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 WELCOMES CM’S MOVE TO BOOST HOSPITALITY & TOURISM

First simplification step For The Hotel Industry – Maharashtra triggers Ease Of Business

The Maharashtra Tourism’s Maharashtra International Travel Mart (MITM) 2015 became a landmark event for Tourism in the State, as Chief Minister Shri Devendra Fadnavis announced some major reforms for the hospitality industry. In a bid to boost tourism in the state, the CM showed his commitment for ‘Ease of Business’ by clubbing common permissions and scrapping some of the outdated licenses due to their archaic outlive of operating  hotel and restaurant businesses.

Based on the proposals submitted to the government and convincing each one concerned, in spite of their transferable portfolios over this decade, the Hotel and Restaurant Association of Western India (HRAWI) single-handedly got some of the key resolutions passed by the CM like the reduction of operating licences from 75 to 25, requiring only 5 forms for obtaining all these licences, abolishment of event licences for pre-designated locations, permission for live performances, among others.

Mr. Bharat Malkani, President, HRAWI said that this is a big step forward that will lead to increase

Bharat Malkani, President,
HRAWI

of investments in hospitality industry for Maharashtra. “We have been engaging with various departments of the State government like Police, BMC, Excise etc as well as the Central government for the last ten years on this. The impact of this move will be visible in the immediate to the long term. We are absolutely thrilled with the CM’s announcement and are grateful to the government for acknowledging and addressing our woes.”

HRAWI has been advocating the implementation of an online single window clearance system for renewal of licences for the hotel industry, through a consultant appointed by MTDC. The association had also submitted a proposed Tourism Policy 2015, to the government of Maharashtra with a Vision statement.

“Licences with a common purpose were clubbed within a single license, while out-dated regulating licenses were annulled with concurrence from the concerned authority on

Kamlesh Barot, President,
HRAWI

practical time-lines. With the implementation of the proposal, MTDC would become the nodal agency to which restaurants and hotels will apply for new reduced licenses and existing renewals. MTDC will act as a single window that will in turn fetch all licenses from the relevant departments and have the applicants pick them up from the same window, preferably online. An online application alike today’s shopping carts will have drop-down forms with timelines and fees to click on a single window that will increase the room and restaurant supply for the State  besides reducing waste of time for everybody as well as  increase efficiency. Today a foreigner staying one extra night in the State will increase forex revenue to Maharashtra government of Rs. 609 crores, per night,” says Mr. Kamlesh Barot, past President, HRAWI.

“Going the online route, like passport applications, will also ensure that the permits are granted within a set time frame. Ultimately we should be able to curb the number of licenses, permits, NOCs and registrations from 112 to 20 for opening a new establishment as well as simplify renewing of existing licenses and abolishment of archaic  rules of the BMC, Police and Excise departments, reorient the Urban Development, Energy and Labour departments, among others. If sanctioned and implemented at the earliest, the proposal holds capacity to boost tourism and realise the ‘Corruption-free India’ dream at least for the hospitality sector,” concludes Mr. Barot.

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 APPEALS TO THE PMO TO CONSIDER THE INDUSTRY AS INCLUSIVE OF TOURISM

National Tourism Policy 2015 Draft Neglects The Hospitality Industry

Mumbai: The Hotel and Restaurant Association of Western India (HRAWI) in reference to the latest draft on National Tourism Policy for 2015 although has appreciated the efforts to promote tourism, has also alleged that the policy has completely neglected the hospitality sector. The new policy that gives direct access to the Prime Minister’s Office (PMO) in deciding the course of the tourism sector does not spell out any developmental recommendations for the hotel industry. The draft aims at promoting India as ‘Must Experience’ and ‘Must Revisit’ destination and includes many aspects of Prime Minister Modi’s vision like Make in India, Swachh Bharat, Smart Cities, International Yoga Day and Skill Development.

HRAWI has appealed to the PMO for the sector to be given the deserved attention and to be considered an inclusive part of tourism. The letter suggests that hospitality and tourism are interdependent industries and to better tourists’ experience it is necessary that the government gives hospitality industry an equally deserving boost.

“There is very little doubt that under the leadership of Narendra Modi tourism will achieve new heights. The tourism sector is projected to contribute 6.7 per cent to the country’s GDP and hospitality which is one of its strongest pillars generates revenues that are estimated to be nearly 40 per cent of that figure. It goes without saying that a foreign tourist who visits India will need accommodation and is their basecamp for all explorations they do during their visit here. If hospitality as a sector is ignored then the service levels will definitely take a plunge leading to a bad experience for the tourist. So, irrespective of whether they had a good time visiting India, they will be left with a bad taste in the mouth. Hence we appeal to the PMO to revisit their draft on the policy and make provisions that will ascertain that the hospitality industry too gets the deserved attention,” says Mr. Bharat Malkani.

At present India’s share in world tourist arrivals is a mere 0.68 per cent. The new policy aims at taking this figure up to 1 per cent by the year 2020 and then up it another per cent by the year 2025.

“With each passing year, maintaining and operating a hotel business is becoming cumbersome. The policies, regulations, fees, taxes, licencing requirements and other laws that were put in place for better administration by the government are today mostly hindrances in smooth functioning of the business. Our stance, with all that is administrative in nature, is necessary and may continue but there are better and much more efficient ways in which it can be carried out. Multiplicity and recurring licencing policies can be easily eradicated from the system without affecting the core mandates as set by the government. We have even identified and shared ‘Single Window Clearance’ system with the authorities and this system is a key solution to making things simplified for both the parties involved. What more, it can be made applicable to all the states in the country where there is need to bring in ease of doing business and not just for the state of Maharashtra,” says Mr. Malkani.

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.

“There is much that India can achieve in tourism, as has been rightly projected in the new tourism draft policy. However if its allied industries, specifically hospitality, is not given appropriate impetus, then I fail to see tourism gaining the desired traction. Hopefully, our appeal will be seen in positive light and hospitality as an industry will be given a voice too,” 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, 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 centre 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.

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.