilities. overhead ropes on which the carriers convention centre and car parking Accommodation with at least 10 or are used for the purpose of passen- space. A hotel would also include a more rooms to let; health club facil- gers, animals or goods and includes flating hotel and service apartment. ities e.g. sauna bath, Jacuzzi, steam posts, ropes, carriers, stations, offices, bath, gymnasium etc; health and warehouse, workshop, machinery and 2. Motels wellness spa, water sports e.g. white other equipment used for the purpose A motel project should have highway water rafting, canoeing, kayaking, of aerial ropeway and the land appur- facilities consisting of a minimum water skiing, yachting, windsurfing, tenant to such aerial ropeway. of two rooms to let, public toilets, a rowing, paddle boating etc; swim- restaurant, a first-aid centre, medi- ming pool; aero-sports e.g. power 9. Railway travel projects cine store, a utility store, handicraft flying, a hand-gliding, para-gliding, on the pattern of ‘Palace- selling centre and parking space for para sailing etc; skiing, ice-skating; on-wheels’ at least 10 vehicles. Facilities like bar, roller skating; sports like tennis, table ‘Palace-on-wheels’ projects may con- public telephone booth, car repairing tennis, badminton, billiards, bowling nect (a) eastern UP, Bihar, West Ben-

MYSTIC EAST | 25 TRAVEL & TOURISM

gal and Orissa (Buddhist circuit) or which will include souvenir shop, live for conventions, industrial shows, travel (b) Siliguri, Kurseong and Darjeeling demonstration area, but will exclude & trade shows and the like, having large (Hill circuit). Such projects will re- manufacturing in any form. unobstructed exhibit areas with con- quire collaboration of private sector ference rooms, hotel accommodations, and the Indian Railways. 12. Tea Tourism food court, parking and other facilities. Tourism unit set up on a land leased 10. Amusement Park out to a tea garden and which has been 15. Wayside facilities Amusement Park means a unit which recognised by the government as a tea A wayside facility should have at least has at least any six of the following tourism unit. These units shall enjoy 10 rest rooms, car parking, toilet, activities: incentives as available in category ‘D’ drinking water and restaurant. Water sports, e.g white water raft- areas irrespective of location. ing, canoeing, kayaking, water skiing, 16. Home Stay yachting, windsurfing, rowing, pad- 13. Tourist boats/Launch- Home stay is any private house locat- dle boating etc; aquarium, aqua park, es/Cruise Boats/House ed in rural and urban areas, where the swimming pool; aero-sports e.g ; flying, Boats owner/promoter of the establishment a hand gliding, para-gliding, para-glid- A tourist boat or a launch or a cruise along with his/her family is physical- ing, para-sailing etc; skiing, ice-skating; boat or a house boat would mean ly residing in the same establishment roller skating; sports like tennis, table such boats or launches or cruises and letting out minimum one room tennis, badminton, billiards, bowling that has accommodation for at least and maximum 6 rooms (12 beds) each alley; angling; children’s corners in- 4 persons, at least one general toilet, with attached toilet facility reasonably cluding crèche, park, indoor game and cabins with attached toilets, kitchen, furnished and ready for letting out to other recreational facilities; landscaped dining space, water and arrange- the tourists/guests. The standard size gardens and orchards; jogging tracks/ ment for garbage disposal. This for double and single bed room ac- nature trails;convention/conference fa- boat/launch/cruise would be used commodation is 120 sq. ft. and 100 cilities; auditorium; restaurant. for conducting river cruises for the sq. ft. respectively and 30 sq. ft. for tourists. bathroom/toilet. 11. Art & Craft Village Art & Craft Village is set up in and 14. Convention centre 17. Other projects around a place of tourist interest to A convention centre is a large civic Any other project that may be ap- promote indigenous art and craft building or group of building designed proved by the government.

GLOSSARY OF TERMS 1. “Tourism unit” means a project or a unit under commercial oper- date of this incentive scheme. ation related to tourism activities as defined in Annexure I and as 5. “Expansion of existing unit” means expansion of the capacity of may be further notified by the tourism department. an existing unit which involves increase in fixed capital invest- 2. “Eligible unit” means both a new tourism unit or expansion of ment by 50% or more, or Rs 30 lakhs whichever is higher. an existing unit having a registration certificate issued by the 6. “Expansion portion” means the portion expanded with additional Director of Tourism to this effect and an eligibility certificate capacity commercial operation of which is started on or after the issued by the WBTDC, or any competent authority as the case effective date of this incentive scheme. may be, provided construction of such project or commercial 7. “Fixed capital investment” will mean the investment made in operation of such unit started on or after the effective date of building and plant and machinery and also on equipment installed this incentive scheme. for pollution control measures in the tourism unit. 3. “New unit” means a tourism unit having investment in fixed cap- 8. “Mega unit” means an eligible unit of special characteristics set ital assets which exists in West Bengal and which start commer- up with a fixed capital investment exceeding Rs 100 crores in cial operation in its expanded portion on or after the effective date areas under Group A and B, exceeding Rs 50 crores in areas under of this incentive scheme. Group C and D and Rs 25 crores or above in ‘Special Area” 4. “Existing unit” means a tourism unit having investment in fixed 9. “Special Area” means the districts of Paschim Medinipur, Bankura, capital assets which exists in West Bengal and which starts com- Purulia & Blocks under Sunderbans area in both North 24 Parga- mercial operation in its expanded portion on or after the effective nas & South 24 Parganas districts.

26 | MYSTIC EAST

FOOD & CUISINE

PUNJABI CUISINE HAS UMPTEEN TAKERS IN KOLKATA

KOLKATA: While ilish (hilsa) and ens) can be had on the go,” Abhro Gu- Ahmed told IANS. rosogolla (balls of sweets dipped in hathakurta of the relatively new Rang On offer at Honey Da Dhaba are syrup) are the hallmark of the Bengali De Basanti Dhaba (RDBD) chain told chicken butter masala, mutton boti food culture, robust flavours of Punja- IANS. kebab and lehsuni kebab, among oth- bi dishes too have a mass appeal and Apart from the usual roster of Dil- ers. legacy here, far away from the North li ki paneer makhani, Dilli ki butter “Kebabs and tikkas are among the Indian plains. chicken, dhaba chicken curry, RDBD most popular items and move fast. Thus, piping hot daal maakhni, serves its signature breads - hari Since the cooking is done in authen- smoking skewers of kebabs cooked mirch ki roti (green chilly flatbread) tic clay ovens, there isn’t too much in tandoori style, aromatic sarson da and lal mirch ka paratha (red chilly oil used,” restaurant in-charge Dhiraj saag and a range of breads infused flatbread). Joshi told IANS. with spices and other ingredients - all “Though the staples are always in Though themed restaurants with with the sheen of generous dollops demand, there is a fair amount of ex- faux ‘dhaba’ ambience are popping up of clarified butter or ghee - and more perimentation that is going on,” Gu- across the city, renowned food crit- were on offer at a just-concluded Pun- hathakurta noted. ic, columnist and restaurateur Rakhi jabi food fest here. Then, there’s Sanjha Chulha, an es- Purnima Dasgupta pointed out that And, instead of elaborate seating tablished name in North West Fron- the city’s gourmands have always arrangements and signature décor, tier spread. In addition to Punjabi relished the mouth-watering taste of kiosks of seven restaurants handed staples like sarson da saag and makki Punjabi dishes. out small portions of fast-moving di roti, it offers juicy chunks of jugal- “After partition, immigrants and Punjabi dishes to foodies in the open- bandi kebab - a fusion of minced mut- refugees came to the city from the Pa- air arena of a popular city mall. ton and chicken seekh kebab. kistani part of Punjab and since then, “People in Kolkata are more in- “Punjabi food is extremely pop- the food culture has really diversified. clined towards Punjabi food than ular among Bengalis as well as the Some are more Calcuttan than Pun- Mughlai since items like tikkas and north Indian community in Kolkata,” jabis and, naturally, the food has also kebabs cooked in tandoor (clay ov- Sanjha Chulha chain co-owner Asif evolved,” Dasgupta told IANS.

28 | MYSTIC EAST

COVER STORY

IS THE HOTEL INDUSTRY COMING OUT OF THE TROUGH?

he FHRAI Indian hotel industry remained unchanged at 60.4% compared survey 2013-14 “reflects a posi- to that in 2012-13. The average room rate The ‘HVS-FHRAI tive change indicated by key op- (ARR) was the highest in the last five years, report notes erating statistics”. It adds that increasing by 4.9% to close at Rs 4,729. It is that despite the this could be an early indicator important to note that the increase in ARR Tof a turnaround for the Indian hotel industry. was recorded across all start categories (ex- expansion in The survey, representing 1,295 hotels in var- cept Heritage). supply (more ious cities across different star categories in • Increasing contribution of non-rooms rev- than 10% in the India, presents key statistics for the industry. enue: There has been a continued change branded segment) It provides information about financial perfor- in the revenue composition over the past mance, marketing media usage patterns, guest few years. Although ARRs saw a marginal over 2012-13, segmentation, etc. increase, the trend of declining revenues sub-5% GDP The all-India average occupancy, in this from the rooms division continued in growth in 2013- year’s survey remained unchanged compared 2013-2014, falling from 52.2% in 2012-13 14, and high to 2012-13, in contrast to its declining trend to 51.3% in 2013-14. The contribution of since 2010-11. However, the redeeming feature Food and Beverage (F & B) revenue, on the inflation rate of was the average room rate of Rs 4,729 in 2013- other hand, has increased marginally from 5.9% the hotel 14 which happens to be the highest in the last 41.2% in 2012-13 to 41.9% in 2013-14 with industry has five years. rising contribution from Banquets and reported strong The ‘HVS-FHRAI 2014 Hotels in India Conferences. Additionally, Other Revenue Trends and Opportunities Report’ notes that that includes laundry, gift shop, business performance despite the expansion in supply (more than centre, health club and rentals also saw a which underscores 10% in the branded segment) over 2012-13, slight growth from 6.6% in 2012-13 to 6.9% the growth in sub-5% GDP growth in 2013-14, and high in- in 2013-14. demand and the flation rate of 5.9% the hotel industry has re- • Rising departmental expenses as percent- ported strong performance which underscores age of revenues: Departmental expenses as strength and the growth in demand and the strength and a percentage of total revenues at an all-In- resilience of the resilience of the industry. dia level have increased over the last three industry. years. This trend has continued in 2013-14, Indian Hotel Industry - Country with room expenses growing to 20.7% (as Trends a percentage of rooms revenue) as com- • Unchanged occupancy and increased av- pared to 19.3% in 2012-13. Similarly, F & erage rate- The occupancy for 2013-14 B expenses have increased from 55.2% in

