In addition, an HVS White Paper(3)


, reveals


that a typical hotel project may require approaching up to forty different agencies to obtain 70-110 licenses depending which state it is located in and the complexity of the development. Compare this with Singapore, which requires only six licenses. The report adds that most hotel development companies are advised to dedicate six to twelve months for the approval process, however even this is indicative as an environmental clearance or an AAI certificate alone may take up to two years. This can result in long delays and add to the overall project cost, which is already amongst the highest in the world due to high interest and land costs. Furthermore, the lack of transparency of the entire process can give rise to unethical business practices. Ultimately, these considerations are


important to sound business planning, and help to frame an understanding of the length of a commitment and barriers to entry into the market. With the potential of a market as vast as India, companies that stay the course and focus their strategies with a healthy understanding of how Indian clients and collaborators work will have the best chance of success. Where many groups falter


begin, hierarchy is of extreme importance. Decision-making authority is held at a very high level, and one will often have to first communicate with persons without the authority to make a decision. These individuals will almost never question authority, so if a decision has come from above, it can sometimes be difficult to negotiate. With this in mind, it is critical to get a true sense of the decision-making hierarchy at the outset of any project or relationship and to establish channels of communication appropriately. This approach can also greatly assist in keeping a project to schedule, as Indian projects have a reputation, deserved or otherwise, for over running their set time frames. That said, time in general is perceived differently. One may be kept waiting forty minutes for a meeting despite arriving on time and meetings may be interrupted several times with key decision makers leaving the room. It is important not to consider this rude, but instead to work around a distinct set of rules surrounding time and its value. When in India, always schedule plenty of time between meetings and contingency time to be able to adapt your schedule with ease.


will assist in encouraging more open communications. Relationship building, as with anywhere, requires an investment of time. At the end of every meeting clients and partners will undoubtedly want to know when you are returning to India. This carries a lot of importance as the perception of working at a distance with little communication can be very unappealing. As with any project overseas, a local


alliance can be a huge benefit. From a communications standpoint, a local team member can be at the ready for meetings and can help to interpret their outcome. From a cost standpoint, pooling resources on a project will often help make fees more competitive – it would be unwise to assume that the majority of Indian developers are accustomed to paying standard international fees. One of the keys to understanding this


polycultural, democratic society is that it does not necessarily aspire to be like anywhere else. The power of family and religion, and traditions like astrology and Vastu Shastra remain of extreme importance in everything from business decisions to the design direction for a project. What results is markedly Indian.


A typical hotel project may require approaching up to forty different agencies to obtain 70-110 licenses depending which state it is located


in and the complexity of the development. Critical Issues Facing Indian Hospitality: An HVS White Paper, 10 January 2009


is in striking this delicate balance between the large potential and the challenges of doing business in new ways and with new understandings. Key principals of working on a project in India include the importance of patience, a humble attitude, and trust. While certainly of value on any project, it is important to approach a relationship without any preconceived notions or distrust. It can be very easy to misinterpret the way in which issues are communicated and a predetermined distrust or know-it-all attitude will only accelerate a path towards miscommunication. There are numerous cultural differences that may have bearing on interactions. To


While most professionals in India will be English speakers, one shouldn’t be quick to assume that they are actually speaking the same language. Complex ideas that are not appropriately broken down, contractions and western metaphors can easily lead to misunderstandings. Also important to note is that Indian communications tend to be much more indirect than Western communications. One will very rarely come across a client who says ‘no’. More likely one will receive responses such as ‘we’ll see’. There is also a tendency to focus on the positive, so it is vital to push for information regarding concerns or issues. Letting clients know you personally


A successful business will understand


that and look to fuse its expertise in a meaningful yet productive way without hoping to change Indian traditions or ways but by respecting and leveraging India’s own convention-defying brand of growth, progress and opportunity.


Eileen Keribar is an independent consultant with over ten years of senior management experience at global architecture and design firms. Her focus is on international business development. www.eileenkeribar.com


(1) Hotels In India – Trends & Opportunities, HVS Delhi, 2010 Edition (2) Doing Business 2011: Making A Difference For Entrepreneurs: Comparing Business Regulation in 183 Economies, World Bank, 2010 (3) Critical Issues Facing Indian Hospitality: An HVS White Paper, 2009 47


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