With all the hype, both positive and negative, surrounding the much awaited sporting event, Hotelier India seeks to analyse what impact it will have on the hospitality sector. From special packages and availability of rooms to security plans, we scan the measures that have been put into place by hoteliers in preparation for the CommonWealth Games.
With collapsing foot bridges, a dengue
epidemic, terror attacks on tourists, allegations of misappropriation of funds and entire contingents of athletes threatening to pull out completely, the preparations for the CommonWealth Games (CWG) have been mired deep in controversy.
Despite assurances from the organising committee that work is moving as per schedule, things are not looking any better as the games are around the corner.
With both nature and circumstance inundating the CWG with problems, it would appear that things look bleak for the hotel industry as well. Yet despite reports of travellers cancelling plans to visit Delhi during the Games, some hoteliers are unfazed and even upbeat about the event.
This could have to do with the fact that the government announced a tax holiday that was granted to the hotel industry to speed up the completion of the Commonwealth Games hotel projects, which had slowed down due to the global economic recession.
Among the hotels that seem positive about the CWG is The
Imperial, which has come up with several packages aimed at travellers expected to arrive in Delhi during the Games. One of their main contributions, is the appointment of a concierge desk that is equipped to deal with the requirements of the most discerning guest, be it dealing with a query concerning the games – its venue, location or ticketing.
The Peppermint Hotel, Gurgaon, which opened in July this year, also prepared itself way ahead of time, putting in place safety standards, security and room amenities of the highest standards.
“We finished the hotel well before the allotted time to be ready for CWG. To fill up the rooms, we have now created packages with travel agents and operators, to attract people to the NCR,” says founder and director of Peppermint Hotels, Arjun Baljee.
Nevertheless he is realistic about the footfalls expected during the Games, “The projected demand over the years is now proving to be a little misguided. Hence the challenge is going to be to fill the rooms.
Most of our regular clientele-the corporate businesses in Gurgaon, have declared the CWG dates as holidays. This has added pressure as the business traveller is staying away from the NCR during those weeks.
Logistics will be an issue with material movement being restricted. But we will have to overcome these obstacles and plan ahead to still run an efficient operation.”
Not everyone shares this point of view though, and there are those who couldn’t disagree more. Akshay Sahni, CEO of boutique business hotel The Amber in Delhi, says, “I think the Games are going to be a non-issue.
Despite the hype surrounding them, I don’t think that many people are actually coming in.
The government has over cited the number of visitors expected and with the added problems of such factors as dengue, flooding, embassies instructing their citizens not to venture into Delhi, I don’t think we have anything to look forward to.
I’ve spoken to other hoteliers, and collectively, no one has any special bookings for the Games. It’s only our regulars who are still booking rooms with us.
In fact the Games are affecting us adversely; we’re now experiencing cancellations because people wish to stay away from Delhi during this period.
Furthermore, our room charges during this period are around `6000-7000 and the five star hotels are charging around `15,000; this puts the accommodation out of reach for most of the athletes and their delegations.
It is only the athletes from affluent countries such as Australia, New Zealand and Canada to name a few, who can afford these rates.
The rest of them will stay at the Games Village, which is allegedly not completely ready and might also experience a threat of the Yamuna overflowing.”
Varun Chawla is director of MyGuestHouse.net, which is India’s only budget accommodation portal with live inventory and online booking and which has been sub-contracted by the CWG travel office for their budget accommodation requirements.
He also agrees with Sahni, “The CWG will be a non-event for the hotel industry in terms of incoming tourists. It has however had three major impacts, firstly to increase supply by virtue of tax breaks and promise of CWG business, secondly to reduce overall pricing in the business as the supply demand imbalance has been largely addressed, and third, a variety of properties are now available, not just three star and above.
Chairman COC and President-HRANI Vijai Pande is unequivocal about the fact that the hospitality industry’s needs have largely been ignored by the government.
“Over 5000 hotel rooms have been built in Gurgaon, Delhi and Noida and properties have been converted into guesthouses under the Bed and Breakfast scheme, yet we have hotels reducing their rates by over 50% and the last three months has seen business going down by 25%. Restaurants have also been affected badly with many of them shutting down.
Hoteliers have taken loans to build hotels, how are they going to pay back the banks if there are no tourists during the Games?” asks Pande.
Pande had also put forth two proposals to the government at the recently held 45th FHRAI convention; one of granting 10% Leave Travel Concession to middle class travellers to encourage them towards domestic travels and secondly, to create a common board with the tourism departments of Punjab, Haryana and Rajasthan ahead of the Games. “Both proposals were shot down,” declares an exasperated Pande.
“With infrastructure being in such bad shape in the first place, there is no hope for the hotel industry to have their problems addressed. I think it will take at least six months for things to bounce back to normal. Right now, tourists are doing their best to stay away from Delhi and domestic tourists are even choosing to travel abroad during this period,” he adds.
Arjun Baljee is quick to add, “China has handed over the finished Asiad village to the teams now, when the games are in November. So it’s just shameful that 70,000 crores of our money is wiped out with nothing to show for it.
The games gave us a chance to have an international sporting event in India, and really showcase the country, not just the NCR. I think it’s a crying shame that we didn’t market it, plan for it, and ready ourselves for the games.”
But does he consider the games to be a boon in disguise or a bane? “Well, it is perceived to be a boon as we are inherently optimistic. CWG gives hoteliers tax benefits which otherwise may not have come to us.
On the flip side, the lack of enthusiasm from the domestic traveller to come and watch the games has seen only a trickle of visitors booking rooms in Gurgaon. It was definitely a boon, but what we are making of it looks to be a bane.
These are forces beyond our control that are making it a bane, so there is no point in complaining about it,” adds Baljee.
As if the current slew of problems were not enough, security is one of the biggest concerns that is rearing its head. With the shooting of two foreign tourists near the Jama Masjid mosque in New Delhi and rumours of anticipated terror strikes by the Lashkar-e-Toiba, security is being beefed up by
local agencies as well as special task forces.
The challenge of protecting over 17 venues and around 7500 athletes has resulted in the deployment of extra stringent measures even by hotels themselves.
The Imperial in Delhi has strict security measures put in place to make guests feel more secure.
“The hotel will be under close surveillance of CCTV cameras, hi-tech security gadgets and brand new powerful security devices. The Imperial security team will also monitor the developments in Delhi very closely with the help of Delhi police officials. Any threats will be evaluated and analysed by The Imperial Rapid Action Force to ensure complete safety of our property, guests and associates,” says Vijay Wanchoo, senior VP and GM, The Imperial.
Oliver Martin, GM of The
Claridge’s Surajkund, Delhi NCR, says, “We’ve sealed the whole compound, fixed the fencing and appointed additional manpower.
We also conducted mock fire drills and sprinkler testing, checked the fire hydrant lines, upgraded our security equipment and even installed six door metal frame detectors and purchased bomb depression blankets. We’ve given the local police two rooms for accommodation on the property. Since we have CommonWealth Games delegations staying with us, we have put in place preparations for all contingencies.”
