07 March,2011 06:46 AM IST | | Urvashi Seth
Union Cabinet decision to ease the starting-up of hotels is likely to fill the dearth of rooms for travellers to the city, over next two years
The ever-shrinking space in the city -- a feature of the metropolitan -- leaves little room for tourists to stay. But with the Union Tourism Ministry's proposal of a single-window clearance for hotel projects in a time bound manner, the problem of scanty accommodation for vacationers to the city, and in the country, is expected to fade away.
Check in: The move is expected to enable hoteliers to meet the country
-wide demand of 1.5 lakh more hotel rooms. Of these, one lakh rooms
are demanded in budget hotels. Repesentation Pic
Following the Cabinet proposal of December 30, 2010, the state is soon to follow the announcement with the formation of a Hospitality Development and Promotion Board (HDPB, see box), which will prove to be a major boost for hotel infrastructure, industry honchos say.
"We are happy with the Cabinet's decision. It is a gift to the hotel industry and will boost tourism, catering to the overwhelming demand of rooms in the city. We are now waiting for the board to be set up by State Tourism Minister Chhagan Bhujbal," said Kamlesh Barot, president of Hotel and Restaurant Association-Western India (HRA-WI).
Experts predict that the new project is likely to bring in more rooms. At present there are 9,852 rooms in 3-star hotels and above in the city. The figure is expected to rise by 2,843 rooms over the next two years.
"We are expecting about 10 hotels to come up in Mumbai this financial year, raising the number of city hotels to 836. Some are underway, while others are in the planning stage. We have made a presentation to the tourism minister and are expecting a feedback," Barot added.
In the country
The move is expected to enable hoteliers to meet the country-wide demand of 1.5 lakh more hotel rooms. Of these, one lakh rooms are demanded in budget hotels. In Mumbai, where 70 per cent travellers are foreigners, the need of budget hotels becomes more urgent, so tourists' demand for cheaper lodging is met.
"We hope that travellers' demand for lodging will now be met. This will help more and more hospitality projects to come up, and bring in new investments," Barot said. In fact, a country like Singapore, smaller than the size of Delhi, has nearly half of India's total room capacity.
Less red-tape
The one-stop solution to paperwork for hotel expansion and set-up will save hoteliers a lot of footwork. "We will not have to run from pillar to post any more to get clearances for hotels which currently is a tedious process in the country. About 130 licences are required for a hotel to start. Also, the Tourism Ministry requires around 70 odd licences and approvals. Things will be much simpler now," Barot said.
Chetan Mehta, executive director, Emerald Hotel, Juhu, who is said to come up with a hotel in Chembur, said, "Single-window clearance will be a boon for people like us. Until now, we had to move at the speed of babus rather than entrepreneurs, trundling from table to table to get our licences sanctioned," he said.
Minister speaks
"The decision has been made by the Union government. Being a Cabinet decision, it will take some time to form a board. We will soon act on it," said Tourism Minister Chhagan Bhujbal.
$2 bn
Worth of investments lined up in the hospitality sector of the country until last year
Function of HDPB
(i) To fast track approval/clearances of hotel project proposals in a time bound manner;
(ii) To review the hotel project policies and to coordinate u00a0with other concerned u00a0agencies
(iii) To interact with Government, non-Governmental and industry bodies to increase the hotel/hospitality infrastructure in the country.
Number game
Number of hotels in the city: 826 (classified and unclassified) Hotel rooms in the city: 9,852 rooms (3-star and above) Number of rooms in the city expected to come up by:2011, 23% more than the existing number of rooms 2012, 29% more rooms than the previous year 2013, 25% more than the year u00a0before that
