The Hindu Business Line : `Job-investment ratio highest in hospitality sector'

Bangalore May 2 According to a study conducted by a committee constituted by the Karnataka Minister of Industries, the hospitality sector provides the highest employment-investment ratio — every additional investment of Rs 10 lakh has the potential to generate 47 jobs and every direct job leads to creation of 11 indirect jobs.

Mr P.K. Mohankumar, Area Director - Bangalore, and General Manager, The Taj West End, confirms this when he says that the hospitality sector is an employment multiplier. "For every room constructed, 16 persons are directly/indirectly employed."

He says that the industry in Karnataka recruits 50,000-75,000 employees — skilled, semi-skilled and unskilled — every year. According to the study, the hotel sector is registering an annual growth rate of 5 per cent. It adds that the sector in the State is on an upswing, going by the occupancy that is currently 85-90 per cent in the star category and 55-60 per cent in the budgetary class hotels.

Bottlenecks

One of the greatest challenges plaguing the industry, the study says, is the availability of quality workforce in different skill levels in the State for the emerging demand due to growth in business in industries and tourism. Retention of the workforce through training and development in the hotel industry is another problem, and attrition levels are high; one of the reasons being unattractive levels of minimum wages.

The study also identifies the consolidation of the existing food craft centres and establishing additional training centres in tier 1, tier 2 and tier 3 towns apart from moffusil centres as yet another challenge. Such a set-up will open the floodgates to fill in the high number of skilled/semiskilled workforce requirements, the study adds.

The Committee has recommended the following proposals to the Government: free education, scholarships, and dormitory facilities for candidates opting to join the Food Craft Centre; the State Government should be willing to make special efforts to allocate land to attract investment of small/large-scale hotels relaxing the municipal and zone restrictions; facilitate identification of hotel sites and their allocation to deserving entrepreneurs with facilities for speedy single-window clearances through various governmental bodies; process for approvals (multiple permissions and approvals) towards expansion plans of existing hotels to be simplified; consider basing the luxury tax on the actual room rent charged rather than on rack rates; modernise and update the curricula of hotel management/catering technology institutes; initiate large-scale master trainers and expose existing trainer to the changes in the hospitality industry through refresher courses.

More Stories on : Hotels | Human Resources | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page