Bharati A. King Juan Carlos University, February 2016

Transcription

1 Guidelines for hotels classification, the Code of Conduct for Safe and Honorable tourism, and accessibility requirements in Indian hotels: an overview. Bharati A. King Juan Carlos University, February 2016 Abstract This paper shows the Indian version of the international hotel classification system, from India s own laws. The International system of classification is adapted to India s particularities, its culture, its development level and its cultural behavior. Keywords: Hotel classification, requirements, Honorable Code, accessibility, Indian overview Area of research: Hospitality Industry 1

2 1. Introduction The Hospitality Industry has become one of the most important key drivers of economic growth in the Indian economy, as it represents a 6.7 percent of the GDP and an 8.78 percent of all the national employment. The contribution to the economy can be: 1. Direct: Commodities (accommodation, Transportation Entertainment, and attractions) Industries (Accommodation services, Food and beverage services, retail trade, transportation services, cultural, and sports and recreational services) Sources of spending (Residents domestic T&T spending, Businesses domestic travel spending, visitors exports, individual government T&T spending) 2. Indirect : T&T Investment Spending Government Collective T&T Spending Impact of purchases from suppliers 3. Induced: (The Induced term refers to the spending of direct and indirect employees) Food and Beverages Recreation Clothing Housing Household goods 2

3 Source: Economic Impact 2015, India. (WTTC). The first image above shows the percentage of the tourism sector s contribution to the Indian GDP, while the second one shows the percentage of the tourism sector s contribution to the economy employment. At a glance, we can say that even though the major part of the contribution to the GDP is indirect the major part of the employment created because of tourism in India is direct. The direct employment concept includes: hotels, travel agents, airlines and other passengers transportation services, the activities of the restaurant and leisure industries directly supported by tourists, among others. Nevertheless, the computers services are excluded from this category. The Contribution to the GDP as well as the percentage of whole economy employment is forecasted to grow during the following years. Because of the date of creation of this paper (the beginning of February) specific data about the percentages of both business and leisure spending for the year 2015 are not available. Therefore, 2014 information will be provided instead. 3

4 India: Travel &Tourism s Contribution to the GDP (Business Vs. Leisure, 2014) India: Travel & Tourism s contribution to the GDP (Domestic VS. foreign, 2014) Leisure Spending: 83.5% forecasted to grow by 7.1% in 2025 Business Spending: 16.5% Forecasted to grow by 6.6% in 2025 Foreign Visitor Spending:18.6% forecasted to grow by 7.2% in 2025 Domestic Spending: 81.4% forecasted to grow by 6.3% in Source: WTTC 2. Hotel Definition According to professional Stuart McNamara (National Recovery Administration, Washington, 1933) a hotel is an establishment which supplies boarding and lodging not engaged in inter-state commerce or in any intra-state commerce, competitive with or affecting inter-state commerce for so related that the regulation of one involves the control of other. It is a quasi-domestic institution retaining certain traditions and acquiring in its modern development, certain statutory rights and obligations to the public where all persons not qualified by conditions or conduct are prepared to pay for their accommodation are to be received and furnished with a room or place sleep or occupy if such accommodations are available with such services and attention as are incident to their use with or without a contract as to duration of visit and which conducts within the confines of its physical locations the business of supplying personal services of individuals for profit-incidental to such fundamental and principal business. About this definition we should highlight the following aspects: Establishment: The Cambridge dictionary defines this word as a business or other organization, or the place where an organization operates and defines business as the activity 4

5 of selling goods and services. This is highly important because, from the very beginning the concept of hotel is defined by an economical transaction. (pay for their) Accommodation: The Oxford dictionary defines accommodation as a room, group of rooms, or building in which someone may live or stay If we have closer look, this definition what is basically saying is that a hotel is a place in where the activity of selling goods and services undertaken is paying for a room, group of rooms or building to live or stay in while receiving,or not, other services. 3. General classification of the Indian Hotel Industry Different bases for Hotel Classification: a) On the basis of size: depending on the number of rooms. - Small: with 25 rooms or less. - Average hotel: rooms. - Above average hotel: rooms. - Large Hotel: more than 300 rooms. b) On the basis of the star system: depending on facilities, infrastructure, services - One star - Two stars - Three stars - Four stars - Five Stars - Five Stars Deluxe c) On the basis of its location: - City/Downtown/commercial Hotel: located in the center of the city. - Suburban hotels: in the suburb of cities with a moderate price. - Airport hotels: near to airports, especially international airports. 5

