Magazine - The FHRAI

FSSA 2006 

Hospitality Deliberates 

on New Food Safety and 

Standards Act 

On Land, In Air 

Eaton Smart: 

India’s First Airport Transit Hotel 

Room Prices Up! 

Global Increase in Hotel Room Rates 

magazine 

Volume-12 Issue-4 • `50 • April 2012 

(T)AXED! 

Hospitality on Backfoot: 

Budget Forces Service Taxes 

to go up

[ Contents] 

Editor 

Deepa Sethi 

Assistant Editor 

Sanjeev Bhar 

Desk Editor 

Neelam Singh 

Advertising 

Gunjan Sabikhi 

Harshal Ashar 

Shovan Kanungo 

Prem Sagar 

Design 

Alpana Khare 

Neeraj Aggarwal 

Neeraj Nath 

FHRAI REPRESENTATIVES 

ON THE EDITORIAL BOARD 

Chairman, Publications Sub-committee 

Vijai Pande 

Marketing 

S.P. Joshi 

FHRAI 

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This issue of FHRAI Magazine 

contains 68+4 pages cover 

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6 FHRAI MAGAzINE ApRIl 2012 

April 2012 

8 

10 

18 

30 

36 

38 

40 

44 

46 

President’s Message 

Cover Story 

Hospitality (t)axed! 

News Updates 


Seminar 

Deliberations on New 

FSSA 2006 

Technology 

What’s In, What’s Out! 

Dine Out 

Red Mango 

Chef Talk 

Bakshish Dean, Corporate 

Chef, Lite Bite Foods 

F&B 

Sake, Shochu & Japanese 

Cuisine 

Request Note: 

Federation of Indian NGOs 

on Drug Abuse Prevention 

(FINGODAP) is a network of 

around 500 Drug de-addiction 

centres. We request members to 

donate used & discarded items 

of the Hotels such as furniture, 

linen, electrical items, fixtures 

etc for which you could contact 

Dr. Rajesh Kumar 

Executive Director, FINGODAP; 

Ph: 011 26893872, 

Cell: +91 9891268872, 

Email: spym@vsnl.com 

48 

52 

56 

58 

60 

61 

62 

64 

66 

68 

Design 

Crafting a Strategy 

Explore 

Eaton Smart, Delhi 

Report 

Room Prices Up! 

Guest Column 

Extra Boost to Bookings 

Conference 

Hi Aim 2012 

Supplier Talk 

IDS Next 

Products & Services 

FIHM 

Movements 

Events 

Cover illustration: Raghuvir Khare 

Visit FHRAI Website: www.fhrai.com

[ Message] 

President’s Message 

Dear Readers, 

Every year, the much awaited Union Budget 

takes our expectations to the pinnacle before its 

announcement, but comes crashing down the 

moment we hear the finance minister’s budget 

speech, particularly this time when the Direct Tax 

Code or the GST implementation is not even 

visible as far away as the horizon lies. 

Each one of you would have read, interpreted 

and perused the budget in great detail by now, 

especially the Service tax revised abatement, 

Cenvat and input tax credit when we should have 

been included by them in the negative list after 

such marathon persuasions, standard excise duty 

and exemptions on bakery products, 10 per cent 

hotels included to start with, in the Harmonized 

Master List of Infrastructure, eligible now for VGF funding, relaxation of ECB limits and 

easier access to credit enhancement and take-out finance from IIFCL, increased Public 

Private Partnerships, extension of 35AD of the Income Tax act to new hotels that are 

not operated by owners themselves, MVAT implication, TDS levied on our assets heavy 

immovable properties, marginal increase in the budgetary allocation for tourism to 

`1,282 crore from `1,170 crore last year, enhanced allocation to the National Skill 

Development Fund and the removal of sectoral restrictions on Venture Capital funds, 

alignment between central excise and service tax through a simplified common 

registration form and common return, likewise the list goes on. 

For this year’s 47 th FHRAI convention, as you would have already blocked your dates, the 

theme finalized is ‘Employment Generation: Engine of Inclusive Growth’. Our aim is to 

raise the bar of our annual national convention and make this year’s FHRAI convention 

an International showcase. We are in advance talks for participation by the International 

Hotels and Restaurants Association (IH&RA boasts of three hundred thousand hotel 

members and seven million restaurant members), FAITH, Cornell Hospitality, the American 

Hotel & Lodging Association (AH&LA with its 10,000 plus members), World Travel & 

Tourism Council – India Initiative as well as the South African Tourism Association and 

Asian American Hotel Owners Association (AAHOA), covering most of the large continents 

already and more to join. The synergy of FHRAI, AH&LA, AAOHA, WTTC-II, SATSA, FAITH, 

Cornell and IH&RA shall be felt by our fraternity and media at large alike, this September 

in Goa. 

I am very optimistic with the appointment of the PR consultant for the first time at FHRAI. 

With warm wishes, 

Kamlesh Barot 

President 

kamleshbarot@revivalhotel.com 

(facebook.com/kamlesh.barot; twitter:@KamleshBarot) 

8 FHRAI MAGAzINE ApRIl 2012 Visit FHRAI Website: www.fhrai.com

[ Cover Story] 

Hospitality 

(t)axed! 

Taxes on restaurants and food have increased from 3 per cent to 5 per cent 

now while the tax on rooms has been increased from 5 per cent to 

7 per cent. The announcement made has been a far cry from what the 

industry was expecting in this year’s Union Budget. FHRAI Magazine 

attempted to record the opinion of the industry on paper, which suggests that 

negative impacts of the budget on hospitality are partially matched up with 

some positives that lie between the lines. 

Kant Sahai 

Union Minister for Tourism 

Government of India 

We have a tough year ahead 

and in these difficult times, 

the Finance Minister has 

presented a balancing budget 

which will provide stability in 

the years to come. Though, 

it will be tough initially, but 

in the long run, it will be 

beneficial and contribute to 

the nation’s growth 

“ “Subodh 


Highlights of the Union Budget 2012-13 for Hospitality 

& Travel Industry 


• Air travel, eating out becomes costlier 

• Service tax raised to 12 per cent from the existing 10 per cent that will yield 

an additional revenue of `18,660 crore 

• GST to be introduced likely in August 2012 

• ECB to be permitted for working capital requirement of airline industry for 

a period of one year, subject to a total ceiling of US$ 1 billion 

• Direct import of Aviation Turbine Fuel permitted for Indian Carriers as 

actual users 

• Proposal to allow foreign airlines to participate up to 49 per cent in the 

equity of an air transport undertaking under active consideration of 

the government 

Kamlesh Barot 

President 


Against expectations: Despite 

presenting FHRAI’s pre-budget 

wish list to the ministry, the Budget 

looks quite against the hospitality 

industry. Taxes on restaurants and 

food have increased by 2 per cent now while the tax on 

rooms has also increased by the same digit percentage. 

In fact, in many states, the duplication of taxes is hitting 

revenue and profit margins of the hospitality players. 

Earlier, during our interaction with the tourism ministry, 

we were positive about getting a good budget and were 

convinced to get certain tax relief, but nothing is visible 

in the budget. We were expecting rationalisation of taxes 

in the hotel industry which is nowhere in the picture in the 

Union Budget. 

Positives in the budget: First of all I don’t consider this 

a completely lacklustre budget for hospitality and travel 

sectors because we did get a few things like for the 

service tax input tax credit, excise duty exemptions on 

bakery products, few hotels included in the ‘Harmonised 

Master List of Infrastructure’, increased Public Private 

Partnerships, extension of 35AD of the Income Tax Act to 

new hotels that are not operated by owners themselves, a 

marginal increase in the budgetary allocation for tourism, 

enhanced allocation to the NSDF, removal of sectoral 

restrictions on Venture Capital funds, alignment between 

central excise and service tax not to be exhaustive. 

Stringent approach: Though a lot of these 

announcements have made it a very stringent budget 

like the increase of service tax and excise duty which is 

across the board and not only for our hospitality and 

travel industry, but our service tax abatements have 

reduced both in the food as well as the rooms when 

we should have been included in the negative list of 

services, the budget provides no clarity on the timeline 

for the introduction of GST and the DTC for this ‘Pro- 

Poor’ trade, the MVAT implication on all assesses and 

the TDS levied on immovable properties, will all have a 

negative impact on the Indian travel trade which will get 

dearer. Whereas all this will have an effect on the FTAs, 

as our destination will become more costly compared to 

our neighbouring countries. 

Post budget strategy: The service tax increase will 

surely impact the mainstay of our industry. While we 

were fighting the Rupee devaluation and the global 

recession, this move would hit the hotels and restaurants 

in its growth cycle. Also, hoteliers and restaurateurs need 

to counter the present scenario and continue to serve 

customers smartly. They should quickly update their 

Corporate Guarantee Rates (CVGRs) and Long Staying 

Guest (LSG) and charter rates to offset the effect of 

this increase. 

Aggressive marketing: Hotels will also have to get 

more aggressive in their marketing promotions. They 

will have to use OTAs more effectively and also will 

need to use the dynamics of their own websites to drive 

more revenues. More effective F&B promotions would 

be required to drive F&B revenues. Also more value 

additions would entice guests leading to an incremental 

business. 

Visit FHRAI Website: www.fhrai.com FHRAI MAGAzINE ApRIl 2012 11


T. Banambar Patra 

Founder & MD 

Toshali Resorts International 

The direct effect: The Union 

Budget 2012 has not given 

attention and importance to 

hospitality, travel and tourism 

industry. The industry is the 

largest job creator in the 

country. Still the Hon’ble 

Finance Minister did not give the 

infrastructure status which was proposed 

by the various hospitality and travel and 

tourism associations for many years now. 

By increasing 2 per cent additional service 

tax may affect to the tourism industry and 

also affect the inbound tourism, which 

would directly affect hospitality industry. 

National benefit: On one hand, we 

are trying to promote tourism, and on 

another hand, we impose high taxes 

to discourage business and holiday 

travellers within domestic and inbound 

tourism and also affect to consumer 

demand. However, overall the budget 

2012 brings some happiness and 

also some reforms for the benefit of 

the nation. 

SM Shervani 

Vice President 


Lackadaisical approach: Our Finance Ministry 

is lousy. They only imagine hospitality sector 

as five star luxury hotels, which have been 

demanding infrastructure status for long. Now, 

India is attracting business class to come and do 

business here. We need good roads, railways 

and air carriers to address the rising concerns 

of economy. Then, what about the stay factor of the people who look 

for quality accommodations? By giving infrastructure status, interest on 

loans will become tax free and this will address the concerns of room 

shortage in the country which is tipped at 86,000. If we take an average 

cost of construction of a single room i.e. `40 lacs, it would means around 

`36,000 crore is required to fill the room shortage. Further, 70 per cent of 

the hotels rooms in India belong to 1, 2, 3 star categories. In this context, 

smaller chains need far more support from the government to grow 

further this industry. 

Not an elitist industry: It is sad that when it comes to staying in hotels, 

cabinet ministers and secretaries would stay at luxury and business 

hotels. Ideally they should be asked to stay at lower category hotels to 

know the real industry and hardship it takes to run hospitality business 

units. The service tax implication that this budget has offered is only 

going to escalate the issue of constraints for all small hotels and 

restaurants making their sustenance challenging. Hospitality industry 

faces the burden of being perceived as an elitist sector, and therefore, it 

is hard to convince the ministers that it isn’t so. 


Jyotsna Suri 

Chairperson 

FICCI Tourism Committee 

Nothing for tourism: The Union Budget has not brought 

anything for the tourism industry apart from the relief to 

the ailing aviation sector. We were overlooked till now 

and we have been overlooked yet again. On top of this, 

we have been slapped with a 12 per cent service tax. 

Cost to the consumer: The Union Budget announced 

by Hon’ble Finance Minister is not a growth budget 

but a populist budget. The hospitality & tourism industry has been once again 

completely overlooked. Our industry is heavily burdened with multiple taxes 

like Luxury Tax, VAT and different states levying different taxes. And now there is 

further increase in Service Tax by 2 per cent and the Excise Duty has been hiked 

too. This would adversely affect the growth prospects of the industry and result 

in higher cost to the consumer. 

Nakul Anand 

President 

Hotel Association of India (HAI) 

Limited impact: The Union Budget 2012-2013 presented 

in Parliament appears to have limited impact on the 

hospitality sector. The Hotel Industry was hopeful that it 

would be accorded the status of infrastructure industry 

in the Budget. This would have created a liberal financial 

environment, enabling it to achieve the target of more than 

doubling its hotel room inventory and providing around 

25 million new jobs in the tourism sector as envisaged in the 12 th Five Year Plan 

period. This, however, has not happened. On the other hand, hikes in excise duty 

and service tax would make the hospitality and travel services more expensive. 

Sudhir Sinha 

President & COO 

Best Western India 

Sandip Somany 

President 

PHD Chamber of Commerce 

and Industry 

Disappointing approach: The 

Union Budget 2012-13 has no 

‘big-bang’ reforms as expected 

considering the present situation 

of economic volatility in the 

domestic and international 

market. The Union Budget for 

2012-13 was in line with the 

industry expectations and no 

major breakthrough has been 

noted. However, the move to 

enhance the excise duty and 

service tax is disappointing. The 

move to raise the standard rate 

of excise duty from 10 per cent to 

12 per cent, especially in view of 

the present slowdown in industry 

segment would escalate the cost 

of production and stoke inflation 

which is already showing signs of 

re-emergence. 


Lack of attention: The proposals announced in the Union Budget 2012-13 once again completely 

failed to give the due attention to the hospitality sector. We have, once again lost the opportunity to 

support this industry. This is ironical that the service sector which had the highest growth of 9.4 per cent 

in the last fiscal and a major contributor to the growth of GDP has been given no advantage. 

Making hospitality expensive: The industry for long has been demanding abolishment of Service Tax 

from the Government but by increasing it on hotel stays and dining out, the Finance Minister has ensured 

that staying and dining out is more expensive now. This will bring a negative impact on the demand. 

The budget is also negative for the Indian Rupee, because high twin deficits and high inflation (augured by large government 

spending) may discourage some foreign investors. Though the industry contributes in a large way to foreign exchange 

earnings and employment generation and GDP, the hospitality industry’s expectations and demands for Industry status and tax 

rationalisation, besides others, remain unattended. 

Positive we can take: The only silver lining is the exemption from excise duty on specified food items prepared in hotels, 

restaurants and the modification in abatement on supply of food in restaurant, outdoor catering service, hotel accommodation 

and convention services with selective CENVAT credit benefit. Reduction on tax rate on interest payments for foreign currency 

loans from 20 per cent to 5 per cent may provide some relief to limited number of beneficiaries. 

Way forward: It was also nice to see the increase in the allocation of fund by 9 per cent in the ‘Incredible India’ campaign 

fund. However, its impact on the overall growth of the industry needs to be measured. The Government should focus more 

on supporting the private players in this segment and earnestly declare tourism as a priority sector. The countries which have 

taken this route are reaping rich dividends and for some their entire economy is depending on this industry. India has immense 

potential in this sector, but it needs Governments attention and support. Budget, being one of the key financial action plans 

for the Government, must have greater attention for this industry that it deserves. 



Travel industry’s take on Budget 

Subhash Goyal 

President 

IATO 

Tax over tax: The increase in service tax to 12 per cent from 10 per cent will negatively impact the tourism 

industry as the package costs will go up due to tax on all components of tourism, i.e., air rail ticket, hotel 

booking, transport, etc., and will be detrimental to tourism. 

