HomeLatest NewsHospitality norms, policies need reworking, rationalization, says JB Singh of InterGlobe Hotels

Hospitality norms, policies need reworking, rationalization, says JB Singh of InterGlobe Hotels

Existing policies regarding hotel construction and land use are highly inefficient, he said

Existing policies regarding hotel construction and land use are highly inefficient, he said

India needs to rationalize its hospitality policy, especially hotel building norms, to further enhance and unlock the full potential of a sector comprising a bouquet of businesses such as tourism, travel, hotel accommodation, food and beverage, entertainment/sports and MICE. Tourism, said Jebising, president and chief executive officer of InterGlobe Hotels, the hospitality arm of InterGlobe Enterprises, a group that operates hotel chain Ibis and airline IndiGo.

“There is an urgent need to revamp the hospitality policy as existing policies regarding hotel construction and land use are highly inefficient. The way set back rules work, height versus set back ratio and the way FSI works, all need to be re-clarified and re-worked to improve the industry,” said Mr Singh.

Under the existing rules, economy (or budget) hotels are forced to build huge car parks that are often unused or unused. “There is an urgent need to rationalize these policies to make our investments more efficient This is something that the government has to work out in consultation with the industry,” he stressed.

Elaborating on the current mismatch, he said corporate buildings, residential construction and hotel properties are not comparable. Hotels were here only to sell rooms on rent, they were not realizing FSI through sale of real estate.

“We have been asked to build car parks that are disproportionate. Guidelines for parking rules vary from municipality to municipality. Unfortunately, economy hotels are asked to park more cars than luxury hotels. It doesn’t make sense, when budget hotels don’t cater and cars don’t arrive. It’s a huge mismatch,” he explains.

According to Mr. Singh, another major issue hitting the hospitality sector is the incredibly high liquor license cost in the country.

For example, he explained, in Bangkok, a liquor license costs about 1,000 baht, which is about ₹2,000, and a license will allow a hotel to open 4 liquor stores in the building. Whereas in India, a liquor license costs between ₹20 lakh and ₹45 lakh annually and requires a separate license for each vend, he pointed out.

“Huge license costs make liquor in hotels very expensive which is unaffordable for guests. This eventually creates a reverse scenario. The license fee should be linked to the hotel’s revenue from liquor to make it viable.” she added.

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