HRAWI APPEALS FOR EXPEDITIOUS PERMISSIONS AMIDST DEMONETISATION BLUES

Hotel Industry Awaits Police Permission Ahead Of Christmas & New Year Eve

Mumbai: For over a month since demonetization, hotels and restaurants in the city have witnessed a major slack in business and are hopeful of making up for it during the Christmas and New Year celebrations. With the Christmas Eve being just a few hours away, hotels have started gearing up for celebrations to try and make the best of what is left of the year. However, the industry is still awaiting permissions from Police for the extension of relaxation of timings for celebrations.

“It has been a dull couple of months not just for hoteliers, but for everyone in the city. Christmas would have been the perfect time to bring some cheer. But with Christmas just a few hours away, and permissions not in place we may not be able to maximise the opportunity. We are now appealing to the authorities to give early permissions for New Year Eve Celebrations,” says Mr Dilip Datwani, President, Hotel and Restaurant Association of Western India (HRAWI).

The association has written to the Police Commissioner to provide an early permission so that the hoteliers can make the best arrangements and guests are able to enjoy a great evening.

“The Christmas and New Year celebrations are perhaps the biggest of all social celebrations in Mumbai. However this year we are both sceptical and hopeful about how it will turn out for us. With demonetization effects still lingering, there is uncertainty about how things will pan out. At the same time, the industry is also hopeful because this is the one time of the year that hotels and restaurants get to capitalize on the celebrations,” he says.

“We want to make sure that we are fully prepared at our end and leave no card unturned to ensure a great evening for our guests. Hence, we have requested the authorities to grant us relaxations in timings of operations on the nights of 24^th, 25^th and 31^st of December, 2016 at the earliest. We are hopeful that the authorities would be little more considerate and grant us the permissions. The city could do with a bit of cheer in these wintry times,” he concludes.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 66 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 are made up of budget hotels. 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.

For more information about the association please visit: www.hrawi.com

VADODARA MUNICIPAL CORPORATION ABOLISHES HEALTH LICENSE FOR HOTELS & RESTAURANTS

Vadodara Municipal Corporation Abolishes Health License For Hotels & Restaurants

HRAWI Hails Move; To Press For Curtailing Of Licenses Across Cities

Vadodara: In a landmark move the Vadodara Municipal Corporation has abolished health licences for hotels and restaurants operating in the city. According to a notification issued by the Corporation, Sanitary Health License under G.P.M.C Act was duplication as health and sanitation are already covered under Food & Safety Act 2006. “Central Govt and State Govt has in recent times been emphasizing on ‘ease of doing business’ and simplification of regulations to reduce difficulties faced by general public. Considering this matter, with immediate effect, Vadodara Municipal Corporation, Ward Offices, Health Department, has cancelled issuance of Health License under Sec. 376 of G. P. M. C. Act, wherever license under Food Safety and Standard Act, 2006 is required and issued,” states the notification.

Hailing the move as a milestone in the history of corporate India, The Hotel and Restaurant Association of Western India (HRAWI), the apex body representing hotels and restaurant across the western region of India has commended Vadodara’s new Municipal Commissioner and expressed hope that other cities will follow the precedent.

“For the last nine years we have been petitioning Municipalities across the Western Region for the exclusion of this particular license as it was a repetition and merely added to paper work and red tapism. The association welcomes the decision and appreciates the affirmative and expedited action of Mr. H.S.Patel, Municipal Commissioner, Vadodara,” says Mr Bharat Malkani, President, HRAWI.

As per law, when any Central law is applicable, then the provisions of that law prevail over local laws and any provisions in local laws up to that extent become inapplicable. The Central Govt. has issued notification to this effect under the Food Safety and Standard Act, 2006 and also remarked the same in a circular.

