HRAWI PUSHES FOR OPENING UP OF WATER-WAYS FOR BOOSTING COASTAL TOURISM

HRAWI Applauds Railway Minister’s Initiatives For Bettering Tourists’ Experience

Mumbai: Union Minister for Railways, Suresh Prabhu’s recent announcement commissioning local taxi and auto drivers as tourist guides at Kankavali station has been applauded by the Hotel and Restaurant Association of Western India (HRAWI). The association has cited this effort as a sign of inclusive governance that goes beyond its scope of work to support ancillary industries.

Commending the vision, President of HRAWI, Mr. Bharat Malkani said, “Although this decision does not affect or directly impact the hotel industry, the move indicates the tone of the Government. To us, this is a promising sign and gives us hope.”

“It is an idea that is both simple and ingenious. However, it is also very crucial that thorough audits must be done to identify that these taxi and auto drivers are indeed locals and that the training should include development of their soft skills for tourists to feel a home. With suitable training, which according to the Minister would be provided by the Railways and the State Government, there are none who are more suited than local taxi and auto drivers to act as tourist guides. Not only will tourists get access to easy, convenient and legitimate information off hand, but it will also give the locals additional income, besides enhancing the experience of tourists visiting the place,” he added.

HRAWI has been advocating the development and promotion of tourism in the coastal regions of Maharashtra. Projecting the Konkan beach belt, which the association believes is underrated and untapped, is expected to generate employment opportunities and significant revenues to the state.

“Beaches along the Konkan stretch of Maharashtra are unparalleled in their beauty. With ample sunshine, golden sand and sub culture, atmosphere, cuisine and people that are unique to this region, it is as good, if not better than Goa or surrounding places. If only the Government focuses on improving the transport infrastructure and connectivity, the tourist arrivals could easily see an appreciated surge,” says Mr. Malkani.

Meanwhile, HRAWI also appealed to the Government to implement its earlier proposal for opening up the waterways as this could boost coastal tourism. “Mumbai has one of the biggest ports and waterways and the possibility that it could be utilized as a medium of transportation has been overlooked for long. If the government looks at opening up this possibility, then tourists could use the water mode to reach their beach of choice. This could irrevocably change the landscape of tourism in the state,” concluded Mr. Malkani.

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.

HOTELS AND RESTAURANTS IN THE CITY TO MAINTAIN ENOUGH SECURITY, KEEP TAXIS QUEUED

HRAWI Initiates Responsible New Year’s Celebrations

Mumbai: In light of rising incidences of crime, especially against women, the Hotel and Restaurant Association Of Western India (HRAWI), has initiated a drive for safe and responsible new year celebrations. As part of the drive, the association has requested all its members to additionally ensure security at respective premises and also keep taxis queued for customers to drive home safe. A letter to this effect has been circulated across all hotels and restaurants across all its member states in the western region that includes Gujarat, Madhya Pradesh, Maharashtra, Diu-Daman and Dadra and Nagar Haveli. The drive has been initiated not just for the safety of women but as precautionary arrangements in case of unforeseen incidences.

“New Year's is one of the most celebrated festivals in the world. Patrons come to hotels and restaurants to leave behind the previous year and usher in the new one with revelry and hope.  Hotels provide the space, comfort and convenience for people to welcome the first day of the new year, where like-minded people come together for celebrations,” says Mr. Bharat Malkani, President, HRAWI.

“Where there is much celebration and crowd, the need for security and safety in general also becomes doubly important. We are certain that Mumbai police is quite capable of handling any unforeseen incidences however, on our part, we wish to take precautionary measures for additional safety and security. We are also concerned, especially with the safety of women patrons and so all our member hotels have decided to be vigilant and beef up the security to avoid any untowardly incidence,” adds Mr. Malkani.

Since last year, hotels and restaurants have been permitted to serve alcohol on New Year’s Eve until 5AM of the New Year.

“We understand that some revellers would like to celebrate the occasion with wine and spirits. For these guests, we will try and provision for cabs so they do not indulge in driving under influence of alcohol.  Wherever possible, we will make note of the taxi number plates just to be additional safe. Within the reach of each hotel and restaurant, we will ensure that the parties will be celebrated in the right spirit. I wish to take this opportunity to wish everyone in advance, a very Happy New Year J,” concludes Mr. Malkani.

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.

HRAWI OPPOSES THE BAN; TERMS THE DECISION ARBITRARY & HARMFUL FOR TOURISM

Daman Administration Bans Live Orchestra Performances

In Hotels & Restaurants

Daman: The office of Deputy Collector of Daman has recently issued a circular revoking permit for live orchestras in hotels, bars and restaurants. The reason for the ban has been cited as a way of preventing Daman from becoming a hub for prostitution and other illegal activities. The Hotel and Restaurant Association of Western India (HRAWI), terming the move as arbitrary, without basis and effectively harmful for tourism, has opposed the ban.