30 | MYSTIC EAST January - February 2015

2012-13 to 40.2% in 2013-14. Thus, the overall departmental expenses as a percentage of revenues have increased from 35.4% in 2012-13 to 37.1% in 2013-14, resulting in Hotel industry’s a decline in departmental income from 64.66% in 2012-13 to 62.9% in 2013-14. This trend may be attribut- medium term ed to the higher costs of manpower, energy and the inflated commodity prices, combined with a relatively outlook sluggish growth in revenues. • High energy costs: The survey reveals that energy expenses on subdued: ICRA all-India PAR basis have increased by 13.2% in 2013-14. Over the past five years, the energy cost on ndian hotel industry’s revenues it pointed out. a PAR basis has grown at a CAGR are likely to increase by 7-9 per Domestic demand has showcased of 10.5%. High energy costs are a cent in 2014-15 mainly driven a growth of over 10 per cent, driven major concern especially in cities I by incremental rooms and food and by both business and leisure travel- such as Chennai and Pune where they are a major factor in declining beverage income, ratings agency lers during 2014-15. However, falling profitability of hotels. This year’s ICRA has said. global economic sentiments have survey reveals that among the use “The outlook for the Indian Hotel affected inbound travel and with a of various technological applica- Industry over the next 12-18 months booking window of 8-12 months for tions, the use of energy manage- is expected to remain subdued western leisure travel, the impact ment systems (EMS) has witnessed given the gap between supply and is expected to be felt in 2015-16 as the highest increase on an all-India demand. However, measures by the well. level. However, increasing energy government to drive tourism through ICRA expects easing visa and costs, in spite of higher use of EMS several strong policy initiatives could policy norms will support inbound points to the need for training, ef- bring in stronger demand, supporting travel into India even as a weaker ficient use of EMS, and effective the industry over the next 12-18 global economy curtails traveller implementation of ‘Green Build- months,” ICRA said in a report. budget, it said. ing’ designs and ‘Green Practices’ to reduce their energy costs as well Growth is expected to accelerate Foreign tourist arrivals growth as their carbon and water footprint. to 9-12 per cent over the next two increased from 5.9 per cent in 2013 Green practices would have to be years, it added. Average Room Rates (calendar year) to 7.1 per cent both in sourcing the energy (renew- (ARRs) are expected to be largely during 2014, the rating agency said. able sources like solar) and water flat while occupancies are estimated As per ICRA Research, India has (tapping rainwater and using treat- to improve by 2-4 per cent during over 29,000 premium rooms under ed grey water) as well as efficiently 2014-15, ICRA said. construction- to be launched over managing these resources through Industry occupancy levels have the next six years. departmental practices. witnessed improvement in the As a result of supply-demand mis- current fiscal. However, it has been match, ICRA said, industry players The Big Seven geographically concentrated in pock- have been resorting to significant Bengaluru ets like Mumbai. But there continues belt tightening by keeping a check Bengaluru, the ‘Silicon Valley of In- dia’ and the IT/ITES capital of the to be lack of traction in ARRs even on key cost drivers like payroll ex- country, houses a number of multi- in markets like Mumbai, which has penses, which have gone up only by national companies like Infosys, Wi- been maintaining a steady Rs 100- an estimated 4 per cent over the last pro, Cisco, Oracle, Accenture, Intel, 200 discount on year-on-year basis, three fiscals. (PTI) Aricent, Nokia, Honeywell amongst

MYSTIC EAST | 31 AVERAGE ROOM RATES AND OCCUPANCY RATES IN 30 CITIES

Agra Hyderabad Room Rates Occupancy Rates Room Rates Occupancy Rates 2009-10: 2,482 2009-10: 57.0% 2009-10: 5,137 2009-10: 58.8% 2010-11: 3,968 2010-11: 63.2% 2010-11: 4,152 2010-11: 53.3% 2011-12: 3,974 2011-12: 68.3% 2011-12: 4,020 2011-12: 55.4% Kochi 2012-13: 4,381 2012-13: 60.3% Chennai 2012-13: 3,856 2012-13: 55.7% Room Rates Occupancy Rates 2013-14: 3,988 2013-14: 57.7% Room Rates Occupancy Rates 2013-14: 3,367 2013-14: 56.9% 2009-10: 2,806 2009-10: 64.4% 2009-10: 4,083 2009-10: 65.6% 2010-11: 1,528 2010-11: 74.2% 2010-11: 5,508 2010-11: 64.8% 2011-12: 1,536 2011-12: 81.1% Ahmedabad 2011-12: 4,365 2011-12: 69.1% 2012-13: 2,882 2012-13: 71.5% 2012-13: 4,345 2012-13: 69.8% Indore 2013-14: 2,186 2013-14: 68.4% Room Rates Occupancy Rates 2013-14: 4,043 2013-14: 68.2% Room Rates Occupancy Rates 2009-10: 3,367 2009-10: 65.7% 2009-10: 1,814 2009-10: 65.2% 2010-11: 3,234 2010-11: 67.6% 2010-11: 1,869 2010-11: 65.4% 2011-12: 3,650 2011-12: 65.1% 2011-12: 2,590 2011-12: 57.9% 2012-13: 3,902 2012-13: 63.0% 2012-13: 2,631 2012-13: 61.4% 2013-14: 3,106 2013-14: 60.4% Coimbatore 2013-14: 2,032 2013-14: 55.8% Room Rates Occupancy Rates 2009-10: 3,236 2009-10: 75.5% Aurangabad 2010-11: 3,989 2010-11: 72.8% Room Rates Occupancy Rates 2011-12: 4,100 2011-12: 66.5% 2009-10: 2,850 2009-10: 57.9% 2012-13: 3,655 2012-13: 61.3% 2010-11: 2,612 2010-11: 59.5% 2013-14: 2,987 2013-14: 59.3% 2011-12: ID 2011-12: ID 2012-13: 3,203 2012-13: 49.0% 2013-14: ID 2013-14: ID Jodhpur Room Rates Occupancy Rates Bengaluru 2009-10: 4,552 2009-10: 43.2% Room Rates Occupancy Rates 2010-11: 5,519 2010-11: 49.2% 2011-12: 7,005 2011-12: 48.8% 2009-10: 6,766 2009-10: 52.6% 2012-13: 8,431 2012-13: 46.3% 2010-11: 5,838 2010-11: 53.8% 2013-14: 11,350 2013-14: 45.0% 2011-12: 6,849 2011-12: 58.7% 2012-13: 5,533 2012-13: 56.6% 2013-14: 6,300 2013-14: 59.7% Delhi - NCR Bhopal Room Rates Occupancy Rates 2009-10: 6,985 2009-10: 64.6% Room Rates Occupancy Rates 2010-11: 6,763 2010-11: 59.0% 2009-10: 3,110 2009-10: 66.1% 2011-12: 7,319 2011-12: 61.4% 2010-11: ID 2010-11: ID 2012-13: 7,455 2012-13: 57.1% 2011-12: 3,827 2011-12: 78.0% 2013-14: 8,282 2013-14: 57.7% 2012-13: 4,300 2012-13: 72.4% 2013-14: 3,366 2013-14: 67.7% Goa Chandigarh Room Rates Occupancy Rates Jaipur 2009-10: 4,757 2009-10: 63.1% Room Rates Occupancy Rates 2010-11: 7,807 2010-11: 64.4% Room Rates Occupancy Rates 2009-10: 4,780 2009-10: 69.1% 2011-12: 5,856 2011-12: 69.5% 2009-10: 4,059 2009-10: 57.7% 2010-11: 4,544 2010-11: 70.4% 2012-13: 5,749 2012-13: 67.7% 2010-11: 3,071 2010-11: 64.0% 2011-12: ID 2011-12: ID 2013-14: 5,643 2013-14: 69.9% 2011-12: 3,447 2011-12: 59.4% 2012-13: 3,639 2012-13: 65.4% 2012-13: 3,490 2012-13: 58.6% 2013-14: 4,396 2013-14: 54.9% 2013-14: 3,878 2013-14: 57.3%

32 | MYSTIC EAST Lucknow Shimla Room Rates Occupancy Rates Mussoorie Room Rates Occupancy Rates 2009-10: 5,109 2009-10: 58.7% Room Rates Occupancy Rates 2009-10: 1,790 2009-10: 48.0% 2010-11: 2,393 2010-11: 59.8% 2009-10: 6,078 2009-10: 45.9% 2010-11: 2,267 2010-11: 42.7% Kolkata 2011-12: 2,966 2011-12: 63.3% 2010-11: 5,817 2010-11: 52.5% 2011-12: 1,904 2011-12: 47.8% Room Rates Occupancy Rates 2012-13: 3,047 2012-13: 65.0% 2011-12: 4,807 2011-12: 39.4% 2012-13: 2,636 2012-13: 56.5% 2009-10: 4,880 2009-10: 64.5% 2013-14: 3,426 2013-14: 68.8% 2012-13: ID 2012-13: ID 2013-14: 2,139 2013-14: 53.1% 2010-11: 4,788 2010-11: 65.4% 2013-14: ID 2013-14: ID 2011-12: 5,302 2011-12: 67.1% 2012-13: 5,461 2012-13: 67.1% Thiruvananthapuram 2013-14: 5,230 2013-14: 70.1% Mount Abu Room Rates Occupancy Rates Room Rates Occupancy Rates 2009-10: 1,422 2009-10: 55.3% 2009-10: 2,159 2009-10: 67.5% 2010-11: 1,380 2010-11: 61.8% 2010-11: 2,821 2010-11: 63.0% Mysore 2011-12: 2,330 2011-12: 60.9% 2011-12: ID 2011-12: ID Room Rates Occupancy Rates 2012-13: 1,474 2012-13: 57.1% 2012-13: ID 2012-13: ID 2009-10: 2,637 2009-10: 67.7% 2013-14: 2,590 2013-14: 53.6% 2013-14: ID 2013-14: ID 2010-11: 4,634 2010-11: 71.4% 2011-12: 1,973 2011-12: 62.4% 2012-13: 3,738 2012-13: 65.7% 2013-14: ID 2013-14: ID Udaipur Room Rates Occupancy Rates 2009-10: 3,543 2009-10: 47.0% 2010-11: 7,406 2010-11: 55.2% 2011-12: 2,081 2011-12: 52.1% 2012-13: 4,449 2012-13: 59.5% Nagpur 2013-14: 9,698 2013-14: 50.9% Room Rates Occupancy Rates 2009-10: 3,132 2009-10: 61.5% Vadodara 2010-11: 2,314 2010-11: 76.6% Room Rates Occupancy Rates 2011-12: ID 2011-12: ID 2012-13: 3,018 2012-13: 54.1% 2009-10: 4,360 2009-10: 65.6% 2013-14: 1,654 2013-14: 60.9% 2010-11: 3,703 2010-11: 77.8% 2011-12: 3,901 2011-12: 71.7% 2012-13: 3,698 2012-13: 68.0% 2013-14: 3,454 2013-14: 60.6% Pune Room Rates Occupancy Rates Visakhapatnam 2009-10: 3,921 2009-10: 53.2% 2010-11: 3,140 2010-11: 53.3% Room Rates Occupancy Rates 2011-12: 3,293 2011-12: 53.2% 2009-10: 2,809 2009-10: 62.1% 2012-13: 2,724 2012-13: 57.8% 2010-11: 5,431 2010-11: 76.3% 2013-14: 2,963 2013-14: 58.3% 2011-12: ID 2011-12: ID 2012-13: 3,367 2012-13: 63.3% 2013-14: 4,371 2013-14: 59.0% Raipur Mumbai Room Rates Occupancy Rates Gurgaon 2009-10: 1,521 2009-10: 39.0% Room Rates Occupancy Rates 2010-11: ID 2010-11: ID Room Rates Occupancy Rates 2009-10: 5,833 2009-10: 67.2% 2011-12: ID 2011-12: ID 2009-10: ID 2009-10: ID 2010-11: 5,087 2010-11: 69.0% 2012-13: ID 2012-13: ID 2010-11: ID 2010-11: ID 2011-12: 6,063 2011-12: 73.5% 2013-14: ID 2013-14: ID 2011-12: 8,122 2011-12: 65.5% 2012-13: 5,971 2012-13: 71.5% 2012-13: 7,776 2012-13: 61.0% 2013-14: 5,397 2013-14: 72.9% 2013-14: 7,691 2013-14: 58.2%

ID: Insufficient Data: *New Delhi - NCR data including Faridabad, Ghaziabad, Gurgaon and NOIDA (Shaded Portion), rest excluding Gurgaon data **Gurgaon- included with Delhi-NCR for 2009-10 and 2010-11(source: FHRAI-HVS India)

MYSTIC EAST | 33 COVER STORY

others. Room night demand is dic- and upscale segments, which has put mand from the manufacturing sector tated by well-defined micromarkets. immense pressure on occupancy and grows, the city-wide average rates are Overlap of demand among these mar- average rates in hotels across the city. expected to increase steadily in the me- kets has been primarily limited to the As a result, the city witnessed one of dium to long term. The performance extended stay segment. the sharpest declines in RevPARs of hotels along OMR, however, will In 2013-14, 1350 branded rooms were amongst the major metros of the remain under pressure and is expected added. Future supply in the city is esti- country in 2013-14. to witness a further decline as another mated to grow by approximately 7,000 The traditional central business 1,500 rooms (actively under develop- hotel rooms over the next five years of district (CBD), which has the highest ment) are expected to enter the micro- which 66% is being actively developed. concentration of hotels, witnessed the market over the next three years. While this is expected to put pressure sharpest decline in occupancy. Guindy, on ARR in the short term, business sen- which has received the largest influx of Delhi-National Capital Region timent is expected to improve with the supply in recent years, is fast becoming (NCR excluding Gurgaon) development of the US $ 20 billion IT a preferred micromarket for business Delhi continues to be a strong mar- Investment Region (spread over 10,000 travellers as it is located at a conve- ket for hotels. Delhi has witnessed acres at Devanahalli near the airport nient distance from the CBD, airport the commissioning of the first hos- and the continuous addition to office and the demand generating areas of pitality district in the country (Delhi stock in Whitefield and Outer Ring Sriperumbudur and Old Mahabalipur- Aerocity) where four hotels started Road (ORR) areas. am Road (OMR). The IT corridor of the operations in 2013-14. Delhi saw city, OMR, also saw a decline in occu- a modest increase in occupancy in Chennai pancy and average rates. 2013-14. Sharp spurt in transient Chennai, over the past two to three Going forward, ARRs in CBD and visitors and MICE demand by the years, has witnessed a substantial in- Guindy are expected to witness a small Aerocity hotels highlight the quan- crease in supply mainly in the luxury correction in the short term. As de- tum of latent demand in these mar-

34 | MYSTIC EAST January - February 2015

ket segments. Going forward, busi- primarily stems from the low-paying Plaza in Kanjurmarg. In the medium to ness is expected to grow with pick-up PSU and IT/ITES sectors, the need of long term, there is a likelihood of hotel in demand from government bodies, the hour is more budget and economy developments at the Mumbai Interna- diplomatic missions and public sec- hotels. Contrary to this, a large per- tional Airport Limited (MIAL), Band- tor companies. On the supply front, centage of the future supply is in the ra-Kurla Complex and Lower Parel. over 3700 rooms will be added, pre- upscale category. HVS anticipates a The newly opened Terminal 2 and the dominantly in the Aerocity area, over decline in both occupancy and average proposed convention centre current- the next few years. Outlook for the rate in the short term, with the entry of ly being developed in proximity to the market remains positive in the medi- six new hotels and a combined inven- domestic airport are further expected to um to long term. tory of over 1,400 in the next two to augment airline and MICE demand for Continuous improvement in infra- three years. As supply pressures ease the city. With development of the metro structure and the construction of new in the medium to long term, we fore- and mono rail, upgradation of the ex- residential projects have made NOI- cast market-wide occupancy to steadily isting airport and opening of the Santa DA and Greater NOIDA attractive for improve. Cruz- Link Road and Eastern investment. With sluggish increase in Freeway, our outlook for the Mumbai demand and a steady growth in sup- Mumbai hotel market remains optimistic. ply (1,700 rooms to be added over the Mumbai continues to retain its posi- next five years), this micromarket will tion as the largest hotel market of the Pune continue to face occupancy and rate country. Going forward, majority of Traditionally regarded as a manu- pressures. the new commercial supply expected facturing base for major automobile to enter is located within the north companies, Pune is expanding along Goa Mumbai micromarkets such as Ban- its eastern and western peripheries Over the last couple of years, with dra-Kurla complex, , Malad, (Kharadi and Hinjawadi) and grad- charter movement gaining strong Goregaon and Santa Cruz. In the last ually transforming into a major IT/ momentum, supplemented by an up- fiscal, hotels exhibited ITES and biotech centre. Scattered swing in demand generated by the resurgence of demand, stemming pri- commercial development has led to MICE and domestic leisure segments, marily from the leisure, social events the creation of multiple hospitality the hotel market in Goa exhibited ro- and commercial segments. However, clusters in the city with their respec- bust growth in RevPAR. Outlook for average rate witnessed a marginal tive neighbouring areas acting as pri- the market remains positive in the correction. mary feeder markets. Hotels located medium to long term. Going forward, in the short term, in the eastern part capture demand Kolkata additions to supply include the JW generated by IT/ITES companies lo- Historically, business activity has Marriott and the Taj Airport Hotel at cated along Nagar Road, Magarpatta, been concentrated in the CBD while the international and domestic ter- Hadapsar and Kharadi as well as the the past four-five years have seen rap- minals respectively and Radisson Blu manufacturing zones located in Ran- id development along the city’s east- jangaon, Talegaon and Chakan. ern periphery into areas of Rajarhat The micromarket in the west, thrives and Salt Lake. on demand primarily generated by the Overall, Kolkata retained its top With development of dense cluster of IT/ITES firms located position as the best performing hotel the metro and mono within Hinjawadi with a portion of de- market in terms of occupancy (72%) in mand coming from the older manufac- 2013-14. However, the average rate de- rail, upgradation of the turing zone in Pimpri-Chinchwad. picted a sharp decline of approximately existing airport and Going forward, on account of the 7%. Commercial segment is the largest opening of the Santa central as well as the state govern- contributor to the total demand pie, Cruz-Chembur Link Road ments focussing on reviving the man- followed by the Meetings and Confer- ufacturing sector, strong momentum ence segment. and Eastern Freeway, our gained by the services sector and lim- Going forward, the city is expect- outlook for the Mumbai ited new supply entering the market, ed to witness an increase in supply of hotel market remains our outlook for Pune remains positive 2,500 rooms (over the next five years), optimistic in the medium to long term. of which 75% are under active develop- ment. In a market where the demand (source: FHRAI-HVS India)

