HRAWI seminar discusses on impact of Union Budget 2017-18 and GST

The FoSTaC program, a joint initiative by FSSAI and HRAWI, achieved a significant milestone with successful training sessions.

On September 25th, the program was conducted at Hotel Diplomat in Mumbai, followed by the session on September 26th at Usha Ascot in Matheran.

A total of 74 professionals from the hospitality sector participated in these programs, focusing on providing them with the necessary expertise and abilities to maintain safe and wholesome food practices.

At the Hotel Diplomat, the training session was officially opened by Mr. Vivekanand, the trainer, along with Mr. Gurbir Bedi, who is the owner of Hotel Diplomat and serves as the Joint Honorary Secretary of HRAWI.

At the second location, Mr. Vivekanand, the trainer, led the inauguration joined by Mr. Rahul Munot, the Resident Manager at Usha Ascot, and Mr. Sharma, the Manager at Byke Hotel.

“The significance of this training program cannot be overstated, especially in today’s world where consumers place a premium on health and food safety. The collaboration between FSSAI and HRAWI represents our joint commitment to promoting safe and healthy food practices within the hospitality industry. We are proud to have successfully trained and certified close to three thousand hospitality professionals across India’s Western region. Our mission is to continually raise the bar in food safety, ensuring that our patrons enjoy safe and delightful dining experiences,” said, Mr Pradeep Shetty, President, HRAWI.

The FoSTaC training program underscores the industry's dedication to catering to the needs of health-conscious consumers who prioritize food safety. It encompasses a broad spectrum of crucial subjects, such as food handling, preparation, hygiene, sanitation, and waste management.

Participants fully engage with these vital areas, developing a profound comprehension of food safety protocols and acquiring the competencies necessary for their successful integration into their daily operational routines.

“The FoSTaC programme plays a pivotal role in this by equipping professionals with the knowledge and expertise to maintain high food safety standards. HRAWI and FSSAI remain dedicated to this collaborative mission of promoting safe and healthy food practices in the hospitality industry. With each successful training session, we take a step closer to ensuring that every dining experience is not just delightful but also safe,” said, Mr Nirav Gandhi, Sr. Vice President & Chairman, FSSAI matters, HRAWI.

HRAWI has effectively provided training and certification to a total of 2760 professionals through FSSAI's FoSTaC Training Program.

In the wake of the pandemic's effects on the hospitality sector, although there's been a slow resurgence, the industry still grapples with issues concerning workforce management.

The period following the pandemic has exposed the industry's weaknesses, prompting individuals, including students and professionals, to explore different career avenues.

Between 2019 and 2022, there was a significant drop in student admissions for hospitality programs.

In response, the Hotel and Restaurant Association of Western India (HRAWI) has established a specialized task force consisting of educational experts.

Their aim is to mitigate the shortage in skilled professionals, workforce, and the decreasing number of students opting for hospitality courses.
 

The task force is composed of notable figures in the hospitality industry, including leaders from various Institutes of Hotel Management (IHMs), proprietors of hospitality establishments, experienced professionals, and representatives from the HRAWI.

The core team of this special task force currently consists of individuals such as Arun Kumar Singh, Principal of FIHM; Irfan Mirza, Principal of V M Salgaonkar IHM; Ms Pallavi Chaudhari, Director of D.Y. Patil School of Hospitality & Tourism Studies; Dr Rohan Soni, Principal of Amro College of Hotel Management, Nashik; Dr Jagat K. Mangaraj, Principal of IHM Ahmedabad; Pradeep Shetty, President of HRAWI; Jimmy Shaw, Honorary Secretary of HRAWI; Vishal Kapoor, General Manager of Radisson Blu Mumbai; Kamlesh Barot, Ex-officio Member of HRAWI; and Sandeep Talaulicar, Executive Committee Member of HRAWI.
 

"As fresh opportunities continue to emerge, the sector is recognizing the necessity of drawing in new talent. In response, HRAWI has established a specialized task force with three primary aims. These encompass creating an appealing framework or strategy to entice students towards pursuing a career in hospitality. It involves revaluating the current hospitality education system and syllabus through the participation of educators and industry experts, in order to offer relevant recommendations to the National Council and the Ministry of Tourism. Furthermore, the task force intends to counter the scarcity of skilled individuals among its members by providing effective training resources, including informative videos, visual aids, data-driven analysis, and supportive literature," explains Pradeep Shetty, President of HRAWI.

Statistics highlight substantial skill disparities within the Indian hospitality industry, specifically concerning hotel management and food production.

Deficiencies in practical knowledge (33 percent) and the presence of obsolete courses (24 percent) are notable concerns within the food production field.

Likewise, managerial personnel encounter difficulties due to insufficient practical understanding (43 percent) and the prevalence of outdated courses (29 percent).

Front office managers, their assistants, bell captains, bell boys, and travel desk staff exhibit deficiencies in critical proficiencies like effective communication, attentive listening, proficient handling of billing software, adept team management, and comprehensive comprehension of service provisions.

As per experts within the field, the scarcity of talent is notably conspicuous within specific job positions.

Skilled chefs and proficient food and beverage managers are in high demand, yet locating them presents a challenge.

Similarly, roles within the front office and housekeeping sectors struggle to attract suitably qualified candidates.

Acknowledging the necessity to tackle this concern, HRAWI is actively in pursuit of experienced chefs to join their ranks and contribute to the instruction and training of aspiring hospitality professionals.

Additionally, HRAWI plans to release a comprehensive report that evaluates various facets of contemporary hospitality education, proposing solutions to enhance the quality and efficacy of academic curriculum.

The association is also optimistic that the industry's increased revenues in the aftermath of the pandemic will aid in achieving this objective.
 

Hotel and Restaurant Association of Western India (HRAWI) has welcomed the Government’s proposal to reduce the GST rate from 18 per cent to 12 per cent, making it uniform for both the air-conditioned (AC) and non AC restaurants. The Association has also appealed to the Govt. to continue providing the Input Tax Credit (ITC) to hotels and restaurants which will help them maintain the prices for the food and beverages on the menu. HRAWI has stated that despite the cost of operations having actually gone up, hotels and restaurants are maintaining old prices on the menu in fear of losing customers.

Dilip Datwani, President, HRAWI said “The move to bring down the GST rate for AC restaurants will definitely encourage the customer to eat out again. We welcome the proposal and thank the Government for considering our appeal. Presently all industries, and not just hotels and restaurants are trying to grapple with GST and the transitionary phase has been a very difficult phase for us. Continuing to provide ITC will help businesses to counter the rising prices on raw material and other utility costs. As of now, none of our vendors have reduced prices or passed on benefits of ITC to us. Additionally, post introduction of GST the costs of operations and raw materials have actually gone up. However many hotels and restaurants have continued offering F&B at the old prices but with the reduction in the GST rate, we will now be able to remain competitive”.

Dilip Datwani also said “As major expenses like electricity, rent, salaries, vegetables, poultry, seafood are exempt from GST, the input credit advantage for restaurants is negligible. So, it is our humble request to the Government that they consider revising the GST rate for restaurants that are part of hotels to 12 per cent in line with other stand-alone restaurants”.

Hotel industry has also appealed that the GST rate on in-house restaurant bills be levied at 12 per cent like it would be for all other stand-alone restaurants.

Hotel and Restaurant Association Of Western India (HRAWI) has organised a seminar on 'GST Law – 2017' on 13th July 2017 at the Trident, Nariman Point in Mumbai. The seminar will provide an opportunity to hoteliers and restaurateurs to resolve their GST related queries.The seminar will be open to both its members and non-members, will be addresses by eminent experts who will clarify any doubts regarding the new tax regime. 

Dilip Datwani, President, HRAWI, "The GST is a big change to the taxation system for our country and to get familiarized with any change takes time. Over the last one week the association has been trying to identify the most common issues and queries posed by hoteliers and restaurateurs and also by customers."

He added, "Through this seminar we intend to put to rest any ambiguities and address any grey areas with respect to GST. We have brought on board the best minds and experts on matters of taxation and who would be happy to help us bridge any gaps in our understanding of the GST. We are positive that participating hotels and restaurants will greatly benefit from this seminar."

Hotel associations from various parts of the country have filed review petitions seeking reconsideration of the Supreme Court’s ban on liquor sales near national and state highways.

The associations, which submitted their petitions, are seeking exemption for hotels and restaurants, which they said were the unintended victims of a December 15 judgment that was thought to be applicable only for liquor vends.

