‘We are looking for support’

KB Kachru, a veteran in hospitality industry, says Union Budget was a letdown, but Hotel Association of India (HAI) will continue with its demand from government for industry and infrastructure status.

Nisha Verma

The Union Budget 2023 has “disappointed” the hospitality industry. KB Kachru, Chairman Emeritus & Principal

Advisor, South Asia, Radisson Hotel Group (RHG) and Vice President, HAI, however, says that “at least something good” has happened in the budget.

“We need to acknowledge that. It is a breather in terms of the extended emergency credit line, which has been afforded for the hospitality industry. We had expectations from the government. We, as an industry, are not looking for loans, but we are looking for support in terms of survival. Unfortunately, our industry is still treated as elite, but they do not realise that we need hand-holding,” he said.

“However, there are some policy decisions, which can be taken outside the budget, where no direct cash is involved. Decisions such as granting infrastructure status or industry status related benefits to the industry must help it to survive. Our travel partners and people overall in the tourism trade were expecting that some important aspects would be covered in the budget, which unfortunately has not happened. As HAI, we are still going to push for getting infrastructure status and industry status related benefits. I see no reason why a particular vertical is given industry status and we aren’t. Our entire industry is together in this ask,” he added.

Restart and revival
Kachru agreed that they have had a difficult two years, except for a couple of months last year. “Firstly, the industry has to be together and see what is essential to survive in the industry. Then we also have some obligations towards our communities, partners, and sustainability. HAI is working with the federal and state governments to look at these objectives,” he said.

Ups and downs
With new COVID-19 variants and waves, Kachru advised everyone to be cautious. “We need to be responsible to ensure that we will do our best to stay safe and keep our guests stay safe. That confidence level has to be created both at the shop floor level, at the government level, and at every single touch-point. Secondly, if we want more investment to come into our industry, we need long-term policies. Hence, we are asking our government to consider us as a viable industry, give us the industry status in states and make us part of the infrastructure status, so that we get benefits and people who are investing here have some kind of certainty to get proper return on investment (RoI). Then there are issues directly linked to the pandemic, like the opening of international flights, which can provide confidence to tourists. We welcome the announcement made by the Union Finance Minister about e-passports, which will help people to travel outside India and send the right message,” he said.

Growth on cards
Talking about the growth plans for RHG, he shared, “Radisson has been fortunate to have 104 hotels operating currently in India and we have another 60 under active development. We are opening around 10 to 12 hotels every year. Our resort and overall getaway locations are doing well because of domestic tourists. In the last two years, domestic tourism has been a huge opportunity. Had we not focused initially on it, we probably would not have had so many hotels and any other source to survive. We are growing at the rate of almost one hotel a month, both in opening and signing new deals. Even during a difficult phase, we are introducing some other verticals, which would help us position ourselves better in the marketplace. We are introducing our luxury brand ‘Collection’ in this market and even talking about our other brands for the mid and upper-mid market. In addition, we are seriously looking at taking small luxury locations under our umbrella, even if the size is not big.”

Talking about homestays, which is a market where many domestic markets are already operating, Kachru said, “We are seriously considering this market. We have to be proactive in the market and give what it needs, but not at the cost of our brand specs. We want to just stay where our brand specifications allow us to be.”

Trade connections
When it comes to working with the travel traders, he gives credit to them and says, “Fortunately, the combined strength of the travel trade and hospitality partners have helped each other to survive this period. We get business from OTAs and other travel partners as well. The only missing piece is that there is no international business. Hence, travel agents who were specialising in the incentive business and M!CE have been impacted.”

Immediate openings
Saying that their hotels in hill stations are a priority at present, Kachru added, “We’re getting very good rates and occupancies, and the flow is good. In Himachal, we have recently opened a property in Dharamsala and will be opening one in Kufri. In Jammu & Kashmir, we are the only international brand to have signed seven hotels, and we opened last month two hotels there — a golf resort in Pahalgam and one property in Sonamarg. We are very active. We opened an absolute upscale hotel in Nasik. I feel things are moving very quickly and we want to keep that pace.”