“The administration claims that there may be cases of prostitution and illegal activities taking place under the pretext of live orchestras. But this is baseless and merely presumptive. Concluding that all live orchestras are indulging in such practices is arbitrary and sets a bad precedent. Many hotels and restaurants that have heavily invested both capital and time for setting up infrastructures are now in a soup on account of this ban,” says Mr. Bharat Malkani, President, HRAWI.

Last year the Daman administration had formulated a policy of allowing orchestras for entertainment of visitors. Quite a few hotels in the region had obtained the licenses for the same, mainly in Dabhel and Bhimpore.

“Hoteliers and restaurateurs are in a fix. They invest in businesses and projects based on stable Government policies. Every enterprise is built around projected returns on investment. But if policies are changed arbitrarily, they will not be able to plan for future. In specific relation to this ban, many hoteliers had invested in artist promotion and popularizing the concept of live orchestra. With this immediate ban, not only the enterprises will begin to incur losses immediately but also tourism as a whole will be hampered. With New Years eve just a month away, a sudden jerk in the mechanism of hospitality will certainly be a cause for tourists to withdraw their visits and/or stays from here to other places, eventually resulting into deficit in revenues for the state’s coffers as well,” he adds.

“We stand by the administration for its stance against illegal activities under the disguise of live performances. The law should be vigilant and should take action against erring establishments who bring a bad name to the region and tarnish the reputation of tourism in the state. However at the same time, we request the administration to look at the flip side of the decision and reconsider banning all the establishments from conducting business ethically,” concludes Mr. Malkani.

HRAWI TO MEET CHIEF MINISTER WITH WISHLIST FOR HOSPITALITY SECTOR

 New Government in Maharashtra Brings Hope To The Beleaguered Hospitality Industry

Mumbai: The hospitality sector, which is going through one of its worst ever economic downswings, is hoping for a reversal of trends with the formation of the new Government in Maharashtra. It is expecting the introduction of rational policies and stronger infrastructure creation that will go on to boost the tourism and hospitality industry in the State.

“As soon as the Government settles in, we will be meeting the Chief Minister and the Tourism Minister with vision for the hospitality industry. In the last twenty-five years every successive Government has regularly raised taxes, introduced new taxes and increased procedural requirements. In turn, the industry has suffered. Our request from the new Government is that the tax structure and policies be rationalized; otherwise, the hospitality sector which is bleeding badly, will bleed to death,” says Mr. Bharat Malkani, President, Hotel & Restaurant Association of Western India (HRAWI), the apex body of hotels and restaurants.

The association has identified seven key issues that it would take up with the Chief Minister on behalf of the hotel industry.  The issues include single window clearance for licenses; eliminating duplication of certificates that need to be taken from Food Safety & Standards Authority of India (FSSAI) and local bodies, municipality and municipal corporations; rationalization of room rates by increasing hotel rooms; developing  Swachh Bharat and sewage treatment policies for cities and towns; skill development through the ‘Hunnar Se Rozgar’ program and apprentice harmonization; rationalization of entertainment tax and the capital value tax system.

Talking about the industry’s existing scenario Mr. Malkani says, “Currently, all kind of direct and indirect taxes are levied on the hospitality industry. Some of the taxes like (entertainment tax and luxury tax) amount to duplication and some like the new property tax valuation system are irrational. For every four nights a tourist stay in Mumbai the tourist pays one additional night stay in taxes alone! This makes staying in Mumbai prohibitive for tourists and they use the city merely as a transit point instead of as a tourist destination like most other cities in the world.”

Another challenge the industry has been facing is that new laws are not replacing existing ones, but duplicating them... Post introduction of the FSSAI Act, it became obligatory on all Food business Operators (FBOs) to acquire license under this Act. “But this did not trickle down to the local bodies and Municipalities. FBOs now need licenses from both the Health departments and under the FSSAI Act, which amounts to duplication. While we have been appealing to the Government to provide guidelines to the local bodies on the FSSAI Act, the nature of the problem reemphasizes the need for Single window clearance for hotels,” elaborates Mr. Malkani.

 “The hospitality industry is the highest creator of jobs, is the highest tax generating source, one of the highest foreign exchange earners and one whose growth trajectory can outpace the growth of several other industries put together. With a little bit of vision and support from the Government, this industry can easily increase its contribution to the GDP and play a much bigger role in its progress,” concludes Mr. Bharat Malkani.

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 smaller Hotels up to 5-Star Deluxe categories. The bulk of its members, like any growth economy is made up of budget hotels. With around 1300 members across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa, and 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.

