The Hindu Business Line : Desi hospitality industry needs to get its act together

The Indian hospitality industry is getting global attention. As major hotel groups and real-estate players join hands to accommodate business as well as pleasure travellers from across the world, what separates the desi hospitality industry from its counterparts in Malaysia or Thailand?

There is many a slip between the cup and lip, as they say. "What we need are quick licensing, less red tapism, enhanced infrastructure, and less interference from local Government bodies, except in the main areas, preferably from one window. Also a more co-ordinated and planned approach to the development of the industry, by all the local bodies involved," evaluates Mr Geoff Magee, Chief Executive Officer, The Accord Metropolitan, Chennai (www.theaccordmetropolitan.in).

He illustrates with an example. New airports have been built in Hyderabad and Bangalore, but the approach roads are not ready, he points out. However, that hasn't deterred him or his company from delving into this difficult terrain.

"Our future plans are on track - the 160-room property in Puducherry and hotels in Bangalore and Hyderabad. We have also bought land in Ooty and Kodai," informs Mr Magee Geoff while interacting with Business Line recently. We followed up with a set of questions over the e-mail.

Edited excerpts from the interview:

As someone who has been in the hospitality industry for close to three decades, what major trends have you seen in the Indian hospitality space?

The industry has changed tremendously in the last few years. I can talk about many areas, technology being the biggest. It has helped us speed up decision-making, guest reservations, information, payments, and accounting. I am sure it has helped to design facilities and services to optimal efficiency levels.

This I guess applies for other industries as well. In India, the hospitality industry now has access to better products, in hardware, food, or wines. Any new development in any part of the world becomes available here.

Like eco hotels, budget, serviced apartments, business hotels, and resorts are all the more creative and visionary. They also have also more facilities and amenities, suited to the corporate or the leisure traveller.

Industry leaders say the next phase of growth is going to come from villages. Are villages on the radar of the hospitality industry too?

Many leisure destinations are located in remote areas and so villages are on our radar. Beaches, hills, estates, wildlife sanctuaries, religious and river resorts etc have been responsible for reaching these places. The industry is slowly moving to the second-line metro cities, and I'm sure it is only a question of time when more rural infrastructure will allow for greater development.

There are beautiful places in rural India, and home stays, motels etc will definitely change the face of the rural India. By this, I don't mean only foreign tourists only, but more and more corporate and Indian families will also be tempted to visit the regions with the advent of better facilities and amenities.

What are the new experiments and innovative ideas that the industry is working on?

I am not too sure about experiments, but there are always pioneers in this field, ready to move into newer and more creative areas. Trekking trails, riverboat tourism, rural and eco tourism, theme hotels etc are some areas to name a few.

Similarly, there is a need for skilled manpower; and many overseas universities are slowly coming into India.

The industry body is also keenly involved in this area of manpower concern. The Indian universities and academies do have students who benefit from exposure in hotels during the practical side to the curriculum. Many of professionals are invited for campus interviews, cultural fests, and guest lectures. This needs to increase in diverse fields.

Many hospitality captains point towards arrival patterns as a key for succeeding in India. Your take on the issue?

Arrival patterns have also been changing over the years. No more is it predominantly the US or Europe; both the East, and the West are also equally looking at India's importance as a global commercial force. And so too is the simple tourist coming in from all places of the globe to see and experience our culture.

The number of flights, competitive pricing, easier communication and more exposure on television have made India an exciting destination.

What are the skills that are in short supply in your industry? How do you manage retention?

Skilled labour is definitely a big problem for the industry. Competition - from the BPOs, the tech industry, retail, and realty and also from the rapid expansion of the number of hotels in India - has aggravated this further. It is beginning to become increasingly difficult to motivate and retain staff.

Obviously, money is always used as a starter motivation. But other factors such as family, hours of work, facilities and amenities, perks and so on are also ways to motivate staff, and retain them. Innovation and creativity have always been encouraged in our industry, as it is the cutting edge which makes one more successful than another.

However, the industry has not been able to get away from the stigma of long hours, varying shifts and slow growth or development in the career of the younger generation. We have recognised this and are working on correcting this.

The industry and the business are not the easiest. So, what makes you tick? And why was hospitality your choice of career?

I started out as a finance person, but soon realised that I'm a strong "peoples person", and now would not look at any other area.

The sheer sounds and lights of this industry motivate me. I would get bored doing anything else! I am now more project-oriented, and have derived great pleasure in helping to set up new hotels. I have also derived the same amount of personal satisfaction from the number of youngsters that I have helped to develop and groom to make successful careers for themselves.

Is environment a priority in the hospitality industry?

It is definitely becoming a priority. Statutory compliances are already in place with sewage, energy, products and water. Energy conservation and product recycling have a definite cost advantage. Staff awareness also plays a major role in energy conservation. This is however yet to take off to the level that is needed. I'm sure with time and branding this will.

What are the future plans of Accord Metropolitan?

The costs of setting up hotel projects are definitely high, especially now with land getting costlier. However, if managed well, it is good one to be in I see a definite future in the next decade for us. Our future plans are a new 160-room property being built in Puducherry. Plans are already under way to set up hotels in Bangalore and Hyderabad.

We have also bought land in Ooty and Kodai. Overseas we have been negotiating in Dubai, Malaysia, Singapore and Vietnam. We are keen to venture into these overseas markets. We have been talking to partners in these markets.

Obviously all these plans are based on high hopes. What can make this dream a nightmare?

Every overseas hotel group is now in India trying to leverage their market share of the industry. From deluxe and luxury chains to smaller budget and star hotels, motels are either contracted to build, manage, or lease and this is a very interesting time for our industry.

After many years of obscurity, we are suddenly now in the limelight. It is also another area of wealth creation for our younger generation, and of creating opportunities. We definitely need better infrastructure to take us to another level. I'm sure nothing is going to stop this juggernaut from moving forward.

D. MURALI

A. PAARI

(Illustration by R. Rajesh.)

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