By BW Hotelier THE FEDERATION of Indian Chambers of Commerce and Industry (FICCI) in association with Ernst & Young (EY) released a paper on ’Tourism Infrastructure: The Role States Play’ in New Delhi recently. The FICCI-EY paper was released by Ashok Gajapathi Raju, Civil Aviation Minister and Dr. Mahesh Sharma, Minister of State for Tourism and Culture and Minister of State for Civil Aviation, Govt. of India at the ’Tourism Investor’s Meet’ organized by FICCI in association with the Ministry of Tourism and Tourism Finance Corporation of India (TFCI). The paper recommends a 6-point agenda to enable the States to achieve their potential in attaining the desired growth in tourist arrivals. The paper calls for introduction of a robust and inclusive tourism policy as the first step towards introducing the right set of initiatives and achieving the desired tourist inflow. The policy should focus on specific interventions, incentives offered to developers/private players and vision for development of tourism in the state, among others. The paper emphasizes the importance of improvement in inter and intra-state connectivity through creation of rural roads, high speed passenger trains, identifying and equipping air strips, converting domestic airports into international, introducing inland waterway connectivity. These areas need to be explored for improving the connectivity between cities and states. In terms of tourist facilities, the paper calls for easy availability of the visa offices/centres at all the key destinations experiencing high foreign tourist turnout. Provision of other facilities such as adequate parking and way side facilities is the need of the hour. It suggests exploration of new concepts such as MICE (Meetings, Incentives, Conferences and Exhibitions) to attract tourists. There is an increased focus in many states on the MICE sector as an engine of growth for the business tourism sector. To build upon this opportunity, connectivity and availability of world-class infrastructure should be ensured. Incentives and subsidies to attract investors may be proposed as part of the MICE strategy. For setting up accommodation facilities in select unexplored destinations, upgrading the service levels of hotels, introducing theme based resorts, are some options that need to be explored. Some popular themes could be golf resorts, wild life resort, green/ clean technology resorts, etc. Above all, the FICCI-EY paper stresses on collaboration with other governments. It is critical for a holistic growth of tourism, the paper notes, that the States combine and synergise their efforts and offer comprehensive services and solutions. To create an enabling environment, the States need to explore possibilities by initiating dialogue with key states/countries and creating roadmaps for implementation. Photo:-L-R: Ashok Gajapathi Raju, Minister of Civil Aviation; Dr. Jyotsna Suri, President, FICCI and Dr. Mahesh Sharma, Minister of State (I/C), Ministry of Tourism, GoI.
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By Rashmi Pradhan SVENSKA HOTELS, a collection of boutique hotels, aims to operate 20 hotels by 2020. The company is looking to operate 1000 rooms across the two brands: Svenska Design Hotels and Svenska Select Hotels in the next five years. Speaking exclusively to BW Hotelier, Zia Shiekh, CEO & CMD, Svenska Design Hotels, (see photo) informed, ’We have a target of operating 1,000 rooms across the 20 hotels by 2020. These will be a mix of owned and lease properties. Currently 4 owned and 6 leased properties are in the pipeline. These properties are located at Chandigarh, Kolkata, Delhi and few tier-II locations. With two properties operational in Mumbai and Bengaluru, we are looking at multiple properties in these cities as well. We are a collection of small boutique hotels.’ Talking about the investment, Shiekh said, ’The cost per key for Svenska Design Hotels is Rs 50 lakh whereas the cost per key for Svenska Select Hotels is Rs 25 lakh.’ The overseas travelers contribute one-third of the hotel occupancy. The F&B plays an important role to drive the business. We do get a mix of business and leisure travelers. The business travelers comprise 75% of total occupancy while the leisure travelers are 25%, he added. Speaking about taking up brownfield projects, Shiekh said, ’We are open to undertake brownfield projects but the only hitch is to fit the property as per our brand standards. Therefore, the modus operandi as of now mainly is lease and greenfield projects.’ The Author is Assistant Editor at BW Hotelier.
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By BW Hotelier ACCORDING TO data compiled by STR Global for June 2015, India recorded increases in each of the three key performance metrics: Occupancy (+7.4 per cent to 58.1 per cent), ADR (+0.2 per cent to INR 5,162.58) and RevPAR (+7.6 per cent to INR 2,997.27). According to STR Global analysts, India’s gross domestic product grew significantly during the first quarter of 2015. With a new government in power, the economy in India is showing more stability and a better investment climate. Hotels in the Asia Pacific region experienced nearly flat performance in the three key performance metrics when reported in U.S. dollar constant currency, according to June 2015 data compiled by STR Global. Compared to June 2014, the Asia Pacific region reported a 0.2 per cent decrease in occupancy to 66.2 per cent, a 0.1 per cent drop in average daily rate to USD 102.32 and a 0.3 per cent decline in revenue per available room to USD 67.70. Australia saw a 2.9 per cent increase in occupancy to 70.8 per cent. ADR in the country was up 0.4 per cent to AUD 171.21, and RevPAR rose 3.4 per cent to AUD 121.27. Year-to-date demand growth (+3.1 per cent) in Australia has been outpacing supply growth (+1.6 per cent). The country also shows a 7.8 per cent year-over-year increase in year-to-date group demand. Indonesia saw a double-digit decline in occupancy (-18.6 per cent to 58.7 per cent) and RevPAR (-14.9 per cent to IDR 639,437.92), but the country’s ADR was up 4.6 per cent to IDR 1,088,806.89. STR Global analysts cite government austerity measures as the main reason behind the occupancy drop in Indonesia. Markets such as Jakarta, Bandung and Bali saw demand drop and occupancy fall shortly after the austerity measures were put into practice during the fourth quarter of 2014. South Korea reported declines in the three key performance measurements: occupancy (-33.9 per cent to 49.3 per cent), ADR (-10.8 per cent to KRW 168,882.57) and RevPAR (-41.0 per cent to KRW 83,289.96). Tourism in the country is struggling to recover from the recent MERS outbreak. Beijing, China, experienced increases in the three key performance metrics. Occupancy in the market rose 3.6 per cent to 73.1 per cent; ADR was up 2.0 per cent to CNY 586.45; and RevPAR increased 5.7 per cent to CNY 428.43. Year-to-date demand growth (+5.9 per cent) has been outpacing supply growth (+2.2 per cent) in the market. Beijing also hosted SINO-Dental 2015 and The 11th China International Coal Equipment & Mine Technical Equipment Exhibition (CICEME 2015) during the month. Manila, Philippines, saw a 2.8 per cent decrease in occupancy to 61.6 per cent, but ADR was up 3.4% per cent to PHP 5,709.49, and RevPAR rose 0.5 per cent to PHP 3,514.71. Phuket, Thailand, posted double-digit increases in occupancy (+20.4 per cent to 58.2 per cent) and RevPAR (+14.1 per cent to THB 1,606.08). ADR in the market declined 5.3 per cent to THB 2,757.45.
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By BW Hotelier MAHINDRA HOLIDAYS & Resorts India Limited (MHRIL) announced its financial results for the quarter ended June 30, 2015. The company reported a total income at Rs 231 crores, an increase of 21 per cent YoY in the first Quarter of FY16. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose 23 per cent YoY at Rs 56 crores. Profit after Tax was increased 23 per cent YoY at Rs 25 crores. During the quarter, the company opened its second property in Munnar with 51 rooms through a greenfield project. Commenting on the results, Arun Nanda, Chairman, MHRIL, said, ’I am pleased to see that the efforts of the new team and the systems and processes put in place earlier, have begun yielding results. This, along with our room inventory addition plan and the government’s thrust on tourism infrastructure, augurs well for the future’. Kavinder Singh, MD & CEO, MHRIL, said, ’Our operating metrics are showing a healthy trend. Additions to our property portfolio are on track. Alongside, member additions are growing at a brisk pace, with 50 per cent increase in Q1 FY16 (YoY). Our referral and digital sales contribution is at 54 per cent (of total sales) indicating growing ’consumer pull’ for our proposition. Our investments in brand building through digital and other media in communicating our core value proposition of delivering 'magical moments' at our 46 exotic resorts in India and abroad to our 186,000 members is beginning to yield results.’