“The hotel industry is one of the most licensed industries in India and is required to obtain and maintain anywhere around 75 to 135 licenses, depending upon the outlet's layout. Over the past decade and more, it has been solely our Association that has been in liaison with the Government to remove redundant and overlapping condition licenses, where such duplications could have been easily done away with long ago,” says Mr Kamlesh Barot, past President, HRAWI.

The HRAWI has been at the forefront for working with the Government as part of inclusive governance. It has made several presentations at state levels including the idealistic, single window clearance system, which has in-principle received a nod from the authorities.

“As an Association working in conjunction with the Government, our objectives are an extension of our aim of serving the HRAWI members. In Mumbai too, it was HRAWI’s pioneering efforts for 24/7 operations and a vibrant nightlife, that the Government has almost adopted the centre’s model Shops & Establishment Act. We have also proposed alternatively, five Tourism Zones to the authorities to pilot the implementation of this new amendment in certain designated areas of the city, where tourism can be promoted without disturbing any residents, thus providing international level places of recreation in this metropolis. Likewise with the single window clearance system, HRAWI has presented to the Government the advantages of introducing online systems that will lead to the curtailing of bureaucracy and make processes swift, transparent and efficient for consumers and the authorities as well as for establishments to invest. We have big hopes from this Government and are positive that it will make the 'Ease of Business' a reality for industries like us,” concludes Mr Barot.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 66 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 are 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.

For more information about the association please visit: www.hrawi.com

HOTELIERS OBSERVE SWACHH BHARAT PAKHWADA

^{Hoteliers Observe Swachh Bharat Pakhwada} 

Mumbai Swachh Bharat Pakhwada, a fortnight cleanliness drive announced by the Ministry of Corporate Affairs, Government of India has elicited a strong response from hotels across Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa. Under this drive, the measures adopted ranged from setting up of long term cleanliness and waste management programmes to short term cleanliness activities within the premises, and initiating cleanliness awareness campaigns.

“The Hotel and Restaurant Association of Western India (HRAWI) has always worked hand-in-hand with the Government whether it’s about outlining a plan for tourism-friendly policies or supporting its social welfare campaigns such as Swachh Bharat Abhiyan. This time again, the association offered its strong support to Swachh Bharat Pakhwada,” said Mr. Bharat Malkani, President, HRAWI. “The association not only serves the interests of the hotel and restaurant industry by advocating tourism-friendly policies in conjunction with the State and Central Governments but also contributes towards community development and society at large time to time by initiating various campaigns actively,” he added.

The Swachh Bharat Pakhwada was launched on June 16. The fortnight included activities such as displaying placards in hotel premises suggesting patrons to keep their surroundings clean, hotel managers having dialogues with customers on the subject, placing stickers outside hotel premises for keeping the area litter-free, discouraging the usage of plastic bags, providing cotton napkins instead of tissue papers wherever possible among others, apart from several other cleanliness practices followed by hotels and restaurants.

The Hon. Prime Minister has given a call for ‘Swachh Bharat’ as a mass movement to realize Gandhiji’s dream of a Clean India by the 150^th birth anniversary of Mahatma Gandhi in 2019. Ministries and Departments have undertaken various activities in connection with the campaign. However, it has been felt that the range, intensity and visibility of these activities need to increase significantly. Accordingly, Government has decided to observe theme-wise fortnights, Ministry to Ministry and Department to Department, states the letter received by the association from Ministry of Corporate Affairs.

“In our industry cleanliness is not just a practice but a core value. For our guests, irrespective of the type of accommodation, cleanliness and hygiene are the basic criteria and they won’t return to a property that does not comply with this. As hoteliers, we have decided to take up the cleanliness initiatives very seriously. Although many of the practices are followed on a regular basis, the initiative will certainly revive the intensity of the drive,” Mr. Malkani further elaborated.

‘Swachh Bharat Abhiyan’ is a national campaign by the Government of India and was officially launched on 02^nd October 2014.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 66 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 are 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.

For more information about the association please visit: www.hrawi.com

HRAWI PRESIDENT URGES MEMBERS TO USE WATER CAUTIOUSLY

Hotel Industry Unites For The Cause Of Water Conservation

Mumbai: Hotel and Restaurant Association of Western India (HRAWI), the apex body of hotels and restaurants in the western region including the states of Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa has issued guidelines to its members on conservation and use of water.

In a letter addressed to its members, Mr. Bharat Malkani, the President of HRAWI has urged member hoteliers to conserve the precious resource by taking small steps like serving water and refilling only upon guests’ request to not using the water hose to sweep the paths or driveways but by using just dry broom.

Some of the key water saving practices that the association has urged its members to follow include serving half a glass of water when requested for some, reusing untouched water, crockery and cutlery, requesting the guest to use less water to avoid wastage and informing them about the drought, requesting the guest to turn off the taps when not in use or lowering the flow of the water, using a cover on the pool while not in use to reduce evaporation, among others.

“Water is a very precious resource and conserving it has become the need of the hour. Every drop of water saved could make a difference and especially so when all the hoteliers and restaurateurs join hands it could mean a significant one. Using less water helps us to become more flexible during times of water shortage; and conserving water is simple and inexpensive,” says Mr. Bharat Malkani, President, HRAWI.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 66 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 are 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.

CITY HOTELS TO PLAY DRY HOLI

City Hotels To Play Dry Holi

Mumbai: On the backdrop of an acute water shortage and farmer suicides, hotels in Maharashtra have decided to celebrate a dry Holi. The Hotel and Restaurant Association of Western India (HRAWI), the apex body of hotels of Western India, has advised its members to put up placards at visible spots in their hotels, strictly avoid water intensive celebrations like ‘rain dance’ and consciously engage in water conservation measures.

The association, urging members both in the capacity of individuals and as establishments, has asked hoteliers to respect the precious resource not just during festivities, but as part of their day to day routine. Holi or Dhulivandan also known as ‘The Festival of Colours’ falls on the 24^th of this month and is celebrated across the country.

Asking members to join together and pledge a commitment towards water conservation, Mr. Bharat Malkani, President, HRAWI said that hoteliers question themselves whether they should be wasting water to have a colorful celebration of Rang Panchami at a time when India is grappling with back –to-back droughts. 

“Hence in an endeavor to create awareness about the seriousness of this issue amongst all HRAWI members; your Association requests you to do your bit to save water. It will save lives. You as Hoteliers and responsible citizens can play a pivotal role by taking a pledge of not wasting water during the festivities,” says Mr. Malkani in his communication to the hoteliers.

“The hotel industry is proactive and takes measures in every way to use resources conservatively. Whether with adopting newer technologies that are energy efficient or conserving water, we strive to do our bit. But the present water crisis demands more efforts. Our hotel industry has always reminded guests not to waste water with collateral reduce, reuse and recycle water conservation placards in washrooms for the past many decades. The message is loud and clear, for the present century water is one of the foremost challenging resource which has to be put to optimal use by aiming for zero wastage. Agricultural chain's dependency on water is therefore the key for our survival,” concludes Mr. Kamlesh Barot, past-President, HRAWI.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 66 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 are 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.

MAHA GOVT ABOLISHES POLICE LICENCES FOR HOTELS - HRAWI WELCOMES MOVE; ANTICIPATES MORE REFORMS

Maha Govt Abolishes Police Licences For Hotels

HRAWI Welcomes Move; Anticipates More Reforms

Mumbai: The Hotel and Restaurant Association of Western India (HRAWI) has welcomed the State Government’s recent directive to scrap all police licences required to run hospitality businesses. A Police circular to the effect states that now hotels, permit rooms and swimming pools within city limits will no longer require a police licence to operate a hotel establishment. The association had been strongly advocating this move since a long time along with the need to implement a single window licence clearance for the hospitality industry. With this decision, the industry is showing renewed enthusiasm and is hoping for the State to take progressive steps towards ease of doing business in the coming Financial Year.