MYSTIC EAST | 35 BUILDING WORLD CLASS INFRASTRUCTURE WILL DRIVE OVERALL TOURISM GROWTH The president of FHRAI shares his insights and plans for vaulting India to its deserved pole position as an enviable tourism destination in the near future. For our country - rich in natural resources, tourism assets and cultural diversity, the actual potential is several times the current 0.6% market share of the global tourism market January - February 2015

T.S.WALIA acute shortage of quality tourist ac- commodation. India has one of the ll of us will readily lowest per capital availability of ho- agree that India, tel rooms in the world. Believe it or with its captivating not, our country’s total inventory of topography, scenic branded hotel rooms is less than the beauty, cultural number of hotel rooms in global cit- diversity, peerless ies such as Beijing, New York, Lon- historical and spir- don and Las Vegas! While the whole itual heritage as well as our centu- of India currently has only 1,03,800 ries-old tradition of warm hospitality, branded hotel rooms, Las Vegas alone is a veritable embodiment of a tour- has more than 1,50,000 rooms, Bei- ist paradise. However, if we convert jing 1,29,000, London 1,23,000 and these strengths into a competitive ad- New York 1,10,600 hotel rooms. Our vantage it will give our country’s tour- limited inventory of classified ho- ism sector a big boost. tel rooms is the primary reason why In 2013, India received a mere 6.96 India is placed at a low rank of 65 in million foreign tourists, ranking 41st the World Economic Forum’s Global in the world, with a paltry 0.6% global Travel & Tourism Competitiveness market share. Comparing this perfor- Index. mance with some of our competing As per our projections, India will destinations: Singapore-15.5 million; I am convinced that face a shortage of about 1,80,000 ho- Malaysia- 25.7 million; Thailand- tel rooms by 2020, particularly in the 26.7 million and Turkey- 35.6 million the Indian hospitality mid-market and budget segments. On foreign tourists shows the unrealised industry has the behalf of FHRAI, I have proposed a growth potential of our tourism sector wherewithal, clear vision practical and viable three-point ac- as a whole. and entrepreneurial tion plan for bridging this impending Building tourism infrastructure is shortfall in supply of hotel rooms. critical if we want to realise the full dynamism, to catapult revenue potential of tourism which our country to its rightful 1. ACCESS TO CAPITAL: Our pre- in turn will be a key driver of our eco- position of a world leader vailing lending norms and debt-fund- nomic growth. The government has in tourism ing structures for hotels do not ade- set a target of doubling India’s foreign quately take into account the fact that tourist arrivals and domestic tour- hotel projects are highly capital-in- ist visits within the next five years. tensive with a long gestation and Achieving this ambitious goal will payback period and that the hospi- require massive public and private tality industry is inherently cyclical. investments in 360-degree develop- Therefore, we have recommended ment of tourism-related infrastruc- that all hotels with a project cost of Rs ture. 20 crore or more should be included For instance, we must make tier in RBI’s Infrastructure Lending List. II and tier III cities more accessible This will ensure that they have access by developing a network of low-cost to multiple sources of lower cost long airports, ensuring seamless last mile term funding and can avail special- connectivity to tourist hotspots, pro- ised financial assistance such as take- viding world class wayside amenities out financing, external commercial and creating an ecosystem for better borrowings etc. The government also conservation of our historical and cul- must offer higher tax incentives and tural sites and structures. capital subsidies to budget hotels and In the context of tourism infra- heritage properties. I have also sug- structure, policymakers often over- gested that a National Tourism En- look or sidestep a stark reality— the trepreneurship Fund be set up whose

MYSTIC EAST | 37 COVER STORY

mandate will be to provide equity, with various government depart- form approval and licensing system quasi-equity and soft loans to innova- ments and PSUs can be deployed across the country, with minimum tive hospitality entrepreneurs. for construction of budget and local/regional permissions and sanc- mid-market hotels under the pub- tions required for hotel development, 2. AVAILABILITY OF LAND: The lic-private partnership model, par- which can bring about homogene- scarcity and exorbitant cost of land is ticularly in areas which are being ity, reduce delays and result in an a critical impediment for our indus- developed as integrated tourist cir- investment-friendly environment. try. In India, land alone can often ac- cuits/clusters. A streamlined, empowered and ac- count for as much as 40-60% of the countable single window mechanism total development cost of a hotel as 3. SINGLE WINDOW CLEAR- must be provided which can fast- opposed to 15-20% which is the norm ANCE: The World Bank ranks India track the grant of all requisite proj- internationally. In this regard, my 142 out of 185 countries in terms of ect clearances, licences and statutory suggestions are: ease of doing business, and this prob- permissions. • Urban local bodies and other lem is perhaps most vividly reflected I am convinced that the Indian hos- land-owning agencies of the gov- in our hospitality industry! In some pitality industry has the wherewithal, ernment in states and Union terri- states, hotels can require as many as clear vision and entrepreneurial dy- tories should earmark suitable land 80-100 approvals, licences and per- namism, to catapult our country to its parcels as ‘hospitality development mits to set up and commence opera- rightful position of a world leader in sites’. Such sites should be offered tions. The presence of multiple agen- tourism. All that we need is a support- to promoters on long term graded cies, archaic laws and rigid guidelines ive policy and regulatory ecosystem at lease basis rather than the auction invariably lead to significant time and the Central and state and local levels route. Additional incentives such as cost overruns for projects, causing to ensure a coordinated and whole- higher FSI/FAR and relaxed park- additional financial burden and great some growth of the travel and tourism ing norms must be allowed to make anxiety for entrepreneurs. industry. hotel projects financially viable in FHRAI recommends that the Cen- the long run. tral and state governments must  Mr T. S. Walia is the president of FHRAI and • Surplus land which is available move towards introduction of a uni- managing committee member of HRAEI

38 | MYSTIC EAST NEIIPP, 2007 January - February 2015

The suspension of incentives available under NEIIPP would also amount to a major setback to the government’s avowed objective of integrating North East with the mainstream national economy

SUDESH PODDAR

t is heartening to note that NEIIPP, 2007 “has neither been cancelled nor withdrawn”. The ministry of com- merce and industry, government of IIndia has clarified in a letter dated Febru- ary 1, 2015 that the “matter for revoking suspension is under the consideration of the government” (see photocopy of the letter displayed in this article). Members will recall that HRAEI Pres- ident had submitted a memorandum on December 16, 2014 to Ms Nirmala Sitha- raman, Minister of State (Independent Charge), Ministry of Commerce & Indus- try, urging the government to revoke the suspension of NEIIPP, 2007 at the earliest and dispel any ambiguity over the contin- uation of NEIIPP. We had forcefully argued in our mem- orandum that the uncertainty over con- NEW AVATAR tinuation of North East Industrial and Investment Promotion Policy (NEIIPP) 2007 was adversely impacting the growth of tourism industry in North East. The OF NEIIPP, 2007 suspension of incentives available under NEIIPP would also amount to a major setback to the government’s avowed ob- ON THE CARDS? jective of integrating North East with the

MYSTIC EAST | 39 NEIIPP, 2007

South-East Asia”. In fact, the natural states to draw large investments in and cultural assets of the North-East the hospitality industry. Infrastruc- equip it with a comparative advantage ture deficit occurring in the region’s to leverage tourism for equitable and tourism industry in a big way needs inclusive growth. The tourism poten- early correction. An independent tial of the region is evident from the study done by Matt MacDonald, on growth rate of foreign tourist arrivals behalf of the Ministry for Develop- in the NE over the 2011-13 period, ment of the North-Eastern Region which has clearly outperformed even (DONER) had specifically recom- the national growth rate in FTAs. (see mended that NEIIPP 2007 should be chart) optimally deployed as a facilitative It is also worth recalling that the and streamlined institutional mech- North-East has, over the years, con- anism to incentivize private invest- fronted a series of complex challenges ments in thrust areas such as tourism, and systemic impediments like in- hospitality and allied sectors. surgency, geographical isolation and Our memorandum had argued that paucity of infrastructure which have the sudden suspension of incentives significantly slowed down the pace available under NEIIPP will put in of its socio-economic development peril prospective investments of a vis-à-vis other parts of the country. whopping Rs. 30,000 crores. NEIIPP It is to bridge this widening regional was introduced by the Government of disparity and effectively address the India in April 2007. The policy pro- local aspirations that a differentiated vides a special package of fiscal in- and liberal policy framework has been centives, subsidies and other conces- advocated for the region supported by sions, with the objective of promoting mainstream national economy. a broad consensus across the political industrialization of North East. The Highlighting the positive outcomes spectrum nationally. policy covers Arunachal Pradesh, As- of NEIIPP, our memorandum had To sustain the growth momentum, sam, Manipur, Meghalaya, Mizoram, stated that it played an important role it is imperative for the North Eastern Nagaland, Tripura and Sikkim. in positioning North East as a viable and competitive investment desti- nation for the hospitality sector and NUMBER OF FOREIGN TOURIST VISITS (FTVs) TO NE STATES* helped in attracting capital invest- 2011 2012 2013 Growth Rate Growth Rate State/UT ment in manufacturing and services FTVs FTVs FTVs 12/11 13/12 sectors. It has had a positive multipli- Arunachal er effect on the region’s economy, by 4,753 5,135 10,846 8 111.2 Pradesh way of large-scale job-creation, youth empowerment through increased Assam 16,400 17,543 17,638 7 0.5 opportunities of skill development, infrastructure augmentation and Manipur 578 749 1,908 29.6 154.7 strengthening social stability. It had Meghalaya 4,803 5,313 6,773 10.6 27.5 also generated substantial revenue for the national exchequer. Mizoram 658 744 800 13.1 7.5 In this context, it would not be out Nagaland 2,080 2,489 3,304 19.7 32.7 of place to recall the bold vision of our Hon’ble Prime Minister which he ar- Sikkim 23,602 26,489 31,698 12.2 19.7 ticulated eloquently during his recent Tripura 6,046 7,840 11,853 29.7 51.2 tour of several north-eastern states. He had then strongly emphasized Total of NE 58,920 66,302 84,820 12.5 27.9 the latent potential of this region and States described it as a “natural econom- *Source: State/UT tourism departments ic zone” and a “strategic gateway to