6 - Beach Resorts Hotels: sun and beach tourism - Wild resort Hotels: for natural tourism - Rotating Hotels or Rotels: hotels which rotate on wheels, like Palace on wheels which is located in a luxury train. - Floating Hotels or floatels: on the surface of the water, such as House Boats in Kashmir Dal Lake. - Hotels on boats, houseboats, or Boatels: hotels in Luxury boats or yacths. An example can be Sukoon (located in Kashmir), which is an eco-luxury houseboat. Given the fact of being a luxury accommodation its price is much higher than average, in the case of sukoon the price is rupees/night, depending on the season. ($ , checked in February, 2016) d) On the basis of ownership: - Time share: individual people purchasing the ownership of the accommodation during a limited period of time. - Condominium hotels: joint ownership basis. - Chain hotels: the hotel operates under a franchise. - Independent hotels: run and managed by itself. - Franchise: under a contract, a hotel can operate under a referral group so that it can benefit from its brand image, patents, and/or other tangible/intangible assets of the franchising company. e) On the basis if length of Stay: - Residential Hotels: Rents on monthly or yearly basis -Transit hotels: very economical hotels in which the length of hotels is very short. f) On the Basis of its nature: - Heritage Hotels: A Heritage Category Hotel consists in an Old historic building (prior to 1950) that has been converted into a luxurious hotel. E.g.: Falaknuma Palace (Hyrabad, India). The building was opened as a Palace in 1893 but re-opened as a hotel in Boutique hotels: very small and expensive hotels whose target audience is mainly elite class. 6

7 - Government Approved Hotels: hotels which don t fit on any star category, but provide a minimum level to be approved by the government. 3. Guidelines for Star Category Hotels and Heritage Category Hotels classification in India (an overview) Hotels are one of the most important facilities within the tourism industry, and they represent one of the most important factors in the tourism experience. A good or a bad experience in a Hotel can represent the success or the failure of a tourist destination. And, hotels chains know it. Therefore, every hotel tries to give the best service they can. A hotel manager knows that a satisfied customer might represent a source of new clients, while an unsatisfied one will represent a lack of future clients for sure. Hotels in India are required to have different facilities in order to get different classifications. These requirements are indicated in the Revised Guideline for Classification or Reclassification of hotels , the scheme formulated for classification of operational hotels is applicable to the following categories: 1. Star Category Hotels: Subdivided in 5 stars Deluxe, 5 Stars, 4 Stars, 3 Stars, 2 Stars, and 1 Star. 2. Heritage Category Hotels: subdivided in Heritage Grand, Heritage Classic, and Heritage Basic. This Guideline reflects, by its note number 3 that Time Sharing accommodation is also considered for classification following these same guidelines. As for the checklist provided by the Tourism Industry, we could summarize it the following way: General facilities: The general facilities are mandatory for every category, except Establishment to have public liability insurance which is desirable in all categories. Guest rooms: The requirement of minimum 10 lettable rooms, all rooms with outside window/ventilation is common to every category. However, the minimum size of bedroom varies depending on the category, being 120 sq. ft. the minimum for 1-2 stars hotels, 130 sq. ft. for 3 stars hotels, 140 sq. ft. for 4 stars hotels, and 200 sq. ft. 5 Stars and 5 Stars Deluxe hotels. The percentage or rooms with 7

