Monday, 8 September 2014

MoT Simplifies Procedure For Classification & Re-Classification, De-Links Classification From Liquor Service For Hotels

Hotel Industry Jubilant Over Government’s Move To Cut Red Tapism


Mumbai: In what can be called an epic move, the Ministry for Tourism (MoT) announced certain revisions for the hotel industry that the industry sees as a first of many more to come as envisioned by the Prime Minister for the revival of tourism in India. The Hotel and Restaurant Association of Western India (HRAWI) has welcomed the provisions while congratulating its members for the efforts put in over the years, in voicing out the industry’s concerns.

The Minister of Tourism and Culture Shri Shripad Yesso Naik announced two major revisions in the guidelines for the classification of hotels.

  • Simplified the hotel classification and re-classification procedure by not seeking re-presentation / submission of the licenses and clearances which are already issued to them by various Local, State and Central Government authorities for operation of hotels and;
  • Classifying 4-Star, 5-Star hotels in non-heritage sector and classic category hotels in heritage sector without insisting on the presence of a bar that serves alcohol on the premises

“Henceforth, at the time of classification/reclassification, hotels will only be required to furnish a current and valid Trade license and Bar license, if applicable.  Prior to this announcement, it was mandatory for the applicants to submit all the licenses and clearances including the land utilization certificate, building completion certificate, coastal zone regulation clearance, forest and environment clearance, pollution control clearance, police clearance, fire safety clearance, airport authority clearance, health and sanitation clearance. The procedure has been simplified by eliminating the need to submit multiple documents,” explains Mr. D.S. Advani, President, HRAWI.

The classification or reclassification will remain valid only if the hotel has all licenses and clearances that are required under various Acts, Rules, Regulations or Guidelines issued by the Local, State or Central Government Authorities for operation of the hotel, current and valid. The Ministry would be securing an affidavit from the hotel owner that the establishment is operating after obtaining all necessary licenses and clearances. Failing in which its classification or reclassification would cease to be operational with immediate effect.

“At present the MoT classifies various hotels on voluntary request in the categories of 1 Star, 2 Star, 3 Star, 4 Star, 5 Star and 5 Star Deluxe in non-Heritage sector and in the categories of Basic, Classic and Grand in the Heritage sector. Under the guidelines of the Ministry of Tourism till now, alcohol service was essential for Hotels seeking classification under the categories of 4 Star, 5 Star, 5 Star Deluxe, Classic Heritage and Grand Heritage. However, henceforth, hotels in the categories of 5 Star and 4 Star in non-Heritage sector and classic category hotels in heritage sector can now be classified as ‘5 Star with alcohol service’, ‘5 Star without alcohol service’, ‘4 Star with alcohol service’, ‘4 Star without alcohol service’, ‘Classic Heritage with alcohol service and ‘Classic Heritage without alcohol service’. This is a very sensible and practical revision that the ministry has made and we feel very optimistic for the sector in the years to come,” says Mr. Gurbaxish Singh Kohli, Vice-President, HRAWI.

The provision will render flexibility to hotel owners and management to take considered decision on whether to provide alcohol service or not in their units. However, to protect the customer’s interest, the MoT has made it compulsory for all the classified hotels to make their precise classification status shown on the opening page of their (Hotel’s) website and also declare such status clearly on their (Hotel’s) promotional and marketing material without any abbreviations.

“The announcement has come at a time when the hotel industry had begun to feel that bureaucracy was eating into a lot of its time and efforts that could be better invested in improving services. These announcements coming from the ministry have provided hoteliers with the much needed affirmation that the industry will see a change in the government working model. We are jubilant with the developments and are excited to know that there may be more in the pipeline. We wish to thank the government for providing us with the hope that starting with this simplification exercise. The new government shall tread towards a facilitator role from a regulatory role, bringing in the much needed dis-banning of archaic rules, regulations and licensing to usher in the new era of tourism growth in India,” says Mr. Kamlesh Barot, immediate past President, HRAWI.

About Hotel & Restaurant Association Western India (HRAWI)
The Hotel and Restaurant Association (Western India) is a 64 years old Association of Hotels and Restaurants in Western India. Its members include Hotels up to 5-Star Deluxe categories like The Taj, Trident, Hyatt, J.W. Marriott and The Leela who are some of the prominent members of our Association. With around 1300 members across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa is considered to be the voice of the Hotel Industry. The association is part of the national body of Federation of the Hotels & Restaurants Associations of India (FHRAI), located in New Delhi, which was originally founded in Mumbai in 1950 by the late Mr. J.R.D. Tata.

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