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By BW Hotelier ANYA HOTELS & Resorts has recently appointed Vijay Krishnan V Menon as the General Manager of Anya Hotel Gurgaon. With over 19 years of experience with leading hospitality brands, Menon has proficiency proficient in the fields of Marketing & Sales, Business Planning Processes, Soft & Grand Open Hotels, Room Division Operations, Bar & Nightclub Management, and Revenue Management & Electronic Marketing. His last operational role was as the General Manager of Four Points by Sheraton, Starwood Asia Pacific Hotels & Resorts. He has worked with Hyatt Regency Kolkata, The Park Bangalore, Chennai & Kochi American Express ’ Global Corporate Services, Le Meridien Hotel Bangalore & Resorts and The Oberoi Hotel Mumbai. With exceptional leadership skills, Menon strongly believes that a leader is only as good as his team. He also constantly evaluates local, national and international market trends in Hotel Management and Operations, Designs of Hotels & Resorts, New Nightclubs & Bars Designs & Operations, Marketing & Revenue Management to make sure that the hotel’s management remain competitive and of cutting edge. On his appointment Vijay said, ’I am delighted to be a part of Anya Hotel Gurgaon ’ Member of Design Hotels and would be working on consolidating the business and taking Anya Hotel to the next level.’
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By Rashmi Pradhan THE HOSPITALITY industry is emerging as a lucrative career option for the young generation. Moreover, the F&B segment is being perceived as a promising career option by young entrepreneurs and as mainstream career path. The business session, ’Emerging Career Opportunities for F&B Professionals: It can’t get any better’ witnessed panelist including Arjun Sharma, Chairman, Select Group; Sumeet Yadav, CEO, Nando’s India; Ad Singh, Managing Partner, Olive Bar & Kitchen; Zorawar Kalra, Founder & Managing Director, Massive Restaurants Pvt. Ltd. and Saurabh Khanijo, Director, Welgrow Hotel Concepts. The session was moderated by Samir Kuckreja, Founder & CEO, Tasanaya Hospitality. Speaking about his journey, Kalra said, ’The Indian F&B industry is 24 times bigger than Bollywood.’ It was easy to attract the young talent as I had a legacy built-up by my father Jiggs Kalra. Our attrition rate is low as I believe that pay better and you can get good talent. Retaining a talent is harder than attracting the talent.’ Sharing his experience while setting up and establishing Nando’s in India, Yadav said, ’The supply chain was a challenge. Since Nando’s was a new entrant in the Indian market it was a challenge to get people. Also right kind of people to serve the food in the restaurant is important. Now, the F&B industry is opening up for right reason.’ At Select Group, Sharma said, ’When we started the mall F&B (food court) was 10% of the entire mall space. As the business grew we realized that food court is an integral and important of the mall and that the space needs to be increased.’ Advising the young F&B professionals, Singh said, ’I started my business with a conscious. I would like to advise the young entrepreneurs that in before starting an own firm, work with a company or take up franchise of QSRs. The F&B is increasingly playing an important role and have great opportunities in malls, hospitals etc.’ The Author is Assistant Editor at BW Hotelier. Photo: AD Singh, Managing Partner, Olive Bar & Kitchen speaks during his panel discussion. Photo: Sanjay Sakaria.
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By Rashmi Pradhan THE OBJECTIVE of any business is to establish itself in the market and maximize revenues. At BW Hotelier F&B Conclave & Expo 2015, hoteliers were brought together to discuss on ’Maximizing revenues in a heated market’. Among the panelist were Zubin S Songadwala, General Manager, ITC Maurya; David Hopcroft, General Manager, Le Meridien Gurgaon, Delhi NCR, Ramon Salto, Executive Chef, The Leela Ambience Gurgaon Hotel & Residences and Deepak Khera, Hospitality Doctor. The session was moderated by Vivek Narain, MD, Indomalaya Advisors Pvt. Ltd. The panelist discussed on how the F&B plays an important role in maximizing the business revenue. Speaking on the role of F&B, Songadwala said, ’F&B drives the hotel business. It is important that locals talk about the hotel and that can happen only if they have experienced the hotel restaurants or utilized the banqueting services of the hotel. It is important to expose the services of the hotel to a larger community. There is an exponential growth from banqueting services. Through one window that is one event you can reach out to large audience base.’ Hopcroft said, ’Banqueting is important and contributes hugely to the hotel business. The outside catering market is also growing and it is a great opportunity. As people might not be opting for five-star venues but are open to undertake five-star hotel catering.’ When asked by the Narain on how design adds to the patronage of the hotel, the panelist agreed that a hotel design plays a vital role in attracting the guests. There are separate entries to the hotel lobby and banquet area. The privacy of the hotel guests is well maintained and also the banqueting services are unaffected in case of separate entry points to these well defined segments of the hotel. Khera informed, ’The hotels are designed in such a way that they can outsource their restaurants.’ The Author is Assistant Editor of BW Hotelier. Photo: Zubin S Songadwala, General Manager, ITC Maurya, ponders a point during the panel discussion. Photo: Sanjay Sakaria.
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