We pleaded for withdrawal of service tax to boost tourism growth but are shocked to see that more areas 

have been included for service tax which has bearing on tourism. It is unfortunate, that tourism is always 

taxed. How much can you tax one industry year after year which is already burdened with taxes – Luxury Tax, 

Service Tax, Value Added Tax… literally speaking Tax on Tax. 

Vikram Madhok 

Chairperson 

WTTCII 

A mixed bag: The budget has some positives, a much 

needed balm to the ailing aviation sector. On 1 st March 

2012, the Cabinet Committee on Infrastructure had 

approved the Harmonised List of Infrastructure subsectors, 

in which three-star or higher category classified 

hotels located outside cities with population greater 

than 1 million has been included. This should be a major 

push for the much required hotel rooms in our country. 

On the other hand, the increase in Service Taxes translates into 

higher Air Fares, Taxes on Hotel rooms and expensive eating outs. 

Considering the current scenario, this is a mixed bag. 

Arjun Sharma 

Managing Director 

Select World Tours India 

Disregard to demands: The industry is completely 

disappointed with the union budget, which shows complete 

disregard to the demand and requests of the travel and 

tourism industry. 

The Ministry of Tourism and our industry had made many 

efforts to ensure that looking at the target set by the Ministry 

of Tourism, our industry will get the required fillip to attain 

the 12 million inbound mark in the 12th plan period. The only 

silver lining that this budget has to offer is the announcement of the 

roadmap to GST. But, it also remains a grey area. The budget doesn’t 

have initiatives that will promote growth in the industry. 

Ajay Prakash 

President 

TAFI 

Raja Natesan 

COO 

TUI India 

Against the hope: 

The budget from 

a travel industry 

point of view did 

not deliver on what 

I was hoping for. I 

personally feel that 

the travel and tourism 

sector can grow by 

leaps and bounds given the right impetus. 

For India, we have a target to double the 

arrivals in five years. While the target in itself 

is ambitious and laudable, I think we could 

look at the approach top down and not 

bottom up. Then we go all out to remove 

every obstacle that prevents us from getting 

there. This is where I think we are missing 

out. The budget speech hardly had any 

mention of travel and tourism. 

Instead of saying that we double tourists in 

5 years (based on a YOY growth target) we 

look at where we think India should be on 

the world map in terms of percentage of 

tourist arrivals given that India is relatively 

safe, has a fantastic mix of things to offer and 

the Dollar and Euro give the tourist great 

value for money. 

So we take say a percentage figure and say 

that is where we need to be in five years in 

terms of our share of tourist arrivals. 

India becoming expensive: On one side, the government has reduced tax on aircraft leasing and on another, it has 

increased tax on air travel. Additionally, it has increased tax on hotel stay and restaurants. The Union Budget has 

made India a more expensive destination as compared to its counterparts in the region. 

Taxed heavily: Travel and tourism industry is one of the top industries for employment generation and foreign 

exchange earnings. Yet, we are the ones taxed heavily with no rationalisation of taxes. Government says that it’s a 

perfect budget, but there needs to be something positive in the budget for the industry. Why is the government 

hoping that the industry will continue to grow in profits despite hitting us with taxes? 



Madhavan Menon 

Managing Director 

Thomas Cook (India) 

Infrastructural investments: The 

announcement of an increase 

in infrastructural investments, 

especially via the National 

Highway Development Project 

2012-13 is a welcome move, after 

all roadways form the arterial 

network for both inbound and 

domestic tourism. However, the 

condition of our highways today is 

far from satisfactory and damaging 

to our vibrant ‘Incredible India’ 

campaign. We would urge the 

government to prioritise and 

invest on the lines of the Greater 

Noida - Agra expressway. 

Aviation facing turbulence: 

Our aviation industry is facing 

turbulent weather, and we, hence, 

welcome the announcement of $1 

billion ECBs (External Commercial 

Borrowing) for airlines to fund 

their working capital requirements. 

This would ease pressure in short 

term, while paving the way for FDI 

in aviation sector at a later stage. 

Cascading effect: We expect 

tour prices to increase due to the 

cascading effect of the service tax 

increase resulting in an adverse 

impact on the Travel and Tourism 

industry as a whole. 

The Inbound segment, already 

reeling under the impact of 

global slowdown in key source 

markets, would be further 

impacted, with a drop in FTAs 

(Foreign Tourist Arrivals) and a 

further dampener on the growth 

rate in FEE (foreign exchange 

earnings) already estimated to 

be down to 16.7 per cent in 2011 

from 24.6 per cent in 2010. 

Sarab Jit Singh 

Senior VP, IATO & President, ITTA 

Totally contrasting stance: The Ministry of Tourism 

has set a target of 100 per cent increase in the size 

of inbound and domestic travel market in the next 

five year plan. We have had detailed meetings 

even with the Planning Commission and in one of 

such interactions with the Prime Minister’s Office, 

it was proposed that the inbound sector should 

target 20 million tourists by 2015. But, the Finance 

Ministry in the Union Budget has taken a totally 

contrasting stance, which definitely is detrimental 

to growth of tourism in the country. 

Tourism has the highest employment creation 

potential than any other sector. But, be it the opening of skies, or commissioning 

of the new airports, the needs of tourism sector is always neglected and all 

it gets is enhanced tax burden every passing year. The stakeholders in the 

tourism sectors needs to raise their voice and ask, as to why the tourism sector is 

overlooked? Why its genuine demands are overlooked? 

Dipak Deva 

CEO 

Destination Management (India and South Asia) 

Kuoni Travel India 

Not on economic agenda: It’s yet another budget 

from which it is loud and clear that the government 

does not consider tourism an important part of 

economic growth. Over the past few budgets, the 

trend has been to neglect the medium and long-term 

need of attracting more tourists to destination India. 

Maybe we, in the industry, are to blame for not having 

made a good case for tourism. 

Guldeep Singh Sahni 

President 

Outbound Tour Operators Association of India 

Taxing travel further: Increase of service tax on 

international tickets will add to already burdened 

industry. Approx 60 per cent cost of outbound 

package is air fare and existing tax on air fare is 

anywhere between 50 to 65 per cent. So 40 per cent 

of cost of package in tax only. Taxing it further will 

make outbound travel expensive. Probably it is like 

killing the golden hen. 

Contributing to GDP: If we look at overall outbound tourism from India, 

additional tax may impact low budget passengers and their families. But 

medium and high-end will not be impacted much. Looking into the number of 

people who are travelling overseas, government is not looking at this industry 

from the point of view that it produces jobs not only in metros but even in twotier 

and three-tier cities. Time has come that the government starts to look at 

tourism industry that can make a huge impact on GDP. 


[ News Updates] 

Pic: Grand Resort Bad Ragaz 

Hitesh Oberoi 

Hospitality sector job index 

shows new hiring trends 

The hiring activity in the hospitality sectors in India is showing a strong growth. The Naukri Hiring 

Outlook Survey revealed that 72 per cent of recruiters had said that new jobs will be created in 

the first half of 2012 in this sector. According to the portal, the hiring activity has rebounded in 

February 2012 with the job index at 1496, being the highest ever since the index was introduced. 

In the same month, the hiring activity for the sector moved up by only 2 per cent in comparison 

to the previous month and by 5 per cent vis-à-vis December 2011. Hitesh Oberoi, MD and 

CEO, Info Edge India, said, “A look at the job indices for the last few months shows high 

volatility with the index swinging between highs and 

lows every successive month. The index for February 

should be seen in that light. One interpretation is of 

cautious optimism and a case for selective hiring.” 

“However, when we compare hiring levels on a year-onyear 

basis then there has been a 

22 per cent increase in overall hiring trends. Thus, a look 

at the index for the past one year shows ever increasing 

index, indicating the vibrancy in the hiring environment 

for the sector,” he added. 

The Naukri job speak index indicates hiring trends across industry 

sectors, geography and functional areas 

The Naukri Job Speak index has come to this conclusion 

on the basis of job listings added to the site every month. 

It shows hiring trends across industry sectors, geography 

and functional areas. According to the portal, there might 

be high volatility for certain fringe cases like smaller 

cities, niche industries, etc., owing to a small base, but 

more than 42,000 clients using Naukri.com leads to high 

reliability of the data. 


METRO Cash & Carry 

opens its 10 th outlet 

in Delhi 

In February, METRO Cash & Carry 

India opened its first wholesale 

centre in the Capital in East Delhi. 

This is the company’s 10th wholesale 

centre in India and has another one 

opening shortly in Jaipur. In order to 

promote extensively, the company 

aims to connect with the chef 

community. For this, it organised 

the first ever customer connect 

programme – Chef-o-logy – for the 

Hotels, Restaurants and Caterers 

(HoReCa) of Delhi at the 27th AAHAR 

International Food and Hospitality 

Shaun Kenworthy 

Fair during March 12-16, 2012. The 

programme is an interactive platform where renowned chefs from different parts 

of the world along with food consultants, provide value-added services to the 

hospitality industry on areas like thematic cuisine creation, food festivals, menu 

merchandising and knowledge sharing discussions. 

Speaking to FHRAI Magazine, Shaun Kenworthy, consultant chef, informed, “We 

offer flexibility as a one stop solution of products where one reduces the hurdle 

of procuring imported products. Earlier, there were some apprehensions about 

procuring products from this company but now institutional segment is realising 

the convenience of procurement process where the pricing structure and 

stringent HACCP quality assures them to ease out their process of buying.” 

METRO Cash & Carry, which is known for its B2B wholesale approach, is 

consistently targeting the chef community to promote its repertoire of fresh 

products and now with its store in Delhi, it is trying to bring the Delhi hotels 

and restaurants into its radar. “We work closely with local producers, suppliers 

and small and medium enterprises,” informed Chef Kenworthy. Moreover, each 

wholesale centre creates 300 job (150 direct and 150 indirect) opportunities 

for local citizens, which also highlights its importance in hospitality sector from 

employability point of view. 

In case of hotels and restaurants, he added, “My emphasis is on telling chefs 

that they should connect with us and buy products. We are approaching the road 

of our growth in a localised manner. The plan is to have stores that would have 

selective products in a few cities. The market in India is growing up, especially for 

the institutional segment in hospitality,” he summed. 



Clarks Inn Group launches a new brand 

S. N. Srivastava 

The hotel management company - Clarks Inn Group of Hotels - has recently announced the launch 

of its newest hotel brand – Clarks Inn Suites. The first hotel is an upscale business hotel branded 

as Clarks Inn Suites – Delhi/NCR. Speaking of the latest addition, S. N. Srivastava, Vice President, 

Clarks Inn Group of Hotels said, “We are extremely delighted to open our first Clarks Inn Suites 

hotel. The hotel’s strategic location and all-encompassing luxurious facilities will provide guests a 

perfect hideaway after a hectic day of business. With this property, we also bring one of the largest 

banquet and meeting facilities in the NCR with capacity to host up to 7,000 guests at a time.” 

The hotel is strategically located at the confluence of Delhi-Ghaziabad border, close to the 

bustling business hubs of Central, South and East Delhi, Ghaziabad and Noida. It has 151 luxurious 

guestrooms well-equipped with all modern day facilities addressing the needs of MICE market 

and with position to access it from different parts of the city viz. city downtown, railway stations, 

airports, etc. 

The group is lined up with more properties scheduled to open this year. It has plans to open hotels 

in Lucknow, Haldwani, Pune, Gadag and Patna within April this year. “The latest addition is a big shot in the arm of the company 

as it now eyes to establish a leadership position in economy and mid-segment market and a significant presence in the upscale 

segment. We now have a network of 15 operational hotels spread across India. We are looking at a year of massive growth in 

2012 with plans to add 25 hotels to our portfolio this year,” Srivastava concluded. 

Shervani nominated for IHM’s 

Board of Governor 

S. M. Shervani, Vice President, FHRAI and President, Hotel & Restaurant Association of Northern 

India has been nominated on the Board of Governor of the Institute of Hotel Management, 

Catering Technology & Applied Nutrition, Pusa (Delhi). 

He is the Managing Director of Shervani Hospitalities Ltd., New Delhi. He is an Alumni of 

Pusa Institute of Hotel Management, New Delhi and a member of Hotel & Catering International 

Management Association (HCIMA), U.K. He has been in the hospitality industry for the last 25 

years and running successfully restaurants and hotels in Delhi and Uttarakhand under the brand 

name of Rodeo and Shervani, respectively. 



22 FHRAI MAGAzINE ApRIl 2012 

AFEHC promotes Spanish 

manufacturers in India 

The Spanish Exporting Manufacturers Association for the Hospitality Industry (AFEHC) promoted 

nine member companies at the 27th AAHAR International Food and Hospitality Fair in Delhi 

during March 12-16, 2012, with support from the Spanish Institute for Foreign Trade (ICEX) and the 

European Regional Development Fund (ERDF). Speaking to the FHRAI Magazine, Rosa M. Mendez, 

Manager of the association, said, “This happens to be for the first time that so many Spanish 

companies from the exporting industry in hospitality equipment have participated in the show 

under the aegis of AFEHC. Though, we visited this show four years back on a study mission to India 

Rosa M. Mendez 

with the aim of assessing the possibility of attending this show as exhibitor in the future. This time, 

there was an interest among the nine companies who came together to showcase their product 

excellence in the India market. India is a growing place for hospitality industry.” 

The Spanish groups that attended the AAHAR International Food and Hospitality Fair as exhibitors were: Asber, Caff, Comersa, 

Fagor Industrial, Jemi, Quality Espresso, Salva, Sammic and Zummo. The equipment companies came with expertise in 

manufacturing from a range of products like cooking, dishwashing equipment to accessories and components of refrigeration 

equipment, laundry, espresso machine, food preparation equipment to ovens for bakery, pastry and catering needs. “We have 

received quite a good response here and the primary objective of our participation was to find distributor for the companies in 

India. Industrial equipment manufacturing is our forte as 50 per cent of the sales comes from export,” she informed. 

The association is targeting high-end market and institutional market in India promoting the HoReCa equipment from Spain 

having quality manufacturing capabilities as its USP. AFEHC is made up of more than 80 companies, including the leading 

Spanish manufacturers of equipment for the catering and hospitality industry. 

Clay Craft launches ‘Crayon Series’ 

Jaipur-based Clay Crafts (India), known for its range of fine bone china products for the hospitality sector, is now positioning itself to 

cater to the upscale hotels and restaurants segments. Deepak Agarwal, Director of the company told FHRAI Magazine that it has 26-30 

new items added up to its repertoire which have been introduced this year covering continental servings dishes and two main serving 

dinnerware ranges. He informed, “We have launched ‘Crayon Series’ at AAHAR Fair in the capital which is our new offering with a new 

design and approach, where we focused on the shapes and manufactured it in bright and colourful format. Till now, we have been 

focusing on 3-star properties but now, with the launch of this new product segment, we are venturing into five star categories.” 

The company has been strongly working out its strategies in the platter, accessories and bowls 

segments with the domain of fine bone china and ceramic wares and now it has started the 

production of the new series for 2012. According to Agarwal, the first volume of the new series will be 

available in the market from the month of April. Further, the company has been performing strongly. 

“In the last 2½ years, our turnover has tripled to `36-40 cr. Our sister concern ‘Crown Craft’ which 

started in April 2010 has also grown very well with its turnover touching `12-13 cr,” he revealed. At 

the moment, Clay Craft’s hotelware segment comprises of 30 per cent of its total sales and its target 

is to make it reach 40-45 per cent. “Our strategy for the booming hospitality industry is to outperform 

ourselves consistently in future. It is the only performing industry doubling itself. We are going to put 

more emphasis on R&D and it is our USP to bring about new products,” Agarwal added. 

