Govt Polict: Hotel Industry

1. Min. of Tourism (GoI): The Hotel & Restaurant Division

2. Learning Outcomes • To understand government interventions in Tourism and hospitality

6. Min. of Tourism (GoI): The Hotel & Restaurant Division • The Hotel & Restaurant Division classifies operational hotels under the star rating system. Under this system, hotels are given a rating, from One Star to Three Star, Four and Five Star with or without alcohol, Five Star Deluxe, Heritage (Basic), Heritage (Classic), Heritage (Grand), LegacyVintage (Basic), Legacy Vintage (Classic) and Legacy Vintage (Grand). • Classification is done on the basis of inspection of hotels which is undertaken by the Hotel and Restaurant Approval and Classification Committee (HRACC), set up by this Ministry. • The Division also approves properties in other categories viz, tented accommodation, apartment hotels, motels, Guest Houses, standalone restaurants, convention centres, Time Share Resorts, Bed & Breakfast establishments, air catering units and restaurants and Online Travel Aggregators. • Issues plaguing the hotel industry which is brought to the notice of the Ministry of Tourism are taken up from time to time with concerned ministries like the M/o Finance, NITI Aayog.

7. Make In India - Tourism And Hospitality • https://youtu.be/hCpRg268_rM

8. Sector Survey: Tourism and Hospitality sector • The tourism and hospitality sector is integral to the Indian economy as it is driving socio-economic growth, triggering the development of infrastructure in various regions and facilitating growth in other sectors such as retail, construction and transport. • “Tourism is a big employment generator and has a multiplier impact on the economy,” • The Ministry of Tourism’s (MoT) progress-oriented policies has given a boost to tourism in India over the period of last two years. • Foreign Tourist Arrivals during the period January-November, 2016 were 7.8 million with a growth of 10.4% as compared to the Foreign Tourist Arrivals of 7.1 million with a growth of 4.7% in January- November, 2015 over January- November, 2014. • Tourism is also responsible for massive inflows of foreign currency. The Foreign Exchange Earnings (FEEs) from tourism were USD 21 billion during January-November 2016, a sharp growth of 14.7% from last year.

9. Sector Survey: Tourism and Hospitality sector • Due to the government’s proactive role in supporting tourism and hospitality sector, India has become one of the most sought after travel destinations in the world. • In 2015, World Economic Forum’s(WEF) Travel and Tourism Index placed India on the 52nd position – a 13 place jump from the 65th position it occupied in 2013. WEF releases the report every year • Travel and Tourism Index in 2019 is 34th • To further push the holistic development of the sector and to create opportunities for investments, the MoT in collaboration with other ministries has launched schemes such as Swadesh Darshan, National Mission for Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) and e-Tourist Visa (e-TV). Under the e-Tourist Visa facility, 161 countries are now covered. With all such efforts, there has been a 2.5 times increase in e-visa arrivals in the matter of a year

10. Sector Survey: Tourism and Hospitality sector • PRASAD aims to focus on the integrated development of 25 religious sites. A budget USD 51 million has been allocated towards this. The Union Budget 2017-18 has made various provisions for the sector such as a Special Purpose Vehicle (SPV) driven five Special Tourism Zones and next phase of the Incredible India campaign for the sector. • An increase in the number of domestic tourists is going to be a major growth driver in the tourism and hospitality sector in India. The Domestic Tourist Visits (DTV) registered a growth of 12% in 2016 when compared to 2014.India’s varied climatic zones, biodiversity, large landmass and cultural diversity is playing a significant role in complementing the growth of tourism in the country. • In collaboration with the Ministry of External Affairs, the government has simplified the visa process for tourists. A special visa category called ‘Medical Visa and Medical Attendant Visa’ has been created to ease the entry of medical tourists in India. Medical Tourism • To fully utilise the potential of medical and wellness tourism, National Medical and Wellness Tourism Board has been formed.

12. Travel and Tourism Index 2019

13. Sector Survey: Tourism and Hospitality sector • Rural areas are undergoing a transformation in their infrastructure so that the tourism industry reaches more parts of the country and the local community benefits economically as well as socially. • The costs of flying is expected to decrease with the government planning to increase the number of airports to 250 from the currently operational 132. The growth will be aided by increased domestic expenditure on tourism from USD 90 billion in 2015 to reach USD 204 billion by 2026. • India’s share in world tourist arrival is expected to increase from 0.63% to 1% by 2020, and further 2% by 2025. Vigorous demand, varied attractions and a constant policy support would make India a highly competitive travel destination in the world.

