Hospitality industry in India, a big contributor to the country’s economic growth is on high growth trajectory and is expected to reach Rs 2,796.9 thousand crore by 2022*. The industry also contributes significantly to employment, FDI and Foreign exchange.
However,the hospitality industry which is already reeling under rising costs of basic commodities, labour and the recent liquor ban on highway by the Supreme Court. The much awaited Goods and Services Tax (GST) rates has come as another shocker. These high and complex GST rates will create further impediments to the industry’s growth which is still maturing. At the same time the new tax structure will also position India poorly as a destination visa vie our competitors in the international market that have much lower taxation.
The high rate of 28 per cent GST for hotels charging room rentals above ₹5,000. Before GST, the luxury and service tax was at about 19 per cent and this has now gone up to 28 per cent. While GST is a gross tax and there is going to be input credit, the cost for hotel companies goes up by almost 10 per cent and there should be an absolute rate tax.
The GST council has pegged GST for AC eateries and those with liquor licence at 18 per cent, non-air-conditioned restaurants at 12 per cent, hotels charging room rentals between ₹1,000 and ₹2,500 at 12 per cent, ₹2,500 and ₹5,000 at 18 per cent and above ₹5,000 at 28 per cent.
Here the government also fails to understand the Ac eateries are no longer a luxury , specially in the costal areas of the country where the humidity level is very high, on such enhancing the tax will definitely hamper the business.
Considering there is dynamic pricing in the hotel industry like in the case of airlines depending on demand and supply, having a flat slab across the industry is what is going to work, say industry players. “There should beflat tax as room rates are dynamic and based on demand, and the cost of real estate and labour cost varies across the country. There is already high competition in the industry and these slabs create a regulatory measure, which is not needed. Tourism will be impacted and measures like e-visa will get negated if room rentals above ₹5,000 have 28 per cent GST which will have tourists going to the neigbouring country like Sri Lanka rather than Goa,’’ .
Effect On International tourism
The Government should realise that while neighbouring countries like Myanmar, Thailand, Singapore, Indonesia and others levy taxes ranging from 5 to 10 per cent, we cannot afford to have this kind of complex and high GST. This is simply not viable. Tourists will simply skip India.
“One of the biggest hurdles for the Indian hospitality and tourism industry, in terms of attracting international tourists is that of not having a competitive tax structure. A country as small as Singapore witnesses 10.90 million tourist arrivals against 6.31 million in India. Nations like Malaysia and Thailand attracted 24.7 million and 19.09 million tourists in 2014 and earned foreign exchange of $18,299 million and $26,256 million. In contrast, India managed to earn a meagre $94 million,”
Advantage Budget Hotels;
Hotels and lodges that charge INR 1000 a day or less are exempted from the GST, those charging INR 1,000 to INR 2,500 will be taxed at 12 pc ,which is a slight reduction from the current rate of 13-14 pc. Those with a tariff between INR 2,500 to INR 5,000 will have to pay 18 pc tax. Similarly, small restaurants with an annual turnover of less than INR 50 lakh will be taxed at 5 pc.
The lower rate for budget hotels “will ensure that the industry’s quality upgrade continues while delivering standardised accommodation to millions of middle-class travelers.
Pointing out the importance that hotels and restaurants have on tourism, industry experts have commented that they should have qualified for lower tax slabs. At best there should be one or two slabs of either 12 per cent or 18 per cent to create a level playing field. If single slabs can be created for categories like cars and air conditioners, why can’t hotel rooms get clubbed under a single rate As food and tourism is an integral part of the Indian experience, the burden that the revised rates might have on the end consumer might also hamper the industry and is being seen in a negative light by many insiders.
Hotel And Restautant Jobs
A Tribute To Krishna Arora It was way back in 1994 , when I took admission in Hotel Management 4 year degree Course, 4 years B.Tech degree In Hotel Management was rarely available with any other university with an exception of ‘Nagpur University” And now Rashtriya Sant Tukdoji Maharaj University. It was the first food production theory class and my faculty informed us to buy a book called “Theory Of Cookery” By Krishna Arora , and from that point onwards it has become an integral part of our profession. Well this Might be story for every one who has taken the formal education in Hotel And Catering Management. Theory of cookery has been so popular among the students that it can be called as the Bible of food production. The language was simple enough to understand the terms of the gastronomy world, which were very new to us , but there after, year after year Theory of cookery by Krishna Arora was part and of our carrier . The Demise of the iconic figure is a huge loss to the industry, and the gap created can never ever be fulfilled. Her contribution to the formal education of food production had been phenomenal, to add this she was the HOD at IHM Pussa.New Delhi. She was presently settled in Australia and has been Indian Origin woman to figure in the..
Kamala Mills: A lesson to learn by hoteliers At end of the year 2017 another man made negligence tragedy followed, the recent fire at Kamla Mill compound, Mumbai at 1 Above and Mojo restaurant had shown the casual approach of the restaurant owners. The irrecoverable loss of 14 lives and the pain of more then 50 injured , with emotional turmoil of there keen cannot be measured in words. The people in restaurant business should understand the seriousness of defaulting the fire safety norms. The reason which has surfaced with the initial probe is, it was due to the short circuit, but above that it was also found there were no adequate amount of fire equipment’s to control the fire, neither there were any rout mentioned for such emergencies , neither there were any signage’s for the emergency exit route, due to this ,the people got trapped in the bathroom rather than getting out of emergency door, most of the deaths occur due to choking. Well, The truth will definitely reveled once the enquiry is done by the officials. It again shows how ill-prepared the hospitality industry is for such emergencies, we hardly see any drills or even trainings for the staff in such stand alone and chain of restaurants. In today’s world, where technology is ruling and there are so many AI and digital equipments which..
Hotels And Bar Licenses Eased Out The Hotel and restaurant fraternity welcomes the Scrapping of licenses by Brihanmumbai Municipal Corporation, Mumbai on the recommendation by the Maharashtra state .Earlier to open a eatery one has to take at least 26 permission and has to run from posts to pillars. No doubt, scrapping of 20 licenses which were irrelevant with the time and merging rest of them under self-certification and one time licenses has brought ease of doing business in the happening city of Mumbai. The example of Mumbai has to be followed across the country ,it encourages the young entrepreneur who looks to endeavor into the business . It is well known fact that the hotel and restaurant business had been the fastest growing industry in the country and not to mentioned it is also the second largest employment producing industry, Making the GST at 5 % at restaurant and reducing the GST on stay had contributed to the goal of making India as global tourism destination. However, the right environment and infrastructure is still matter of concern so as to make it popular destination internationally. Steps of such kind will definitely support the cause. On the other hand it is also important to see that the remaining one time licenses which are to be obtained to run the hotel and restaurant business are obtained with ease and..
GST reduction in hospitality industry: moving towards the right direction You would have come across a repeat guest who suddenly disappeared after the GST implementation, and you wondered , what happened ? it Was Like “ Der Aye Par Durust Aye” ,after long time there was a silver lining for the dark cloud on the Restaurant Industry, This decision of bringing down the GST from 18 % to 5% at last had brought smile to the Middle society segments since they stopped spending as they use to and of course to the restaurant owners. The Decision which should have taken much earlier was finally taken, at last the government had acknowledged the genuine problems of hospitality industry. With the same spirit the 18% and the slab of 28% which still applies on Room division and Restaurant in luxuary hotel should be understood. Its not that the guest will not pay but ,then he won’t do it with that willingness and will look for options to shift his venue to nearby countries, unless he is unable to do so for one or the other reason Thus the hospitality industry in this country eventually losing the business. Contries likeThailand ,Srilanka, Malysia, which fall in the bracket of 7to 10% will be much more cheaper and will grab the opportunity to be the next host for meetings and events rather india due to..
Steps Towards Tourism: Incredible India After the jolt of GST, most of the hotel purchase manager and the store managers are still struggling with their procurement of new and releasing of the old stock , making changes and updating in there system in between the Apex court agreed to denotify the highways falling in the city limits of municipal council .The News was great relief to the hotels & restaurant managements Tourism Police The Other good move the government of India is looking forwards for the safe tourism With existing police authorities failing to make visitors to the country feel secure, a study by the government-run Indian Institute of Travel and Tourism Management has recommended the creation of a special force, complete with uniforms sporting Incredible India logos, for the safety of tourists. Suggesting that the tourist police maintain vigil round the clock at airports, railway stati .. Suggesting that the tourist police maintain vigil round the clock at airports, railway stations and bus stands, the key points of entries and where tourists are most susceptible to being cheated or harassed, the study has also suggested that recuits wear khaki trousers, dark..
