HRAWI WORKS IN CONJUNCTION WITH MTDC AND GOVERNMENT OF MAHARASHTRA FOR EASE OF BUSINESS

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departments/ agencies is hampering the growth of the hospitality sector, it has recommended streamlining the current outdated systems and launch a transparent online “Single Window Monitoring Mechanism” for expeditious implementation of hotel & restaurant projects.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.

Editor’s Note: Federation of Hotel and Restaurant Associations of India (FHRAI) was instrumental in initiating a first-ever move that was advised by the Committee of All India Secretaries, that got approved by the Union Cabinet of Ministers also, to set up the Hospitality Development & Promotion Board (HDPB) under Ministry of Tourism in 2011. Secretary (Tourism), Government of India is the Chairman of the Board with ADG as the convener and members include Secretaries of UD, Environment, Culture, Civil Aviation, Finance, Home, BMC, Delhi Development Authority and two non-official members being the FHRAI etc. The Chief Secretary of the State Government would be Chairman of the HDP Board at the State level. The Board was to be setup by each of the States, which has formally setup by Manipur, Mizoram and Maharashtra. The main functions of the Board would be to ensure timely accrual of approval / clearance/NOC by the multiple agencies and facilitate the implementation of hotel projects. It also monitors and facilitates the clearance of hotel projects in a time bound manner apart from reviewing hotel project policies to encourage the growth of hotel/hospitality infrastructure in the country.