India hotel industry leaders decry booze ban
Sunday, 05 Apr, 2017
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Hotel and restaurant trade bodies in India urged authorities to reconsider an alcohol ban in restaurants and hotels located near state and national highways.
It will seriously impact tourism and cost jobs, industry groups said.
An order was passed to halt the serving of alcohol from venues within 500 metres of major roads in order to curb drunk driving.
The deadline for all relevant outlets to stop selling booze was April 1.
It is feared different states will likely interpret the ruling differently with various regional governments now seeking special dispensation for special events such as weddings.
The Federation of Hotel and Restaurant Associations of India (FHRAI) and several other trade bodies met with central and state government officials this week to discuss the liquor ban.
They argue it will make India less attractive to foreign visitors and affect the MICE market.
Also, as many businesses rely on the relatively high mark-up prices of alcohol, some hotels and restaurants could fold.
"We are also engaging with various State governments. This week will be crucial for us to formulate the future strategy and whether we need to take the legal route," said Garish Oberoi, FHRAI vice president.
He said hotels located on major highways but within large urban areas should be exempt from the order.
Carlson Rezidor Hotel Group is one major hospitality group that has been affected with the ban.
"While we understand the intent of the order, there has to be a different solution to tackle the grave issue of accidents caused due to driving under influence," said Raj Rana, chief executive officer for South Asia at Carlson Rezidor.
"For now, we are banking on the industry voice to be represented through the industry bodies; but if this prevails, hotel players will need to look at ways to augment sales so that it does not erode the profitability. It will impact not only restaurant and bar revenues located within hotel premises, but also the ability of the hotel industry to host international conferences."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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