40 | MYSTIC EAST HRAEI INITIATIVES

Mr T S Walia, President, FHRAI and Mr Sudesh Poddar, President, HRAEI recently met the Union Minister of State (I/C) for tourism & culture, and MoS for Civil Aviation Dr Mahesh Sharma

Mr T S Walia, President, FHRAI and membersof HRAEI met Shri Ashok Chandra Panda, Minister of State (Independent Charge), Tourism & Culture and Hotel and Restaurant Association of Orissa (HRAO) members at Mayfair Lagoon, Bhubaneswar.

Mr T S Walia, President, FHRAI and Mr Sudesh Podder, President, HRAEI with Union Minister of State (I/C) for petroleum and natural gas, Mr Dharmendra Pradhan

MYSTIC EAST | 41 VITAL STATS

TOURISM AND HOSPITALITY INDUSTRY IN INDIA

Direct contribution of tourism and hospitality to GDP Foreign exchange earnings from tourism in India The tourism and hospitality sector’s direct contribution to GDP totalled Total foreign exchange earnings from tourism grew to US$ 18.1 billion in 2013. US$ 37.3 billion in 2013.

TOURISM AND HOSPITALITY CONTRIBUTION FEE FROM TOURISM CAGR 11.7% to GDP CAGR 10%(‘06-’14E) 2024E $71Bn 2013 $18.1 Bn 2014E $38Bn 2012 $17.7 Bn 2013 $37Bn 2011 $16.6 Bn 2012 $36Bn 2010 $14.2 Bn 2011 $31Bn 2009 $11.4 Bn 2010 $31Bn 2008 $11.7 Bn 2009 $26Bn 2008 $24Bn 2007 $10.7 Bn 2007 $25Bn 2006 $8.6 Bn 2006 $18Bn 2005 $7.5 Bn

Expected share of tourists by expenditure Foreign tourists arriving in India Domestic travellers are expected to contribute around 84.7 per cent to Over 6.8 million foreign tourist arrivals were reported in India during 2013. total tourism revenues by 2024.

FOREIGN TOURISTS ARRIVAL CAGR 7.2%

2013 6.8 Mn 15.3% Domestic spending 2012 6.6 Mn Foreign visitor Spending 2011 6.3 Mn 2010 5.8 Mn 2009 5.2 Mn 2008 5.3 Mn

84.7% 2007 5.1 Mn 2006 4.4 Mn 2005 3.9 Mn

SOURCE: IBEF

42 | MYSTIC EAST January - February 2015

STATE-WISE TAX STRUCTURE

SALES SERVICE LUXURY TAX (L.T.) on Room STATE VAT ON F TAX TAX ON AC & B (ST) ON SERVICE TAX (S.T.) on Room* RESTAURANT LIQUOR WITH BAR

ANDAMAN & NICOBAR N.A. N.A. L.T. NOT APPLICABLE Rs. 1000/- AND ABOVE Service Tax 7.416% 4.94% ISLAND

ARUNACHAL PRADESH 12.5% 20% L.T. NOT APPLICABLE Rs. 1000/- AND ABOVE Service Tax 7.416% 4.94%

FOOD - 5% Rs. 1000/-TO Rs. 1999/- Luxury Tax 5% ON PUBLISHED TARIFF Rs. 2000/- to ASSAM BEVERAGE 30% Rs. 2999/- Luxury Tax 8% ON PUBLISHED TARIFF Rs. 3000/- AND ABOVE 4.94% -13.5% Service Tax 7.416%

FROM Rs. 500/- TO 999/- Luxury Tax 5% ON ROOM TARIFF FROM Rs. 1000/- BIHAR 13.5% N.A. & ABOVE Luxury Tax 10% ON ROOM TARIFF Rs. 1000/- AND ABOVE Service 4.94% Tax 7.416%

Luxury Tax 12.5% ON ACTUAL TARIFF Rs. 1000/- AND ABOVE Service Tax JHARKHAND 14% N.A. 4.94% 7.416%

Luxury Tax 20% ON ACTUAL TARIFF Rs. 1000/- AND ABOVE Service Tax MANIPUR 13.5% N.A. 4.94% 7.416%

Luxury Tax 20% ON ACTUAL TARIFF Rs. 1000/- AND ABOVE Service Tax MEGHALAYA 13.5% N.A. 4.94% 7.416%

MIZORAM X X X X

NAGALAND 13.5% N.A. L.T. NOT APPLICABLE Rs. 1000/- AND ABOVE Service Tax 7.416% 4.94%

ORISSA 13.5% N.A. L.T. NOT APPLICABLE Rs. 1000/- AND ABOVE Service Tax 7.416% 4.94%

L.T. NOT APPLICABLE Environment ( Sikkim Cess) @ 1% on Actual Tariff Rs. SIKKIM 12.5% N.A. 4.94% 1000/- AND ABOVE Service Tax 7.416%

Rs. 100/- AND ABOVE Luxury Tax 10% ON ACTUAL TARIFF Rs. 1000/- AND TRIPURA 13.5% N.A. 4.94% ABOVE Service Tax 7.416%

Rs. 1001/- TO Rs. 3000/- Luxury Tax 5% ON ACTUAL TARIFF Rs. 3001/- & WEST BENGAL 14.5% 27% ABOVE L.T. CHARGE 10% ON ACTUAL TARIFF Rs. 1000/- AND ABOVE 4.94% Service Tax 7.416%

*Service tax on room rent is 12.36%. Net of 40% abatement, effective service tax works out to 7.416%

MYSTIC EAST | 43 STATE SURVEY Assam: Primed to leverage ‘Act East’ policy

44 | MYSTIC EAST January - February 2015

SSAM is a sleeping gi- sector to tap their resources and Kumbhirgram Airport, Silchar ant whose energy is yet technology, particularly in the areas This is another major airport locat- to be tapped”, an Assam of power, communication, transport ed in Assam, in the Silchar region, government ‘Vision Doc- and industry. The existing resourc- known as Kumbhirgram Airport. It Aument 2025’ states matter-of-factly. es available with the Government connects the city to areas like Guwa- At the beginning of the post-Inde- are far from adequate to establish hati, Agartala, Imphal, Aizawl and pendence era, Assam was ranked the infrastructure for rapid indus- Kolkata. among the prosperous States of the trial growth. Therefore, the sectoral Railway transportation infra- country. strategy is specially designed to structure was set up by the British The per capita income in Assam in dovetail the private sector capabil- in view of the export potential of tea, 1950-51 was 4% above the national ities into the economic growth pro- oil and other raw material. Assam average but it dropped gradually to cess. The Government will play the has a railway network connecting the all India average level in 1954- role of a facilitator for augmenting the state to the rest of the country. 55 and slipped down further in the private sector participation. There are train services from Kolk- following years. In 1996-97 it stood The sectoral strategy lays utmost ata, New Delhi, Mumbai, Chennai, at Rs.1628 which was 41% below emphasis on sectors like Tourism Bangalore, Cochin and Trivandrum. the all India average of Rs.2761. The and Handloom where Assam tra- B.G. line connection is up to Dibru- growth rate of the Gross Domestic ditionally enjoys comparative ad- garh and M.G. line with Haflong and product (GDP) in Assam since 1987 vantage. Assam combined with the Silchar. has been declining. whole of North East, has enormous A network of National Highways Growing unemployment has been potential to become a tourist’s par- and other roads connect Guwahati a serious cause of concern. Around adise. It can provide large number with all the important places of As- 9.85 lakh educated persons were of direct and indirect employment sam and India. It is the connector registered with the various employ- even in the remotest part of the city of NH - 31, 37 and 40 with the ment exchanges in the State in 1997. state. The state’s traditional hand- other cities of India by road. Population density in Assam was loom and handicraft products have Assam has 1600 km of waterways 286/sq.km as against the national immense potential for generation of that are navigable by the steamers. average of 267/sq.km in 1991. The higher value in the world market if These waterways are primarily used reasons for this unusual growth are it is packaged and marketed profes- for ferrying cargo and passengers, well known. Overall result of this sionally. and also luxury cruise for the tour- growth has been the breakdown of ists. the State’s economy. The popula- Infrastructure and tion of the State is expected to reach connectivity Tourism around 4 crore by 2025 which would Assam is the gateway to the North Several efforts have been made by put tremendous pressure on land Eastern part of India. By road one the Government of Assam to iden- and infrastructure. has to travel through Assam to all tify and develop tourist spot and The infrastructure development states except Sikkim. It shares its to classify them as per availability in the State has been extremely borders with all these 6 States and of tourist resources. On the basis slow. It has been lagging behind al- West Bengal. of the available tourist resources most every State of the country ex- in the state, the department has cept that of Orissa, Rajasthan, Mad- Major Airports in categorized tourism as follows: hya Pradesh, Himachal Pradesh, Assam are: wildlife tourism, cultural tourism, Jammu & Kashmir and other North Guwahati Airport: pilgrimage tourism, adventure Eastern States. Power generation The Lokapriya Gopinath Bordoloi tourism and tea tourism. The Shak- and distribution is not adequate to International Airport at Guwahati ti peethKamakhya and Kaziranga support the growth of industry in is 18 km from the city centre and is National Park constitutes the most the State. The conditions of roads well connected to New Delhi, Kolk- attractive points for both domestic and bridges are not at all conducive ata, Mumbai and Chennai. Air India and foreign tourists. Adventure and for promoting any worthwhile eco- also operates an international week- tea tourism are the two new areas, nomic activity like tourism. ly flight between Bangkok and Gu- which have been adopted by the The Vision Document 2025 envis- wahati. It also acts as a base for the tourism department for develop- ages a partnership with the private Indian Air Force. ment.