“In a single stroke, the Chief Minister brought down this colonial rule. It goes to show that the government not only has acknowledged our woes but also has committed to eliminating them. The move also goes to reaffirm that the state is clearly looking at promoting tourism. Most importantly, it is an indicator of optimism and we feel positive that the following Financial Year would bring in a better time for hoteliers,” says Mr. Bharat Malkani, President, HRAWI.

While the government has taken a step towards plugging a hole in the system, hospitality is an industry that is tangled in a web of bureaucratic red tape. There are over 121 licenses that a hotel establishment needs to obtain and keep renewing each year to either start a new business or keep the operations running.

“This move clearly is progress and an important step. We are thankful to the CM for making this possible. We had been making several representations to the State at various levels indicating how many of the prevalent laws were in fact either obsolete or in some cases plain regressive. With the case of police licences and permissions being taken out of the way, some of our concerns have been addressed. We are hopeful that in the near future single window licence clearance will become operational. In most progressive countries hospitality sector besides being one of the key revenue generators also acts as a driver for business and tourism growth,” concludes Mr. Kamlesh Barot, past-President, HRAWI.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 65 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 are 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 CALLS ON ITS MEMBERS TO SUPPORT DRAUGHT HIT REGIONS IN MARATHWADA

‘No Food Wastage’ Resolution By Hotels On New Year’s Eve

Mumbai: In its on-going efforts to inch-up the status of tourism and hospitality both in terms of service quality and social responsibility, the Hotel and Restaurant Association of Western India (HRAWI) has resolved a ‘No Food Wastage’ Policy for New Year’s celebrations. The association has requested all its members to maintain a protocol aimed at discouraging patrons from wasting food. Additionally, the association has appealed to its members to pledge whatever amounts they can from the day’s earning for the benefit of the draught hit areas in Marathwada. A letter to this effect has been circulated amongst hotels and restaurants across all its member states in the western region that includes Gujarat, Madhya Pradesh, Maharashtra, Chhattisgarh, Diu-Daman and Dadra and Nagar Haveli.

The resolution comes in the wake of the increasing number of farmer suicides and the association’s desire of expressing solidarity with the agricultural community of which the hotel industry is a direct beneficiary.

“The New Year season has traditionally been a season of festivities and revelry. But it is also a season of charity, good will and compassion. As hoteliers, while we will ensure that the patrons make merry to their fullest, we will also imbibe the spirit of compassion and charity to their merriment,” says Mr. Bharat Malkani, President, HRAWI & Federation of Hotel and Restaurant Associations of India (FHRAI).

Among the precautionary steps that the association has identified to curb food wastage, hoteliers have been requested to highlight the No Food Wastage message in all their New Year Eve offers, place placards at all buffet counters and other appropriate places in their respective premises.

“Farmers are succumbing to nature’s will and starvation in our country. We are keen to help them in whatever way we can. We have proposed to our members to pledge a part of their day’s collection to the draught hit in the Marathwada region,” concludes Mr. Kamlesh Barot, past President, HRAWI.

Meanwhile, the hotel industry will also continue its drive to ensure safety of women patrons and like last year, plans to keep taxis queued for those who may leave in high spirits J

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 65 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 are 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 A ‘DIRECT TAXES’ SEMINAR FOR THE BENEFIT OF HOTELIERS & RESTAURATEURS

Finance Bill 2015 Deconstructed 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) had organized a special seminar to understand and avail of the implications of the proposed Taxes in the Union Budget 2015/16 on various activities of hotels and restaurants. The seminar was organized for the hoteliers at The Ambassador hotel, Mumbai, recently. The session was addressed by Mr. Anil Harish, an eminent speaker, who has had varied experience and who specializes in the Tax matters.