8 air conditioning required varies depending on the category being 25% the minimum required for 1-2 stars, 50% for 3 Stars hotels and 100% for 4 Stars, 5 starts and 5 Stars Deluxe hotels. Suites and safe keeping (in room safe are required in 4 Stars, 5 stars, and 5 stars Deluxe hotels. Bathroom: the minimum size stands 30 sq. ft. for 1-2 Stars, 36 sq. ft. 3-4 Stars and 45 sq. ft. for 5 Stars and 5 stars deluxe hotels. Additionally, bottled toiletries products are required for 4 Stars, 5 Stars and 5 Stars deluxe hotels. Food and Beverage: the bar is needed for 4 Stars, 5 Stars and 5 Stars deluxe hotels. However, in places where bar licenses is prohibited for a hotel because of local laws. But, wherever, is allowed the hotel must get the bar licenses first and then apply for classification to the Ministry. Alcohol prohibition in India is in force in the States of Gujarat (North- West) Bihar (North-East), Nagaland (North-East), some parts of the State of Manipur (North-East), the Union Territory of Lakshadweep, and Kerala (Since 2015). However, Bihar has announced that the sale of Alcohol will be permitted since 1 st April, Kitchen or Food Production area: requirements stand almost the same in all stars categories. However, the air conditioning at the wet garbage area is not compulsory for 1 and 2 Stars hotels. Staff: English speaking staff is compulsory for 3, 4, 5, stars, and 5 stars deluxe hotels. The percentage of superiorly staff required is 20% for 1 and 2 Stars hotels, 40% for 3 and 4 Stars hotels, and 80% for 5 stars and 5 stars deluxe hotels. The percentage of skilled staff required stands 20% for 1 and 2 stars hotels, 30% for 3 and 4 stars hotels and 60% for 5 stars and 5 stars deluxe hotels. Code of conduct for safe and honorable tourism: is binding in all categories. 8

9 Guest services: 5 stars and five stars deluxe hotels are required to have: laundry, health fitness facilities, and utility shop. Shoe cleaning (shoe horn and slippers) is a must for 4 stars and 5 stars hotels. As well as the newspaper. Safety and security: 4 stars, 5 stars, and 5 stars deluxe hotels will have to own and under belly scanner to screen vehicles. Additionally, 5 stars and five stars deluxe hotels will need to have an X-Ray Machine. Communication facilities: o New 4 stars, 5 stars and 5 stars deluxe hotels which shall start operating from the 1 st April, 2016 will be required to have telephone facility within arm s reach of the toilet s seat. Nevertheless, those who have become operational or will become operational before the 31 nd March, 2016 will be required to have this facility from 1 st April, o 4 stars, 5 stars and 5 stars deluxe will be required to have an in room internet connection, and business center. o Only 5 stars and 5 stars deluxe hotels will be asked to own a swimming pool and conference facilities. 4. Guidelines for classification of heritage hotels Even if the previous Guidelines were applicable to the Heritage Hotels, the Federation of Hotel and Restaurant association of India has created another Guideline for classification of Heritage Hotels which the Department of Tourism (inside the Tourism Ministry) has accepted. In fact, an Demand Draft for Rs.12,000/- for hotel projects planned for Heritage, Hotel category drawn in favor of Pay & Accounts Officer, Department of Tourism, New Delhi must be attached with the application Application fee is required. These new Guidelines provide a better and more complete definition about what a Heritage Hotel is. A Heritage Hotel is run inside places like palaces, castles, forts, havelies, hunting loges, residence no matter the size, it must have been built before These constructions must keep the classical architectural features and must show the classical way of life. The renovations must be respectful with these features, and must not represent more than the 50% of the previously built area. 9

10 The classification of Heritage Hotels stands the following: a. Heritage: hotels run in historical buildings built before 1950 with a minimum of 5 rooms (10 beds). b. Heritage Classic: hotels run in historical buildings built before 1935 with a minimum of 15 rooms (30 beds). c. Heritage Grand: hotels run in historical buildings built before 1935 with a minimum of 15 rooms (30 beds). As we can see, in this aspect, the requirements for Heritage Classic and Heritage Grand are the same. However, the special features are slightly different: Heritage: The general ambience should conform the overall concept of heritage and architectural distinctiveness. They aren t required neither to have any sport facility nor continental cuisine. Heritage Classic: The general ambience should conform the overall concept of heritage and architectural distinctiveness. They are required to have at least one of the following sport facilities: Swimming Pool, Health Club, Lawn Tennis, squash, Riding, Golf Course, provided the ownership vests with the concerned hotel. Apart from these facilities, credit would also be given for supplementary sporting facilities such as Golf, Boating, Sailing, Fishing or other adventure sports such as Ballooning, Parasailing, Wind-surfing, Safari excursions, Trekking etc. and indoor games. Additionally, they are required to have 4 items of continental cuisine, traditional cuisine is binding. Heritage Grand: The general ambience should conform the overall concept of heritage and architectural distinctiveness. They are required to have at least two of the following sport facilities: Swimming Pool, Health Club, Lawn Tennis, squash, Riding, Golf Course, provided the ownership vests with the concerned hotel. Apart from these facilities, credit would also be given for supplementary sporting facilities such as Golf, Boating, Sailing, Fishing or other adventure sports such as Ballooning, Parasailing, Wind-surfing, Safari excursions, Trekking etc. and indoor games. Additionally, they are required to offer continental cuisine as well as the traditional one. 5. The Code of Conduct for Safe and Honorable tourism (an overview). We have previously mentioned the Code of Conduct for Safe and Honorable tourism in the checklist of the Guideline for classification and reclassification of hotels. However, given its importance, deeper information about it should be provided in order to enable the reader to understand the Indian Guidelines for Classification and reclassification of hotels properly. Therefore, and special point about this point has been, hereby, added. 10

