MYSTIC EAST unexplored horizon A bi-monthly magazine by HRAEI | Vol 2 | Issue 3 | May - June 2016 COVER STORY MATTERS OF SKILLS The Government of India’s ambitious skill development scheme Hunar Se Rozgar Tak needs to plug certain loopholes to help the youth get jobs, not just certificates PLUS: Everything you wanted to know about GST DIRECTOR'S NOTE May - June 2016 Dear Fellow Members, Tourism and hospitality is a significant contrib- MYSTIC EAST utor to the economic growth and employment A BI-MONTHLY MAGAZINE BY HRAEI generation of India. This is why, five years ago, Vol 2 | Issue 3 | May - June 2016 the Government of India launched 'Hunar se Rozgar Tak' (HSRT) – a training initiative to create employable skills, especially among the EDITORIAL BOARD underprivileged section. SUDESH PODDAR So far the scheme has had an overwhelming PRESIDENT, HRAEI response and thousands of youngsters took RAVINDRA KUMAR KASHUKA short-term courses lasting six to eight weeks. MANAGING COMMITTEE MEMBER, HRAEI However, there have been certificates galore, but SUBORNO BOSE skills gap persists. MANAGING COMMITTEE MEMBER, HRAEI Multiple skills surveys point out chefs lack in GOPAL DAS AGARWAL knowledge of latest cuisines, the front office staff VICE PRESIDENT, HRAEI don’t know how to handle irate customers and the housekeeping people have no idea of time EDITORIAL CONSULTANT SUSMIT BARMAN management. In other words, a large percentage A large section of those employed in this sector remain unskilled. CHIEF DESIGNER They need long training and specialised training SOMU DUTTA employed in this in tourism or hospitality. The training institutes sector remains involved in the scheme do not have tie-ups with ‘Mystic East’ magazine is printed the industry. Also many students drop out. and published by Atikram Gupta on behalf of Hotel unskilled. They need Moreover, there are few institutes and little and Restaurant Association of Eastern India. specialised training awareness on HSRT. Like most other govern- Printed at CDC Printers Private Limited, No.45, ment schemes, it seems perfect; yet do not reach Radha Nath Chowdhury Road, Tangra Industrial out to the potential beneficiaries. Effective imple- Estate-II, Kolkata, West Bengal 700 015 mentation of the scheme is the need of the hour. Hotel and Restaurant Association of Eastern India, 18A/1, Everest , 18th Floor, 46C, Chowringhee Road, Kolkata- 700 071; Telephone- +91 33 2288-1742/43, 40035993. Sudesh Poddar E-mail: [email protected] President, HRAEI Website: www.hraei.co.in THIS ISSUE OF MYSTIC EAST CONTAINS 56 PAGES INCLUDING COVER AND BACK COVER All information in Mystic East magazine is derived from sources we consider reliable and a sincere effort is made to report accurate information. The publisher regrets that he cannot accept liability for error and omissions contained in this publication that might have crept in inadvertently. Similarly, opinions/views expressed by third parties are not necessarily shared by the magazine. However, we wish to advise our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances.. No part of the magazine may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extract used for the purpose of fair review, provided two copies of the same publication are sent to us for our 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 or unsolicited, nor is he responsible for material lost or damaged. MYSTIC EAST | 3 SECRETARY’S MESSAGE Dear fellow members, The central government is working on relaxing rules to en- courage ordinary citizens to offer homestays to tourists. This is supposed to fill up the massive shortage of 1.9 lakh hotel rooms in the country and garner gainful employment in the true spirit of 'Start-Up India' programme. At present, a homestay has to be licensed by the state gov- ernment; the licence needs periodic renewals and the facility is required to pay service tax and levies at commercial rates. The proposal is meant to make homestays exempt from most of these taxes and the process of certifying these homestays should be hassle-free. But we members of the hotel industry firmly believe that promotion of homestays at the expense of organised hospi- tality may spell doom to both law and order and eventually the economy. The primary problem with homestays is their security, especially in the current situation of terrorist strikes across the subcontinent. Hotels are required by law to send The primary problem details of foreign guests to the police station. If homestays with homestays are allowed to bypass this norm, this will help any foreigner seek refuge in them