“The Union Budget remains the most important financial tool through which a Government can communicate its fiscal and economic policies to the public. Its importance cannot be overstated. It is very important for everyone in our 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,” says Mr. Bharat Malkani, President, HRAWI.

During the seminar the Mr. Harish highlighted several laws and policies that will affect the industry for the financial year. This included the launch of the e-Biz portal which integrates 14 regulatory permissions at one source, the increase in the Service Tax to the extent of 14%, provisioning for Swachh Bharat Cess of an additional 2% on taxable services among others.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 65 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 are 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 WANTS TO PUT HOLI ON THE MAP OF TOURISM FESTIVALS OF THE WORLD

HRAWI Initiates ‘Save Water’ Campaign For This Holi

Mumbai: The Hotel and Restaurant Association of Western India (HRAWI), in the anticipation of the tragic waste of the most precious resource – water during Holi has called for a ‘Save Water’ campaign across all hotels in the western region. The association has circulated a notice across all its member hotels appealing for not partaking in wastage of water and instead promote celebrating the festival with colours. Holi also known as ‘The Festival of Colours’ falls on the 6^th of this month and is celebrated all across the country.

“Water is a scarce resource and we are very fortunate to have just enough. However, over the last few years we’ve been realizing the deficit every time the BMC announces a cut in water supply due to shortage in rainfall. We as an industry realize that and share the responsibility by doing our bit in conserving the resource,” says Mr. Bharat Malkani, President, HRAWI. “To accomplish this, we have requested all our member hotels to promote the festival with colours and music,” he adds.

Also, the hospitality industry has expressed its gusto on promoting this festival to the world to put it on the tourism map of festivals of the world.

“Indian customs, traditions and festivals are as unique as its landscapes and cultures. Among the many festivals we celebrate in the country, Holi happens to be the one that is celebrated by everyone irrespective of religion, gender or wealth. This festival is endemic to our nation. Foreign tourists are very fascinated with this cultural festival of ours and we should take this opportunity forward by promoting it as a grand tourism festival of India,” says Mr. Malkani.

“The La Tomatina or popularly known as the Tomato festival in Spain has become so popular that its now nothing short of iconic for tourism in the country. Oktoberfest in Germany is another similar example of a country celebrating a festival at such a grand level. If we too promote Holi to the world then I see it to emerge as the next La Tomatina of India,” concludes Mr. Malkani.

About Hotel & Restaurant Association Western India (HRAWI)

The Hotel and Restaurant Association (Western India) is a 65 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.

“BMC’S NEW CAPITAL VALUE SYSTEM FOR PROPERTY TAX HAS SPELLED DOOM FOR THE HOTEL INDUSTRY”- HRAWI

Hotel Industry To Initiate An All Out Protest

Mumbai: Hotel And Restaurant Association of Western India (HRAWI) has today announced that it will start an all out protest against the new capital value system for taxation adopted by Brihanmumbai Municipal Corporation (BMC) with retrospective effect from 2010. This announcement comes in the wake of Public Interest Litigations filed separately by HRAWI, East India Hotels Ltd, Taj Group of Hotels, eminent architect, Shri Jashwant Mehta, and other individuals, associations, hotels and institutions.

Earlier, BMC had replaced property tax computation from rateable value method – based on rent – to capital value system – based on the property’s market price. The new system resulted in property tax of both residential and commercial properties jumping up; creating huge disparity between new properties and old; widening the difference between commercial and residential properties; and, introduction of periodic revision to property tax as against fixed taxes; among other changes.

“To give an example, a hotel like Taj* would have paid Rs. 27.73 lacs as per the old system. However, a new hotel similar to Taj coming up in the same area and in the same location will, as per the new system, be paying Rs. 27.74 crores – a jump of almost ninety times,” says Mr. Jashwant Mehta who has been studying the issue in depth and has a Public Interest Litigation pending in the Bombay High Court in the same matter.

