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Hotel and restaurant operators in Mumbai have welcomed the Maharashtra government's plan to prolong business hours. Bharat Malkani, president, Hotel and Restaurant Association (Western India), tells Sanjay Jog how vibrant nightlife will encourage more people to visit the city and it would also generate additional revenue for the government. Edited excerpts:
What is Hotel and Restaurant Association Western India (HRAWI)’s view on the government's move to allow eating joints and pubs in non-resident zones open through the night?
HRAWI completely endorses the view of the government on this. We don’t believe that it should be applicable only for non-residential areas. There are residential places where hotels and restaurants may operate and we need to be careful that this does not cause any inconvenience to the public. It is imperative that certain areas like airports have eateries open 24x7. The number of Foreign Tourist Arrivals (FTAs) in the city during the night is pretty high and presently we cannot offer them food or beverages. This move most certainly is heart-warming for not just the hotel industry but for the city as a whole.
How the business will benefit?
Apart from just benefiting business, this will create a paradigm shift for what it means to have true nightlife in Mumbai for both visitors and locals. When people start spending here, the resultant tax collection goes up for the government. For example, in today’s scenario, when people want to enjoy nightlife, they pack their bags and go to Goa or some other place where they can have this liberty. However, imagine the government gives this convenience to Mumbai. This directly will translate to more revenue collection within the city and as a consequence the government coffers will benefit. We hope the revenue could increase by almost 50 per cent.
Will shops, malls, pubs and hotels be able to attract more customers during night?
Customers are already there. It’s just that they can’t avail these facilities now. Mumbai used to be known for nightlife. Late night dining for a city that works 24x7 is a big boon for the working class people. By making this change Mumbai will have the first movers’ advantage in all of India. This will automatically bring tourists here, international as well as domestic. Mumbai has a fascinating eclectic and diverse culture. Addition of a vibrant nightlife will encourage people to visit us. Tourists could feel compelled to stay for a few more days. As per our calculation, each foreign tourist deciding to extend his stay by a day brings in as much as Rs 547 crore extra revenue to the state government by way of current tax.
What about the security aspect?
If this is about the crime in the city, then it has never been driven by eating or drinking. As long as the current and future police personnel stand strong, we feel confident about crime control. Open hotels, pubs and bars bring activity and life to non-residential zones. We feel if there are criminals or anti-social elements in these areas they may be discouraged to operate.
Q: How this will also lead to increase in tax payment to BMC and government?
A: Sales of Food and beverages attract VAT and Service Tax. So once the revenue goes up, the collection goes up too.