11 This Code, which has been adopted in all Indian hotels regardless of their category on 1 st July, 2010, even if the code itself establishes This is not a legally binding instrument but a set of guidelines for the tourism industry, is divided in four sections: 1 st Safe and honorable tourism 2 nd Applicability 3 rd Guidelines for the travel and tourism industry 4 th Key Messages for awareness building and disseminations 1 st section: Safe and honorable tourism The Indian tourism Ministry has been trying to allocate India as a global tourism brand by means of creating the: अत त द व भ व (Ahithi devo bhava, Guest is God) Principle to make sure the tourist experience is gratifying. In addition to this new principle, the Tourism Ministry is trying to maximize the previous principles (pillars) adopted by Indian tourism policy dated on 2002 which are the followings: स व ग (swagat, welcome), स चन (soochana, information), स तवध (suvidha, facilitation), स रक ष (suraksha safety), सहय ग (sahyog, cooperation), स रचन ए (samrachanam, infrastructure development), and सफ ई (safai, cleanliness). Of course, this code gives special importance to the safety principle, which is its main objective. In addition to this main of safety, specific objectives shall be added: - To motivate the tourism activity to be respectful with basic rights. - Prevention of prostitution, sex tourism and forms of sexual exploitations to safeguard the safety of people, in particular women and children. (India is one of the main sex tourism destination) - Increase prevention of activities like involuntary drug consumption, manipulated and or incorrect information, or cultural and social intolerance. (This could increase the probability of criminal acts). 2 nd section: Applicability As specified before (read above) this code would not have to be bindingly established. This code would be nothing more than a set of techniques or strategies designed by the Indian Tourism Ministry, with the main purpose of improving the tourism experience by creating a safer environment in the tourism industry. 3 rd section: Guidelines for the travel and tourism industry 11

12 This is probably the most important section of this code as it has specific information and techniques which might be applied within the tourism industry in order to create a safer and most enjoyable environment, in order to improve (as said before) the tourism experience. The Indian Tourism Ministry has divided this section in five areas, which stand thus: 1. Information and training of personnel: sets a series of techniques and attitudes practices the tourism industry staff shall incorporate in their daily activity (enhancing vigilance, not treating identified victims as criminals but as people in need of care, reporting abusive behavior ) 2. Public awareness and guest notifications: this point shows a series of techniques designed with the aim of avoiding cultural and social confrontations (providing information on local social and cultural beliefs and norms, or assisting tourists with guidance on safety tips are examples of these techniques) 3. Regulated use of premises and official equipment: (prohibition of usage of illicit substances, sexual violations, promotion or usage of materials which could increase vulnerability to sexual exploitation ) 4. Ethical Business practices and marketing: (incurring on techniques like blacklisting any tourism company who undermines the safety of persons or not using sexually explicit images in marketing campaigns). 5. Implementation and Monitoring: Management /owners shall report on training initiatives carried out for staff and means to raise awareness on safety among guests, personnel, and service providers. 4 th section: Key Messages for awareness building and disseminations This section consists on a series of messages to aware the need of establishing these guidelines as well as the social situation especially in terms of safety. This section confers especial importance to the situation of children and women in India by mentioning the India Country report 2008; Ministry of women and Children, and the United Nation Protocol to prevent suppress and punish trafficking in persons, especially women and children. About this section we should say, the messages are divided in two parts, being the first one Enhancing safety and security of all tourists and the second one Enhancing safety of local people. 6. Accessibility requirements in Indian hotels (an overview) According to the Annual Report of of tourism provided by the Indian Tourism Ministry, this last Ministry has taken initiatives regarded in the Act for Equal 12