14. Categorization: Hospitality industry In India, the hospitality industry is categorized broadly into: • Lodging • Food and Beverages • Transportations • Theme parks and amusement parks • Other related fields • Lodging industry is further classified based on location, level of service and themes. • Moreover, several organizations within the hospitality industry offer services such as food along with accommodation and transportation.

15. Food and Beverages: India (Organized & Unorganized) • The food and beverage category is further divided into two sub-categories —organized and unorganized. It is difficult to track unorganized food and beverages category which forms about 65-70 per cent of the total market and the organized one comprises of the rest of the 30-35 per cent market. • The organized sector is regulated by the state authorities on quality control and they are known for their standardized. Ex. McDonald’s, Nirula’s • An unorganized sector, on the other hand, lacks a structured supply chain, business plans, and quality control. Ex. Open Hotels on Road side • Within the organized category – casual and fine dining and quick services restaurants (QSRs) form over 80 per cent followed by pubs, bars, clubs, lounge (PBCL) and cafes & bakery occupying the rest of the market. • Food and beverage sector is expected to grow at 10.4 per cent annually and is likely to reach Rs 5.5 trillion by 2022.

16. Organized & Unorganized Restaurants

17. Growth of Quick Service Restaurant Industry in India • Banking on advantages like a young population with rising disposable income and increasing urbanisation in the country, the business of quick-service restaurant (QSR) chains in India is expected to grow eight-fold to US$ 5.6 billion by 2020 from US$ 720 million in 2011, at a CAGR of 27 per cent. • Both domestic and international QSR chains like Domino's, McDonald's, Pizza Hut and Nirula's amongst others are banking on the changing lifestyle of Indian consumers. In fact, India’s quick service restaurant chain industry is expected to grow faster than China at a CAGR of 19 per cent till 2020. • Indian consumers are eating out seven times a month on an average. • As many as 530 million people will reside in urban areas by 2025, which offers an attractive opportunity towards the global QSR chains. Overall, India’s food market is expected to grow to US$ 240 billion by 2020 from US$ 100 billion in 2011. The rising eating out culture and changing eating habits open up a huge opportunity for the established QSR chains across the globe.

18. The changing face of Indian hospitality. | RomilRatra • https://youtu.be/go4zhDdLl70 Hospitality achiever of the Year

19. RomilRatra (CEO- Bellona Hospitality) • RomilRatra (CEO- Bellona Hospitality), talks about the dramatic changes in the Indian hospitality industry in his TEDx Talk. • RomilRatra, or as his team affectionately calls him – RR, heads Bellona Hospitality. • His undying love for food coupled with 20 years’ worth of experience in the hospitality industry is instrumental in him bagging the title of ‘Best Professional in the Hospitality Industry’ and ‘Hospitality achiever of the Year’. • RR keeps a constant check on the new-fangled trends in the food world. • His vision for Bellona is to create restaurants and bars where the concept plays protagonist. A die hard food enthusiast and travel junkie by heart, RR believes that travelling inspires his treasure chest for knowledge.

20. MCQ 1. India’s Travel and Tourism Index in 2019 is 34. Who releases Travel and Tourism Index every year? • World Economic Forum • Govt of India-Tourism Department • American Travel Industry Association • International Monitory Fund

21. MCQ 2. Who classifies operational hotels under the star rating system in India? Under this system, hotels are given a rating, from One Star to Three Star, Four and Five Star with or without alcohol, Five Star Deluxe. • Hotel and Restaurant Approval and Classification Committee (HRACC) • Taj Group • Indian Hotels Association • World Economic Forum

22. MCQ 3. In India, the hospitality industry includes the following? • Lodging • Food and Beverages • Transportations • Theme parks and amusement parks • All the above

23. MCQ 4. Which of the following belongs to the Budget hotel segment of Lemon Tree Group of Hotels? • Lemon Tree Premier • Lemon Tree Hotels • Blue Fox • Red Fox

24. MCQ 5. The food and beverage category is further divided into two sub-categories —organized and unorganized. Which of the following quick-service restaurant(s) (QSR) belong(s) to organized sector? • Domino’s • McDonald’s • Pizza Hut • Nirula’s • All the above

