HRAWI Maps Investor
Friendly Policies To Attract “Gen-Next” Entrepreneurs
Mumbai: Hotel &
Restaurant Association of India Western India (HRAWI), the apex body of Hotels and Restaurants
in Western India in conjunction with Maharashtra Tourism Development
Corporation (MTDC) and Government of Maharashtra (GoM) has been advocating new
business strategies with a goal to give boost to the hospitality
industry. HRAWI has shown optimism and believes that implementation of
the new policy will encourage the growth of hotel/hospitality infrastructure in
the country.
India ranked 140/189 in 2013
and 142/189 in 2014 on Ease-of-doing-business index where 1 is the most
business-friendly regulation country as per data released by The World Bank.
Sixty five percent of India’s population is under thirty years of age. It is,
therefore, imperative to have investor friendly ease-of-business policies to
attract “Gen-next” entrepreneurs to this sector. HRAWI, along with MTDC and GoM
through Accenture, has identified Single Window Clearance as the key solution
in the Ease-of-Business strategy paper.
“High taxation and unreasonable levies are the reason why more entrants
are not looking at this industry with a keen investment opportunity. Moreover,
local and smaller entrepreneurs are shying away due to high investment and low
Rate of Interest. We need to look at this in a rational way with an attitude to
give boost to an industry capable of singularly taking tourism to new heights
and earning formidable revenues in foreign exchange,” says Mr. Bharat Malkani,
President, HRAWI
At present, there are around
112 clearances (70 project and 42 operational) required from various
ministries/ departments from the GoM to set up a hotel. Recognizing that
multiplicity and the delay in obtaining clearances from various ministries/
departments/ agencies is hampering the growth of the hospitality sector, it has
recommended streamlining the current outdated systems and launch a transparent
online “Single Window Monitoring Mechanism” for expeditious implementation of
hotel & restaurant projects.
An online single window
clearance shopping cart will increase room inventory for the State and reduce
room tariffs besides reducing waste of time and increase efficiency. A
foreigner staying one extra night will increase forex revenue to Maharashtra
Government at INR 599 crores per night.
“With the implementation of
the proposal, MTDC will become the nodal agency to which restaurants and hotels
will apply for new licenses and renewals. It will act as a single window that
will in turn fetch all licenses from the relevant departments on the Board and
have the investors pick them up from the same window. It will also ensure that
the permits are granted within a set time frame. The presentations made by
Accenture include topics as curbing the number of licenses, permits, NOCs and
registrations from 112 to 20 for opening new establishment as well as renewing
existing licenses, appraisals for special tourist zones that would remain open
round the clock and abolishment of archaic drinking permit rules among other.
If sanctioned and implemented at the earliest, the proposal holds capacity to
boost tourism and bring India on the International map as one of the most
preferred tourist destinations,” says Mr. Kamlesh Barot, past President, HRAWI.
Hotel & Restaurant
Association of Western India (HRAWI) is the apex body of Hotels and Restaurants in
Western India. One of the strongest four pillars of Federation of Hotel and
Restaurant Associations of India (FHRAI), since 2010 it is a nominee in the core committee of Maharashtra Tourism Development
Corporation (MTDC).
About Hotel & Restaurant
Association Western India (HRAWI)
The Hotel and Restaurant Association
(Western India) is a 65 years old Association of Hotels and Restaurants,
representing majority of Hotels and Restaurants across Western India, which
covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union
Territories of Daman, Diu & Silvassa and is more or less considered to be
the voice of the Hotel Industry / Fraternity. The four Regional Associations
form a part of the “Federation of Hotel & Restaurant Associations of India”
(FHRAI) at the center in New Delhi, which is our parent body. The Association
is part of the national body of the “Federation of Hotel & Restaurant
Associations of India”, which was originally founded in Mumbai in 1950, by the
late Mr. J.R. D. Tata.