The company has 80 distributors in India and 50 of them are specifically addressing the hotelware 

segment. “We have tied up with big retail chains like Carrefour, Big Reliance, Spencers, Bharati Wal- 

Mart, etc., to market our product. New venues are also being created to market our products in the 

online domain like snapdeal.com,” he summed. 

Deepak Agarwal 

Visit FHRAI Website: www.fhrai.com


HPMF raises the issue of eco-friendly 

procurement policy 

In its support for the environment initiative, the Hospitality Purchase Managers Forum (HPMF) has called for all hospitality units 

through their respective purchase managers to imbibe ‘green procurement’ policy in their organisation. Following this, the 

association has been proactively requesting all exhibitions pertaining to hospitality sector to reserve 10 per cent of total floor 

space for green products. 

To highlight the importance of green procurement, a total of four new green practices were agreed upon at the HPMF seminar 

titled ‘Green Supply - Making Procurement Matter’ which was organised in association with the HOTREMAI and ITPO. It was 

the second successive year when HPMF hosted a seminar at AAHAR International Food and Hospitality Fair. According to 

HPMF officials, products must have their green details highlighted, publishers of hotel & restaurant supplier directories must 

dedicate a section to green products, 10 per cent of expo floor space should be reserved for eco products; and purchase 

mangers will purchase more green products in areas that are under their direct control such as the back office. 

HPMF – a community of hotel & restaurant purchase managers in India – issued a statement at its seminar on green 

procurement during the AAHAR International Food and Hospitality Fair 2012 in Delhi. Sanjay Verghese, Director, Materials, 

The Imperial, New Delhi, said, “We are always looking to add new green products to our supply chain. A section reserved for 

green products will increase their visibility and also give us single point access. It is the need of the hour and definitely a USP 

for the expo organisers.” 

“We would like the suppliers to tell us of their eco progress. Please make this info prominent and display a green logo 

because this is what we are looking for,” said Jaswinder Singh, Director of Supply Chain & Business Development at La 

Tagliatella, an international restaurant chain. 

The HPMF seminar on greening the hotel supply chain was very well received. Moderated by Alan D’Mello, Associate Director, 

Marketing & Communication, Daman Hospitality (Delta Corp), the session included panelists - Asheme Mehta, Materials 

Manager, The Oberoi, New Delhi; Basil C Massey, Director, Procurement, Duet India Hotels; Mukesh Mittal, Corporate 

Materials Manager, Radisson Blu MBD Hotel, Noida; Sanjay Verghese and Jaswinder Singh. 

Staying focussed on green. l-R: Alan D’Mello, Jaswinder Singh, Sanjay Verghese, Mukesh Mittal, Asheme Mehta, Bassil C Massey 



IFCA organises fifth 

edition of National 

Culinary Congress 

Organised by the Indian Federation of Culinary Association 

(IFCA) 2012, the first day of the National Culinary 

Congress saw around 650 culinary experts under one roof 

sharing culinary skills and techniques. It provided with 

an opportunity for all the delegates present at the event 

to connect with top chefs, restaurateurs, food writers, 

wine producers, photographers, food stylists, marketers, 

nutritionists, academics and technocrats from hospitality 

and tourism. The Congress offered a platform to advance 

their professional development by enhancing their culinary 

skills through informative seminars, forums and cuttingedge 

demonstrations. 

Chef Manjit Singh Gill inaugurating the fifth IFCA National Culinary 

Congress held in Bengaluru from March 22-24, 2012 

The day started with a welcome speech by Chef Vijay Bhaskaran, from Le Meridian followed by a presidential address by 

Manjit Singh Gill, Corporate Chef, ITC Hotels. Chef Lata Krishna Rau was the guest of honour for the event. Chef Rau presented a 

brief on the local Karnataka cuisine in lieu of Ugadi, the festival of Kannadigas. She also threw light on the importance of culinary 

education in Bangalore thus making the city, a culinary city. Chef Gissur Gudmundson, WACS President, shared his views on 

future trends and addressed the way forward of the Global Culinary Industry. 

In a keynote speech, former WACS President, Chef Ferdinand Metz, addressed the innovation in food ingredients. The 

audience was also briefed on new age culinary techniques and the evolution of culinary art. Next was a cooking demonstration 

on the new age culinary techniques by Chef Abhijit Saha. Commenting on the evolution of culinary art, Ferdinand Metz said, 

“Non-traditional culinary education is important with professionalism and quality of life.” 

The second half of the event was inspiring as it kicked off with a panel discussion on what one expects from a chef. The panel 

included big names in the hospitality and media industry like Vir Sangvi, Rohit Khattar and Nakul Anand. The discussion 

emphasised on the importance of talent in culinary art and not certification. The chefs of the panel stressed on the fact that real 

hospitality is a blend of both culinary skills and business management. Gloating about the versatility of Indian Chefs, Khattar 

said, “There is hardly a difference between trained and traditions as young chefs today are hungry for knowledge.” 

This was followed by another discussion on ‘Food in India in the next decade’. The panelists again were renowned names from 

the hospitality industry like Chef Manjit Gill, Vikram Kotta and Chef Abhijit Saha. Sangvi was the moderator for the discussion. 

The discussion stressed on the introduction of Indian flavours in foreign food. Commenting on the creative additions, Sangvi 

said, “Guide to food is your palate. One needs to go out and taste before any innovation to imbibe the originality.” Another 

important emphasis was on the commercialisation of homemade food. During the debate, Chef Gill emphasised on respecting 

classic dishes while bringing a fresh change with fusion ingredients. 



FHCL targets HoReCa for 

total coffee solutions 

In order to cater a 

complete end-to-end 

coffee solutions, Fresh 

& Honest Café (FHCL) 

is aggressively looking 

to increase its share 

in the segments of 

hotel, restaurant and 

café across India. In a 

conversation with 

FHRAI Magazine, 

Sivakumar Krishnamurthi, 

Sivakumar Krishnamurthi 

COO of the company, 

informed that the 

domestic market of coffee related solutions is 

growing at 15 per cent. “There has been around 20 

per cent growth being registered in the five star, high 

end cafés. In order to tap this growth, FHCL is offering 

a complete solution related to coffee, starting from 

machine to serving the finest brew.” At the moment, 

FHCL, having registered a turnover of `200 crores, 

claims to have more than 70 per cent share in the top 

end HoReCa segment. 

It is catering to the HoReCa segment which is 

divided into three categories, i.e., room, lounge and 

café. “The Fresh & Honest brand gives complete 

coffee solution that includes machine, coffee beans 

and a range of blends. Further, we impart training 

to use the machine to our clienteles in addition to 

providing back-up services, which distinguishes 

us from rest of the companies in the segment,” 

Krishnamurthi informed. 

FHCL, under the brand Lavazza, focuses on HoReCa, 

Corporates and public places where the demand 

for quality coffee machines is growing. Renowned 

coffee machines brands have been brought to India 

like Swiss Egro, Thermoplan Black & White, Nuova 

Simonelli, Saeco and Delonghi in both fully-automatic 

and semi-automatic versions. He added, “We have 

brought in a new coffee machine WMF from Germany 

to India this year. This equipment is exclusively 

available through us. We are going to advise the 

clients for using appropriate machines for their choice 

of quality to provide good quality of coffee.” 

Further, FHCL has also introduced one touch 

button espresso makers called Lavazza BLUE with 

unique single serving coffee capsules and has been 

patented. It is claimed to be a product that has been 

launched for the first time in India. “The convenience 

factor has been addressed where the machines 

as well as the coffee capsules are accepted by the 

HoReCa segment. It provides the best Italian coffee 

experience,” he said. 

In addition to all these, the company has also 

extended its services. With demand for coffee solutions increasing with growth of hotel rooms and restaurants, manpower 

training has become a major issue. “A perfect blend comes when there is a right hand to maneouver complete solution for 

service. Therefore, we also impart training in this area having set up a training centre in Chennai,” Krishnamurthi informed. 


[ FHRAI] 

I am very glad to present you the April issue of FHRAI Magazine. Since the time I have been 

looking after the work of the magazine, this is the first time that I have received genuine interest 

through emails from member readers. I am thankful to my fellow industry professionals and respect 

their views, comments and suggestions. 

In this April issue, we have tried to incorporate notes, views and articles on various issues of 

relevance to tourism/hotel and economic scenario. These are mainly articles on hospitality, 

tourism, service tax implications, areas of importance in the present scenario and the future scope. 

FHRAI is organising seminars on FSSA (Food Safety & Standards Act) in your regions and has already successfully organised 

in Delhi and Kochi. I request all members to attend these seminars. This will help you to understand and implement the Act 

in a better way. 

The month of March has always been an important month for the Indian economy as the financial year draws to 

a close. The industries always await with expectations while guessing on what is going to be on offer in the Annual 

Budget for the entrepreneurs and public, in general. Like each year, this time again the Budget has disappointed us. We 

were waiting for certain relaxations, incentives for the hotel industry, which is directly connected with tourism sector 

that attract huge FOREX. Surprisingly, no such incentives have been announced. Rather, additional taxes have been 

imposed on people who have not yet overcome the losses incurred due to Commonwealth Games 2010 held in the 

Capital. Due to increase in taxes, our domestic tourists are moving to foreign countries. By doing this, our Honorable 

Finance Minister has exported Indian domestic tourists to foreign countries. The government needs to reconsider this 

strategy for the good of India. 

Greetings for a healthy summer business! 

Vijai Pande 

Chairman 

FHRAI Publications Sub-committee 

vijaipandit@yahoo.co.in 

Looking for a Meaningful Benefit 

Vivek Nair, Hon. Secretary, FHRAI 

Budget Exports Domestic Tourism 

The Federation of Hotel & Restaurant 

Associations of India (FHRAI), founded 

in the year 1955, is an Apex body of the 

Hospitality Industry in India. It represents 

about 3,500 Members, comprising of 2,160 

Hotels (with nearly 1,20,000 classified 

rooms) and 1,064 Restaurants. The union 

budget of 2012-13 disappointed FHRAI 

as it did not offer much to the hospitality and tourism Industry. 

Speaking in one voice, the entire tourism & hotel industry had 

presented to the Ministry of Finance, a comprehensive set of 

recommendations, including several specific proposals on direct 

and indirect taxes to promote tourism in the country. 

While ignoring these proposals, the Government has instead 

proposed a hike in the rate of Service tax from 10 per cent to 12 per 

cent, which further led to an increase in the Service Tax on rooms 

from 5.1 per cent to 6.18 per cent and on Restaurants from 3.1 per 

cent to 3.71 per cent. Our plea to include Hotels and Restaurants 

in the negative list for service tax has also not been accepted. We 

wish to emphasize that in the incremental revenue generated by the 

Government from the Service Tax will be relatively insignificant in 

comparison to the detrimental impact that the burden will have 

on India’s attractiveness as an international tourist destination. 

Also, with the multiplicity of taxes India will soon become the most 

heavily taxed country in the world for tourists. We strongly urge 

the Hon’ble Minister of Finance to consider our Industry’s request 

to put Restaurants in the Negative List and at least exempt Service 

Tax to Hotels who render services to foreigners who pay in foreign 

exchange as is done in the case of Exporters. 

We are also dismayed that the budgetary allocation for tourism 

has been only marginally increased to `1,282 crore from `1,170 

crore though it was expected to be raised after deliberations with 

the Planning Commission due to the huge employment generation 

potential of hotels and the tourism sector. It is ironical, especially 

when the Government’s Economic Survey, spoke glowingly of 

Tourism’s vast potential as an employment generator and a key 

catalyst for promoting inclusive growth. 

Also, the Harmonized Master List of Infrastructure which has 

been approved by the Government on 1 st March 2012 has also 

been a great disappointment as Hotels with only 3-star and above 

category and located outside city limits with a population of 10 

lakhs (1 million) have been included in it. This would exclude 

the 90 per cent of the total number of Hotels being set up in 

the country. It is, therefore, requested that as in section 2-star 

and above throughout the country (the Budget of 2010-2011) all 

Hotels be included in the aforesaid list. 

However, FHRAI welcomes the abolition of Excise duty, under 

Section 9 on preparations made in hotels, whether served in the 

hotel or taken outside. This has been a long-pending request of 

the industry and the abolition would help to eliminate one of the 

many cumbersome taxes imposed on the industry. 

Excise duty on bakery products in hotels: 

i) The food preparations (such as breads, biscuits, chocolates, 

pastries, ice-creams, fruit juices, etc.) in Hotels or Restaurants, 

which are basically for captive consumption by its guest, as a 

part of Food & Beverage Service and not as sale, be exempted 

from levy of Central Excise duty. 

Continued on page 35... 


FAITH Sub-committee – FHRAI 

Kamlesh Barot 

Chairman 

The proposed common body FAITH (Federation of Associations in Indian Tourism & 

Hospitality) shall be a non-government, not-for-profit, industry-led and industry-managed 

organisation for being a catalyst for the growth and development of the Travel, Tourism, 

Hospitality and Convention Industry. The associations who have signed on to this effort are – 

• ADTOI – Association of Domestic Tour Operators of India 

• ATOAI – Adventure Tour Operators Association of India 

• FHRAI – Federation of Hotel & Restaurant Association of India 

• HAI – Hotel Association of India 

• IATO – Indian Association of Tour Operators 

• ICPB – India Convention Promotion Bureau 

• IHHA – India Heritage Hotels Association 

• ITTA – Indian Tourist Transport Association 

• TAAI – Travel Agents Association of India 

• TAFI – Travel Agents Federation of India 

This sub-committee was formed to represent FHRAI as the core member with the other nine National Tourism Industry 

Association’s Presidents that were formed on the February 9, 2012. The members of this sub-committee are: Mr. Saeed Shervani, 

Mr. Ajay Prakash, Mr. Iqbal Mulla, Mr. Jose Dominic, Mr. Sushil Gupta, Mr. Subhash Goyal and Mr. Rajiv Kohli. Since January 

2011, various national level travel industry associations from the above list had several meetings in Delhi to discuss the need, 

time and opportunities of creating one large umbrella organisation to bind individual associations in their common needs. I 

formed this FAITH sub-committee in FHRAI as FHRAI President, since I had the confidence that came from my past one 

year’s experience as the President of the HRA - Western India of (having launched and headed WITO from February 5, 2011 

to December 12, 2011) the Western India Tourism Organisation. We, the like-minded Presidents, put up a united front for the 

first time in India, where all existing hospitality and travel associations in western part of the country, came together to form this 

WITO confederation. 

The mission and accomplishments of FAITH & WITO are to raise issues which ail the tourism industry as a whole, not just 

amongst us, but getting heard at the ministry level, because of their sheer size of membership strength. FAITH being just a 

magnification of the same inputs and outputs of WITO, this sub-committee is now on a National platform and has FHRAI’s 

FAITHfulness in FAITH. 

Secretariat Office, HRD & 

Info Sub-committee – FHRAI 

S. M. Shervani 

Chairman 

The function of this Sub-committee is to bring a more responsive approach to the way FHRAI 

functions. We are in the process of upgrading our website to ensure better flow of information 

among the members and industry. 

In addition to the efficient billing process, we are upgrading the software further where 

information, photographs, etc. of members will be incorporated. It will take all information on 

record required for official verification of signatory concerned. We are going through a lot of changes in the way information 

and various tasks undertaken are filed with the FHRAI Secretariat. Also, it will take into account the various meetings that we 

convene with the different departments of the Department of Tourism. The entire process of aligning this plan is on the pipeline 

and we expect to get this functional by the month of May or June. Now, with this streamline approach, the next President will 

be able to access details of the work done in past and can take the initiatives forward. This will impart a more effective and 

productive way to approach the functions. The Sub-committee aims to move FHRAI functioning towards further efficiency. 

