Category Archives: Associations

FHRAI has clarified that service charge, like any other charge collected by an establishment, is a part of the invitation offered by the restaurant to the potential customers. It is for the customers to decide whether they wish to patronise the said restaurant or not. To discuss and seek clarity on the matter, the Department of Consumer Affairs (DoCA) has called FHRAI for a meeting on June 02.

MoT recently organised virtual roadshow titled ‘Incredible India Reconnect 2022’ from 26th April 2022 and IATO has written to them saying that virtual roadshows are no good and are not solving their problems, revealed Rajiv Mehra, President, IATO. They emphasised to have physical B2B meetings by organising roadshows which will be more meaningful and fruitful to revive business, he added.

Willie Walsh, Director General, IATA has said that international travel in first and business class is recovering faster than in economy, when it comes to international travel. “I think that points to a very important sector for the market which we call premium leisure and I expect premium to continue to recover quickly,” he said.

Hotel Association of India (HAI) has urged Manoj Sinha, Lieutenant Governor, Jammu & Kashmir and highlighted the recent unfair and adhoc raids, imposition of fines and threat of legal action on member hotels in the State. HAI pointed out that these impromptu actions by the state government were motivated by complaints of exorbitant prices and service deficiencies from tourists.

The Pacific Asia Travel Association (PATA) announces the new PATA Executive Board. Peter Semone has been formally endorsed as the Chair of the Association’s Executive Board. PATA also elected 6 new members: Benjamin Liao, Forte Hotel Group; Suman Pandey, Explore Himalaya Travel & Adventure; Tunku Iskandar, Mitra Malaysia Sdn. Bhd; SanJeet, DDP Publications; Luzi Matzig, Asian Trails, and Dr Fanny Vong, Institute for Tourism Studies (IFTM).

Liz Ortiguera, CEO, PATA, has said that 2.8 Billion people have still not had the first vaccine – some are even medical front-liners. In a recent message, she quoted WHO Foundation, saying, “While people in high-income countries get back to the things they love, many in low-income countries remain restricted and vulnerable to infection. Vaccine inequity puts everyone at risk, with low vaccination rates creating the ideal conditions for new variants of COVID-19 to emerge. We are still seeing 1.5million cases of COVID-19 globally every day.”

Rajiv Mehra, President, IATO, has said that they have written to Prime Minister Narendra Modi again thanking him for the steps he has taken in addressing the Indian community in Copenhagen asking the non-residents to send five foreign nationals each from their country to India. “That’s a very good sign of promoting India and if all the Indians abroad start sending five people or motivating them to go to India, I think tourism will flourish in the coming years. We thank the PM for that, and we have again written to him that whatever hurdles we are facing here with the different ministries and departments, need to be addressed immediately and steps should be taken for the same. I’m quite hopeful things will happen in this regard soon,” he mentioned.

The Hotel Association of India (HAI) has submitted a recommendation to the Director General of Foreign Trade, Ministry of Commerce and Industry, Santosh Kumar Sarangi urging the Directorate to review the Export Promotion Capital Goods Scheme (EPCG) and provide relief to the struggling industry. The association has highlighted that, at the time of availing the duty benefits under the Scheme, no one could have envisaged the impact of Covid and the resulting dip in the foreign currency earnings.  In light of the changed economic and geo-political scenario, HAI has said that it is imperative to review the EPCG policy and provide relief for the industry to survive and be able to fulfil its obligations under the scheme. Hotels are facing huge challenges of liquidity, revenue losses, negligible foreign exchange earnings, high costs that are mostly fixed in nature and several other operational difficulties. Hotels require more time to fulfil obligations under the scheme. The industry body also requested the government to not issue notices to hotels, propose punitive action against them for non-fulfillment of obligations and not encash hotels’ bank guarantees. HAI pointed out that the hospitality sector is one of the most impacted industries due to the pandemic. Hotels were closed for almost 6-8 months during 2020-21 and re-opened in phased manner. The aftermath of the second and third wave has left a dent on the sector’s road to recovery. It added that the hospitality industry is expected to be back to pre-covid levels only by FY24-25.   RECOMMENDATIONS SUBMITTED BY HAI ·    5 Years Extensions: In addition to the currently available extensions as          per the EPCG guidelines, it is requested to provide additional 4 years extension for all …

Citing the unprecedented rise in inflation, Federation of Hotel & Restaurant Associations of India (FHRAI) has requested the GST Council to evaluate the present GST structure for the hospitality sector and appealed for it to be rationalized. FHRAI has suggested that all F & B revenue of hotels be delinked from their hotel room tariff slabs and allowed to charge GST at 5 per cent without ITC under the composite scheme and 12 per cent GST with ITC.   

Russia’s military offensive risks hampering the return of confidence to global travel, as per UNWTO. UNWTO Tourism Market Intelligence and Competitiveness assesses that the US and Asian source markets could be particularly impacted, especially regarding travel to Europe, as these markets are historically more risk averse. As source markets, Russia and Ukraine represent a combined 3% of global spending on international tourism as of 2020. A prolonged conflict could translate into a loss of US$ 14 billion in tourism receipts globally in 2022.