Some of the other fallouts of the new valuations are equally devastating. For one, it would spell the death of service apartments. By clubbing service apartments with 4 star hotels, the former will end up paying 5 to 7 times higher taxes as compared to furnished apartments given on lease in the same location. The difference between the two is only an addition of services such as house-keeping, maintenance, security, and the like. This will be in addition to 15 times higher water charges. A typical one BHK service apartment having carpet area 600 sq.ft., built in 2014 in Juhu area is liable to pay approx. Rs. 3.00 lacs per annum as municipal taxes as against Rs.60,000/- payable as taxes by a furnished lease apartment in the same locality and built in the same year.

Star category hotels, especially those catering to the budget segment are also expected to take a big hit. Against 0.652% property tax paid by unstarred hotels, 1 star to 4 star category hotels will have to pay 1.303% taxes. “If we add the user category factor of 1.00 for unstarred hotels and 1.10 for the star category, the difference in taxes between star hotels and unstarred ones would be 220%. This will make operating as a star hotel, especially in the budget segment, totally unviable. Its consequence on tourism would be disastrous. The quality of services provided could see a big hit and we may see a drop in mid to high yield tourists. The difference between unstarred and star category budget hotels is not in capital value but in quality of service,” says Mr. Kamlesh Barot, immediate past President, HRAWI.

“The new capital value system provides for a shelter only to old properties. So the cap of 300% on existing property taxes as payable on or before April 01, 2010 will not benefit hotels constructed after 2010. They will see a rise in taxes even in slump years. If, God forbid, we are hit by a massive economic downturn, we could, theoretically, be in a situation where the property tax is higher than gross revenues,” adds Mr. Barot.

Another anomaly in the value system based taxation is that new hotels built between 2010 and 2014 will have a liability of Rs. 35.43 crores compared to Rs. 27 crores for a hotel of the same value constructed before 2010. “And, if a similar hotel in the same zone were constructed in 2014, the taxes would be 64% higher due to increase in Ready Reckoner rate between 2010 and 2013. This would mean that the tax provision in this case would be a staggering Rs. 58.15 crores. The anomalies are disturbing and will make it very difficult for new hotels to come up,” says Mr. Jashwant Mehta.

“In 2015, the situation gets worse. The taxes for all properties will be as per capital value as on April 1, 2015 subject to maximum of 40% cap over the taxes as payable on April 01, 2010. New properties will be worse off. For example, if taxes payable by Taj* were Rs.1.13 crores in 2015 a new property similar to Taj built in 2010 will be liable to pay Rs. 49. 60 crores,” reveals Mr. Mehta.

“Under such conditions it would be completely unviable for existing hotels to survive or new hotels to come up. Without its infrastructure, Mumbai is no different from any other B town in India. We have already filed a Public Interest Litigation in the Bombay High Court. In addition, we will embark on an all out protest comprising of advocacy at all levels, representations with concerned authorities and any other measure as may be warranted,” concludes Mr. Gurbaxish Singh Kohli, Vice-President, HRAWI.

* The example of Taj is given for illustration purpose only

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.

HOSPITALITY SECTOR OPTIMISTIC AHEAD OF UNION BUDGET

Mumbai: The Hotel and Restaurant Association of Western India (HRAWI) has announced that it expects the new Finance Minister to present a friendly budget. The sector that has been at the receiving end of rising taxes and other burdens for over a decade now is hopeful that at least some of the recently introduced burdens will be eased out this year.

In the run up to the budget, the association has identified four key parameters that will play a crucial role in the resurrection of the sector. To reduce the burden and help boost commerce, HRAWI has suggested the following:

Infrastructure: Lowering the minimum project cost mandated for inclusion of hotels in the Reserve Bank of India’s Infrastructure Lending List from Rs.200 crores to Rs.20 crores for hotels that have 20 or more guest rooms.