MYSTIC EAST | 45 STATE SURVEY

Circuits identified by dept cuits. The most commonly visited cir- planetarium, Gita mandir, Balaji tem- of tourism cuits are as below: ple and SankarDevKalakhetra devel- The Department of Tourism, Govt of • Guwahati- Shillong- Kaziranga oped within the city environment Assam has identified the following • Guwahati- Shillong- Kaziran- 2. Sualkuchi, the most important interstate travel circuits linking the ga- Majuli-Jorhat center of indigenous Assamese silk tourist places of nearby states and in- This is one of the most popular industry trastate circuits: tourist circuits existing also, with es- 3. Hajo, the unique meeting place Interstate Travel Circuits: tablished destinations. Majuli also of Hinduism, Islam and Buddhism 1. North East Circuit No. 1 (Eco added a key destination in circuit. and also known for its historic monu- Tourism Circuit): Shillong- Guwaha- As time permits Umiam Lake- ments, bell metal and brass products ti- Kaziranga- Tezpur- Bhalukpong- Cherrapunjeeetc are added. prepared by local artisans - Majuli- Sivsagar- Kohima • Guwahati- Tezpur- Bombdilla- 4. Chandubi, a nature spot and 2. North East Circuit No. II (Riverrine Tawang known for its lake (dubi) and an ideal and Hill Circuits): Dubri- Goalpara- • Guwahati- Shillong- Kaziranga- Ma- picnic spot Guwahati- Silchar- Karimaganj- Hai- juli- Tezpur- Bhalukpong- Bomdila- 5. Pabitara, a small wildlife sanctu- lakandi Tawang ary having more rhino density than Intrastate Travel Circuits: These two are among the most pop- that of kaziranga 1. Wildlife Circuit: Manas- Kaziran- ular tourist circuits existing also, with 6. MadanKamdev, an important ar- ga- Dibrugarh established destinations. chaeological site 2. Buddhist Circuit: 7. Manas, a world heritage site and • Jorhat- Titabor- Shivsagar- Ledo- Identified main only tiger reserve in Assam Lekhpani tourism sites 8. Barpeta, known for its Vaishnav • Guwahati-Rangpara-Tawang The Department of Tourism has iden- monastery and craft • Guwahati-Hajo-Suryapahar tified 31 sites of tourist’s interest for 9. Tezpur, one of the beautiful 3. SrimantSankardev- Madhavdev development, as laid in the Tourism towns of the Brahmaputra valley, Circuit Master Plan. The main sites are: possesses a number of archaeological • Coochbehar- Madhupur- Barko- 1. Guwahati and its surrounding, sites, pilgrimage and scenic spots in ta-Hajo-batadwara- Majuli covering spots like Kamakhya temple, an around it Inter State Circuits: Umananda, Sukreswar temples, Bas- 10. Bhalukpung, a nature and adven- Guwahati being the main entry point isthashram, Nabagraha temple, State ture site and known for Nameri na- to the 7 states, features in most cir- Zoo, State Museum, Gandhi Mandap, tional park

46 | MYSTIC EAST

STATE SURVEY

ru-Saikhowa national park in its close proximity 24. Digbai, known for its oil industry and a war cemetery of World War II 25. Haflong, the only hill station of Assam 26. Jatinga, a nature site and ideal for bird watching 27. Mahur, an ideal place for adven- ture activity and picnic 28. Maibong, an ideal nature site having archaeological remains of its Kachari king 29. Umrangso, another attractive site for nature lovers and picnickers 30. Diphu, the district headquarters of KarbiAnglong and potential site cultural and adventure tourism 31. Silchar, an important center of economic, cultural and administrative importance in the Barak plain having an archaeological site at Khaspur 32. Bhuban, a pilgrimage and nature site.

Destination/ Product Development: The following are the Level-1a priori- ty developments to create the big suc- cess stories: • Guwahati and surroundings includ- ing Riverfront development, con- 11. Orang national park, having third for Jaysagar tank and temple ference centre, recreational park etc highest population of Asiatic one- 18. Gaurisagar, a historic site • Kaziranga – with more focus on horned rhinoceros 19. AjanPirDargah, known for the management measures 12. Bardowa, the celebrated place of Dargahof HajaratAjanPir, the Muslim • Majuli as a sought after Eco tour- pilgrimage possesses some of the rel- saint famous for his contribution to ism destination ics associated with the life and works the Assamese devotional songs, called • BrahmaputraRiver Tourism Devel- of the saint Sri Sankardeva Jikir and Jari opment 13. Kaziranga, well known for its na- 20. Gargaon, the capital town of the • Handicrafts promotion and product tional park and the important tourist Ahom kingdom, known for its sev- development catering to tourists destinations of central Assam en-storied palace Level 1b priorities (areas with high 14. Garampani, the promising tourist 21. Charaideo, the original capital of potential, with different level of dis- destination of the state having a few nat- Ahoms, famous for Maidams or burial turbances) include the following: ural hot spring and a wildlife sanctuary vaults of the Ahom kings • ManasNational Park 15. Majuli, a river island and import- 22. Dibrugarh, an important city of • Haflong Hill Station/ Jatinga ant centers of Vaishnava culture upper Assam and a commercial, ed- Level 2 priority developments would 16. Sibsagar, the capital of Ahom ucational and administrative focal include: kingdom having some of the import- point • Sibsagar ant historical monument sites of the 23. Tinsukia, an important business • Sualkuchi state center of eastern Assam and a transit • NameriNational Park/ Bhaluk- 17. Jaysagar, a historic site known point for visitors to and having Dib- pong& others

