Pradeep Shetty, FHRAI’s newly appointed President, aims to tackle legal issues such as music copyright, pending payments & significance of ‘industry status’ in hotel sector.
Lipla Negi
Q: What key legal issues you would like to take up during your tenure as President?
A: As President, there are key issues I want to focus during during my tenure. First and foremost, the pending legal matters at FHRAI are critical. A pressing matter demanding immediate resolution, which has been pending for some time, is the music copyright issue with unscrupulous copyright agencies. Numerous patent disputes are ongoing in various courts nationwide. Our concern lies in ensuring the current law is adhered to without insisting on charges for playing music at weddings and related events. Demands by copyright agencies and owners for charges related to these events are causing complications, placing hotels in a challenging position between these agencies and guests. To streamline copyright licencing practices, we have conducted several meetings with the Department for Promotion of Industry and Internal Trade and the Government of India. Our aim is to establish either a unified single-window system or a single copyright society for specific classes of work. This initiative aims to prevent multiple agencies from causing unnecessary hardship and harassment to both the public and hotels.
Another issue is concerning pending payments owed to FHRAI members and other hoteliers seeking FHRAI’s support in protesting against Oyo. We accord top priority to resolve this matter through legal recourse or mutual dialogue. We are concerned about the budget segment of hotels within our industry, emphasising the importance of ensuring a fair and level playing field between online travel agencies and hotels in terms of business practices.
Q: How is the ‘industry status’ pivotal for the overall growth of the hotel sector?
A: The demand for ‘industry status’ for hotels has been a longstanding request, with the initial notification coming through back in 1999 in Maharashtra. The rationale behind this demand stems from the significant role the hotel industry plays as a key economic driver in our country. It contributes a substantial percentage of revenue to the GDP, along with employing a wide spectrum of individuals, from gardeners to Harvard graduates. Recognising the sector’s potential, states have acknowledged this need, leading to the accorded benefits and industry status. These benefits include reductions in electricity duty, deductions in electricity tariffs, property tax rates and GST rebates, among others. Such benefits are pivotal in facilitating the establishment of a greater number of hotel rooms.
Q: How do associations such as FHRAI stay relevant in the changing times?
A: FHRAI stays relevant in changing times through its commitment to representing and advancing the industry’s collective interests. The federation plays a pivotal role in promoting and enhancing the hospitality and tourism sectors in the country. By actively engaging in policy formulation, FHRAI contributes positively to industry growth and assists members in adapting to evolving circumstances and acquiring the necessary skills, knowledge and education to overcome challenges.
FHRAI’s relevance lies in its proactive approach, constant support, advocacy and efforts towards skill development, thus ensuring it remains a pivotal force in promoting industry growth and adaptation to changing times. FHRAI focuses on skill development and training initiatives to nurture the talent pool.
To streamline copyright licencing practices, we have conducted several meetings with the DPIIT and the Government of India.”
