SC order on liquor sale: World Travel and Tourism Council calls for coordinated nationwide approach
NEW DELHI: The World Travel & Tourism Council (WTTC), a global forum for the industry, called for a coordinated countrywide response to the Supreme Court ban on the sale of alcohol in proximity to highways, reflecting concern that move will take a toll on the revenue of several companies with interests in India. Some members of the industry, meanwhile, threatened a strike if the matter wasn't resolved soon.
WTTC said the ban will have a significantly negative effect on hotels and restaurants in India and will curtail investment for job creation in the industry.
In December, the SC had directed states and Union territories to cease granting liquor licences to outlets along national and state highways. No shops should be visible or directly accessible within 500 metres from the highways, the top court had said.
In its March 31 order, the Supreme Court rejected review petitions seeking clarification on the earlier judgement, forcing a vast number of hotels, restaurants and pubs to stop serving alcohol to guests, leading to losses in sales and tax revenue.
"While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian government to reverse or amend the current ruling," said David Scowsill, chief executive officer, WTTC. "I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those affected establishments."
Various options are being considered to mitigate the effect of the ban, including legal challenges, redesignation of highways as district roads and increasing the motorable distance to outlets.
Riyaaz Amlani, president, National Restaurant Association of India (NRAI) said he hopes the denotification process in various states — of highways being renamed — goes through. "If that fails, then we will have no option but to go to the president," he said.
Key industry groupings such as Federation of Hotels and Restaurant Association of India (FHRAI) and NRAI are planning to meet on April 11 in New Delhi with other tourism and travel bodies to discuss the matter.
Industry associations said they may be forced to declare a strike if talks with the state governments fail.
"Let the tourists be out on the roads. We are contemplating calling a nationwide bandh if our efforts to deal with the state governments fail," said Dilip Datwani, president of Hotel and Restaurant Association of Western India (HRAWI).
The order, based on a public interest litigation filed by an NGO called Arrive Safe, is aimed at checking drunk-driving on highways but industry experts say it will do little to discourage the practice.
Western industry associations met Maharashtra tourism minister Jaykumar Jitendrasinh Rawal on Thursday.
The state government assured them that move would not hurt the industry.
Amlani said around 30,000 restaurants and bars in India will lose their licences as a result of the ban. Other incidental losses could affect 1million jobs in the industry, according to previous estimates.
WTTC said the ban will have a significantly negative effect on hotels and restaurants in India and will curtail investment for job creation in the industry.
In December, the SC had directed states and Union territories to cease granting liquor licences to outlets along national and state highways. No shops should be visible or directly accessible within 500 metres from the highways, the top court had said.
In its March 31 order, the Supreme Court rejected review petitions seeking clarification on the earlier judgement, forcing a vast number of hotels, restaurants and pubs to stop serving alcohol to guests, leading to losses in sales and tax revenue.
"While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian government to reverse or amend the current ruling," said David Scowsill, chief executive officer, WTTC. "I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those affected establishments."
Various options are being considered to mitigate the effect of the ban, including legal challenges, redesignation of highways as district roads and increasing the motorable distance to outlets.
Riyaaz Amlani, president, National Restaurant Association of India (NRAI) said he hopes the denotification process in various states — of highways being renamed — goes through. "If that fails, then we will have no option but to go to the president," he said.
Key industry groupings such as Federation of Hotels and Restaurant Association of India (FHRAI) and NRAI are planning to meet on April 11 in New Delhi with other tourism and travel bodies to discuss the matter.
Industry associations said they may be forced to declare a strike if talks with the state governments fail.
"Let the tourists be out on the roads. We are contemplating calling a nationwide bandh if our efforts to deal with the state governments fail," said Dilip Datwani, president of Hotel and Restaurant Association of Western India (HRAWI).
The order, based on a public interest litigation filed by an NGO called Arrive Safe, is aimed at checking drunk-driving on highways but industry experts say it will do little to discourage the practice.
Western industry associations met Maharashtra tourism minister Jaykumar Jitendrasinh Rawal on Thursday.
The state government assured them that move would not hurt the industry.
Amlani said around 30,000 restaurants and bars in India will lose their licences as a result of the ban. Other incidental losses could affect 1million jobs in the industry, according to previous estimates.