25. MCQ • A • A • E • D • E

26. The Soul of a Hotel, TEDx • https://youtu.be/h9x2_WgwhY4

27. A look inside Burj Al Arab's most expensive suite • https://www.youtube.com/watch?v=x7NfLTr36zg

28. Inside The World's Only 7 Star Hotel • https://www.youtube.com/watch?v=Ba0UPFkDrxo

29. The Presidential Suite at Burj Al Arab Dubai • https://www.youtube.com/watch?v=aUcGkTwd2Zw

30. Burj Al Arab Dubai - World's Most Luxurious 7* Hotel • https://www.youtube.com/watch?v=U5j27CrqrgI

31. Hospitality and Tourism • Given its remarkable history and a dearth of ancient temples and buildings attracting tourists to India is easy. 38 locations are considered world heritage sites. • There is a very good tourist infrastructure, with good means of transport (air, rail, road, etc.), together with good telephone communications network and broadband internet, accessible throughout the country at very low prices. • Close to each monument there are tourist services, guides and explanatory publications with slide packs and photo albums to make the visit memorable. • There are several hotel chains of varying quality (5, 4 and 3 stars) with good service. About 12M foreigners who visited India in 2019 stayed for a long time (in excess of 4-6 weeks). Every year the flow of Indian tourists and citizens residing abroad exceeds 20M and domestic tourism accounts for hundreds of millions each year.

32. It is easy to obtain a visitor visa to India via the internet. While many tourists visit India to discover its artistic riches and historical locations, they also purchase a wide range of jewelry, clothing and ornaments for home decoration at reasonable prices. • The IT sector and the R&D Centers of MNCs also bring in many businesspersons to India(MICE). • India must make sustained effort to bring in more tourists, since, in addition to the direct jobs, tourism creates lots of indirect jobs. It is important to contrive initiatives and learning programs for low seasons, with activities like Yoga, de-stressing techniques, history of India, playing the sitar, learning Hindi, IT-Information Technology, etc., at affordable prices. • The contribution of tourism in 2019 was $29 bn (~ 9% of GDP). “Hospitality” generates more than 46M jobs. The restaurant industry employs 7.5M (2019).

33. Top 10 Trends Impacting the Hospitality Industry • In January 2020, IHCL Vice President of Public Relations and Corporate CommunicationsRakhee Lalvaniforecast on The Hotel Show blog that ecotourism, religious tourism, micro-cations and culinary travel would drive the industry for the next 12 months. A breast cancer survivor on how it changed her as a person: "I thought life is infinite, which it isn’t“ “Accept and [you] will find solutions—no matter what” Rakhee Lalvani, 48, vice president corporate communications, Indian Hotels Company Limited, Tajmahal, Mumbai

34. Top 10 Trends Impacting the Hospitality Industry

35. Are Micro-cations the Newest Millennial Travel Trend? • The days of the extra long, leisurely vacation are over. At least, they seem to be for Millennials. • During long weekend breaks, micro-cation happening • A micro-cation is nothing but a short vacation consisting of less than four nights • In these fast-paced times, micro-cations make for an ideal opportunity to unwind and recharge in shorter, more frequent intervals.

36. Backpacking Vs. Flashpacking • Flashpacking is a term used to refer to an affluent backpacker. Whereas backpacking is traditionally associated with budget travel and destinations that are relatively cheap, flashpacking has an association of more disposable income while traveling and has been defined simply as backpacking with a bigger budget. • The term is also used to denote tech-savvy travellers who carry electronic items like laptops, high-end cameras, smartphones. Flashpacking makes sure you fulfil your interest to enjoy a taste of authentic experiences in unique destinations (with a backpacking essence)

37. Top 10 Trends Impacting the Hospitality Industry 1. Catering to millennials: Millennials (those ages 18-34) are expected to represent 50% of all travellers to the USA by 2025 (18-36) • Hotels will want to please them with easy check-in and gourmet dining experiences at reasonable prices. • In return, satisfied millennials will actively promote their businesses on social media channels. • They tend to focus on exploring the world and getting a “local” experience—and posting it all on Instagram. • 20 to 36-year-olds found that 85 percent put a priority on venturing out of their comfort zones and learning new things. That ranked right behind dining (91 percent) and fun attractions (90 percent).

38. Top 10 Trends Impacting the Hospitality Industry 2. Tech explosion • The majority of guests today are self-sufficient, tech-savvy travellers who are comfortable using apps or mobile websites. • Hotels need to make sure their offerings are up-to-date and user-friendly. • At business meetings and conferences, travellers expect hotels and conference centres to have high quality tech equipment and a knowledgeable support staff. (MICE tourism)

39. Top 10 Trends Impacting the Hospitality Industry 3. Influx of international visitors • International leisure travel is on the rise—Dubai International Airport has become the busiest airport in the world. • Hotels must be able to provide services in a multitude of languages, and tailored experiences properly suited to the culture and unique needs of their international visitors.

40. Top 10 Trends Impacting the Hospitality Industry 4. Increased emphasis on health and well-being • Guests today are taking charge of their health • Hotels are responding with well-equipped fitness centres, pools and spas. Increasingly, travellers are expecting innovative wellness options. In addition to healthy food options, growing trends include lighting that energizes, air purification, yoga spaces, in-room exercise equipment and even vitamin-infused shower water.