48 | MYSTIC EAST

STATE SURVEY

ASSAM CM SEEKS PM MODI’S INTERVENTION FOR RESOLUTION OF KEY ISSUES

The security scenario in Assam has im- subsidized price. The amount of discount and providing a congenial eco system for proved considerably over the past decade. has at times been as high as 90% or more. better ties between India and South East The impact of improved law and order situ- This has resulted in cumulative loss of Asia. We would further like to urge you for ation in terms of development is obvious to revenue of more than Rs. 10,000 crore to the early completion of the portion of East all. The economic growth rate of the State Assam since 2008-09. You would agree -West Corridor within the State of Assam, has increased from about 2.6% in 2001-02 that a Special Category State like Assam as well as for granting a special package to average of 6.7% in the period 2009-13. cannot afford such a huge loss of revenue. for strengthening the National Highways For 2014-15, it is projected at 7.74%. Moreover, the oil producing States like connecting Mizoram, Manipur and Tripura Assam should not be denied the benefits through Assam. The works for the bridges of their natural resources and made to over Brahmaputra at Bogibeel and Dhola CST compensation: compensate for the under recoveries of the Sadia also need to be speeded up. All the States implemented VAT following Central Oil Marketing PSUs. In the past, I With regard to air connectivity, while it the commitment given by the Centre to had raised this issue many times with the may be noted that there is considerable compensate the States for any loss result- Petroleum Ministry and Finance Ministry. scope for development of small airfields ing from introduction of VAT and eventual It is pertinent to draw your kind attention to and providing hopping flights in different abolition of CST. But in the post – VAT sce- the recent decision of the Hon’ble Gujarat parts of Assam, I would also like to place nario, the reduction in the Central Sales Tax High Court on a petition filed by the Gujarat our long standing request for further rate from 4% to 2%, has caused substantial Government, wherein it held that the royal- improvement of the Lokpriya Gopinath loss of revenue for the State. Accordingly, ty shall be payable to the State on market Bordoloi International Airport of Guwahati, the Govt. of Assam has been submitting price of crude oil and not on post-discount which already handles a huge volume its claim for CST compensation from time price. Even the Hon’ble Supreme Court has of traffic. In particular, there should be to time. Unfortunately, the amount of CST in its interim order directed Oil and Natural facilities for night landing and haltage of compensation received by Assam is very Gas Corporation (ONGC) to pay crude oil passenger aircrafts in Guwahati, which meagre compared to its actual claim. royalty to Gujarat on pre-discounted crude would facilitate better scheduling of flights Against our CST compensation claim of Rs. price beginning from February 1, 2014. for the convenience and optimal utilization 1,667crores upto 2012-13, till now State Goods & Services Tax: Government of the time of passengers. The air connec- has got only Rs. 485 crores. of Assam supports the introduction of tivity between Guwahati and Silchar also In this regard, it may be further mentioned GST which is considered to be the most needs urgent attention. The frequency of that even the amounts agreed to by the significant indirect tax reform since inde- flights between the two cities needs to Empowered Committee of State Finance pendence. However, I firmly believe that be increased not only for the period of the Ministers with Government of India, for there is an imperative need to keep the pe- Mega Block imposed by N.F.Railways but CST compensation were not released. troleum products outside GST. I, therefore, also after that on a sustainable basis. I, therefore, request you to release the CST would like to request you that in order to The Government of Assam has submitted compensation for the years 2010-11 to allay the apprehensions of the States about a Concept Note for World Bank funding 2012-13 without linking it in any manner to the future revenue loss on account of in- for the comprehensive development of the the introduction of GST. This I believe will troduction of GST, the likely revenue losses Inland Water Transport sector in Assam. go a long way in enhancing the confidence may be quantified in consultation with the I understand that the Concept Note for States and compensation provided against and comfort level of the States and encour- Phase I of the project to be assisted by the the same. age them to participate in the GST regime World Bank has already been recommend- without any significant reservation. It is learnt that about Rs 12000 crore has ed by IWAI to the Ministry of Shipping. I Underpayment of royalty, VAT etc. on crude got accumulated in the NLCPR account seek your help in expediting the necessary oil. Upstream companies like ONGC and and is proposed to be transferred back approvals in the Central Government to OIL engaged in exploration of crude oil are to the consolidated fund of India. I would enable access to World Bank support for liable to pay royalty on production of crude therefore like to urge you to consider the project. To fully develop the economic oil at 20% on well head price, subject to allocating the above mentioned amount potential of the North Eastern Waterways, certain deductions, to the States. Besides, for sanctioning critical, large infrastruc- we would also urge a dialogue with such companies are also liable to pay VAT ture projects for roads, airports, railways, neighbouring countries, such as Bangla- at 5% on sale of crude oil. The Ministry of inland waterways, power, etc , which desh, Bhutan and Myanmar to establish / P&NG has asked them to pay royalty on may help us achieve the twin objectives upgrade the existing protocols for handling crude oil to the States on the basis of such of addressing our developmental needs all kinds of goods and passenger traffic.

50 | MYSTIC EAST SUTTON SEEDS SINCE 1912 YOUR ONE STOP SOLUTION FOR ALL YOUR GARDENING NEEDS. • WE SPECIALISE IN HYBRID & O.P. VEGETABLE & FLOWER SEEDS. • FLORICULTURE. • TISSUE CULTURE LABORATORY PRODUCING BANANA GERBERA & ALOEVERA. • GARDEN IMPLEMENTS. • ORGANIC FERTILISER. • LANDSCAPING. • GARDEN ADVISORY SERVICES.

WE HAVE DEALERS THROUGHOUT INDIA

CONTACT Sutton & Sons (I) Pvt. Ltd. 13D, Russell Street, Kolkata – 700 071 Ph.No. 033 2226 4930 Email: [email protected]. STATE SURVEY

Gateway to Tawang, Sela Point, western Arunachal Pradesh, India ARUNACHAL PRADESH LAND OF MEGA DIVERSITY

runachal Pradesh, also north and north-east and Myanmar Land area of Arunachal is 2.54% of known as “Land of the to the east. It has inter-state borders total land area of India and custodi- Rising Sun”, has un- with Nagaland in the east and south- an of 23.52% of flowering plants rep- dergone constitutional east and Assam in the south. resenting 76.93% families of India. Achanges in its evolution to attain Arunachal is regarded as one of TCS, erstwhile Tata Consultancy statehood. The then North East the 18 mega diversity hot spots in Services, has classified the tourism Frontier Agency (NEFA) became a the world. The state has 20% species resources of Arunachal into the fol- Union Territory from January 20, of the country’s fauna, 5000 spe- lowing categories: 1972 and it acquired legislative sta- cies of flowering plants, 23 species tus on February 20,1987. It is one of of conifers, 89 species of bamboos, Nature-based the most exotic and variegated trib- 18 species of canes, 400 species of In Arunachal, the proportion of al areas of the country. It is bound ferns, 52 rhododendron species and area under forests is the highest in by Bhutan to the west, China to the more than 600 species of orchids. the country at 94%. There are nine

52 | MYSTIC EAST January - February 2015

wildlife sanctuaries, one biosphere reserve (Dibang Biosphere Reserve) and two national parks in Arunachal Pradesh. There are two tiger reserves- Namdapha Tiger Reserve and Pakke Tiger Reserve. The protected areas are: Nam- dapha National Park and Tiger Re- serve, Mouling National Park, Dihang Dibang Biosphere Reserve, Dibang Sanctuary, Pakke Sanctuary, Sanctuary, Daying Ering Sanctuary, Mehao Sanctuary, Kane Sanctuary, Eagle’s Nest Sanctuary, Kamlang Sanctuary, Sessa Orchid Sanctuary etc.

Religious Arunachal Pradesh is fast emerging as one of the most popular tourist des- tinations in eastern India. Religious PM Narendra Modi launching the AC Express train linking Arunachal tourism is one of Arunachal’s major Pradesh to Delhi assets. It has an enviable line-up of ancient Buddhist monasteries and temples. MODI’S LARGESSE The religious resources are Tawang Monastery, Urgelling Monastery, TO ARUNACHAL ON Bomdila Monastery, Rigyalling Mon- astery, Tokstang Monastery, Brama STATEHOOD DAY Dung Chung Ani Gompa, Gyangong Ani Gompa, Singsur Ani Gompa, Gor- ITANAGAR: The 29th Statehood Day compensation to people who get sam Chorten, Samtem Yongcha, Para- of Arunachal Pradesh was celebrated displaced by hydro projects. Modi, suram Kund, Bhismaknagar, Akashi- at Indira Gandhi Park in Itanagar on who flagged off two trains and laid ganga, etc February 20, 2015. It became a histor- the foundation of a power project, ical moment for the state after Prime said “Arunachal Pradesh is getting Cultural Minister Narendra Modi flagged off both ‘gati’ (momentum) and ‘urja’ Arunachal Pradesh is a culturally rich the AC Express train linking Arunachal (energy) today.” state consisting of 26 tribes and sev- Pradesh to Delhi and also launched Further, Prime Minister Narendra eral sub tribes that live in as many as a 132 KV Power Transmission Project Modi informed that 6 agriculture 3649 villages. The people of the re- with an estimated cost of Rs 3200 universities and 18 FM radio stations gion are the descendants of Mongo- crores along with Rs 100 crore Drink- have been sanctioned for the devel- lian origin. ing Water Project for state capital. opment of the north-east region and Broadly, there are three cultural In his address, PM Modi said that opined that Arunachal Pradesh can groups known for their distinct so- Arunachal Pradesh has huge power become an organic farming state. He cio-religious practices resources and its potential should be also emphasized on promoting Make • The first group includes the Mon- suitably tapped. He said Arunachal in North East and urged the people of pas and Sherdukpens of Tawang Pradesh could provide electricity the state to use their natural potential and West Kameng districts. They to the entire country and called for for economic development of the follow the Lamaistic tradition of development of the state’s hydel po- state in particular and country as a Mahayana Buddhism. tential, simultaneously giving proper whole. (PTI and agencies) • The second group comprises people of Adis, Akas, Apatanis, Bangnis,

MYSTIC EAST | 53 STATE SURVEY

Unidentified Monpa tribal women harvesting maize in a traditional cooperative

Nishis, Mishmis, Mijis, Thongsas oldest histories in India. There are Tribal Villages Trek, High Altitude etc., who worship Sun and Moon as several people who come to this state Trek, Siang Valley Trek, Talley Valley their gods. as a result of the unique historical im- Trek and Cultural Tours. The other • The third group comprises people of portance that it occupies. The major trekking route in operation is Bomdi- the Noctes and Wanchos tribal com- historical monuments of Arunachal la-Pangma-Chander-Dirang. munities. They are mostly found in Pradesh are: Malinithan, Bhismak- River Rafting: The land of the . The people have nagar, Tawang Gompa, Statue of Arunachal Pradesh boasts of the their strict village society headed by Sakyamuni etc. The other historical mighty river Brahmaputra which a hereditary chief who plays a signif- resources are: Ita Fort, Talung Dzong, comes down from Tibet to this North icant role in varied situations. Dzong Building, Bhalukpong, Jameri Eastern state of India. The popular Arts and Crafts: The state of Megalithic, Dirang Fort, Gyuto Tan- sites for river rafting in Arunachal Arunachal Pradesh can be divided tric University. Lhagyala Gonpa Pradesh are: Kameng (Seppa-Bha- into three parts from the viewpoint of Morshing etc. lukpung), Subansiri (Taliha-North of the various arts and crafts in the state. The major archaeological ruins of Daporijo), Siang (entire course) and • The first part includes the Buddhist Arunachal Pradesh are the remains in Dibang ( Assam Border). tribe. Bhishmak Nagar and Malinithan. Fishing and Angling: Arunachal • The second of this division is the Pradesh offers ample opportunities central part. This is the region from Adventure for angling. Fishes such as Mahseer east Kameng to Lohit. The terrain of Arunachal is appropri- and Trout are found in plenty here. • The third portion is the eastern ter- ate for adventure enthusiasts and na- The water at the higher altitudes of ritory ture seekers. the state is rich in golden and the Trekking: Arunachal Pradesh is en- rainbow trout. The famous spots for Historical dowed with great trekking routes. The fishing are (Lohit river), Tipi Arunachal Pradesh has one of the main treks in Arunachal Pradesh are: and Bhalukpong (Bhoroli river) and

