The world is coming to India

By Nakul Anand
Divisional Chief Executive, ITC Hotels

A hotel brand is as big as its ability to identify its futuristic approach and distinguish itself from the rest, and according to Nakul Anand, divisional chief executive, ITC Hotels, the brand has been able to achieve that. According to him, India's progress has been good so far. The most critical event of the year, according to him, is the continuing reforms in civil aviation. "Airport privatisation, low-cost carriers and open skies," he explains, are the most significant.

He is forthcoming about the hospitality sector." The entry of realtors into the hospitality arena such as DLF Unitech, Parvsnath, EMAAR MGF, to name a few, will leave a visible impact on the sector," he adds.

Growth of the Indian economy has contributed to the industry in more ways than one. It has given confidence to entrepreneurs to dream big and achieve it. ITC Hotels, as an entity, is also charting plans that are in sync with the development of India, and thereby supports company plans in all respects.

Anand believes that India has emerged as a destination of the future. He says, "The economic and social growth has been tremendous and is still growing. Due to this, there will be a number of blips in the current growth cycle but that shouldn't deter anyone from progressing. It is time for development."

However, there are certain concerns voiced by global CEOs who are looking at India as an investment destination. For instance, the lack of transparency of information, level of actual demand, system information and structural issues. According to him, these issues need to be tackled on an immediate basis, so as to make India a popular destination. Also, there is the issue of the increase in terms of the number of international brands making a beeline to India at all price points; albeit with minimum direct investment, and more through the management or franchise route. Another issue to be tackled is the rationalisation of taxes. "The current luxury tax, which ranges from 0 - 30 per cent for actual to published tariff does not speak well of the country's unified approach to tourism." Amendment of byelaws to increase land supply is another critical issue.

The growth of ITC-WelcomGroup has been rapid. It now wants to target high-end travellers and has signed an exclusive agreement with Starwood Hotels & Resorts, in this regard, which enables it to have the premium brand, the Luxury Collection, in India.

Anand informs, "Under the new franchise agreement we have signed, a total of seven hotels will become part of ITC-Luxury Collection - the newest brand in our family. This step makes ITC WelcomGroup's seven hotels among the 58 exclusive properties in 25 countries under the Luxury Collection, which is seen as a remarkable achievement for India. This also highlights India's potential to have the best of brands and world hospitality standards."

It also shows how ITC Hotels is looking at its future. According to the new agreement, marketing and distribution of these seven properties (under Luxury Collection) will be looked after exclusively by Starwood Hotels & Resorts. At the same time, the company would be investing Rs 500 crore in the next five years, developing new properties and upgrading and expanding existing ones. The group will also be adding more new properties in smaller cities and towns under its Fortune brand.

Anand believes that the industry should rise to the occasion to match the potential of the tourism sector as tourism is helping in the growth of the country's economy. The way ahead is through the PPP route, he opines. "There should be increased awareness and worldwide recognition of 'Brand India' through the efforts of a great public - private partnership," he states, adding that "the world is coming to India" and the Group will therefore continue to expand its footprint across India; across the four brands. "We will actualise our stated intent of investing Rs 8000 crores in the hotel business," he says in conclusion.