http://m.economictimes.com/news/emerging-businesses/regional-hubs/west/pimpri-chinchwad-an-attraction-for-hotel-business/articleshow/18196331.cms
'Pimpri-Chinchwad an attraction for hotel business'
26 Jan, 2013, 1547 hrs IST, Vasumita S Adarsh, ET Bureau
With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune.
With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune. In an interview with ET, he talks about how the Pimpri-Chinchwad region is evolving as a hospitality business destination. Edited excerpts:
How was 2012 for the hospitality in Pune, and how does 2013 look like?
2012 was not entirely good for the sector in Pune. While some hotels managed to maintain the growth rate of 2010-11, some witnessed negative fallout of the economic slowdown. No extra inventories happened either.
This year, however, seems to be more buoyant, and Pune is expected grow faster than the country's GDP in hospitality. When the country's GDP was 9 to 10 per cent, Pune region's hospitality sector was growing at 16 to 18 per cent. Now that the GDP is at 5 to 7 per cent, the hospitality sector is expected to grow at 9 to 11 per cent.
From having just three major luxury hotels during the last 10 years, today the hotel segment in both luxury class as well as business class has increased five times or more. From 500 rooms altogether, we now have 2,500 rooms available in the luxury segment alone. There is an excess supply of rooms in the five star and business class segment hotels in the region today. And, in the next three years, this demand-supply scenario may stabilise.
How are tier II regions like Pimpri-Chinchwad coming up? Do you see more hotels coming up here?
The Pimpri-Chinchwad and Chakan region have been a major industrial belt with several foreign companies. A good number of clients work there and stay in hotels in Pune. This will in turn impact city hotels, as clients, who are there in Pune for a longer period of time, may prefer living in Chakan rather than endure the long travel. The city hotels will lose at least 40 to 50 rooms due to this.
On the flip side however, the Pimpri-Chinchwad region lacks any major entertainment centres for a client to unwind. Hence, clients coming in for just a few days may prefer to stay in main Pune. The areas such as Koregaon Park, Nagar Road, etc are the hot spots of the city. The Pimpri-Chinchwad region is yet to develop in terms of having more malls and other quality recreation, for senior employees and expatriates.
What factors will help hospitality sector in Pimpri-Chinchwad to grow?
Pune's western region and regions of Pimpri-Chinchwad, Chakan, Talegaon will see more hotels in the future, though this may happen in a span of the next four to five years.
The Pimpri-Chinchwad area is attracting many investments in the hospitality sector. Besides the Marriott project, there are many investors looking to launch projects in the region, though none have been announced officially yet. The residential area in the region is growing too - another reason for the region to attract investors. Increase in residential projects means an increasing work force settling here. The Eastern part of Pune has seen an oversupply of hotels, with many properties located close to each other.
Foreigners coming to Pune for short and long term work visits are among the leading clients for hotels. How do you see this trend evolving? Owing to expansion of existing companies, as well as new IT and engineering companies setting base in the region, there has been no decrease in the number of foreigners coming to Pune. International travellers are certainly a vital part of the hospitality service, besides domestic clientele.
Earlier the city had altogether three luxury hotels, which meant the hotels dictated the terms. Now with competition increasing and more choices available with a client, hotels have to be clued in to provide the best service at competitive rates.
The government too has to re-look its liquor policy, with the new work cultures emerging in the region. Not everyone works traditional timings anymore, and many clients are working US and UK hours to be in touch with their companies. But government allows liquor only till midnight.
This means we cannot serve liquor to such clients, who may be having a different sleep pattern, and may want to relax post 2 am or 3 am. Earlier such professionals were few, but with the IT culture booming, today the number of such professionals have gone up. The government needs to change its policies accordingly, so that domestic and international clients view Pune favourably.
What are the challenges hospitality sector has to face in the region?
Infrastructure upgradation is among the biggest issues. The current airport is not adequate to serve international travellers, who lose almost an entire day, alighting at Mumbai, and then travelling all the way to Pune. The proposed international airport is still in the planning stage. Similarly, projects that would elevate Pune's status such as the International Convention Centre in Moshi have not taken off either.
The other hurdle is the huge amount of taxes imposed, whether it is on serving imported liquor, taxes on in-house entertainment, or even playing recorded or live music in the hotels. The laws have to become more hotel-friendly. Clients, who come to the city are shocked when the city closes down post midnight, just as they are planning to unwind. Nightclubs and pubs are not necessarily suited to everyone. Providing this service becomes an expensive affair for hotels, because of the huge taxes.
As the city culture evolves, these policies should be revisited and amended. What is required is that the government and the industry in Maharashtra too sit down and discuss these current impediments. This has not yet happened from either side.
vasumita.adarsh@timesgroup.com Arun Gupta
