HVS White Paper : Critical Issues Facing Indian Hospitality

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. January 19, 2009

JANUARY 19, 2009 - Recently, with the sudden economic downturn followed by the terror attacks in Mumbai we were inundated by enquiries from government departments and trade associations - both business and hospitality - for our opinions. These enquiries related to potential losses to the sector, suggestions for recommendations on the tax structure and other infrastructure-related issues.

We realised that perhaps the time was right for us to draw from our knowledge base and experiences to put together a research paper, 'Critical Issues Facing Indian Hospitality - An HVS White Paper'. This would, in addition to hospitality, cover some critical issues in aviation, as the later is important for the growth of hospitality, and together they are instrumental for the growth of the tourism sector in India.

The recent crises have jolted us all out of our comfort zones. A time of crisis is also the best time to eschew an isolated business outlook in favor of a collaborative approach that focuses on the larger picture and deals with long-term and wide-ranging ramifications for all stakeholders. We believe that through this white paper, we would be able to trigger the much awaited process of a 'tourism renaissance' in India and emerge better and stronger than ever before!

The inspiration, and ironically, the spark to this research paper came from two sources, both are not named here but are well known in their own ways to carry forward the cause of the industry. The first was an official in the Ministry of Tourism who said we needed a political czar for tourism who can fight for issues challenging the sector at the policy level. The person also said that the industry often speaks in discordant notes and while everyone has complaints and suggestions for improvement no one is willing to research and put together the needs of the industry in a systematic manner. The second was a senior politician who tomorrow maybe in a position of great influence to help address these issues. He specifically asked if we could put together something that highlights the losses being faced by the industry in addition to the other challenges.

The tourism ministry in India needs to be equipped with executive powers. At present, its role is limited to that of a facilitator and that does not allow the ministry to effectively implement a national level tourism policy. Tourism policies and strategies need to be in line with global trends as well as responsive to local factors such as the changing socioeconomic conditions in the country. India needs a tourism master plan, which should aim at joining Singapore, Hong Kong and Bangkok as the 'Gateway to Southeast Asia'. HVS is of the view that the hospitality sector has collectively failed to impress upon the central and state governments on the actual unrealised potential of this sector in terms of generating employment, and thereby poverty alleviation. The industry must use all forums available to it to advocate these facts to the governments. The political class and decision makers in India must be informed about the tremendous potential of tourism in the development of the country so that concrete measures are taken in the direction of enhancing tourism in India.