anonymously. involves security, Besides, in homestays, there have been multiple cases especially in the of exaggerated promises, disagreements and conflicts with guests. Hygiene issues and intimidations are also fairly com- current scenario of mon. Because homestays are unregulated, there are no re- widespread terrorist dressal systems in place. Almost all tourist towns across the world have grown strikes on the back of strong hospitality infrastructure and not homestays. Hotels contribute substantial tax to the state and central exchequer. The real solution to the growth of tour- ism in India is freeing the hospitality sector from red- tapism and following a pragmatic taxation policy. We hope the up- coming Goods and Services Tax Bill will help solve this prob- lem, to a large extent. Pranav Singh Secretary, HRAEI 4 | MYSTIC EAST INSIDE May - June 2016 Cover Story 26 May - June 2016 MATTERS OF SKILLS The Government of India’s ambitious skilling scheme Hunar Se Rozgar Tak need to plug certain loopholes to help the youth get jobs, not just certificates. HRAEI CORNER TAXATION Big investments 7 expected in the hospitality sector in West Bengal and Assam NEWS PM calls for redressal of 8 grievances against OTAs A speculation on how Incredible India 2.0 to unified tax regime can come up with a 18 affect the hospitality 9 smartphone version sector MYSTIC EAST | 5 Inside 32 TECHNOLOGY Wi-Fi is more necessity than luxury for most hotel guests ECONOMY HOTELS 42 The budget hotel segment has been TRAVEL PLANNING 38 growing at a fast clip The mobile phone is a traveller's new holiday planner STATE SURVEY BIG DATA 45 F&B is all set to beat 50 room rates Tripura can be a attractive destination for eco-tourists 6 | MYSTIC EAST NEWS May - June 2016 HRAEI CORNER UPWARD SWING IN HOTEL INVENTORY EXPECTED IN THE EAST N eastern India, tier 3 and tier 4 strongly in Kolkata. secretary HRAEI. I cities can expect big investments “We have a total of approximately Northeast India is the best bet for in the hospitality sector as the re- 5,500 keys in Kolkata between two- new investments of the hospitality sults of recent Assembly Election star and five-star facilities which is sector. Says Tejinder Singh Walia, reflect clear mandates in West Ben- expected to touch 7,500 by the end member HRAEI, "Prime Minister gal and Assam—two big states in the of 2016-17, with a series of brands Narendra Modi’s ‘Look East’ poli- region. throwing open their gates in the cy is helping improve connectivity Trinamul Congress's consolida- city,” Poddar was quoted saying. across the region. Increased domes- tion of power raises the hope of a And according to HRAEI, around tic travel and its positive effects on big push on an aggressive growth Rs 35-40 billion (US$526-601 mil- leisure hotels is opening new oppor- and development in West Bengal. lion) will be invested in the upcom- tunities for development." BJP's foray in the Northeast through ing three- to five-star hotel projects. Dibrugarh, Jorehat and Tezpur in a massive win in Assam is expected “Since there is a lack of ade- Assam are good examples of such to bridge the region's gap with main- quate banquet facilities, especially cities that attract good number of stream India, both in terms of poli- for more than 2,000 people, these corporate travellers and tourists. tics and financial growth. brands would ideally target social With a stable government superb An early indicator of development events, banqueting and marriage fa- infrastructure and growing impor- of more branded hotels in smaller cit- cilities. The target audience of these tance in Northeast make Agartala a ies is JW Marriott's recent announce- hotels would also include business good destination for investors. Shil- ments of properties in Siliguri, Guwa- clients, IT sector and transit passen- long in Meghalaya attracts tourists hati, Shillong and Imphal. The group gers,” Poddar stated. from both India and Bangladesh. will open its much awaited luxury New international hotel brands And Gangtok, the capital of Sik- hotel in Kolkata next October. Hotel entering Kolkata will include IHG’s kim (recently conferred the honour brands such as Sarovar, Keys, Tune, Holiday Inn, Starwood’s Westin, of first organic state of India), has The Fern and Ginger are in different Carlson Rezidor’s Radisson Blu, and room for mid-market and budget stages of assessing the feasibility of Marriott’s JW Marriott. Indian hotel hotels. setting up of hotels in smaller town group ITC is also planning to launch Despite multiple restrictions for to help them expand their footprint its second property in the city.