The hospitality industry in India has been one of the first sectors to recover from the global economic slowdown. Hotels, in metros across the country, have witnessed an increase in occupancy since September, with Mumbai hotels recording occupancy as high as 65%. With a complete recovery expected in 2010, hoteliers now want the hotel industry to be delicensed for further growth.
“There are about 104 licenses required to set up a hotel in Maharashtra and it takes up to 2 years to obtain the licenses. This increases the cost of the project,” Suresh Talera, president, Hotel and Restaurant Association of Western India (HRWAI), said. “We plan to request the government to reduce unnecessary licenses and to implement a single window system.”
According to hoteliers, the whole process of acquiring licenses increases thecost of a project by 10-15%.
Most hoteliers, however, are optimistic of the business picking up with the number of foreign tourists and corporate travellers likely to increase. Some hoteliers are so confident of the occupancy increasing that they have even set up business ventures in unexplored tourist destinations.
“In order to increase the stock of hotel rooms, the government has to increase Floor Space Index (FSI) to 5 in all existing hotels across Maharashtra,” Talera said.
The hospitality industry was one of the worst hit sectors due to the slowdown, the H1N1 epidemic and the 26/11 terror attacks. The industry saw a 50% drop in occupancy in 2008-09 peak season. “Once normalcy in business conditions is restored, there would be a shortage of 1,60,000 rooms,” Talera said.
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