If the Secretariat is strengthened, then we will achieve the meticulous work environment in the association for better and 

swifter decision making process. 




Sustainable Tourism 

Criteria for India 

The Ministry of Tourism (MOT) has recently released the Sustainable Tourism 

Criteria for implementation by the industry. Excerpts from the report: 

Tourism is one economic sector in India that has 

the potential to grow at a high rate and ensure the 

development of infrastructure at the destinations. It 

has the capacity to capitalise on the country’s success 

in the services sector and provide sustainable models of growth. 

In India, the travel and tourism sector is estimated to create 

78 jobs per million rupees of investment compared to 45 jobs 

in the manufacturing sector for similar investment. Along 

with construction, it is one of the largest sectors of the service 

industry in India. Apart from providing employment to a wide 

spectrum of job seekers from the unskilled to the specialised, 

a higher proportion of tourism benefits (jobs, MSME trade 

opportunities) accrue to women. Moreover, emphasis would 

increasingly be given to organising more short-term courses 

for the unskilled workforce as well as unemployed youth on the 

pattern of ‘Hunar-se-Rozgar’ and ‘skill certification of service 

providers’. Besides, strategies followed during the 11 th Plan may 

have to be suitably recalibrated to take care of the challenges 

from competing countries and to harness the full potential of 

Indian tourism. 

Awareness Campaign 

There are other concerns as well. A study conducted by 

Ministry of Tourism, Government of India, at important tourist 

destinations reveals that lack of hygiene and sanitation is a major 

irritant for foreign and domestic tourists. Therefore, creation of 

awareness as well as making available the requisite facilities will 

be given high importance during 12th Five Year Plan through 

the following measures: 

• Major social awareness campaign under the ‘Atithi Devo 

Bhavah’ initiative 

• Involving schools, NGOs, industry associations, etc., in 

carrying out sustained cleanliness drives at important 

tourist destinations. Suitable incentives and awards will be 

provided to all the organisations and individuals involved in 

this initiative 

• Topmost priority will be given for sanctioning Central 

Financial Assistance for setting up of wayside amenities, 

bio-degradable toilets, etc. 

Sustainable Tourism Growth 

While making efforts for the targeted 12 th Five Year Plan growth 

in foreign and domestic tourists, the Ministry will endeavour to 

make the growth sustainable. This is proposed to be achieved 

through the following measures: 

• Sustainable Tourism Criteria for India (STCI) and 

indicators for hotels & tour operators have been finalised. 

Similarly, the criteria and indicators for rural tourism and 

home-stays are being evolved. Action will be initiated for 

tourism industry constituents not yet covered. 

• The scope of Market Development Assistance scheme 

would be enlarged to cover participation of representatives 

of recognised national associations in workshops/ seminars 

on sustainable tourism organised by reputed organisations 

in India or overseas. 

• Training of various stakeholders under the existing plan 

schemes of the Ministry. 

Sustainable tourism development will include advancing some 

of the following niche tourism products or developing additional 

niche products such as (h) and (i) given below: 

a) Adventure 

b) Medical 

c) Wellness 

d) Golf 

e) Polo 

f) Cruise 

g) Meetings Incentives Conferences & Exhibitions (MICE) 

h) Pilgrimage/Spiritual Travel 

i) Film Tourism 

j) Eco/ Wildlife/ Caravan Tourism 

As tourism is a multi-sectoral activity, active convergence in the 

resources of various sectors involved in promotion of tourism at 

Central and State level is necessary for achieving the optimum 

results. 

It is the intention that the countrywide experiential tourism 

attractions get developed for the socio-economic benefit of local 

communities, especially in order to strengthen inclusive economic 

growth. It is equally important to ensure that increased socioeconomic 

well-being does not cause permanent or long-term 

damage to the country’s physical, cultural and environmental 

heritage. The use of existing resources, both tangible and 

intangible, has to be undertaken judiciously for the well-being 

of the present generation but not at the cost of depriving future 

generations of any part of our inheritance. 

The Planning Commission in the Approach Paper to the 12 th 

Five Year Plan has mentioned that tourism and hospitality sector 

has a key role to play in promoting faster, sustainable and more 

inclusive economic growth. 

(Source: MOT. The complete report has been uploaded on FHRAI website for reference.) 


Service Tax 

Implications 

The Union Budget for 2012-13 led to rise in the Service Tax/benefits to 

hospitality industry. FHRAI gives a lowdown on the subject. 

As the members are aware, in the Finance Bill 2012-13, 

the rate of Service Tax has been increased from 10 

per cent to 12 per cent. The net rate of Service Tax 

would be 12.36 per cent, i.e., 12 per cent Service Tax 

plus 3 per cent Cess (2 per cent Education Cess and 1 per cent 

Higher Education Cess) effective from 1st April, 2012. 

Abatement 

The abatement available for hotels (room) is 50 per cent and 

Restaurants (A/c Restaurant having licence to serve the liquor) 

70 per cent. It means the hotels having room Tariff of `1000 

and above have to pay the Service Tax on 50 per cent of Room 

Tariff @ 12.36 per cent (the net rate of Service Tax comes to 

6.18 per cent), effective from 1 st April, 2012. 

For A/c restaurants (having licence to serve the liquor), the 

Service Tax is applicable on 30 per cent of the Bill @ 12.36 

per cent (the net rate of Service Tax comes to 3.708 per cent), 

effective from 1 st April, 2012. 

Members may please recall that Hotels/Restaurants/clubs 

are covered under Mandap Keepers for holding social functions 

such as marriages, conferences and seminars where substantial 

food is served. It attracts the Service Tax @ 12.36 per cent. 

There is abatement of 40 per cent. It means the Service Tax is 

applicable on the 60 per cent of the total bill or the net rate of 

Service Tax comes to 7.416 per cent. 

Please note that the abatement for hotels/restaurants/ 

Mandap Keepers has been proposed to reduce in the Union 

Budget 2012-13, as per details given in the table. 

Pursuant to the efforts of FHRAI, the Government has agreed 

to our proposal and has allowed benefit U/s 35AD as below:- 

Service 

Description 

Applicable w.e.f. 

1 st April 2012 

Present Abatement Service Tax @12.36 

per cent 

1. Currently, the investment-linked deduction under section 

35AD is allowed to an assessee engaged in the business of 

building and operating a hotel whereby the deduction can only 

be granted to the owner of a hotel if he himself operates it. 

In service industry like hotels, a franchisee (management contract) 

business system exists where the hotel owner may get the hotel 

operated through an outsourcing arrangement. Therefore, it is 

proposed to provide a suitable clarification so that a hotel owner 

continues to be eligible for the investment-linked deduction 

under section 35AD if (the hotel owner), while continuing to 

own the hotel, transfers the operation of such hotel to another 

person. Accordingly, a new sub-section (1A) is proposed to be 

inserted in section 35AD to provide that where the assessee 

builds a hotel of two-star or above category as classified by the 

Central Government and subsequently, while continuing to own 

the hotel, transfers the operation thereof to another person, the 

assessee shall be deemed to be carrying on the specified business 

of building and operating hotel. 

This amendment, effective from 1 st April, 2011, will, 

accordingly, apply in relation to the assessment year 2011-12 

and subsequent assessment years. 

2. The Hon’ble Finance Minister in his budget speech had 

stated that a harmonised master list of infrastructure has been 

approved by the Government with the objective of removing 

ambiguity in the policy and regulatory domain and encourage 

investment in the infrastructure sector. Accordingly, inclusion 

of hotels in the harmonised master list of infrastructure subsector 

has been included for three-star or higher category 

classified hotels located outside cities with population of more 

than one million. 

Proposed abatement (reduced) in the 

Union Budget 2012-13 (would not 

be effective till the Finance Bill 2012 

is passed) 

Proposed Abatement 

Service Tax @12.36 

per cent 

Hotels-Room Rent 

(Having tariff of 

`1000 and above) 

50 per cent 6.18 per cent 40 per cent 7.416 per cent 

A/c Restaurants 

(Having licence to 

serve the liquor) 

70 per cent 3.708 per cent 60 per cent 4.944 per cent 

Mandap Keeper 40 per cent 7.416 per cent 30 per cent 8.65 per cent 




Glimpses of FHRAI EC Meeting 

at Casino Hotel Kochi 

on 21 st March 2012 


...Continued from page 30 

ii) This Central Excise levy on Hotels and Restaurants which is a 

service industry activity, does not get the benefit of small scale 

industrial activity, since no State Government recognises the 

activity as an Industrial activity and issues SSI registration. It 

is, therefore, all the more necessary that Hotels and Restaurants 

are exempted from levy of Central Excise duty on the products 

produced and consumed within the premises as requested 

above or an exemption can be given on turnover as is given to 

small scale units which at present is `1.5 crore. 

We, therefore, trust that the Finance Minister will kindly heed 

the request of the Hotel Industry in respect of the Service Tax 

and amendment of the description of Hotels in the Harmonized 

Master List of Infrastructure for a meaningful benefit to be 

extended to the Industry which, at over 52 million, is the 

country’s largest employment generator with 9.2 per cent of the 

total workforce employed in the tourism sector. 


[ Seminar] 

Deliberations on 

New FSSA 2006 

The Food Safety and Standards Act (FSSA) – 2006 aims to consolidate various 

food safety related Acts in one. The hospitality associations of FHRAI, HRANI 

and NRAI organised a seminar to deliberate on the imminent challenges that 

the Act brings to fore. A similar seminar was held at Kochi as well. 

MD Kapoor, Secretary General, FHRAI 

(l-R) Garish Oberoi, Hony. Secretary-HRANI, S.M. Shervani, 

Vp - FHRAI and president-HRANI handing over a representation to 

K. Chandramouli, Chairperson-FSSAI 

Group photo of the office bearers of FHRAI, HRANI and NRAI 

with FSSAI Chairperson 

The Federation of Hotel & Restaurant Associations of India 

(FHRAI) in association with Hotel and Restaurant Association of 

Northern India (HRANI) and National Restaurant Association 

of India (NRAI) had organised one day summit on Food Safety 

& Standards Act (Licensing & Registration) on March 16, 2012 

at PHD House, New Delhi. 

The Chief Guest, Mr. K. Chandramouli, Chairperson - FSSAI, 

and Guest of honour, Mr. S. K. Saxena, Commissioner of 

Food Safety were present at the Inaugural Ceremony amidst 

the galaxy of dignitaries, officials of FSSAI and senior office 

bearers of FHRAI, HRANI and NRAI. The event witnessed an 

impressive participation of more than 250 delegates. 

Mr. S. M. Shervani, Vice President, FHRAI, submitted a 

letter to the Chairman FSSAI containing suggestions for review 

of Standards on behalf of FHRAI. 

A similar workshop was organised by FHRAI in association 

with South India Hotels & Restaurants Association (SIHRA) 

at Kochi on 20 th March, 2012. More than 70 delegates got 

benefited from the interactive programme conducted by 

Dr. Pasupathy, an eminent food scientist and one of India’s 

foremost experts on the subject. 

The Sub-Committee: Seminars of FHRAI plans a nationwide 

rollout of the FSSAI seminars in association with our regional 

Associations. With the Hotel & Restaurant Association of 

Western India (HRAWI) at Ahmedabad, Bhopal, Indore and 

Raipur; with the Hotel and Restaurant Association of Eastern 


India (HRAEI) at Kolkata; with Hotel & Restaurant 

Association of Northern India at Chandigarh and Lucknow; 

and, with the South India Hotels & Restaurants Association 

(SIHRA) at Bengaluru, Chennai and Vishakhapatnam. 

Mr. R.H. Khwaja, Secretary, Tourism, had convened 

an interactive meeting with the representatives of Industry 

Trade Associations on 30 th March, 2012 at Vigyan Bhawan 

to keep industry abreast of various policy initiatives of the 

ministry of Tourism undertaken in close co-operation and 

co-ordination with the office of Hon’ble Prime Minister, 

Ministry of Finance, Planning Commission, Ministry of 

Home Affairs, Ministry of External Affairs, Ministry of 

Urban Development and all State Governments. During the 

meeting, Mr. Shervani, Vice President, FHRAI, sought an 

opportunity to inform the high profile gathering about the 

wide ranging implications of Food Safety and Standards 

(FSS) Act for all segments of the Hospitality Industry. 

Mr. Shervani and I as Secretary General of FHRAI also 

presented to Mr. Khwaja a copy of FHRAI’s comprehensive 

memorandum, which has been submitted to the Chairman, 

FSSAI on 16 th March, 2012. FHRAI requested the Secretary, 

Tourism, to kindly use his influence to ensure that our proposal 

is carefully examined and considered in the ongoing review 

of the Standards of Food Products and Additives under Food 

Safety and Standards (FPS&FAJ, Regulations, 2011). We are 

sincerely grateful and encouraged by his positive response 

and kind assurance. 

FSS Act at a Glance 

• Food Safety and Standards (FSS) Act, 2006, which came 

into effect throughout the country on 5th August, 2011, 

repeals other Acts viz. Prevention of Food Adulteration 

Act, 1954; Fruit Products Order (FPO), 1955; (SODEF) 

Solvent Extracted Oil, De-Oiled Meal and Edible 

Flour (Control) order, 1967; Meat Food Products Order 

(MFPO), 1973; Edible Oils Packaging, 1998; Vegetable 

Oil Product Order, 1998; and Milk and Milk Product 

Regulations, 2009. 

• With the implementation of this Act, it becomes 

obligatory on all Food Business Operators (FBO) to 

acquire license under this Act either before the expiry of 

their existing licenses or by 5 th August, 2012, whichever 

is earlier. 

The processing of license takes 60 days. Therefore, the 

license should be applied by 5 th June, 2012 (60 days 

prior to the due date of obtaining the license/renewal 

of license). 

• The Food Safety & Standards Authority of India (FSSAI) 

has been established under Food Safety & Standards Act, 

2006 which consolidates various Acts & Orders that have 

hitherto handled food-related issues in various Ministries 

& Departments. FSSAI has been created for laying down 

scientific and logical standards for articles of Food and to 

regulate their manufacture, storage, distribution and sale 

to ensure availability of safe & healthy food for Human 

consumption across the nation. 

FSSAI has invited all stakeholders to give their suggestions and 

proposals before 31 st March, 2012, for review of Standards. 

The new regulation lays emphasis on ensuring corrective 

action through self regulation. Premises where public is 

admitted for consumption of any food & drink or any place 

where cooked food is sold or prepared for sale come under 

the gamut of this Act. 

FSSA Seminar 

Held at Kochi 

[ Seminar] 


[ Technology] 

What’s IN, 

What’s OUT! 

Technological developments help to bring something 

new in and move something old out. To ensure 

functionality of an organisation and avoid the stage of 

stagnation, technological innovations help tremendously. 

Mentioned here are some interesting technological 

changes that you may expect in 2012 in hospitality arena. 

Ravish Jhala 

Some new forces are at the forefront 

of IT spending that are not 

easily controlled by Information 

Technology (IT). Specifically, 

the forces of cloud computing, social 

media and social networking, mobility 

and information management are all 

evolving at a rapid pace. Growing use 

of technology and energy consumption 

around the globe have led to an increased 

emphasis on green technologies and 

power conservation within IT industries. 

As per some recent survey and 

prediction by some big research and 

development organisations, technological 

transformation will not desist, and it 

demands that IT leaders reconsider and 

(potentially) rebuild the capabilities and 

approach to the consumption of IT to 

enable business. 

Leveraging Technologies 

The Indian hospitality industry is all set to 

leverage major technological innovations 

taking place in 2012 to their advantages. 