Well the fire is yet to extinguish of the judgement on the liquor ban there is another discussion popped up on the portion size served in the restaurant, the reason was given that there is lot of food wastage that occurs in the hotel and restaurant industry. The politician which are had brought up this discussion seems unaware of the functioning of this industry. The industry function in a very tight situation of food cost control, and the entire game of food industry is in the process of making raw food into the finished products with minimum wastage of food to Gain maximum profit. Even the portion size serving is also decided with lot of thought process as one wrong decision will escalate the cost of the product. A human beings consumes 500 TO 600 gm at one seating for lunch or dinner, generally for starter it is taken a 180 gm of chicken (boneless)with and a serving of 6 Pcs are there for a portion, which is fare enough for two pax , followed by main course where 140 gm of rice and around 120 Gm of dal and 50 gm for each Roti . This shows that how meticulous planning goes in all the way for minimum wastage. The need of the hour is to educate the citizens of the country with all the sources available as the..
Where the tourism and hospitality industry is facing all sort of problems there is another jolt to the industry given by the honorable supreme Court by banning the liquor shop , Bar, pubs on the all state and national highway of the country. The industry is already bleeding with several issues just to name a few, service charges, the GST, the butcheries in UP etc. The Jolt had brought the business of several millions to stand still, It was earlier understood that it will be only for the liquor shops located on the national highway, but with judgment it had been understood that it is also on the bar, pubs including the stand alone and the star category hotels located on the state and national highway. Here it is also important to notice that the National and the state highway which are passing through the cities are also affected by this decision. Recreation is part of the society and people look forward to get away and relax from their stressful life. A blanket ban of such sort will help only increase in bootleggers. However, We are not here to justify or to encourage drink and drive which had led to thousands of accident. But the logic is unacceptable, A person who is addicted to the influence of liquor will not hesitate to go 500 meters off the national or state..
The world has turn into global village due to the transformation in technology, everything is at your fingertips and entire world into your cell phone. The hospitality industry is also not behind and it is changing dynamically, the handling of key at front office had become a history and even electronic key cards are becoming a day of past. The technology has taken the driving seat into the operation, either its is front office or it is the food and beverage operation, everywhere its playing a vital role. However, when we talk about hospitality then it’s a million dollar question if technology is playing a vital role in operation then what about the essence of hospitality, the warmness which comes by only human being. After all in this part of world specially Asia were human response is the essence of hospitality and we believe and teach in our colleges that hotels means home away from home. Its also necessary to understand that till what extent the technology must play a role in our operation and the type of technology one should use. There are two type of technology which are playing important role in hospitality industry, one is called TBSS (Technology base self-service) and other THTS(Traditional Human Touch Service). TBSS is handled by the guest , but one must understand that technology will not be able to understand the anger..
In today’s world where internet ,e-mails and online portals are popular ways of booking rooms, room check out process has become express .During all this the guest feedback has become even difficult, however taking feedback is equally essential to any service-based business, so it’s no surprise that hoteliers are always looking to encourage guest reviews via guest surveys. Reviews offer unparalleled insight to your guests’ experience. If you want to increase your guest survey response rates, take the time to reduce barriers to entry and increase efficiency. From post-stay emails to incentives, there are a few easy-to-implement ways to get the most out of your efforts. Make it Easy The hotels should remove as many barriers to entry as possible for guest survey responses. Guests are far less likely to leave a review or complete a survey if they don’t know where to go or it’s difficult to find. Your property likely already sends post-stay emails to your guests (or you should!) and in that message, you can include a link to leave a review. In the new email templates provided by services like TrustYou Stars, the selection for overall hotel rating is included in the body of the email. By providing that step guests will be more likely to take action and your hotel will improve guest survey response rates. This is also an opportunity to address guest issues..
Indeed when entire India is praising the demonetization it is also equally to review what’s the post effect of it on the hospitality industry. When we talk about hospitality world we have to check the integral tourism and travel industry , since the hospitality business doesn’t function in isolation. The decision which was taken at 8.30 on 8th of November 2016 by Honourable Prime minister was welcome by all section of the society. It had been one month now. Although the railways and the airline were given exceptions to accept the old currency ,but was that enough to save the hospitality industry from drowning this season ,is a million dollar question? All of sudden the entire nation was thrown in long Q. The connoisseurs of the economic world says that that the home work for the same was not done and its perfect example of how good objectives are poorly implemented .The Winter has began and it is said to peak season for the hospitality world in most part of ourcountry, just to name Goa ,Rajsthan , UP, southern state and the Buddhist circuits blossoms during this upcoming four months. .Well its matter of great concern for the hospitality industry, there is cash crunch ,the five star category hotels , may not get affected directly as most of the transactions goes online, however in the initial days specially on the..