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MoT To Set Up Classification System For Guesthouses

Anindita Chattopadhyay - New Delhi


“The objective is to bring the large reservoir of accommodation available in the unorganised sector into the fold of the organised sector”
Rajeev Talwar

In an effort to tackle room shortages, particularly in metro cities, the ministry of tourism has planned to come up with a classification system for guesthouses. While the improved tourism scenario has seen record growth in occupancies and average room rates, however, with fewer than 95,000 hotel rooms, there is a demand-supply imbalance.

"India at present requires 150,000 rooms. The objective is to bring the large reservoir of accommodation available in the unorganised sector into the fold of the organised sector. A classification system will ensure that these guesthouses offer clean, hygienic, standardised basic facilities and safety," said Rajeev Talwar, additional director general (ADG), Ministry of Tourism.

To this effect, AK Misra, secretary, ministry of tourism has already announced the formation of a task force to be chaired by the ADG comprising representatives of the state governments and private sector for setting up the system. "Currently, the ministry is preparing the draft guidelines. Then the private sector, state governments, state tourism boards, municipal bodies and trade associations like HAI, FHRAI, IATO and TAAI will be involved to be a part of the system. Within two months time the process will be complete and guidelines will be put up on the ministry website," said Talwar. Opting for the classification system will be optional. The classified guesthouses will get a certification for three years under the categories A, B and C.

Welcoming the decision, IATO president, Subhash Goyal said, "Hotels cannot be built overnight, so it is a step in the right direction. The sooner it is implemented, the better because tour operators are facing a tough time due to room crunch." However, according to FHRAI secretary general Shyam Suri, they are yet to receive any communication from the ministry.

It may be stated that according to a HVS International study, budget hotels will be able to operate at impressive occupancies and build a loyal customer base among niche markets like non-negotiated commercial traveller, airlines and the extended stay market.

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