These key technologies are becoming 

strategy-oriented to move up the overall 

value chain in 2012! 

Some technologies that will have an 

impact on business cycle, operations, way 

of handling our internal and external 

customers, etc., are mentioned in the box. 

The Trends in Command 

Some of the key technological trends 

expected in 2012 are: Boom in Table 

PCs, Increase in Cloud-based service, 

BYOD (Bring Your Own Device), Mobile 

applications and Increasing use of Flash 

devices. The survey has revealed that 66% 

of Indian subscribers are urban traveller 

who prefer Mobility as the key driver. 

In the field of hospitality and travel 

industry, ERP has transitioned into 

e-commerce, enabling business to draw 

blueprint to leverage services to their 

own customers on the move and provide 

information anytime, anywhere, any 

place. The IAMAI (Internet & Mobile 

Association of India) report indicates 

that almost 80 per cent market share of 

current online commerce is dominated 

by hospitality and travel business and 

remaining 20 per cent of market is 

constituted of non-travel business. 


The business in 2012 will go through 

the ups and downs and industry will 

focus on business priorities to increase 

enterprise growth, attracting/retaining 

new customers and reducing enterprise 

cost. The IT leaders have to observe and 

plot the technologies in road map which 

are in-line with business opportunities 

and support conflicting signals toward 

adoption of new technologies. 

Some of the IT leaders will extend 

support to the following functions in 2012: 

• Business Consulting 

• Finance and Accounting 

• Engineering 

• HR and Administration 

• Marketing and Sales 

• Customer Service 

• R&D 

Education is also a key focus for the 

IT leaders in 2012. Overall 52 per cent 

IT leaders will be focusing on MBA 

and 39 per cent of them will focus on 

Finance Management. The rest will be 

focusing on other areas like Cyber Law 

and Forensics, IT Certifications, Quality 

certification, etc. 

The year 2012 is posing both the 

challenges and opportunities for most 

of the IT leaders. The top business 

challenges in 2012 are: 

• Managing supply chain and risk 

• Handling growing security 

concerns 

• Privacy of information across 

groups 

• Managing new regulatory 

challenges with new technological 

innovations 

• Improve business performance and 

ensure competitive edge 

• Streamline and automation in 

business processes 

As the relationship between 

‘technology means’ and ‘technology 

outcomes’ becomes ever clearer, all kinds 

of stakeholders are gaining a sharper 

understanding of how technology 

decisions will impact the business, and are 

raising the bar in terms of expectations 

for success. 

(Sources: Gartner website and IT Next) 

(The writer is Systems Manager, Trident, Bandra 

Kurla, Mumbai. Views expressed by the author 

are personal.) 

Technologies for 2012 

Some major innovations predicted 

for 2012 in Technology are: 

• Touch computing 

• Social Networking 

• Business Intelligence 

• NFC (Near Field 

Communication) and Mobile 

Payment 

• Interactive Television over IP / 

Coaxial media 

• Voice and Data – more 

convergence in network 

topologies 

[ Technology] 

• Enterprise applications like 

Mobile apps, Resource Planning, 

etc. 

• Adaption of Green Technologies 

• Big Data - As data coming 

from multiple federated 

sources and in structured and 

unstructured forms must now 

be stored / analyzed using new 

methodologies 

• In-memory computing 


[ Dine Out] 

Frozen 

Delights 


The selling of the delectable frozen yoghurts at Red Mango is matched 

not only by quality standards but also with a unique hook that would make 

customers return back for more. It has a unique proposition where buyers can 

simply self serve to make their concoction from menu choices and buy them 

by weight. 

Sanjeev Bhar 

[ Dine Out] 

As summer is approaching, the 

competition in one of the coolest 

segments is definitely heating 

up i.e. frozen foods that are 

retailed through attractive outlets. Many 

frozen yoghurt chains have come up to test 

waters in the Indian market knowing it is a 

profitable proposition. In January this year, 

the US chain – Red Mango – known for its 

frozen yoghurt (also yogurt) and smoothie 

marked its entry too with its first outlet 

opening in the Ambience Mall at Vasant 

Kunj of the Capital. 

The outlet is more like an island in 

the middle of the mall serving 100 per 

cent natural, non-fat and low fat, kosher 

and gluten-free frozen yoghurts. Claims 

Rahul Kumar, CEO and Principal 

Owner, Red Mango India, “The product 

Red Mango offers is completely healthy 

in all respect. In fact, the yoghurts 

are fortified with pro-biotic making it 

extremely nutritious suiting the palate of

[ Dine Out] 

the Indians. Our flagship outlet has been 

received well in the market and we are 

definitely going to see a strong growth.” 

The food products sold at the outlet are all 

imported from the US and Italy. 

The global design plan is being the first 

self serve concept that we have opened up. 

We also sell yoghurt by weight at a fixed 

price i.e. 99 paise per gram, which is a 

unique selling proposition where customers 

can come and go by their selection of 

yoghurt flavours, mixing and matching 

different options and they simply pay by 

the quantity they want to eat. Further, one 

gets to choose a variety of toppings which 

can also be paid by weight. 

Healthy Option 

Red Mango India comes to this country 

as a division of Maez One Retail & Food 

which holds the franchise rights for India 

market. Kumar says, “The fact that 

yoghurt, in the frozen segment, is liked 

by many here but gets limited healthy 

options is a positive factor for us. We 

are the only one to offer choices with 

natural pro-biotic ‘Ganeden BC30’ from 

the US. Our products are certified by the 

National Yogurt Association – a division 

of USFDA – with the Live & Active 

Cultures seal. We happen to be the first 

frozen yoghurt chain to be certified so.” 

The brand has a presence in about 

22 countries with over 300 outlets of 

which over 170 are alone in the US. It 

is being positioned in the Indian market 

as a health food café offering a wide 

product mix which adds up to its brand 

proposition. “It is to be projected as a 

one-stop-shop for low cal, low fat options. 

We offer organic coffee and tea, low 

calorie sandwiches, parfaits, etc. to give a 

dimension to the outlet. Though, 80 per 

cent sale is that of yoghurt in its Delhi 

outlet,” Kumar says. 

The differentiation has been brought 

about through products that are natural 

and are made up of natural ingredients 

with no artificial flavours being added up. 

Future Plans 

The Delhi outlet spreads over an area 

of 1,300 sq ft which has been elegantly 

designed as a bar set up. “We made an 

investment of `55-60 lakh for the Delhi 

outlet. Now we want to take it further 

and expand pan-India with 15 outlets by 

end of 2012. The outlet is apt for those 

quarters with high end streets, malls 

where footfall is high. We would even look 

for a presence in a hotel if the proposition 

suits well,” he informs. 

The company expects to get at least 

4-6 outlets in Delhi NCR. Also, it would 

Rahul Kumar 

go for different sizes of outlets depending 

up the proposition it received based on 

ownership and franchise. The outlet size 

could vary according to location and the 

cost could range between `18-20 lakh 

for smaller outlets with 150-250 sq ft 

of space. “The factor that goes in Red 

Mango’s favour is the selling of the frozen 

yoghurt that has never been experienced 

earlier. We see opportunity in cities of 

Mumbai, Bengaluru, Chandigarh and 

Jaipur to begin with where outlets to be 

based on ownership, corporate owned 

and selective franchising,” Kumar 

outlines. He aims to have 250 outlets in 

five years. 


[ Chef Talk] 

Creating a 

Mesmerising 

Symphony 

The challenges are immense for a chef and it is 

vital that a chef keeps on inventing himself, feels 

Bakshish Dean, Corporate Chef, Lite Bite Foods. 

He is of the opinion that apart from anything else, it 

is important to find out ‘whom are you catering to’. 

Q. What is that particular lure factor in food that 

captures the present generation of customers? 

Presentation or eye appeal has always been the initial attracting 

factor. A dish presented well always cheers the customer that 

also means half the battle is already won for the chef before 

the true taste test, especially with the current generation who 

is ready to pay the said amount just to experience something 

unique and innovative. The increasing number of eateries 

and cafes would vouch for this. 

Q. Which concept is coming on to the forefront to 

make food more inviting? 

Food Design as a subject is slowly developing and soon will be 

an innovative career option in India. Students are considering 

this as a subject apart from the usual degree in hospitality 

management. 

Indian gourmet business has evolved manifolds as can be 

understood by many international restaurant chains like Wasabi, 

Le Cirque, Hakkasan, Megu, etc., coming to India and giving a 

tough competition to the Indian counterparts. Hence, the fight 

to lure the customers is also hard and only the specialists are 

hired to tap the visitors’ taste-buds. Restaurants such as Smoke 

House Room, Caperberry, Indigo, are Indian restaurants serving 

international cuisines and also maintaining the international 

standard of taste, ingredients and presentation of course. So, 

I believe the Indian food industry understands the significance 

of designing a delicacy to suit its origin as well as the price tag 

it comes with. 

Q. What are the latest trends you foresee in 

international food design that would influence the 

Indian gourmet market? 

Molecular gastronomy is a highly acclaimed method of 

cooking that seeks to make practical use of the physical and 

chemical transformations of ingredients that occur while 


cooking. This also empowers the chefs to present the food 

in a unique manner without compromising the taste as well 

as the nutrition quotient, taking the cuisine to an altogether 

different level. It is more of an art than just be termed as food, 

wherein all the senses should be employed and dedicated to 

the master-piece presented before a guest. 

Q. How hotels and restaurants can bring about 

profitability on their platter through innovative food 

design? How practical this would be as an approach 

to market the food outlets? 

A nicely presented dish does win the heart of a guest but the 

true test lies in the proof of the pudding, how well the dish 

has been prepared, the right ingredients, the right recipe and 

the right taste. A beautiful presentation cannot overshadow 

a tasteless dish, therefore, presentation or innovative food 

design is not the right approach to market food outlets. 

Q. Today, how does one can keep up with the 

changing trends with quality of food ingredients 

– raw or processed – sourced which may not be 

available locally? Can non-availability of ingredients 

be deemed as a roadblock to the creative approach 

of a chef? 

A food presentation is all about creativity and is very personal. 

I might need bare minimum or locally available products to 

create my designs whereas someone else might need a lot of 

assistance from special ingredients or tools. I would not say 

for the food design or presentation pertaining to high quality 

foreign cuisines to showcase one’s creativity. Here the role of 

the importers becomes extremely vital. 

Q. How you go about food presentation with new 

food recipes and/or cuisines within the scope that it 

addresses the palate of customers? 

What is utmost important is ‘who are you catering to’. 

Is it an adventurous discerning group or a group which 

sticks to safe choices? Next comes the palate profile; is it a 

Gujarati group that loves sweet tones or a Punjabi group that loves 

the spicy notes. These two factors basically help the chef to decide 

which hat to wear ‘creative or classic’ and then he, with what is 

available in his pantry, can create a mesmerising symphony. 

[ Chef Talk] 


[ F&B] 

Sake, Shochu 

and Japanese 

Cuisine 

The trade relations between Japan and India are 

growing stronger. And this was very well reflected 

in the confidence that Japan showed by launching 

the Japanese rice wine to take another key step to 

latch on to the craze for Japanese cuisine in India. 

Neelam Singh 

Introducing different varieties of Japanese 

Sake and Shochu to the Indian consumers 

To popularise the Japanese 

beverages and cuisine in India, the 

Japanese embassy organised an 

event with a backdrop of Matsuri 

festival with a traditional Omikoshi, a 

portable shrine, in Delhi. The function 

was organised to commemorate the 60 

years of diplomatic relations between 

Japan and India. Matsuri, a Japanese style 

spring festival, is a traditional form of 

celebration in every part of Japan. 

The festival was showcased recently 

with six types of Sake, the Japanese 

rice wine, and two kinds of Shochu, a 

Japanese spirit made from sweet potatoes, 

along with Japanese cuisine. 

The Rising Spirit 

The Land of the Rising Sun is a country 

bursting with life. Despite the deadly 

earthquake and tsunami that wreaked 

havoc on the North Eastern coast of 

Japan in March 2011, the spirit of Japan 

and its people is intact and praiseworthy. 

Among the dignitaries present during 

the function were, the Ambassador of 

Japan to India Akitaka Saiki, Union 

Minister of State for Tourism, Sultan 

Ahmed (the chief guest) and Katsuya 

Okihiro, President of Japan Chamber 

of Commerce and Industry in India (the 

guest of honour). 


In his opening remarks, the Japanese 

Ambassador said, “Despite India being 

the third largest market for alcohol and 

the demand increasing at 30 percent 

annually, Japanese liquors constitute 

only 0.07 percent of this market.” Sultan 

Ahmed, appreciating the event, asked the 

Japanese tourism to organise more such 

events in India. 

The ambassador informed that post 

tsunami, Japan is 100 per cent ready 

to host Indian tourists. He hoped that 

in coming months more Indian tourist 

will visit to Japan and also mentioned 

that there are a lot of Indian restaurants 

in Japan to cater to the needs of Indian 

tourists. He asked Indian tourist to look 

beyond ASEAN countries for travel, 

because ‘beyond ASEAN there is Japan’. 

(l-R): Katsuya Okihiro, Akitaka Saiki and Sultan Ahmed breaking the ceremonial barrel of Sake 

A group of Japanese dancers lifting the Omikoshi 

[ F&B] 


[ Design] 

Crafting a Strategy 

Design has become such a vital craft today that it can lend a 

meaning to a business strategy. Be it an office environment, public 

space or pure hospitality project, Zeppelin Design & Environments 

is keenly pursuing projects where it could offer a strategic edge to 

the growing enterprises. 

Sanjeev Bhar 

zeppelin’s Take on Unique Trends 

• Foreseeing a movement from architecture-based to 

brand\people-based transition in hospitality design 

• Mapping of experiences of guests and the supporting 

community. Guest generated dynamic content will 

become the next big thing in hospitality 

• ‘Blue sky projects’ to generate completely different 

ideas are much desired. until then, all hospitality 

experiences will differ incrementally at best 

• We are working on a self-financed concept where we 

want the guests of a resort to share their experiences 

with others in real time 


Som Sengupta 

[ Design] 


[ Design] 

Presenting a unique imagination for a structure that 

would lure not only the customers but also employees 

to motivate them is of vital relevance in hospitality 

design. Therefore, design element today has become 

far more challenging where a designer seeks to balance utility 

with aesthetics and customer friendliness with revenue-based 

approach. Therefore, as a service provider, Delhi-based Zeppelin 

Design & Environments is constantly striving to match the needs 

of planning process addressing the concerns of hospitality or 

otherwise. However, Director of the company, Som Sengupta, 

says that the struggle is to get involved at the early stages of 

decision making when most strategic calls are taken. 

Starting early, Sengupta, a graduate from the National 

Institute of Design, Ahmedabad in 2002, ventured into 

exhibition industry for set design but felt the dire need to get 

involved into something more ‘strategy’ oriented projects. “I 

switched jobs to work with one of India’s most respected design 

companies as head of strategic design. Here I got an opportunity 

to work with start-ups and organisations that believed in design 

thinking,” Sengupta informs. He realised that small design startups 

can deliver the agility that many clients are seeking. 

The Creative Edge 

As a company, Zeppelin Design & Environments’ expertise is in 

the integration of brand thinking with creating inspiring spaces. 

“We believe we can offer strategic consultancy to clients on a 

wider array of design issues because of our ability to think in 

both two and three dimension,” says Sengupta. 

