From import subsidisation to vendor development, creation of green supply chains, minimising carbon footprints, the Indian hospitality sector uses more than 90 per cent local resources, making it an embodiment of an Atmanirbhar Bharat. By Ayushi Sharma
The Indian tourism sector has had a long journey of growth and finding its place on the world map. The era after the economic liberalisation of the 90s in India sparked the growth of the sector and attained new heights. In 2018, tourism contributed more than nine per cent to India’s GDP and accounted for eight per cent of the country’s employment. As per the statistics, states like Sikkim, tourism helped increase its employment rate to 33 per cent. And the hospitality industry constitutes a majority share of the tourism sector. Hotels are a part of essential tourism infrastructure as providers of tourist accommodation in all categories. From providing basic facilities to a weary traveller who wants to break the journey to rest and refuel, wayside motels have come a long way and become centres for culinary delights, venues for events and destinations for leisure seekers.
PM Narendra Modi has advocated that the ongoing pandemic should be looked at as an opportunity and given a clarion call to the nation to build an Atmanirbhar Bharat (Self-reliant India). As per the Hotel Association of India (HAI), the hotel industry is proud to say that it is an embodiment of his cherished dream. Today, Indian hotels are among the best globally and have won accolades and awards for excellence in service by business and leisure tourists alike. And what is commendable is the fact that global recognition has come by practising the age-old Indian tradition of “Atithi Devo Bhava” and by using local sources, be it money, material, machines or manpower. The Indian hospitality industry uses more than 90 per cent local resources.
Puneet Chhatwal, President of Hotel Association of India, explains that tourism is integral to any nation’s prosperity as it creates jobs, drives exports, enhances foreign exchange earnings and creates sustainable livelihoods. He says, “We all know that tourism is much more than what meets the eye. It is one of the fastest growing sectors of Indian economy over the past decade at a CAGR of 8.5 per cent. The sector employs close to 10-12 per cent of all workforce in the country, thereby contributing to building livelihood with a multiplier effect. In addition, the sector contributes to over Rs 10,000 crores to the exchequer every year. Hotels are significant employers of unskilled, semi-skilled and skilled workers. The industry also promotes gender diversity and equal opportunity. From import subsidisation to vendor development, creation of green supply chains, minimising carbon footprints, the industry contributes richly to the economy.”
Being self reliant
The industry’s endeavour has been to increase its focus on local sourcing of ingredients/components in its key pillars of food and beverage, infrastructure and engineering equipment. From about 65 per cent in the year 2000, there has been consistent efforts to increase the extent of local sourcing which rose to about 87 per cent in 2020.
Priya Paul, Chairperson of Apeejay Surrendra Park Hotels Limited and Executive Committee Member of Hotel Association of India, says, “THE Park Hotels as well as our social catalyst brand, Zone by THE Park, are a true reflection of contemporary India. Our DNA of creativity and innovation is expressed in distinctive ways. We work with numerous Indian designers, products as well as local artisans and even promote new Indian performing arts. For instance, at our Hyderabad branch, we worked with more than 25 designers for our various spaces. We commissioned local artisans and craftsmen to work on the dying art of Kalamkari and to recreate it in a contemporary way.”
She adds, “We have been promoting farm-to-fork concept for the last many years. We work closely with the local organic farmers and have been promoting sustainable food practices. Before the lockdown, our hotels in New Delhi, Chennai and Kolkata used to have weekly organic farmer markets. Our menus are also designed in a way where information on the source of food is also shared. For us, this has been a practice for a very long time.”
The industry aspires to increase this further to an overall 95 per cent and more by 2025. In certain value components such as DG sets, AC units, mechanical equipment and elevators, it would be closer to 100 per cent. However, the question is — despite seeing no guests at all for the past five months and currently not attracting many tourists due to the ongoing COVID-19 pandemic, how does the self-reliant claim stand true? Puneet tells us, “The impact of the pandemic has definitely been severe. As per The Horwath HTL India Report, this is best reflected by the loss of demand and revenue. The aggregate loss for March to June 2020, compared to 2019, is Rs 4,810 crore for the hospitality sector.”
“Even in the given bleak scenario, the sector has been able to hold its ground and is working hard to weather this storm. It is adapting to the new normal with enhanced safety and hygiene practices, moving swiftly towards increased digitisation and rolling out new products and alternative revenue streams like online food delivery. However, due to a lack of uniform regulations across states, hotels are continuing to bear the brunt. While the Indian hospitality sector is very much self-reliant, it requires a few extraordinary measures, including the support from its stakeholders and the government,” adds he.
Exemplifying National Prestige
Indian hospitality has brought India on the world tourism map. From playing host to heads of states, celebrities, senior officials, industrialists and entrepreneurs, facilitating large and prestigious national as well as international conventions and events to providing a secure comfortable abode for people during disasters, Indian hotels have displayed their commitment to the nation.
“Hotels have always showcased India’s rich culture and diversity. They support local artistes and artisans by giving them a platform to exhibit their craft. They are the centres for the promotion of Indian heritage, textiles, cuisines, handicrafts, culture, art and artists. They have also introduced the world to our ancient practices of yoga and Ayurveda. And they will continue to carry forward this tradition,” shares Puneet.
The fact that some of the best hotels in the world are managed by Indians adds to the national pride.
Providing local opportunities
The Indian hospitality sector employs close to 4.5 crore people and livelihood to many more. It provides an opportunity for women and to the differently-abled. From the humble basic tourist accommodation tents and lodges, the industry has offerings also for the first-class traveller to those seeking ultra-luxury, thus, giving all Indians an opportunity to experience the country’s rich touristic treasures, undertake pilgrimages and much more.