13 Opportunities, Protection of Right and Full participation for persons with disabilities (1995) to make the tourism experience accessible to disabled people. In this paper, I will focus firstly on the Guidelines for classification or reclassification of hotels provided by the Indian Tourism Ministry. The list of requirements to make hotels accessible for disabled people stands thus: 1. All Star hotels must provide at least one room for disabled people, in which there must be: A door with a minimum width of one meter. Low height furniture Low peep hole Low hangers inside the cupboard Audible and visible blinking light alarm system. 2. A ramp with anti-slip floor at the entrance. In five Stars and five stars deluxe hotels there should be a free accessibility in all public areas. And, at least, free accessibility to one of the restaurants. 3. A maximum height for the urinal in all Public Restrooms (those who are unisex) of 24 (60.96 cm). And, it should have grab bars. At the same time, financial assistance will be provided to the State Government or Union Territory Administration by the Tourism Ministry for ensuring a barrier free environment at tourist places and make sure tourist destinations are also accessible. In order to make sure that the implementation of the decision of ensuring that the facilities to these modifications or additions to the building bye-laws from 1983 are made available by the State Governments or Union Territory Administrations, the Indian Ministry states that the following manners would monitor it: The State Government or the Union Territory Administration shall send a certificate along with project proposal to indicate that disabled friendly public facilities have been incorporated in the design of the built up area. At the same time of realizing facilities a certificate of final installment indicating the construction has been made according to the amended State building bylaws/ministry of urban development s Notification of 28 th Aug, 2002 (barrier free environment) 13

14 The State Governments or Union Territory Administration shall ensure that these sorts of facilities have been incorporated in the detailed estimates. 7. Conclusions: The tourism sector is one of the most important economic sectors among the Indian economy in terms of contribution to the GDP and employment economy. The contribution to the GDP and employment economy by the tourism Industry is forecasted to grow during the following years. Indian Hospitality Industry categories hotels depending on many bases (nature, size, ownership ) Indian Ministry of Tourism is more and more concerned about the safety and accessibility of the hotel establishments. 14

15 Additional Information: Alcohol Laws: Article 47 in the Constitution of India Duty of the State to raise the level of nutrition and the standard of living and to improve public health The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health Even if dry law is applied depending on the State, there are three days in which the Dry Law is applied all across India: 1. Republic Day (January 26) 2. Independence Day (August 15) 3. Gandhi Jayanti (October 2) In Gujarat: Foreigners, (including Non Resident Indians and Overseas Citizens of India) are able to acquire a 30 days permit to buy liquor at designated 5 stars hotels. However, this permit only provides permission to buy 2 units of liquor (1 unit=750ml) each 10 days. Requirements: - Foreign Passport, or Non Resident Indian Card, or Overseas Citizen of India Card, or Person of Indian Origin Card. - Showing the Address you re going to stay E.g.: Hotel Business Card. Drunk Driving Law states that the limit of Alcohol permitted for driving in India is 0.03% Penalties: Rupees and 6 months- 4 years imprisonment. (Penalties are applied depending on the blood alcohol content). Drinking age also varies depending on the State: 18 (e.g.: Goa, Karnataka, Uttar Pradesh), 21 (e.g.: Rajasthan), 25 (e.g. Delhi, Punjab), or even 30 years old ( e.g.: Maharashtra). 15

16 Bibliography: World Travel &Tourism Council «Economic Impact 2015 India» /media/files/reports/economic%20impact%20research/countries%202015/india2015.pdf «Indian Constitution, 1949» Available to read at : «Cambridge dictionary online» Code of conduct for safe and honourable tourism. United Nations Office on Drugs and Crime (UNODC), Pacific Asia Travel Association (PATA), Save the Children India (adopted on 2010) Annual Report Ministry of Tourism, Government of India Amendment in the existing Guidelines for classification/reclassification of hotels Government of India, Ministry of India (H&R Division), ( ) Guidelines for classification of heritage hotels, Federation of Hotel and Restaurant association of India Classification of hotels Shantimani Sathwara, Assistant professor at PCTE. No date available. Link: The Business of tourism: concepts and Strategies. Author: A.K. Bhatia (2006), New Delhi Page: