Category Archives: Associations

The Maintenance, Repairs & Overhaul (MRO) Association of India (MAOI) has appealed to the Finance Ministry to, on priority, fix the lop-sided tax policies to create a level playing field between the Indian MRO industry and foreign MROs. The MAOI has stated that in the current financial year 2018 -19, the industry has registered negative growth. With 90 per cent of the MRO requirements of India being imported, the import driven policy has lost 90,000 direct jobs to countries like Sri Lanka, Singapore, Thailand, France and Germany. The MAOI has made recommendations to the government for the future and growth of the Indian MRO industry: reduce GST for Indian MRO services to 5 per cent to bring it on par with foreign MRO services. Alternatively, customs duty on MRO services (where such capabilities exist in India as per DGCA CAR 145 approved organisations list) should be applied at 18 per cent on all imports and grant of ‘infrastructure’ status to MRO industry. Bharat Malkani, President, MAOI, says, “Based on data from Original Equipment Manufacturers (OEMs), the current fleet of 550 airliners is expected to grow to 1000 by 2023. The government is focused on creating new infrastructure and is encouraging domestic carriers to expand their fleet size. While this is a positive development for Indian Aviation, it has no bearing on its immediate ancillary MRO sector. This is because the present GST for importing MRO services to India is levied at 5 per cent, whereas the same services offered at home are taxed at GST of 18 per cent. Of the several requests we are making to the Ministry through the pre-budget memorandum, our highest priority is to have the GST …

Underway from January 15 in Prayagraj, Kumbh Mela is expected to generate a revenue of Rs 1.2 lakh crore for Uttar Pradesh, says a Confederation of Indian Industry (CII) report. Although the Kumbh Mela is spiritual and religious in nature, the economic activities associated with it generate employment for over six lakh workers across various sectors, CII said. The Uttar Pradesh government has allocated Rs 4,200 crore for the 50-day Kumbh Mela this time, thrice the budget of the Maha Kumbh in 2013. The hospitality sector aims at employing 2,50,000 people, airlines and airports around 1,50,000 and tour operators around 45,000. The employment numbers in eco-tourism and medical tourism are being estimated at 85,000, says a CII study. Apart from this, there will be around 55,000 new jobs in the unorganised sector comprising tour guides, taxi drivers, interpreters, volunteers, etc. This will lead to increase in income levels for government agencies and individual traders. Kumbh attracts foreign tourists from countries like Australia, the UK, Canada, Malaysia, Singapore, South Africa, New Zealand, Mauritius, Zimbabwe and Sri Lanka. The ‘mela’ is expected to generate a revenue of Rs 1.2 lakh crore for Uttar Pradesh, while neighbouring states like Rajasthan, Uttarakhand, Punjab and Himachal Pradesh will also benefit from the enhanced revenue generation with many national and foreign tourists expected to explore other destinations. Rajesh Agarwal, state Finance Minister, said, “The UP government has allocated Rs 4,200 crore for 2019 Kumbh Mela. The previous state government had spent around Rs 1,300 crore for the Maha Kumbh, which was held in 2013.” Source: PTI

The Sikkim Hotels & Restaurants Association (SHRA) recently convened hoteliers’ meeting in Gangtok during which it was unanimously agreed to not continue conducting business with Go-MMT until the concerns were addressed and resolved. Effective January 16, 2019, hotels in the state have indefinitely closed inventory to the OTAs and have decided to not honour any new bookings that might come through. During the meeting, SHRA member hotels also decided to terminate their contracts with Go-MMT immediately. Pema Lamta, President, SHRA, said, “We are in solidarity with the country’s apex hospitality body – Federation of Hotel & Restaurant Associations of India (FHRAI) and also our regional body – Hotel & Restaurant Association of Eastern India (HRAEI) in uniting against the OTAs’ unfair and discriminatory business practices. We have made an official appeal to all our members to not honour Go-MMT bookings from January 16, 2019, and have requested them to terminate their contracts with the OTAs immediately. However, we will accommodate guests who have already been booked through Go-MMT even after the 16th. We do not want our guests to be harassed or inconvenienced. However, they will be requested to make payments directly to the hotel instead of to the OTAs.” Many other hotel Associations across India have accused the said OTAs of charging exorbitant commissions, unfair accounting practices and unauthorised and further discounting of hotel prices set by hoteliers. The boycotting of the two online portals gained momentum after Ahmedabad Hotel Association had first raised the issue, which many other associations and hotels followed on later. “SHRA had earlier written to OTAs with concerns raised by local hotels and even held meeting with them. The association had raised specific concerns …

The growth of India’s domestic air passenger traffic slowed in November but still managed to rise in double digits for the 51st consecutive month, according to International Air Transport Association (IATA). “India posted its 51st consecutive month of double-digit domestic RPK (revenue passenger kilometres) growth in November (13.3 per cent). This was the slowest pace in 16 months, but the bigger picture is that the strong upward trend in traffic remains in place,” IATA said in its air passenger market analysis for November 2018. According to IATA, India’s domestic air passenger volume, measured in RPK, was the second highest amongst major aviation markets like Australia, Brazil, China, Japan, Russia and the US. India’s domestic RPK in the month under review rose 13.3 per cent compared to the corresponding month of the previous year. Its domestic passenger traffic growth was second only to that of Russia at 13.8 per cent, followed by China at 7.2 per cent in the third place. “As we have argued before, strong gains in the domestic India market are being supported by structural changes, including ongoing rises in living standards, as well as large increases in the number of airport connections within the country. The latter translates into time savings and has a similar stimulatory impact on demand as reductions in fares,” IATA said. In terms of capacity, India’s domestic available seat kilometres (ASK) — which measures available passenger capacity — stood higher by 19.8 per cent in November, followed by that of Russia’s 10.9 per cent and China’s 10.2 per cent

Meet The Folks Events (MTFE) has announced its first-ever consumer tourism fest and exhibition ‘Meet 2 Travel’ to be held in Delhi from April 5-7, 2019. Sharing the highlights of the event, Vineet Gopal, Founder, Meet The Folks Events, said, “MTFE has covered four major aspects of industries, where everyone can meet, connect and network with new people and transact business – ‘Creating Business Network’ is our tagline. “Meet 2 Travel  – M2T is providing a platform for travel companies to showcase their brand, services and products directly to their clients. In today’s time, one of the biggest challenges that organisations face is to source new clients when OTAs are taking a major market share. With our state-of-the-art B2C exhibition, M2T aims at providing helpful and successful solutions”, added Gopal. Megha Mittal, Project Head, Meet 2 Travel further mentioned, “M2T travel exhibition brings travel companies, tour operators and others on a single platform under the same roof. Exhibitors get a chance to meet and network with potential clients and customers and spearhead their business in the right direction of success. This exhibition is organised at some of the high footfall location of the city making it more accessible for the common people. The event will take place on weekends to ensure higher footfall. It is a win-win situation for tour operators and travel companies to be a part of this highly targeted exhibition. You get to meet clients and customers directly, highlight your services, and grow your business.”

More than 12 crore pilgrims are expected to visit Prayagraj Kumbh Mela 2019 starting January 15 at Prayagraj (formerly known as Allahabad) in Uttar Pradesh, including 10 lakh foreign tourists. The Confederation of Indian Industry (CII) has joined hands with the Government of Uttar Pradesh in promoting the one-of-its-kind event. Suresh Kumar Khanna, Urban Development Minister, Uttar Pradesh announced the details of Prayagraj Kumbh Mela 2019 in Mumbai recently, saying, “This event is organised at four places in the country. The event held at Prayagraj itself is a subject of attraction and curiosity for the country and the world. Following the efforts made by Prime Minister Narendra Modi, UNESCO has included Kumbh in the list of Intangible Cultural Heritage of Humanity.” Programmes based on ancient cultural heritage will be organised, in addition to cultural programmes, food, festival etc. To seek support for Kumbh 2019 from Maharashtra, Khanna met Devendra Fadnavis, Chief Minister, Maharashtra, and handed over an invitation to him on behalf of Yogi Adityanath, Chief Minister, Uttar Pradesh. The team also discussed the preparation by the state for this sought-after event. The Government of India has made a historic increase in number of flights by constructing a new air civil terminal in Prayagraj, which is now connected to the country’s several main cities like Bengaluru, Indore, Nagpur, Patna etc. A heliport is also being set up here and arrangements are being made to provide the facility of helicopter joy ride to tourists. Also, to provide high-quality facilities to tourists, a premium tent city is being developed in the Kumbh Mela area.

The Federation of Hotel & Restaurant Associations of India (FHRAI) has reached out to the Ministry of Tourism (MoT) regarding the hotel industry’s ongoing dispute with Goibibo, MakeMyTrip and OYO requesting its urgent intervention for redressal of hoteliers’ grievances. After a month of failed attempts to amicably resolve issues with the Online Travel Aggregators (OTAs), the apex hospitality body has written to KJ Alphons, Union Minister of State (I/C) Tourism, outlining the major issues of concern to the industry because of the OTAs’ unfair and arbitrary business practices. A number of FHRAI’s members are experiencing hardships due to the OTAs’ business ethics which are exploitative, unethical and divisive, leading to predatory pricing and other market distortions. The letter to the Ministry states that the hotel industry in the country is going through a very challenging phase which is threatening the livelihood, business, investments and entrepreneurial initiative and spirits of the hospitality industry, and thereby eroding the viability of the sector. “The hotel industry, especially the budget and mid-market hotel segment is reeling under the adverse business tactics of the OTAs. The OTAs’ malpractices are affecting the hoteliers’ livelihood and business. These hoteliers who are part of the local and city hotel Associations across the country have approached FHRAI seeking consultation and support, and are in solidarity with the Federation. The FHRAI has tried to resolve the issue directly with the OTAs, however instead its CEO has chosen to dismiss FHRAI’s role in the matter. It leaves us with no choice but to ask for the Government to step in and create a norm for the OTAs just as the Commerce Ministry has done for the e-tailers recently,” says Gurbaxish Singh Kohli, …

After MakeMyTrip (MMT) group’s chief executive Deep Kalra’s recent comment that the Federation of Hotel and Restaurant Association of India (FHRAI) has no locus standi to determine commercial agreements between MMT and the establishments on its platform, Gurbaxish Singh Kohli, VP, FHRAI, says, “Goibibo and MMT have been exploitive, unethical and adapted divisive business practices, leading to predatory pricing, market distortions and cannibalisation. I fail to see how our letter clearly worded as requesting to “resolve” the situation would be misconstrued as trying to “dictate” terms. India has approximately 100,000 establishments which provide accommodation. Approximately, 65,000 are structured licensed establishments, out of which around 45,000 hotels are stand-alone hotels. “FHRAI has never got involved all these years in any negotiations with standalone vendors but takes a strong stand when the industry faces any outside coercion or intimidation. It is only when 1000’s of hoteliers realised Goibibo and MMT’s arrogant method of pressurising the small hotels in high commissions, more free rooms, started price control on the owners. FHRAI has, in its fiduciary duty stepped in to amicably resolve matters. Please note FHRAI is not here to negotiate as wrongly being projected. It is here to ensure that agencies like MMT and Goibibo do not take the industry for granted by parenting such market conditions in which it would be difficult to do business for one party but a win-win situation for the other.” He further said, “Going back to December 7, 2018, whilst the Ahmedabad Hoteliers blocked GOMMT in the city, Kalra wanted to sit with FHRAI and work out the issues. The team sent to “resolve” arrived but with a fixed agenda of “fixing” only commissions that too by a paltry reduction …

The India Tourism Mart (ITM), organised by the Federation of Associations in Indian Tourism and Hospitality (FAITH) and the Ministry of Tourism (MOT), will be tentatively held from September 29 to October 1, 2019, announced Subhash Goyal, Secretary General, FAITH. He also told that these dates are tentative, considering that any other inbound travel show like KTM as well as the National Tourism Awards would not clash with the same. This year, ITM had around 250 foreign buyers in attendance with an equal number of exhibitors. He also revealed that they are expecting around 500 buyers to come for the next year’s edition as they will have enough time to plan the event unlike this time, when they organised it within 2.5 months.

The Federation of Associations in Indian Travel and Hospitality (FAITH) recently organised a farewell dinner for Rashmi Verma, Former Secretary, Ministry of Tourism, at the ITC Maurya, New Delhi. Verma superannuated from her position on November 30, 2018. Thanking her for her contribution to the inbound industry, Subhash Goyal, Secretary General, FAITH, said, “Rashmi Verma has been a great support to the industry in her tenure and has been instrumental in taking many initiatives during her tenure that have proven to be a gamechanger for the industry. The number of Foreign Tourist Arrivals (FTAs) to India crossed the 10 million mark during her tenure. She was a great support for organising the first India Tourism Mart (ITM) in New Delhi recently. She was also a call away for all of us whenever there was an issue plaguing the industry. It has been a pleasure for the industry to work with her and we would like to thank her for being a constant support for all of us.” Also present on the occasion was Yogendra Tripathi, Secretary, Ministry of Tourism, who has succeeded Verma recently. All the presidents and senior members of the associations that are part of FAITH were also present at the event.