-Khwaish Jain (cbedit@imaws.org)
The hotel and restaurant industry in South Gujarat is currently navigating a complex landscape shaped by various economic and social factors. A significant shift towards the stock market has diverted investments away from traditional businesses, such as textiles and diamonds, leading to challenges for the hospitality sector. The impact of the COVID-19 pandemic has further exacerbated these issues, prompting organizations like SHARA to step in with support for affected stakeholders. As the industry adapts to these changing dynamics, it faces the dual challenge of maintaining competitiveness while embracing sustainability and innovation to meet evolving consumer preferences.
In order to know more about the current industry scenario, Sanat Relia, VP, South Gujarat Hotel and Restaurant Association (SHARA) spoke in detail on the challenges and issues in the market.
While speaking to him on the current trends impacting the hotel and restaurant industry in South Gujarat, he said. “The hotel and restaurant industry in South Gujarat is currently facing significant challenges due to a notable shift in focus towards the stock market. The stock market is drawing substantial investments, leading to a recession in core businesses like textiles and diamonds. People are increasingly investing in mutual funds instead of focusing on their own enterprises. After COVID-19, many who were jobless for six months turned to the stock market, viewing it as a viable income source.”
With technology making investing easy via mobile phones, this trend has intensified. In workplaces, employees often use company Wi-Fi and air conditioning while being preoccupied with their stock investments, detracting from their productivity. This shift poses a significant threat to the hotel industry, as attention and resources are diverted from traditional business ventures. As a result, the hotel and restaurant sector must adapt to these changing dynamics to remain viable and competitive.
We further deep dived more on how has SHARA adapted to the challenges posed by the COVID-19 pandemic to which he shared the initiatives by them namely, SHARA has made significant efforts to support the hotel industry and its stakeholders during the COVID-19 pandemic. They distributed homeopathic medicines, arranged trains for migrants, and provided food packets for those in need. Establishing business continuity was challenging, but SHARA advocated for a six-month rent waiver for restaurant owners, particularly benefitting fine dining establishments that struggled to regain their footing post-pandemic.
Additionally, SHARA sought tax benefits from the municipal corporation, successfully obtaining a one-year waiver specifically for the hotel and restaurant sector, which was a crucial lifeline for many businesses facing unprecedented hardships. Whie speaking to him on current initiatives of SHARA that they have in place to promote sustainable practices within the hospitality sector, Sanat proudly shared SHARA has implemented several initiatives to promote sustainable practices within the hospitality sector. They organize seminars that encourage the use of biodegradable plastic carry bags while discouraging all plastic items like straws and food containers. The community has shifted to using paper bags and degradable food containers. For cleaning and laundry, SHARA advocates using non-hazardous chemicals sourced from reputable companies that do not harm the environment. They also focus on water harvesting and recharging bore wells, utilizing solar panels for electricity, and employing LED lights and inverter ACs to reduce the carbon footprint.
Additionally, SHARA emphasizes waste management by promoting the separate processing of garbage, including wet waste and e-waste. Wet garbage is processed in bio-waste plants or organic waste converters, with some members handling it internally and others outsourcing to specialized agencies. We also discussed on their recent advocacy efforts SHARA has undertaken to influence government policy on behalf of the hospitality industry, to that Sanat added,
SHARA has actively engaged in advocacy efforts to influence government policy regarding fire safety regulations in hotels and restaurants. The association has sought amicable solutions for older establishments facing stringent new rules that may be difficult to comply with. In discussions with government officials, SHARA has worked to highlight the challenges faced by these older hotels and has successfully negotiated alternative solutions that protect the interests of the hospitality industry. These efforts have been crucial in addressing the concerns of hotel owners while ensuring compliance with safety standards, thereby safeguarding the industry from potential threats.
Lastly we also further uncovered how SHARA facilitates training and development for its members to keep up with industry standards and innovations, to which he continued saying, “SHARA facilitates training and development for its members to keep pace with industry standards and innovations through various initiatives. They organize online training sessions and seminars covering essential topics such as food safety measures, GST knowledge, the use of electric vehicles, and fire safety regulations.”
Currently, the café culture is trending, and business in this segment is expected to grow steadily. The leisure tourism segment is also expanding, surpassing traditional business-class tourism, which is declining due to the rise of fast trains like Vande Bharat and Shatabdi, as well as affordable airline options. Technological advancements, such as email and video conferencing, have reduced the need for frequent business travel, leading to a gradual decline in the business traveler segment. However, there remains potential growth in conferences, incentives, and exhibitions. The wedding and banquet segments in restaurants are also performing well, indicating a diverse landscape for hospitality training and development.
The hospitality industry in South Gujarat is at a critical juncture, influenced by trends in investment, consumer behavior, and regulatory changes. SHARA’s proactive initiatives, including advocacy for rent waivers and sustainable practices, are essential for helping members navigate these challenges. By focusing on training, development, and adapting to market trends, the industry can position itself for recovery and growth. As the landscape continues to evolve, collaboration and innovation will be key to ensuring the long-term viability of hotels and restaurants in the region.