Depreciation: Depreciation on hotel building under Section 32. Hotels were eligible for a depreciation allowance of 20 per cent on their ‘Plant’ (Building) till March 31, 2002. Thereafter, it was scaled down to 10 per cent vide Notification No. 291/2002, dated September 27, 2002. HRAWI requests for restoring the 20 per cent depreciation allowance.

TDS: Under Section 194H, hotels are required to deduct tax at source at the rate of 10 per cent on commissions paid to travel agents. In actual practice, the payments received from travel agents by hotels are net of commission. Subsequently, hotels have to deposit the applicable tax on their own account and later on make efforts to recover the same from the travel agents. Commissions on hotel bookings should be exempt from TDS.

De-linking of Taxes: Every budget either introduces or reduces or increases some tax and links it with the star category of the hotel. HRAWI would like to urge this Government to not link any taxes (past, present and future) to star category.

The hotel industry is presently plagued by several bureaucratic obstacles and the growth trajectory of the overall sector including tourism, is stagnating. The industry has been battling to keep up with the harsh financial burdens brought about by both the central and state governments that include Service Tax – charged by the Central Government, Luxury Tax – charged by the State, Value Added Tax (VAT) – on Food and Beverage, Excise Duty – on Beverages and Octroi Duty - on items imported into the State, among others.

The hospitality industry has high expectations from the new government based on the pre-election manifesto that promised tourism and hospitality to be one of the pivots for economic growth. Tourism plays a key role in socio-economic progress through creation of jobs, enterprise, infrastructure development, and foreign exchange earnings. The new government has acknowledged this and only the outcome of the budget will determine if the tourism and hospitality industry will receive its due.

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.

LANDMARK HC STAY ORDER AGAINST COPYRIGHT ADMINISTRATOR

FIFA World Cup Broadcast, Other Cable Feed& Playing Of Recorded Music in Hotels & Restaurants Need No Additional Licenses

June, Mumbai: The Hotel and Restaurant Association of Western India (HRAWI) has welcomed the judgment of The Hon’ble Bombay High Court on Thursday restraining Novex Communication from obtaining license or payment of license fee in respect of any copyrighted works or broadcast reproduction rights. Café Leopold and Hotel Unicontinental had filed a suit in the Bombay High Court after receiving notices by Novex.

“We are pleased with the verdict.  This is a landmark order by the Hon’ble Bombay High Court with great ramifications. It is a victory not only for the hoteliers but also the large number of hotel guests and diners who visit restaurants for entertainment,” said Mr. D.S.Advani, President, HRAWI.

Earlier, Novex Communications Pvt Ltd had sent notices to hotels that Novex had been authorized to administer and grantPublic Performance Rights for various audio, musical compositions and sound recordings from the libraries of (1) M/s. Yash Raj Films Private Limited, (2) M/s. Shemaroo Entertainment Private Limited, (3) M/s. UTV Software Communications Limited and (4) M/s. Big Net Communications Private Limited, and that commercial establishments will have to pay them a license fee to play or telecast of such material.

“Contesting the notification, Café Leopold and Hotel Unicontinental had approached the High Court, which granting an ad-interim Injunction/Stay Order against Novex Communications, restrained it from making any demands for obtaining license or payment of license fee. The order also restrained collection of license fee on the broadcast reproduction rights of Multi Screen Media Pvt. Ltd./ MSM Discovery Pvt. Ltd which includes the channel SONY SIX on which the FIFA World Cup matches are being telecast,” said Mr. Pradeep Shetty, Chairman Legal Sub-Committee HRAWI.

Re-emphasizing the fact that Novex communication itself was undertaking illegal act he added, “the Association has always been of the view that Novex Communication has no authority to make any of the above demands, and the same are unlawful. The order of the Hon’ble Bombay High Court has vindicated the stand of the Association that Novex has been illegally carrying on the business of a copyright society without obtaining any registration under the Copyright Act, 1957, and has been making wrongful demands on hotels and restaurants across the country.”