Dilip Datwani, President, Hotel & Restaurant Association of Western India (HRAWI), said, "This is a blanket order and the topography of all the states is different. Some highways are cutting through towns and cities and are not highways anymore and have not been denotified yet."

Parekh & Co, said, "We are asking for a complete review of the order and for hotels to be looked at separately."

Garish Oberoi, Treasurer, HRAWI, said, "In our petition, we are saying that Himachal and Uttarakhand in north India, which have similar terrain issues like Sikkim and Meghalaya, should be exempted from the ban. We are also referring to restaurants and saying that restaurants with all compliances in place and which primarily serve food and are not bars should be exempted. Resident guests in hotels are not driving after drinking and should be able to access bars in hotels."

R Srinivasan, Executive Committee Member, South India Hotels & Restaurants Association, said, "Various state and national highways are not thoroughfares anymore but urban roads between cities and towns. While we respect the judgement, which is aimed at ending drunk driving, we feel hotels and restaurants have been the unintended victims of this ban and should be exempted."

Hotel and Restaurant Association of Western India (HRAWI), the apex body of restaurateurs and hoteliers of Western India, has initiated a social media campaign against the recent liquor ban.

HRAWI will run a series of hashtags on Facebook that will try and explain some of the common misconceptions. The hashtags include Penalize Drunk Driving Not People, Save Night Life Save Tourism, and Save Hotels Save Jobs among others.

Dilip Datwani, President, HRAWI, said, “Through the social media we will convey a few facts that, in normal times, would have been apparent. In the current state, unfortunately, facts are obscured by surround sound. The facts to be considered are alcoholism is a disease and a social evil; drunken driving is a crime; and, hotels and restaurants serve alcohol. What is of significance is that these facts are not correlated. Any arrow of continuity that may exist is forced. The compulsive alcoholic will find ways and means for consuming alcohol and he will continue to drive after drinking. Just as locking up girls at home is not a solution for preventing rapes, banning hotels from serving liquor cannot be a solution for ending the menace of drunk driving. Drunk driving is a crime, and it should be treated as one.”

Datwani added, “One million jobs, Rs. 200,000 crores loss to the exchequer, possible closure of 15,000 establishments is not a small thing. It is a huge social cost to pay. And we would not have minded being sacrificed if the ban were to yield any results. But reality is that all the job losses and other damages would be wasted. Statistics prove that there is a correlation between drunk driving and enforcement; and not between drunk driving and number of restaurants and bars. If true, there would be no drunk driving cases in Bihar or Gujarat where we have total prohibition.”

Kamlesh Barot, Former President, Federation of Hotel and Restaurant Associations of India (FHRAI), said, “Most of the affected hotels cater to city residents and not interstate drivers. We are legal licensed establishments that contribute to the nation’s GDP and have played a pivotal role in the growth of the nation’s tourism. With a single stroke the industry has been crippled. HRAWI has always promoted responsible drinking.” 

Highlighting the unfair advantages enjoyed by unregulated players and aggregators from the unorganized sector like Airbnb, Bed & Breakfast and Homestays, the Hotel and Restaurant Association of Western India (HRAWI) has announced that it will petition the Governments of its western region, to create a level playing field and bring uniformity in regulations for all hospitality players in the market.

It has pointed out that while five star hotels pay a substantial amount 38 per cent of the room revenue as direct and indirect taxes, some of the lavish bungalows listed in sites of these illicit hotel aggregators do not pay a single rupee as taxes. Further, over 42 licenses are needed to start and operate an organized sector hotel, while the unregulated sector operates without undergoing any such process.

Dilip Datwani, President, HRAWI, said, "We welcome competition in any and every form, but this kind of disparity is unhealthy for the industry. It is almost as if we are doing our businesses with our hands tied. Disruptions are healthy, as it allows customers to enjoy best services at the cheapest rates. But the disruptors cannot be allowed to disrupt and proliferate simply on the basis of avoiding regulations and taxes. Today a hotel, let's say charges Rs. 1500/- for a room, then it has to pay 10 percent as luxury tax beside other taxes, but a bungalow listed in Airbnb, for over Rs. 10,000/- a day, ends up paying nothing. If nothing else, this is a loss of revenue to the exchequer also."

Sanjay Sethi, CEO & Managing Director, Chalet Hotels Pvt Ltd (Chalet Hotels owns several Marriott properties in India), said, "Clearly the big ticket concerns are the security issues and the loss of revenue to the exchequer. HRAWI recently compiled a document on how other major cities in the world have dealt with this issue. Some of the findings were revealing. After licenses were made mandatory in Germany, forty percent of Berlin’s Airbnb listings disappeared. Amsterdam, meanwhile, banned apartments rented out for more than 60 days per year, or to more than four people at a time. It has also allocated USD1.1 million to identify apartments that are being offered for short term rentals or don't have landlords living in them. Barcelona has slapped Airbnb and Homestay USD65, 000 each for listing apartment without permit."

Datwani added, "In a country like India where tourism is at a nascent stage the unorganized, illicit accommodation could spell doom. The primary problem is that there are no standardisations or categorisations. There have been multiple cases of exaggerated promises, misrepresentations, disagreements and conflicts with guests, hygiene issues and intimidations among others. Because the stays are unregulated, there are no redressal systems in place. Hotels are required by law to send details of foreign guests to the police station by submission of a C Form. This is a security requirement from the Ministry of Home Affairs. Homestays are not required to be compliant and the industry fears that this will become the de facto accommodation for those foreigners that seek anonymity from the Police."

HRAWI also questioned the relevance of subjecting hotels to administrative clearances, liquor permits and other licenses while these unorganized accommodations, providing the very same services are exempted. Homestays, functioning just like hotels do, are prevalent even today in a lot of States of India.

Kamlesh Barot, Past President, Federation of Hotel and Restaurant Association of India (FHRAI), said, "The hospitality industry without these illicit accommodations in Maharashtra, can generate almost Rs.600 crores per extra night that a foreign tourist stays back, to the Government as foreign exchange earnings, besides being the highest employment generator. Almost all tourist towns across the world have grown on the back of strong hospitality infrastructure and not unregulated homestays. The Government will have to consider, either allowing hotels to operate with the same relaxations as would be given to these aggregators and such unregulated homestays as they are not treated equally, there can't be a first among equals."

The Hotel and Restaurant Association of Western India (HRAWI) has requested for a single window system for approval of deadline extensions.

While the association has welcomed the state government's decision to allow hotels and restaurants to operate till 5am on December 24, 25 and 31, it has expressed apprehension about being able to host Christmas Eve programmes as the necessary approvals are yet to be granted by the police.

"Without all the approvals in place we cannot conceive special programmes for our patrons. This not only affects the city from a business point of view in terms of revenues lost, both to exchequer and the establishments, but also restricts revellers from enjoying the spirit of the season to the fullest," said Bharat Malkani, President, HRAWI and Federation of Hotel and Restaurant Associations of India (FHRAI) in a press statement.

The HRAWI has appealed for blanket approvals on extension of timings on these days by default, as against ad hoc approvals given each year. It also has requested the government to provide such approvals through a single window rather than multiple departments like police, excise, etc.

"Each year hotels face the dilemma of whether or not to proceed with making any special arrangements as we are unsure if all the permissions will come through in time. Even if the permissions do come through, it does no good for us to receive it at the eleventh hour because then we have very little time to make the required arrangements," Malkani said in the statement.

Early this year, Maharashtra chief minister Devendra Fadnavis had proposed certain measures to promote tourism and create ease of doing business for the hotel industry in the state. Based on the proposals submitted by HRAWI, the government in principle resolved to reduce the number of operating licenses from 75 to 25.

The Telecom Regulatory Authority of India (TRAI) has ruled that cable TV charges for hotels and restaurants should be on a par with domestic charges.

The channels and broadcasters had been demanding commercial rates; however the authority has asked to pay the regular charges (except for special or ticketed events like a football or cricket world cup where the public is charged separately), reported TOI.

“The telecom regulator’s order has liberated cable TV from monopoly. It has been declared a necessity for the benefit of people and not a luxury,” said Bharat Malkani, President, HRAWI.

However, FHRAI submitted that in 2006, the Supreme Court had held that television is a mere amenity in hotel rooms just like fans and air-conditioners.

The FHRAI also stated that channels do not subsidize ordinary subscribers like it happens in electricity or water to demand higher tariff for commercial subscribers.

“Tourism departments have mandated that TV has to be there as it is a necessity and not a luxury like it used to be a decade ago,” said Pradip Shetty, FHRAI’s legal adviser.