HRAWI ORGANIZES SEMINAR ADDRESSED BY SME’S FOR THE BENEFIT OF HOTELIERS & RESTAURATEURS

VAT, Luxury Tax & Service Tax Demystified For The Hospitality Industry

Mumbai: As part of the initiatives taken for the benefit and awareness of hoteliers and restaurateurs, the Hotel and Restaurant Association of Western India (HRAWI) has organized special seminars to understand the impact of VAT, luxury tax and service tax on various activities of hotels and restaurants. The seminars will be organized for Food Business Operators (FBOs) in various cities of the western region including Mumbai, Pune, Bhopal, Ahmedabad, Goa and others in the coming months. The first seminar held at The Ambassador hotel, Mumbai, yesterday received an overwhelming response from the FBOs. The session on VAT and Luxury Tax was addressed by Shri Govind Goyal, a well-known chartered accountant and Mr. Sheel Bhanushali spoke on matters related to Service Tax.

“The hospitality industry is presently gripped by several harsh policies and; direct and indirect taxation that is hurting the sector. It is very important for everyone in this industry to be abreast of changes and developments taking place from time to time. For this, the association has and will continue to organize such seminars in the interest of our members,” said Mr. Bharat Malkani, President, HRAWI.

During the seminar the Subject Matter Experts (SME) highlighted several laws and policies related to VAT, Luxury Tax and Service Tax. This included the criteria under which taxes are applicable and liability classified based on person, event, rate or value. The seminar also discussed the issues of overlapping of taxes besides giving clarity over taxation based on the types of organization viz Star hotels, club houses, small hotels, sweets and farsan shops, bakeries and catering.

Explaining the basics Mr. Govind G. Goyal said, “Unlike in the past, since 01.04.2005 there is no separate Purchase tax, Turnover tax, Resale tax, Surcharge, Works Contract tax, Lease tax etc. There is only one tax now i.e. the Value Added Tax (VAT). VAT is levied on the turnover of sales of goods at such rate as specified in respective schedules that include Essential commodities that are tax free; gold, silver, precious stones, pearls, etc attract a VAT of 1%, declared goods, industrial inputs, and such other specified goods are charged at the rate of 5%; foreign liquor, country liquor, motor spirits, etc. are the ones that may attract VAT at certain specific rates and all other goods are taxed at 12.5%.” Also highlighting the recent revisions made to the Luxury tax he said, “The Luxury tax is not applicable for hotel rooms for a tariff of up to Rs.1000, between Rs.1001 – Rs.1500 at 4% and exceeding Rs.1500 at 10%.”

Speaking about the Service Tax applicable for the hospitality sector Mr. Sheel Bhanushali explained the various services that various hotels provide activity-wise. Based on whether it provides only accommodation or if it’s a casino or a club membership, he elaborated on the taxes an entity would incur.

Providing clarity on the definition of a Mandap and its tax implications Mr. Bhanushali said, “The definition of mandap is very vide in its coverage and covers all immovable properties let out for organizing social, official or business functions. Hotels and restaurants providing facility like kalyana mandaps or marriage halls, banquet halls, conference halls etc. within their premises for organizing any social, official or any business function shall also be obviously included in the coverage of service tax. Therefore the levy of service tax will apply in all such cases.”

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 smaller Hotels up to 5-Star Deluxe categories. The bulk of its members, like any growth economy is made up of budget hotels. With around 1300 members across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa, and 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.

HRAWI ANNOUNCES NEW COMMITTEE LEADERSHIP

Mumbai: The Hotel and Restaurant Association of Western India (HRAWI) held its 64th Annual General Meeting (AGM) to elect the office bearers for the term 2014-15 on Wednesday, Sept 24. At the AGM, held at the Trident Hotel in Mumbai, Mr. Bharat Malkani, Managing Director, Hotel Transit was elected as the President for 2014-2015. The office bearers are Mr. Dilip Datwani as Senior Vice President, Mr. Gurbaxish Singh Kohli as Vice President, Mr. Pradeep Shetty as Honorary Secretary, Mr. Sherry Bhatia as Joint Honorary Secretary and Mr. Prrem Tiwari as Honorary Treasurer for the same term.

“I, like my predecessors, will strive to work in the best interests of the association and the hotel industry as a whole. With the support of this team we will continue with the good work and resolve any pending matters at the earliest. Our vision is to work inclusively with the Government. Government and industry are equal stake-holders in building the Tourism potential in this great nation of ours. We believe by working together we can achieve the potential of doubling the tourism arrivals into the Western Region in a span of two years. We shall prioritize working on resolving the various tax and regulatory issues like Luxury Tax rates in Madhya Pradesh, Entertainment Tax in Maharashtra, visa-on-arrival issue in Goa among others. I congratulate the preceding office bearers for all they have achieved so far, including the recent successful launch of the non-commercial laboratory for food testing in Vadodara and wish all the new members all the very best for the future,” says Mr.  Malkani.

The six members nominated for Federation of Hotel and Restaurant Associations of India (FHRAI) for 2014-2015 to represent from Western Region are Mr. Bharat Malkani, Mr. Vivek Nair, Mr. D. S. Advani, Mr. Gurbaxish Singh Kohli, Mr. Pradeep Shetty and Mr. Nirav Gandhi.

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.