54 | MYSTIC EAST January - February 2015

Pasighat (Siang river). , , Tawang etc tural and socio-cultural occasions. A few of the important festivals celebrated in Hill Stations Fairs & Festivals Arunachal Pradesh are listed below Arunachal Pradesh is adorned with The fairs and festivals in Arunachal Losar festival, Torgya, Choekhor, beautiful green surroundings of pic- Pradesh are a fine reflection of the Monpa festival, Sangken festival, turesque hill stations. Some of the state’s zest for life. Arunachal Pradesh Tamladu festival, Saga dawa, Khan hill stations in the region are Along, celebrates almost all religious, agricul- festival etc

air communication and telecommuni- cation, proposal for providing drinking water supply, special package for border infrastructure, hydropower development and power issues, special package for realizing the Agro-Horticulture potential, Organic farming, Spice etc. Tea & rubber, setting up of Central Government Com- plex (CGO Complex) in Itanagar, master plan for exploration of minerals such as coal, oil, graphite etc. in Arunachal Pradesh. Tuki further called for establishment of Arunachal Pradesh Governor and CM Nabam Tuki receiving PM Modi at Itanagar Sainik school, AIIMS like institution, IIT, IIM in the State, Regional Centre for Skill Development, three Smart Cities, ARUNACHAL CM SUBMITS 15-POINT Regional Film & Television Institute with MEMORANDUM TO PM comprehensive sports development. Lastly, the CM appealed for a solution to the issue of Asian Development Bank/ ITANAGAR, Feb 21: Chief Minister with high quality reserves of Coal and World Bank/Japan International Cooper- Nabam Tuki has requested the Centre Oil in addition to other minerals such as ation Agency and window for alternate for providing developmental packages graphite, dolomite, etc., tourism potential, funding. Tuki expressed hope that the and establishment of various institutions medicinal plant, the perennial rivers. Centre would add in for the development in the state. CM Tuki placed and called initiatives and demands for a developed Stating that due to institutional upon Prime Minister Narendra Modi to Arunachal and a nation. bottlenecks – unfavorable policies, consider a 15-point memorandum for the Requesting the Prime Minister to provide rapid growth of the state. protracted procedure for clearances and perceived low priority region, the the state government with the technical He was addressing a mammoth gather- resources are yet to be sustainably expertise in preparation of the Arunachal Vision 2030 document, Tuki informed ing at IG Park Itanagar along with Prime harnessed, Tuki said it has resulted in that the state government has recently Minister Narendra Modi during the 29th deprivation to the people of both the Statehood day celebrations. taken decision to prepare a realistic State and Nation. vision of the State for the next 15 years Detailing the natural resources of the The memo requested for continued sup- and named it the Arunachal Vision 2030 state, the CM stated that Arunachal has port in completion of all projects under with medium and long term Develop- 82 percent quality forest, with huge poten- the Prime Minister’s Special Economic ment Vision for the state. tial in Agriculture and Horticulture both Package-2008 and early start of Green temperate and tropical, unique geology Field Airport in Itanagar, better surface, (source: Arunachal Times)

MYSTIC EAST | 55 HOTEL CLASSIFICATION GUIDELINES (REVISED)

CHECKLIST OF FACILITIES FOR CLASSIFICATION/ RE-CLASSIFICATION OF HOTELS

Yes/ Facilities & services 1* 2* 3* 4* 5*/5*D No Comments

GUEST ROOM

Mandatory for 3*, 4*, 5* and 5* Deluxe category and TV must have remote. Exception: TV-CABLE IF N N N AVAILABLE For eco and nature resort, TV cable is not mandatory for 3*, 4*, 5* and 5* deluxe category. However, it is mandatory that they provide a TV with cable in lobby and other common area.

BATHROOM

CLOTHES-HOOKS IN The bathrooms of all star hotels shall have hooks for at least 3 garments N N N N N EACH BATH/SHOWER in the bath room. ROOM

From 01.04.2017 all new hotels and from 01.04.2023 all existing hotels shall have bath tubs in following percentage: All 4 Star category hotels will provide bath tub in 10% of total number of Bath tubs D D rooms. All 5 Star hotels will provide bath tub in 25% of total number of rooms. All 5 Star Deluxe hotels will provide bath tub in 50% of total number of rooms.

ROOMS AND FACILI- TIES FOR THE DIFFER- ENTLY ABLED GUEST

Door width for room of the differently abled persons and bathrooms of such rooms should allow wheel chair made available by the hotel to enter easily. However, for new hotels coming up after 01.04.2017 the minimum door width of such rooms and their bathroom shall be minimum 90cm. In existing hotels the door width of the room for differently abled persons N N N N N BATHROOM & bathrooms of such rooms shall have minimum width of 90cm w.e.f. 01.04.2023. The almirah in differently abled rooms shall be sliding in cases where no sufficient space is available for opening the almirah doors by the different- ly abled person.

56 | MYSTIC EAST A.V.HOTEL

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

1, SAMBHU MULLICK LANE, KOLKATA – 700007. NEAR BURRA BAZAR P. S. PH: 033 2268 7741/ 46. FAX: 033 2268 8199 HOTEL CLASSIFICATION GUIDELINES (REVISED)

Yes/ Facilities & services 1* 2* 3* 4* 5*/5*D No Comments

All star category hotels should have a public rest room for differently abled guests (unisex) with minimum door width which allows wheel chair made available by the hotel enter easily. However, for new hotels coming up af- N N N N N PUBLIC RESTROOM ter 01.04.2017 the minimum door width of such public rest room (unisex) shall be minimum 90cm. For existing hotels, the minimum door width of public rest room (unisex) shall be mandatory after 01.04.2023.

FOOD & BEVERAGE

Grade A cities: 4 STAR CATEGORY One multi-cuisine restaurant-cum-coffee shop open from 7am to 11pm; (WITH ALCOHOL one speciality restaurant and 24 hr room service SERVICE OR WITH NO Other than A cities: ALCOHOL SERVICE) One multi-cuisine restaurant open from 7am to 11pm and 24 hr room service Grade A cities: One 24 hr multi-cuisine restaurant cum coffee shop; one speciality restau- rant and 24 hr room service. 5 STAR CATEGORY Grade B cities: (WITH ALCOHOL One multi-cuisine restaurant cum coffee shop open from 7am to 11pm and SERVICE OR WITH NO 24 hr room service. One speciality restaurant would be desirable. ALCOHOL SERVICE) Other than A&B cities: One multi-cuisine restaurant open from 7am to 11pm and 24hr room service Grade A cities: One multi-cuisine restaurant cum coffee shop; one speciality restaurant and 24hr room service. Grade B cities: 5 STAR DELUXE One multi-cuisine restaurant cum coffee shop open from 7am to 11pm and CATEGORY 24hr room service. One speciality restaurant would be desirable. Other than A&B cities: One multi-cuisine restaurant cum coffee shop open from 7am to 11pm and 24hr room service. One speciality restaurant would be desirable. Grade A- Delhi**, Mumbai, Kolkata, Chennai, Bangalore, Pune, Hyderabad, Note- The ministry of tourism may review and revise the cities falling under Secunderabad. the Grade A-Grade B from time to time. Grade B- Cities in the rest of the country excluding Grade A cities **Delhi would include the hotels falling in Gurgaon, Faridabad, Ghaziabad, NOIDA and Greater NOIDA Grade C- Cities in the rest of the country

Note 1: All hotels should clearly indicate on their websites the facilities and Note 3: It will be mandatory for all classified hotels to show the classifi- amenities provided to guests “free of cost” like complimentary breakfast cation status on their website under a separate icon on the opening page, (indicating broad classification like Indian breakfast, Continental breakfast or which on the click will display the order of classification issued by the American breakfast), iron and iron board facility, shoe cleaning facility shoe ministry of tourism, government of India. horn and slippers, other “free” facilities like dental kit, shaving kit etc. If any Note 4: If any hotel is found to obtain classification on a false pretext or on facility is provided only on “on request” but is included in the room rent, the basis of misrepresentation of facts or is found to display wrong classifi- this should be mentioned on the hotel’s website under the head “Facilities cation status or found to promote marketing of hotel on the basis of wrongful and Amenities provided on complimentary basis” and also mentioned to the claims then the unit/hotel will stand declassified with immediate effect and guest when the hotel staff introduces the room to him/her on arrival. In case it shall be debarred for a minimum period of two years from the date of the “complimentary” breakfast is not a buffet, the guest must be shown a debarment by the competent authority i.e. the chairman, HRACC. list stating in English the name of all complimentary items. (All hotels shall Note 5: All the hotels shall be required to submit an affidavit with respect to submit a compliance of Note 1 in the form of a screenshot of their website clearances along with their applications for classification/re-classification/ showing the “Facilities and Amenities provided on complimentary basis”. hotel project approval, as given in Annexure VII. Note 2: It will be mandatory for all the hotels classified under the catego- Note 6: D- Desirable; N- Necessary ries 1 to 4 Star to display their classification status prominently outside the There is no relaxation in the ‘Necessary’ criteria except as specified in the hotel and at the reception from 1.4.2014 as per a scheme to be evolved in comment column. consultation with FHRAI and HAI.

58 | MYSTIC EAST