Sector Books/Booklets

THE HOSPITALITY INDUSTRY IN INDIA – A GUIDE TO LEGAL ISSUES

Hospitality | Aug 2018

The devil lies in the details. An adage which perhaps can be best fitted to the hospitality industry. And yet, there are few industries within the services sector whose target customers encompass the old, the young, span nationalities, countries and cultures. There is no definitive market segment as indeed the entire world is their market.

The hospitality sector is one of the key drivers of growth among the services sector in India. Additionally, India is expected to move up five spots to be ranked among the top five business travel markets globally by 2030. There is little doubt of the sheer potential this industry holds going forward…. Yet heavy is the head that wears the crown. Faced with stringent government regulations and constantly changing policy related issues, coupled with red tapism and increasing infrastructure costs, the path to profitability is a tough one. Lack of proper trained talent and an increasingly demanding customer further compound these issues. Needless to say the brick and mortar hospitality sector is facing its toughest competition ever from the virtual world of AirBnB’s. The tough balancing act between the Owner and Manager and a stark increase in insolvency and bankruptcy cases are further headwinds the market has to contend with.

It is against this challenging backdrop that we at ELP are delighted to bring you ELP’s guide –Indian Legal Issues for the Hospitality Sector. Drawing upon our experience of over 16 years within the hospitality sector, the paper has been especially curated to address the pressing legal issues which are being faced by various stakeholders within the sector. Our team of specialists at ELP has endeavored to simplify and cut through the complex legal language to put forth these issues in a reader friendly format.

The subjects covered in this guide include the very real and practical problems being faced, which if not addressed could be game changers for the sector. From a legal standpoint, Hospitality Management Agreement (“HMA”), Franchising Agreements, Competition Law, GATS and key policy areas such as GST and IBC have been included. Equally, the paper also focuses on the pressing issues of Data Security and the prospective business models which seem likely to play out in the sector.

We do hope this makes for some interesting reading. We enjoy every reader’s opinion and welcome your feedback.

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