“In so far as playing recorded music in the establishment is concerned, we have advised all our members to obtain appropriate licenses from the registered copyright society or the Copyright owner directly, as the case may be,” says Mr. Gurbaxish Singh Kohli, Vice-President, HRAWI.

“As fordisplaying cable feeds at the establishment is concerned, our members have paid necessary fees to the Local Cable Operator/ DTH operator. They are part of the amenities or facilities being offered to the guests. Novex’s demand for additional license fees over and above the fees being paid to the cable operators is unjustified and illegal,” he added.

The exceptions to the rules of broadcasting at any commercial establishment are that, these establishment if are selling tickets or charging entry fee to display the cable feed such as the FIFA World Cup matches or if they are recording the cable feed and are playing the same at a later date, then they may be required to pay separate fees for the same.

“People go to restaurants or hotels to relax and generally have a good time and pay for services that we render. Watching a match, in the course of their stay or while enjoying their meals should not be something that should be commercially exploited. The order from the HC comes as a great relief to the entire hotel industry. For now, we are requesting all our members from refraining to pay any monies to Novex and have requested those who may have already paid any to inform us about the same for us to take further action,” concluded 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.

HOSPITALITY SECTOR PIN HOPES ON ‘GOAN’ TOURISM MINISTER

Goa: Hotel and Restaurant Association of Western India (HRAWI) has welcomed the appointment of Mr. Shripad Naik as the new Union Minister of State for Tourism (Independent Charge) and the fifteenth Prime Minister of India, Mr. Narendra Modi.

The change in Government and the appointment of Minister from the tourism centric state of Goa have raised hopes of the beleaguered hospitality sector, especially of Western India. “The new government has been highlighting the importance of tourism and hospitality as a key driver of the nation’s economical growth. We expect it to push major pro-hospitality initiatives in the months to come. To begin with, the Government can consider revision in the current tax structure, diesel subsidies for power generation and incentives for investing in waste management and re-cycling of waste,” says Mr. Charles Bonifacio, Chairman, Goa sub-committee, HRAWI.

In its poll manifesto, BJP had identified tourism as a major foreign exchange earner that also has potential to create millions of jobs every year. The hospitality industry accounts for approximately 8.8% of total employment and is a significant contributor to the country’s GDP.

“Tourism is the back bone of Goa’s economy, employing one third of its population and contributing 50% of the total collected revenues. But it is now facing challenges from tourism promoted by Sri Lanka, Thailand, Singapore and other new destinations. Many nations offer incentives in the form of lower taxation and lower interest rates to boost tourism. We, in India, too would need such assistance to remain competitive and lowering the cost of the product to the end consumer,” adds Mr. Bonifacio. “Currently entry visa for India from the UK is one of the most expensive in the world and is restricting tourism revenue from UK which is our bane. The government should rectify this at the earliest.”

“Some of the other problems include restrictions on flying in and out of Goa. If you fly to Goa on a charter flight then you can’t fly home on a direct schedule service, it has to go via Delhi or Mumbai. Also, if you fly to Goa on a charter flight then you can’t fly home on another carrier’s charter flight. This policy is arbitrary and is a hassle for tourists who come here to unwind and relax,” says Mr. Bonifacio.

  

In its manifesto the Governing party had proposed to initiate a mission to create 50 tourist circuits that are affordable and built around themes of archaeological and heritage; cultural and spiritual; Himalayan; desert; coastal; and, medical (Ayurveda and modern medicine) among others. These are expected to lead to the creation of infrastructure and employment around each tourist circuit and help boost revenue generation. The manifesto further sought to introduce specialized courses in tourism for capacity development, besides according due priority to the safety and security of tourists.

“Hospitality and tourism go hand in hand.  Growth of tourism is integral to the growth of hospitality. The new tourism minister is familiar with tourism and is fully aware of its potential. We from the hotel industry have our hopes pinned on this Government to lead us to newer heights,” concludes Mr. Bonifacio.

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.