Love for hospitality projects is high on his mind. According to 

him, the choreography of experiences has always remained his 

firm’s central focus. “We believe in starting with the intangibility 

of experiences and then refine it down to aesthetically built 

forms. Distinctive branding and service level design intervention 

increments the final output. The interior design as well as the 

architecture must, therefore, be a product of the main experience 


Relying on Strengths 

• Converting strong ideas into realised environments 

• Technical abilities at par with the best in the industry 

• Advocate strong system design approach to create 

experiences 

• We are fun people to work with 

and branding concept. It should never be the other way round,” 

he cautions. 

Changing Concepts in Hospitality 

The issue of shamelessly replicating the international designs 

and modulating it here to suit Indian style psyche is almost gone 

now. “The short cut route has a limited shelf life. And now, we 

can see increasing number of Indian design houses working 

towards creating their original ideas with success. India has a 

rich tradition of hospitality; good design will always be accepted 

and will eventually become a part of our culture,” optimistic 

Sengupta observes. 

In the context of hospitality, the newness is the business of 

going green. He says, “It is nonetheless very complex and often 

full of smokescreens. In the absence of cradle-to-cradle analysis 

of projects, it is very difficult to ascertain the real impact a project 

may have on the environment. Design has to take into account 

the consumers’ understanding. Our suggestion has always been 

to try and do the simple things first and avoid sweeping claims.” 

Yet, he adds, no matter what businesses want you to believe, 

more often than not profit considerations dictate the rules of 

the game. 

Coming of Age 

With lots of international influence coming to this shore, where 

do Indian design elements stand irrespective of the fact that some 

of the best design schools in India are well known in the world? 

Sengupta says, “Today everyone is exposed to good designs in 

India and abroad. However, the missing link is the exposure to a 

structured design process. Good aesthetics is a factor of cultural 

observations and strong production values, which we, as Indians, 

can achieve naturally due to our lineage with arts and crafts. We 

are staring at future. We just need to look as much as into our 

past,” he sums up. 

The Repertoire Left Behind 

• Dimsum Bros. Gurgaon (interiors) 

• Yo China (nationally, interiors + brand) 

• Chin Chin, Gurgaon (interiors) 

• Living room hotel, Goa (interiors + brand). 

• Avenue hotel, Gurgaon (interiors + brand) 

• Jaquar(brand + retail) Defence Colony 

• Seasons Hotel, Gurgaon (brand) 

• Zaitoon (QSR brand + kiosk) 

• Hypfen (brand) 


[ Explore] 

On Land, 

In Air 


Now flight delays, long layovers and erratic flight schedules 

related to Delhi’s International Airport have got a new connotation. 

The long wait has been converted into an interesting hospitality 

proposition through India’s first airport transit hotel – Eaton Smart – 

at Terminal 3 of the Indira Gandhi International airport. The hotel is 

successfully establishing a new relationship between the Capital city 

and her passengers on air transit. 

Sanjeev Bhar 

Eaton Smart at the Delhi International 

Airport, commonly known as T3, 

has a distinction of having the fifth 

airport transit hotel of the world. 

The first airport transit hotel came in Changi 

International Airport (Singapore) followed 

by Schipol (Amsterdam), Heathrow (London) 

and Dubai International Airport, tells Raju 

Shahani, Executive Consultant – Development 

& Operations (India & Sri Lanka), Langham 

Hospitality Group. The Delhi property is 

positioned as a midscale accommodation. 

It is Langham’s first project in India on a 

management basis and has a unique distinction. 

It is group’s first airport transit hotel marking 

its entry in this market that it has been eyeing 

for many years. He says, “We are selective and 

distinguish ourselves in defining simplicity in 

our services. The services should touch the 

customers who come and stay with us. This 

is a new concept not only for us but also for 

many Indians, and therefore, we have picked 

up confidence in servicing them slowly once 

they got used to this transit hotel concept. After 

all, it is an unknown concept in the Indian 

hospitality trade.” 

International & Domestic 

The hotel has been divided into two wings, i.e., 

international and domestic. Here, international 

refers to the air side of the airport and domestic 

signifies the land. The international wing of the 

hotel (having 57 rooms) opened in June last year 

and just three months back, the domestic wing 

(having 36 rooms) was made operational. “We 

have realised within these three months that the 

potential of the domestic wing, which is crossing 

over 100 per cent occupancy in comparison to 

around 55-60 per cent of that of international 

wing, is tremendous,” informs Shahani. 

[ Explore] 


[ Explore] 

The hotel primarily gets its customers 

as walk-ins, which comprise of 30-35 per 

cent of the total occupancy. Twenty five to 

thirty per cent bookings are made through 

GDS, website, travel agents, etc. “We have 

been active in social media marketing and 

promoting to those travelling to SAARC 

countries with connecting flights from 

New Delhi. We need to market to domestic 

feeder market like Lucknow, Raipur, 

Chandigarh, Dehradun, Chennai, etc. 

Internationally, we are looking at the US 

and UK market,” informs Shahani. 

A Challenging Proposition 

Though the initial results may sound all 

rosy, but there are some issues that limit 

the hotel’s scope for potential optimum 

growth. For example, the stay option is 

limited to a maximum of 24 hours. Since 

it is primarily meant for air passengers, a 

day has been divided into five hours of 

slots for four times a day, which means 

the scope for customers get curtailed. 

Shahani tells, “Restrictions are many for 

this hotel. Stay at the international wing is 

only allowed if a passenger is coming from 

an international destination and going to 

another one where Delhi happens to be a 

changeover point.” 

In this context, the hotel is seeking 

if the time schedule to enter the airport 

could be relaxed for passengers in 

certain cases. “People who are taking 

international flights from Delhi can’t avail 

this stay option, as the boarding pass is 

given only three hours in advance. It is 

not that important for Delhi-based traffic 

but it surely is for those coming from 

other cities by different mode of transport 

finding it difficult to lodge them,” Shahani 

explains. He is, in fact, taking a few 

suggestions forward with the authority for 

due consideration. 

Passengers would be able to use this 

airport facility only if boarding passes 

could be issued 6-7 hours before an 

international flight takes off. Usually no 

one prefers to come to the airport before 

time and only those who wish to reach and 

Room Tariff 

Smart Room Queen/ twin 

`3,000 (min. 5 hour block) 

Smart Room Queen/ twin 

`7,000 (overnight stay) 

Hourly Extension 

`750 per hour 

(max. up to 3 hours) 

Aqua Pods 

`500 per hour 


elax would eventually use this proposition. 

This, in all propositions, would not hurt 

the airport authorities about the concern 

of security. “Also, if domestic passengers 

are allowed to enter the airport from 

the existing 6 hours to 12 hours before 

the flight, they would be able to use the 

domestic wing services we offer, as many 

business travellers coming from smaller 

cities to Delhi at awkward hours find it 

difficult due to the existing norms. Also, 

one can use the domestic wing of the hotel 

before the security checks,” he explains. 

Extending Comfort 

Though it may sound simple, the fact 

that the hotel is right at the heart of the 

airport, the security issue will always 

remain a critical one. At every possible 

point, travellers are frisked to ensure that 

safety is at its peak. Shahani says, “In 

Getting Rejuvenated Between Flights 

Aqua Pods: Just like any other busy 

airport’s lounge facilities, it is very 

relaxing to get an opportunity to 

refresh yourself with quick shower. But 

the options are always limited. Eaton 

Smart’s Aqua Pods is an answer to those 

travellers who want to freshen up pre- or 

post-flights. Just 9 sqm of space has 

been well-accepted by the passengers, 

the hotel informs. 

Essentials Spa: Easily accessible, the 

Essentials Spa offers weary travellers 

a range of treatments for pre-and 

post-flight spa therapies. The option 

varies from individual treatment 

order to ensure that travellers – who are 

anyway hassled by long flights – don’t 

face any trouble to check into the hotel, 

we have positioned ourselves through 

counters and help desk at various areas 

of both the sides of the immigration, at 

arrival as well as departure zones. Guests 

are personally escorted from a particular 

point and it is ensured that they smoothly 

pass through the entire tedious security 

checks. It is completely a ‘Meet & Greet’ 

service that we offer.” 

Further, restrictions also take staff 

into its scope of scrutiny. A three month 

pass by the FRRO authority is issued to 

the hotel staff and a new one is issued 

after its expiry. He argues, “At times, it 

becomes difficult for them to work with 

so much of frisking but considering the 

issue of security, we go by the rulebook.” 

Not only the guests, even the staff of 

rooms to massage chairs for complete 

rejuvenating experience. From relaxing 

head and foot massages to full body 

therapies, treatments are designed to 

ease jetlag, aid sleep and allow guests 

to treat themselves to a little therapeutic 

indulgence between flights. 

Fitness Centre: The fitness centre 

helps those who don’t want to miss 

out on their fitness regime even when 

on transit. The centre is equipped 

with modern facilities in a compact 

atmosphere giving ample reason to get 

involved into cardio-machines to free 

weights, etc. 

the hotel are frisked consistently by the 

airport authorities while their entry and 

exit making it a cumbersome process for 

all involved. “While we extend comfort to 

our customers, we hope to get a comfort 

zone as well to operate it even more easily. 

We can’t blame authorities as this is a new 

concept for all, be it us, airports or the 

security agencies involved. We are at the 

initial stage of this concept and hopefully, 

everything will fall into place in due course 

of time,” expects Shahani. 

The hotel, nonetheless, is extending its 

unique services to add a comforting touch 

to the airport giving it a dimension to be 

proud about. It has been priced nominally 

to suit the requirements of all sorts of 

passengers where they pay for what they 

avail. Hospitality concept in India is surely 

getting redefined with new products like 

this one. 

Eat & Drink: T Lounge - located on the 

lobby levels of both the International 

and Domestic wings - serves an all-day 

menu of freshly prepared favourites, 

from simple buffet breakfasts, to light 

snacks, hearty international cuisine and 

local specialties. Addressing every taste, 

there is a mix of continental and Indian 

which are light and apt for those who 

are scheduled for a flight journey. For 

those in need of liquid refreshments, it 

also serves a wide selection of signature 

teas and alcoholic beverages. 

[ Explore] 


[ Technology] 

Room 

Prices Up! 

In March 2012, Hotels.com released a report titled ‘Hotel Price Index’ taking 

a wide angle perspective on the hospitality and travel market with trends 

registered in the year 2011 where room rates have risen not only in India but 

elsewhere in the world too. Excerpts from the report: 

The year 2012 has started positively 

for travel enthusiasts, as Indian 

hotels showed only a modest rise 

in room rates in the second half 

of 2011, compared to the corresponding 

period in the previous year. According to 

the latest Hotel Price Index (HPI) Report 

by Hotels.com, room rates in India have 

risen by just 2 per cent, while globally 

room rates have risen by 4 per cent. 

The HPI report is a regular survey of 

hotel prices in major travel destinations 

across the world. It is based on bookings 

made through the Hotels.com websites 

and prices shown are those actually paid 

by customers (rather than advertised 

rates) in 2011. The latest HPI features 

27 countries including UK, USA, UAE, 

Canada, Singapore, Greece, Italy, Japan, 

Australia and others. Amongst these, 

India is the lowest priced country with 

an average room rate of `4,226 per 

night. Switzerland, with its currency 

remaining strong, is the most expensive 

country experiencing a 19 per cent rise in 

room rates, with an average room rate of 

`10,496 per night. UK is next with a rise 

of 7 per cent to `8,965. 

Speaking about the HPI report, 

Abhiram Chowdhry, Senior Marketing 

Director, Asia Pacific, Hotels.com, 

says, “Hotel room prices in India have 

shown only a marginal rise and Indian 

hotels continue to be attractive for both 

domestic and international travellers. 

Organising the F1 race in India indicates 

that the country has the potential to 

host iconic international events and 

will continue to be one of the preferred 

destinations for travellers. Also, it is good 

for Indian travellers to venture out to 

other international destinations such as 

Germany, South Africa, Canada and 

Japan, given the significant fall in hotel 

room rates in these markets.” 

Around the World 

Overall, the HPI report found that hotel 

prices around the world have been volatile 

in the latter half of 2011, with some 

countries experiencing significant rises. 

In Asia, Singapore is the most expensive 

Asian destination at `8,684 after a 

5 per cent rise. The demand for hotels 

has remained strong in Singapore from 

long-haul air passengers on stop-over 

trips. The recent addition of new luxury 

developments has only helped to make 

this already attractive destination even 

more so. Sri Lanka also bounced back 


from the end of its civil war with a 34 

per cent rise in hotel prices to `8,518. The 

biggest rise in room rates is of 49 per cent 

witnessed at the casino resort destination 

of Macau. 

In the Eurozone, Austria, Germany 

and Belgium experienced falls, down 

10 per cent, 7 per cent and 4 per cent, 

respectively. South Africa saw the biggest 

drop of prices at 11 per cent, as the 

country’s hoteliers readjusted after the 

high demand for the football World Cup 

in 2010. Though, Indian hotel prices 

grew at a marginal rate, travellers faced 

price rises in nearly three quarters of the 

international destinations featured in the 

HPI. This is because the Indian Rupee 

value depreciated against many major 

currencies. 

Price Changes in Global 

City Destinations 

Indian travellers faced price rises in the 

Hotel Price Index after the Indian Rupee 

depreciated against major currencies as 

the economy struggled. The Indian Rupee 

was down almost 20 per cent against the 

US Dollar from April to December 2011, 

by 15 per cent against the Pound Sterling 

and by 9 per cent against the Euro. The 

steepest decline was against the Japanese 

Yen with the Indian Rupee losing around 

30 per cent of its value during this period. 

Focus on India 

Many Indian destinations showed price 

rises as inflation rose but room rates 

remained among the lowest featured in 

the HPI. Among the major cities, New 

Delhi was up 9 per cent to `5,914 and 

prices in Mumbai went up 3 per cent to 

`6,539. However, Kolkata was down 20 

per cent to `5,136 as hoteliers discounted 

to attract customers. 

The average room rate increased in 14 

of the 20 domestic destinations, surveyed 

according to the HPI, as inflation rose in 

the country. The most expensive place, 

above average rates, could be found in 

Kerala at `7,381 despite being one of 

the few places to register a fall in average 

room rates, down 9 per cent. 

Prices Paid at Home and 

Away 

Indians parted with an average of `6,789 

on foreign hotels but paid the least, among 

all the nationalities analysed in the HPI, 

for domestic rooms on `4,226. 

The Japanese spent the most on their 

travels abroad, an average of `8,690 a 

night, followed by the Swiss on `8,339. 

The Swiss also paid the most on rooms 

within their own borders, `10,257, 

underlining the country’s wealth and 

expense. The Australians, boosted by a 

strong economy, were the third-highest 

spenders abroad on `8,098 which was 

just ahead of travellers from the USA 

on `7,984. However, US citizens were 

among the savviest spenders at home 

on `5,622. The Mexicans paid the least 

abroad, just `5,372. 

Top overseas destinations 

for Indian travellers 

Singapore retained its place as the most 

popular overseas destination for Indian 

travellers ahead of Bangkok. The Thai 

capital took over as runner-up from Hong 

Kong, which slipped two places. There 

were nine Asian destinations in the Top 

20. 

The most popular European destination 

was London and the favourite American 

destination was New York. Tokyo fell 

from 19 th in 2010 to 36 th in 2011, after the 

earthquake in March 2011. 

[ Technology] 

For Travellers from 

Overseas 

The top five most popular Indian places 

for foreign visitors remained the same: 

New Delhi, Mumbai, Bengalaru, Chennai 

and Jaipur. Agra, home to the Taj Mahal, 

rose from eighth to sixth place and Goa 

was seventh. 

Top Indian Destinations for 

Indian Travellers 

New Delhi held on to its place as the 

favourite Indian destination for domestic 

travellers. Calangute, the lowest priced 

Indian location in the HPI, moved up 

from third to second place with visitors 

attracted by its good value. Varca, 

renowned for its beaches, moved from 

sixth to fourth overtaking Goa, and 

Cochin moved up from 21 st to 17 th place. 