41. Top 10 Trends Impacting the Hospitality Industry 5. Need for seamless technology • Seamless connectivity across platforms and devices is growing more important. Many hotel groups are offering mobile check-in and digital concierge services. At Aria Resort and Casino in Las Vegas, guests are issued high-tech cards that detect their presence and unlock the door before they even reach it. • Everything is smart these days. Smart rooms, smart badges and smart phones are all connected to share information and make getting what you want when you want it easier than ever. Look for facial recognition to unlock clickless access to just about everything. • The call for being able to handle everything from hotel registration and meal ordering from the convenience of our smartphones has only grown louder

42. Top 10 Trends Impacting the Hospitality Industry 6. Sustainability rules • Eco-friendly practices are becoming the norm, as properties focus on renewable energy resources and water scarcity. Many hotels are installing solar panels and updating systems so that air conditioners and lights automatically switch off when guests leave their rooms. • Considering the environmental impact of everything from plastic straws to leftovers has become an essential part of an event professional’s job. Venues are making it easier than ever to track food • Attendees not only want to be assured that meeting professionals are doing everything they can to reduce the carbon footprint of the event, reduce waste and source responsibly, they want to see nature in the ballroom. Biophilic design uses the power of a connection with the earth to enhance the wellness of people. The result is renovations and new builds designed to attract the 63 percent of people who say they would like to see more plants in hotel rooms, reduce waste and minimize greenhouse gas footprints

43. Top 10 Trends Impacting the Hospitality Industry 7. New roles for staff • Many travellers seem to prefer technology to human beings—they want to check-in digitally and don’t mind if a robot delivers room service. This will give staff the opportunity to focus on more personalized service, as opposed to rote tasks. • A quick search for hospitality jobs includes the titles such as social media coordinator, creative lead, events and experiences, audio-visual technician and yoga instructor. To qualify for these more specific roles, many are opting to pursue industry certification. • Hospitality workers have become the front lines during numerous emergency situations, opening up for victims of hurricanes and earthquakes, transforming into alternative hospitals during a pandemic and keeping the lines of communication open when the situation was changing quickly. Universities are stepping up to offer focused, advanced degrees in event planning with a risk management component embedded in the coursework.

44. Top 10 Trends Impacting the Hospitality Industry 8. Destination promotion • The explosion of social media is causing hotels to become more involved in destination and self-promotion. Many are featuring guests’ images and tweets on their websites; some are even using the material in their advertising campaigns. • The augmented reality ads and room service virtual reality goggles are now “things.” Planners can visualize spaces in multiple destinations without leaving their computer. • Convention and visitor bureaus (CVBs) are stepping up to perform advocacy, help with risk management planning and source for sustainable and engaging options for events in their cities. They are now playing the role of strategic advisor. Many are stepping in to find solutions for issues as diverse as homelessness and measuring impact. All the while, CVBs have gotten creative about how they talk about their value. From heartfelt messages from the CEO during a crisis to support for charities and free video conference backgrounds, they are becoming part of the larger travel experience.

45. Top 10 Trends Impacting the Hospitality Industry 9. Real-time damage control • If a hotel guest is dissatisfied, he or she can easily complain on Facebook, Twitter, Yelp or TripAdvisior. Hoteliers must be able to quickly respond. Engaging with customers and responding to their needs through these public forums help maintain positive guest relations and drive future bookings. • Meeting professionals are being forced to turn themselves into social media influencers—or hire one. By engaging their communities year-round, providing thought leadership pieces, education and authentic views behind the scenes that would make a Kardashian blush, they are building a following that will be eager to attend the next event.

46. Top 10 Trends Impacting the Hospitality Industry 10. Unique perks • With so many brands to choose from, properties need to find a way to stand out. Some are offering free daily wine tastings in their lobbies or bars; some are incorporating sophisticated informational screens in bathroom mirrors; and others are giving away curated set lists of downloadable music • In the quest to constantly surprise and delight, some hotels have gone to great lengths. From hangover recovery concierges in New Orleans and “hotel flatterers” who provide guests with random, thoughtful remarks about how wonderful they are, the emphasis is on personalization. Also a staple now at many properties, pet-friendly policies that start in the lobby. Inspired by cat cafes and puppy therapy, hotel are offering pet packages that include poolside petting paired with Prosecco

47. Voluntary Tourism • Voluntary Tourism has been picking up steam with those who seek a deeper sense of purpose with a visit. • Ecological conservation is a UN-driven initiative with voluntourism options by various standardised agencies are a big hit with young corporates. Participating in community-driven activities that involve educating tribes, helping with medical aid and spreading sustainable ways of animal rehabilitation are some outstanding bets. • Enriching holidays that encourage learning

48. Questions?