Local Focus 

• 94.4 per cent Indian respondents 

recalled the Hanging Gardens of 

Babylon as one of the wonders of 

the world 

• With respect to the new wonders 

of the world, Taj Mahal was 

recalled by all respondents 

• 90 per cent of Indians have 

visited the Taj Mahal and 44.4 per 

cent have visited the Great Wall 

of China. 

• 22.2 per cent of the respondents 

chose the Grand Canyon, Mount 

Everest and Akshardham in Delhi 

as possible monuments to be part 

of the Wonders of the world 

• The survey also revealed that 

majority of Indians (77.8 per 

cent) would like to earn free 

accommodation nights from the 

hotel loyalty program they are a 

part of. The least favored reward 

in this category was ‘free hotel 

dining experience’. 


[ Guest Column] 

Extra Boost 

to Bookings 

Even if an extra day of this leap year is curtailed off, 2012’s February month 

has given reason to be optimistic for Indian hospitality with reservations 

heading northwards. 

Julie Parodi 

Having an extra day in February 2012 is certainly 

advantageous when comparing February’s bookings 

against last year. Results reveal, however, that India’s 

reservations would have continued showing an 

upward trend of improvement over prior year even excluding 

February 29 th ’s transactions. December’s reservations fell short 

of last year’s active holiday season by -6.9 per cent. January 

then brought bookings to within -4.2 per cent of prior year, and 

although reservations wouldn’t have exceeded prior year by 

+1.6 per cent without the extra day, February’s bookings through 

the 28 th would have come within -2.2 per cent of prior year. 

Therefore, December’s gap against prior year is steadily closing, 

and India’s exceptional growth gains achieved through 2011 are 

being maintained. 

India’s ADR (average daily rate) has been tracking near 

prior year levels, but has slipped to being less than last year by 

-5.9 per cent and -9.4 per cent in January and February, respectively. 

Hoteliers’ willingness and strategy to raise rates is influenced by 

many factors, with a main one being the ratio of demand and 

supply growth. As booking performance demonstrates, India’s 

travel demand remains robust; it simply isn’t growing as fast as it 

had been. Room supply, however, is being added at a faster pace 

than in past years as hotel developers worldwide are eager to tap 

into India’s powerful potential. ADR’s ability to continue to grow 

will hinge largely on keeping room demand and supply in balance. 

Similar to India, reservations for Asia Pacific and globally would 

have improved over prior year since last month, just not by as much 

without February 29 th ’s contribution. Asia Pacific’s bookings would 

have seen an increase of +6.7 per cent rather than +11.6 per cent, 

and global reservations would have equalled last year instead of 

increasing by +4.5 per cent. With this perspective, it is evident that 

continuing to achieve year-over-year growth in this weak global 

economy is challenging for all. 

As seen below, the average booking lead time and average length 

of stay show little change from last year. Trips tend to be longer in 

India, however, than for Asia Pacific as a whole or globally. Longer 


stays can be indicative of longer distances being travelled. Regular 

review of where your guests are coming from is important for 

recognizing and anticipating trends that will ensure your marketing 

efforts and money are spent targeting the right markets. 

Determining where your target markets are is just the first step, 

though. Finding out about these travellers’ habits and what features, 

services and amenities they desire most is crucial for creating value. 

The key to an effective marketing strategy, however, is reaching 

your target market and featuring your hotel and the attributes that 

make it a better value for the price than your competition. 

In today’s world, consumers live online and that’s where they 

need to be reached. India’s online travel market is one of the fastest 

growing markets in the world. As PhoCusWright substantiates 

with its research, India’s total travel category traffic rose by +45 per 

cent year-over-year in the fourth quarter of 2010, whereas the total 

internet audience only grew by +13 per cent. Equally impressive 

is the role that travel industry is playing in Internet usage in India. 

In the fourth quarter of 2009, one in three Internet users was 

reported having visited the travel category. In just one year, that 

share jumped to +42 per cent in the fourth quarter of 2010. 

Since online is where consumers can be turned into your next 

hotel guests, your website needs to be your fundamental focus and 

prime tool for doing so. It is more than worth your time and effort 

to make sure youe website is living up to its potential – so your 

revenue can be, too. 

[ Guest Column] 

NOTE: : The above analysis is based on over five billion 

monthly transactions processed by Pegasus Solutions, 

the world’s single largest global processor of hotel 

transactions. The data represents transactions from 

both the GDS (Global Distribution System) and ADS 

(Alternative Distribution System) channels, representing 

the business and leisure markets respectively for 

approximately 90,000 hotels worldwide. All data is on 

a date of booking basis unless otherwise stated. ADR 

(Average Daily Rate) and revenue percentage changes are 

calculated from values using a single constant exchange 

rate to eliminate the effects of currency exchange rate 

movements. 

For more analysis on regional trends, visit www.pegs. 

com/thepegasusview, where you can also sign up for a 

free monthly subscription to The Pegasus View. 

(The writer is the Senior Director of Strategic Planning and Editor, The 

Pegasus View. The views expressed by the author are personal.) 


[ Supplier Talk] 

Boost 

Productivity 

Hardware is as important as the software part that helps 

in auguring the productivity of an organisation. Invariably, 

more emphasis is laid on to the latter while deciding for 

a sound and seamless function of hospitality IT Solutions, 

which is not fair. 

Solomon James 

A 

hospitality property invests much time and attention 

when choosing a software. Once installed, a hotel 

needs to stay with a software for many years, and it 

is best to make this decision with thought and care. 

Unfortunately, hardware in a hotel is just as important but does 

not attract as much attention - at least not in the initial phase of 

planning. Yet, hardware is a critical requirement for the seamless 

functioning of any hospitality software. 

Its real complexity comes into play when the hotel realises 

how hardware requirements differ depending on the size 

and location of the hotel property, type of property, number 

of rooms, where the hardware is to be installed – indoor or 

outdoor, budget, whether the hotel has an internal IT team or 

will depend on an external vendor, etc. Resolving these issues 

can take weeks if not months as the hotel needs to interact with 

multiple vendors for different types of hardware, be it computer 

paraphernalia, cabling, phones, routers, hubs and the like. The 

next big task, of course, is assembling all the hardware, ensuring 

it works together and connecting it to the hotel’s ERP. This 

process can turn into an hotelier’s worst nightmare as it takes 

him away from his area of core expertise and throws him into 

the deep end of the technological pool, of which he knows little. 

It is precisely to address this tangle of technological products 

needed in a hospitality property, their assembly, working, and 

integration with software that the ‘Total Technology Solutions’ 

offering was launched. 

For long, our customers struggled with their hardware needs, 

haggled with multiple vendors to purchase solutions and then 

faced difficulties integrating all these disparate hardware with 

software. Many hoteliers strongly suggested we provide hardware 

too, so that they could save time and money interacting with just 

one trusted vendor. This was the real reason for the formation 

of IDS Networks Group and expansion of our bouquet of 

services to ‘Total Technology Solutions’. 

Single Technology Vendor - Benefits 

Working with a single technology vendor for all your hotel’s 

hardware and software needs has numerous advantages: 

• Time saving, as your hospitality property does not have to 

interact with 10 or more different vendors 

• Customised solutions developed for your niche needs 

• Pick and choose hardware depending on your budget 

• Access to trained professionals who guide your hardware 

decision keeping in mind your current property needs and 

growth plan 

• No integration issues as a single vendor addresses all your 

technology needs 

What we provide? 

Few organisations, other than IDS NEXT, have the depth and 

breadth of industry exposure to offer the comprehensive set of 

hardware, software, networking and manpower solutions. With 

over 25 years of domain expertise, the organisation provides 

360 degree support for all your hotel’s hardware needs from 

selecting POS and computer terminals to iPads, tablet PCs, 

networking, Wi-Fi routers, PDAs, mediajacks, passport scanners 

and the like. Our other solutions include providing trained 

manpower and consultancy. Some of our newer solutions 

include cloud-based CRM tool, virtualisation solution and 

energy management solution. 

We also offer consulting for new hospitality properties that 

may be desirous to better understand their hardware needs. In 

addition, our certified professionals provide technology audits 

for hotel properties trying to better leverage their hardware and 

software investments. 

(The writer is VP, IDS NEXT Networks Group. Views expressed by the 

author are personal.) 


Aiming High in 

Design, Architecture & 

Project Management 

At the inaugural edition of ‘Hi Aim’, an Indian hospitality 

Summit, the hospitality industry focussed on critical 

elements of interior design, architecture and project 

management that can bring about a change in the way 

hospitality is perceived. 

For the first time, a summit was organised with a 

complete devotion to issues that linger on the minds of 

those hospitality professionals who delve in the areas of 

interior design, architecture and project management. 

The summit titled – Hi Aim 2012 – was held during 

March 22-23, 2012 in New Delhi. Hi Aim 2012 has been projected 

as a B2B hospitality meet where opportunities, roadblocks and 

possible game changer characteristics/attributes were discussed 

in detail revolving around the subjects of architecture, interior 

design and management. The two-day event contained eight 

varied sessions to ponder on issues of ‘design’ in the light of 

hospitality growth in India. 

The Summit witnessed the culmination of ideas of the 

trio Romesh Koul, Neeraj Kodesia and Anil Sharma. In his 

opening address, Romesh Koul, CEO, Naaz Hotel Consultants, 

put forward his views on the market environment, positive 

indicators for Indian tourism and hospitality growth and the 

need to bridge the supply gap between influx of tourists and 

the actual rooms available. As a co-founder of Hi Aim, he said, 

“As organisers, we’ve seen a lot of Summits. What I learnt 

from them is that any conference should give value-addition to 

a participant, beyond just being a mere network ground. And 

that’s what I’d like here – so if people have blue prints, designs, 

queries – we’re ready to look into specifics which can help them, 

and the sector per se.” 

At the inaugural session, Dr. Shashi Tharoor, the Member of 

Parliament and former Minister of State for External Affairs, talked 

about the various facets of India that make it a splendour where 

[ Conference] 

Romesh Koul 

hospitality and tourism have a key role to play. In his inaugural 

speech, Tharoor said, “For those from the hotel and hospitality 

industry, it must be remembered that we are not just in the business 

of selling hotels or promoting cuisine, but of promoting the idea 

of India – and that role is one of great pride and responsibility. 

The strength of the country lies in its culture and that can only be 

promoted through warm and responsible hospitality.” 

(l-R): KB Kachru from Carlson Hotels, Shashi Tharoor, Shivendra 

Tomar - MD of TFCI, Anil Sharma, Co-founder of Hi-Aim, 

Romesh Koul, Co-founder and Neeraj Kodesia, Co-founder. 

In his keynote address, Shivendra Tomar, Managing Director, 

Tourism Finance Corporation of India (TFCI) talked about the 

growing opportunities. He affirmed that hospitality with areas 

of the whole project touching upon interior, architecture, etc., 

is interesting. But, he said, hotel business is not an easy one. He 

further elaborated, “There are as much as 80 approvals needed 

for a hotel project, and therefore, it becomes a challenging 

task. Other challenges in a project are increasing land prices, 

architecture of the building, approvals, finding the right 

contractor, suitable agencies, labour, materials and so on.” 

Further, Koul informed that the event aims to grow from 

strength to strength and will be formulated as an annual affair. 

He announced the next edition to be held in 2013 during 

March 21-22 at Le Meridien, New Delhi. “I hope that Hi Aim 

evolves as a comprehensive trade show in Asia with conference 

and exposition where all stakeholders can share the key issues 

and discuss trends with a worldwide approach in hospitality 

design,” he remarked. 


[ Products & Services] 

Exclusive space 

for Harley- 

Davidson 

The Westin Gurgaon, New Delhi, and 

The Westin Sohna Resort and Spa, launch 

India’s first exclusive parking space for world’s 

quintessential motorcycle Harley-Davidson. 

A distinct space was dedicated to celebrate the 

spirit of adventure and elevate the passion of 

biking enthusiasts. The space was inaugurated by 

Gaurav Gulati, Director, Capital Harley, India. 

Located on the front porch, the parking area 

will provide an elite space to the guests to assemble 

their Harley motorcycles. In line with this initiative, the 

Harley-Davidson H.O.G (Harley Owners Group®), Delhi/ 

NCR chapter, will organise an epic bike ride between the two 

hotels, covering near proximity. 

A seating innovation 

called Bounce 

Bounce Innovations has come up with a seating innovation as an experience 

in relaxation and comfort. It is contemporary and visually appealing. Bounce 

is manufactured by Mumbai-based One Group and marketed globally by 

Bounce Innovations Private Limited, a wholly-owned subsidiary. 

The uniqueness of Bounce lies in the use of materials. Bounce has been 

created with high quality polycarbonate and silicone that is engineered with a 

unique proprietary process. In this product, silicone has been used in a nontraditional 

manner making the product vibrant, cheerful, relaxed, colourful 

and full of life. 

In addition to its aesthetics and design, this seating innovation is lightweight 

and weatherproof: it weighs approximately 9 kilograms and is stackable. 

Bounce provides a natural and comfortable ergonomic support to the back 

by design and by default. 

Absolut Vodka’s new variants - 

ELYX and Mode 

Delhi Duty Free Services (DDFS), India’s largest duty free retail space at T3 at IGI Airport in Delhi 

has announced the availability of two new variants of Absolut Vodka – ELYX and Mode – at the duty 

free shops. 

Absolut has now launched two new variants – the Super-premium Absolut ELYX and Mode at DDFS. 

Absolut ELYX has a clean and fresh taste with subtle floral and fruity tones, but its most defining quality 

lies in the texture. Absolut ELYX is elegant and increasingly soft and leaves ones with a silky feeling in 

mouth. The vodka is hand crafted in single batches. Absolut has also launched another limited edition 

vodka bottle ‘Mode Edition’ at DDFS. The Absolut Mode edition represents the spirit of the fashion 

universe - the bottle, which seems to be quite simple at first sight, embodies the true style and elegance with 

multiple facets and a silk dark blue string featuring text embroidery. 


Aspri Spirits 

introduces 

Raventós i Blanc 

in India 

Keeping the summer flavours of mangoes 

in mind, SOUL bAspri Spirits, one of 

India’s leading distributors and importers 

of fine beverage from across the world, 

has brought into India the exquisite range 

of Raventós i Blanc wines from Spain. 

The new ranges of Raventós i Blanc 

that Aspri Spirits has introduced in 

India are Raventos i Blanc, L’Hereu 

Reserve Brut 2008/ Cava; Raventos i 

Blanc, De Nit/ Rose’ Cava; Raventos 

i Blanc, Perfum de Vi Blanc; and, 

Raventos i Blanc, Isabel Negra. 

Josep Maria Raventós i Blanc 

founded the winery which now 

bears his name in the middle of 

a 90 hectare estate which had 

been in his family since 1492. 

Today, the estate comprises 44 

plots which produce a range of 

distinctive cavas. The experiences 

of 18 Generations cultivating 

the same Estate, plus the various 

studies that were commissioned, 

have led to divide it into five 

vineyards: Plana, Llac, Clos, del 

Serral and Barbera. The climate, 

soil, the grapes and the human 

influence make Raventós i Blanc 

Estate a unique Terroir. 

[ Products & Services] 

Signature skin care line ‘SUFI’ by 

The Imperial 

The Imperial Spa and Salon launched the signature line of products called SUFI 

for body, mind and beauty signature treatments at the spa. The range consisted of 

six individual blends for massage oils and an Eau De Toilette. SUFI Eau de Toilette 

is inspired by the Sufi masters of mystery. SUFI Eau De Toilette is available for 

purchase at The Imperial Salon in 100 ml cylindrical bottles at `4000 and comes with 

signature embroidered bags. This exquisite scent is also available as Room Aroma oil 

in 100 ml red glass bottles. 

The oils contain pure cold pressed base oils like Jojoba oil, Carrot Seed oil, 

Moroccan Argan oil, Sweet Almond and Apricot Kernal oil. These oils for ‘Bath and 

Body’ are also chosen to suit individual preferences and are available in 100 ml red 

glass bottles from `1200 onwards at The Imperial Salon. 

The oil variants and their ingredients are as follows: Oil of Kabir - Frankincense & 

Neroli; Oil of Rumi - Chamomile, Sandalwood, Amber; Oil of Mirabai - Fig, Rose, 

Black Pepper; Oil of Kerala - Ginger, Cinnamon, Clove; Oil of Mahadeva - Rose 

Otto & Sandalwood; and, Oil of Jaipur - Grapefruit, Pettigrain, Juniper. 

Super Soft Mattress Topper 

The Hush Super Soft Mattress Topper is specifically designed to 

improve the quality of sleep by cushioning the bed surface and adding 

to the sleeper’s comfort level. As an added benefit, the topper also 

prolongs the life of the mattress. Filled generously with lush, slowrelease, 

virgin microfiber, this product gives a soft and buttery feel. 

Additionally, the inner fibers are pocketed to avoid uncomfortable 

lump formation. The outer casing is designed with specially-treated 

water-repellent fabric. 

The Hush Super Soft Mattress Topper offers sublime comfort to 

the sleeper and lends a plush, sink-in feel to the mattress, ensuring a 

smooth journey to dreamland. 


[ FIHM] 

Celebrating 

Indian Colours 

Navin Kumar Nanchahal, Director, FIHM 


FHRAI – Institute of Hospitality Management (FIHM) 

on the auspicious occasion of Holi (the festival 

of colours) organised a theme event ‘Colours of Holi’ 

on March 2, 2012. Mr. Rajindera Kumar, President, 

FHRAI 2009 – 2010, graced the occasion by being the Chief 

Guest and Mr. M. D. Kapoor, Secretary General, FHRAI, was 

the Guest of Honour. 

As Holi symbolises the mark of a new season and a stroke of 

fresh energy and heat, so was the event, which was colorful & 

vibrant in its appearance & fragrance. The guests were given 

the traditional Indian welcome with a refreshing welcome drink. 

Mr. Rajindera Kumar appreciated the concept and the décor of 

the event. He even appreciated the special effects & props used 

to denote the customaries in a Holi festival. 

Visit FHRAI Website: www.fhrai.com 

Mr. Rajindera Kumar along with Mr. M. D. Kapoor had an 

interactive meeting with students, faculty & staff members. He 

along with Mr. Kapoor contributed to the efforts of FHRAI – 

IHM on keeping the environment ‘Green n Clean’ by planting 

the trees in the Institute. 

Mr. Rajindera Kumar relished to have his lunch in the 

company of students, faculty and staff members at Sassafaras 

and appreciated the quality of food served at the buffet. 

On his closing note, Mr. Rajindera Kumar appreciated 

and thanked everyone for their team effort with his valuable 

comments on the visitors’ book. He wrote: “Coming back to 

the FIHM after a gap was a great joy. I can see the IHM going 

on the great track achievement under the present Director, who 

should have in place many years ago. I wish the FIHM a great 

future with strong sustenance. Keep Up The Good Work!” 

[ FIHM] 

FHRAI MAGAzINE ApRIl 2012 65

[ Movements] 

Movements 

Pranay Verdia 

Director, Operations 

Jaipur Marriott 

Jaipur Marriott announced the 

appointment of Pranay Verdia as the 

new Director of Operations. In his 

new role, he will be responsible for 

daily operations including rooms, 

housekeeping, front office, banqueting 

and F&B operation. 

Verdia has over 13 years of experience 

in the industry, most of which were 

spent with the Marriott Group of 

Hotels. He possesses extensive 

operational knowledge, and is 

expected to bring enthusiasm to 

the new assignment. Verdia has a 

Diploma in Hotel Management from 

the Institute of Hotel Management 

Catering Technology and Applied 

Nutrition, Pusa, New Delhi, and 

describes himself as an innovative 

and diligent team leader possessing 

excellent communication, interpersonal, 

problem solving, 

presentation and training skills with 

sound management and marketing 

skills. He was nominated for the 

Marriott International’s ‘EDGE’ 

excellence award given to high 

performing Rooms Division personnel 

in 2009. 

Vinayak B. Vetekar 

National Sales Manager 

ADF Foods 

Vinayak B Vetekar joins ADF Foods as National Sales 

Manager. In this role, he will be in charge of Sales, 

Marketing and Distribution activities of the company. 

Prior to joining ADF Foods, Vetekar was associated 

with Parle Agro as the Business Head. 

During his 19 years of experience in Dealer/Network Management, Strategy and 

Profit Accountability, Vetekar has worked with Lakme Lever, Kellogs India and 

Cargill India. His expertise lies in Beverages, OTC Products, Cosmetics, Breakfast 

Cereals, Biscuits, Edible Oil and Mobile Phones. He holds a postgraduate degree 

in Marketing Management from Welingkar Institute of Management. He is 

passionate about travelling to new destinations and exploring new places. His 

interests also include listening to good music and reading interesting books. 

Michael Salmon 

General Manager 

The Zuri Kumarakom, Kerala Resort & Spa 

Shantanu Jha 

General Manager - Sales (West) 

Sarovar Hotels & Resorts 

Shantanu Jha has been appointed General Manager - Sales 

(West) for Sarovar Hotels. He will be based at Company’s 

head office in Mumbai. 

A Hotel Management graduate, Jha comes with a wide 

exposure and expertise in hotel sales and marketing with 

experience across brands like Radisson, Grand Hyatt and 

InterContinental Group. This is also his second inning with Sarovar, as he was earlier 

associated with the company over a period of two years until 2007. 

At Sarovar, Jha will oversee Company’s sales offices in Pune, Ahmedabad, Surat and 

Vadodra. 

Michael Salmon has joined The Zuri Kumarakom, Kerala 

Resort & Spa as its new General Manager and Director of 

Spa operations. British-born Salmon, an expert in holistic 

wellness therapies (that includes Reiki) and medical tourism, 

has a vast experience over 30 years in Middle East, Europe 

and India in various prestigious hotels. 

He began his career as a massage and stress consultant 

at Natural Therapy Centre, Sussex, UK, followed by stints at British Arthritic 

Association, UK and Therapy Centre, Spain. Among many of his achievements, he 

has introduced the use of Technogym equipment; he established a membership 

scheme for a five level package. The SpaSoft software was introduced with 

membership capabilities for the leisure centre at JW Marriott Guanacaste Resort 

& Spa. 


Leena Sengupta 

Rooms Division Manager 

JW Marriott Mumbai 

Leena Sengupta is the newly appointed Rooms Division Manager at JW Marriott Mumbai. 

She will head the operations for the Rooms Division, looking after the front office, 

housekeeping and spa functions of the hotel. She has spent nearly 16 years within the 

hospitality industry having worked with prestigious hotels like the Oberoi Group, The Grand, 

New Delhi, and The Taj Palace. 

Sengupta, an alumnus of the reputed Oberoi Centre of Learning and Development (OCLD), 

first joined the JW Marriott Mumbai as Executive Housekeeper in 2005 and returned in 2008 

as the Director of Services and has since been with the property. In the interim, she was 

working with The Taj Palace, New Delhi. 

Apart from her passion for work, she enjoys singing, listening to music and solving 

the Sudoku. 

Arti Raghava 

Director of Human Resource 

Goa Marriott Resort & Spa 

Arti Raghava has been appointed as 

the Director of Human Resource at the 

Goa Marriott Resort & Spa. She started 

her career as Front Office Associate 

in Radisson Hotel Delhi, since preopening 

of the hotel. Afterwards, she 

completed her Masters Degree in 

Human Resources from the University 

of Technology, Sydney (Australia), 

in the year 2002. Her first hospitality 

assignment in Human Resources was 

at The Bristol Hotel, Gurgaon. She 

then moved to Park Plaza Gurgaon as 

Assistant Human Resource Manager. 

Arti began her career with the Marriott 

at the pre-opening of the Courtyard by 

Marriott, Gurgaon, in August 2009, as 

Human Resources Manager. 

James Reppuhn 

Executive Chef 

JW Marriott Mumbai 

Paul Rushton 

Regional Director of MICE Sales Asia Pacific 

Marriott International 

James Reppuhn joins the JW Marriott Mumbai as the new 

Executive Chef. Reppuhn has spent the past 12 years of his 

career working throughout Asia in such countries as China, 

Thailand and now India. Chef James will cater to the local 

tastes imbibing the best of both worlds. As Executive Chef, 

he will monitor the culinary aspect of the hotel and share his years of culinary 

knowledge and experience. 

Born and raised in the United States, Reppuhn had his first job in a small café as a 

dishwasher and was guided by a young Sous Chef to start with by teaching him the 

basic skills and knowledge needed to pursue a career as a chef. Later, he went on 

to study and graduate at the prestigious Culinary Institute of America. 

Prior to joining the JW Marriott Mumbai, Chef Reppuhn has worked for such 

notable hotel groups as Aman Resorts, Four Seasons, Ritz Carlton and with 

Celebrity Chef, Mark Miller. His interests include dining, travelling, reading and 

various sporting events. 

[ Movements] 

Marriott International announced the appointment 

of Paul Rushton as Regional Director of MICE Sales 

Asia Pacific. Rushton is responsible for the design and 

implementation of sales and marketing strategies for 

capturing a profitable share of the emerging MICE 

business for all Marriott branded hotels in Asia Pacific. He is based in Singapore. 

With 25 years of work experience in the hospitality industry, Rushton’s footsteps 

have covered leading hotels in Jakarta, Dubai, Bangkok, Sydney and Singapore. 


[ Events] 

The Le Meridien Kochi team celebrates winning The Best Hotel Based Five 

Star Convention Hotel at the National Tourism Awards for the year 2010-2011 

P.S.Pandian, Chairman and Francis Mohanraj Pandian, Managing Director of 

Pandian Hotels Group receiving the award from Pratidbha Devi Singh Patil, 

the President of India on February 29, 2012 at Vigyan Bhavan, New Delhi 

National 

Tourism Awards 

honours 

hospitality 

Le Meridien Kochi has been adjudged as the Best 

Hotel-based Five Star Convention Centre at the 

National Tourism Awards for the year 2010-2011. 

The award was received by Dr. P Mohammed 

Ali, Chairman, Mfar Hotels and Rajesh K Madan, 

General Manager, Le Meridien Kochi. The national 

tourism award was held in February, 2012. Madan 

informed, “Our associates are our biggest assets 

and the award is the biggest acknowledgement 

for our efforts. It is a great motivation for us to 

continue delivering excellence in conducting 

conferences, weddings and great events at Le 

Meridien.” Le Meridien Kochi played a pivotal 

role in transforming Kochi from just a tourist 

destination to a dominant MICE destination, 

which has seen many national and international 

conferences & conventions propelling the city’s 

room occupancy levels to a new scale and also 

gave the city a purpose and reason for rapid 

infrastructural development. 

On the other hand, Hotel Pandian, a unit of 

Harrington Hotels, flagship Company of the 

Pandian Group of Companies, has won the 

National Tourism Award in the Two Star Category 

for the year 2010-11. It has been adjudged the 

Best Two Star Hotel in India for the third time. 

Patu Keswani 

donates Research 

Centre to 

IIT Delhi 

Patanjali G Keswani, CMD, Lemon Tree Hotels, commonly 

known as Patu, recently donated the ‘Golden Jubilee 

GH Keswani Research Centre’ to the Indian Institute of 

Technology, Delhi. Kapil Sibal, Hon. Minister of Human 

Resource Development and Minister of Communications 

and Information Technology, Government of India, laid 

the foundation stone at a ceremony attended by the 

Chairman, Board of Governors, IIT Delhi, Directors of IIT Delhi and Roorkee, deans, professors and dignitaries like M. 

Mangapati Pallam Raju, Minister of State for Defence, Government of India. 

Speaking at the occasion, Keswani said, “As an alumnus of IIT Delhi, I am happy to support my institute. I hope future 

batches of young engineering students benefit from this research facility.” With a built-up area of 1,30,000 sq. ft. the 

‘Golden Jubilee GH Keswani Research Centre’ will be spread over seven floors and offer a range of facilities to students. 


Promoting Indian Culture & Tourism 

Kingdom of Dreams, India’s biggest live entertainment destination and one-of-its-kind initiative by the Great Indian Nautanki 

Company, promotes Indian culture and tourism. Kingdom of Dreams was the official entertainment provider at ITB Berlin Trade. 

The artists from Kingdom of Dreams performed at the inaugural dinner of the event which was held during 7 - 11 March, 2012 

that was hosted by Subodh Kant Sahai, Union Minister for Tourism, Government of India. 

Candle lit Indian Restaurant Emperor's Court during the Earth hour 

Earth Hour Initiative 

by Renaissance 

Mumbai Convention 

Centre Hotel 

[ Events] 


[ Events] 

ICF recognises culinary talents at 

Culinary Art India 2012 

During the 27 th AAHAR show at the Pragati Maidan held in 

New Delhi in March, 2012, the Indian Culinary Forum (ICF) in 

association with ITPO organised ‘Culinary Art India 2012’ and 

awarded the winners who showcased their culinary talents at the 

event. The chief guest was Rita Menon, Chairman ITPO. Other 

dignitaries who graced the occasion were, Chef Davinder Kumar, 

President of Indian Culinary Forum and Chef Nalin, Chairman 

of judging faculty. The chefs who showcased their culinary art 

skills at the challenge were bestowed with awards on 16 th March 

2012. People were in for a big treat as Culinary Art shined the 

spotlight on their brightest gourmet stars, sharing in their electric 

passion for good food and great beverages. Chef Davinder 

Kumar, informed, “The event was a big success and we got 

participation from all across India. Culinary Art India (CAI) 2012 

gave youngsters an opportunity to come up with something new 

and innovative. Now we hope to make it even bigger and better 

next year.” Rita Menon, Chairman, ITPO, said, “Following much 

deliberation, a judging panel of leading industry representatives 

has selected chefs who are feted today at the prestigious awards 

ceremony. ITPO is very glad and elated to host such an event 

which involved every aspect of culinary enthusiasts and art 

aficionados to share a passion for food, art and entertainment.” 

The first day categories included artistic pastry showpiece, butter 

or margarine sculpture, plated appetisers and live kitchen. On 

second day, the categories were artistic bakery showpiece, 

authentic regional cuisine, fruit and vegetable carving and live 

kitchen. The next two days included categories such as 3 Tier 

wedding cake, desserts, dress the cake (Live), Petit fours or 

Pralines; three courses set dinner menu and mock tails. The five 

day event got the participation of chef fraternity from India and 

abroad and two jury members from WACS (World Association of 

Chef Societies), a 93 nation body of Chefs. 

Winners of the Culinary Art India with Chef Manjit Gill, Chef Davinder Kumar, president, 

Indian Culinary Forum and Chef Nalin in centre at the Culinary Art India 2012 Award Ceremony 


RNI No. DELENG/2000/1230 

Posting Date 15-21/08-2011 

Postal Reg. No. DL-(C)-01/1294/2012-2014 at MBC-1 

Date of Publication 12-04-2012

Magazine - The FHRAI

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