The Federation of Hotel & Restaurant Associations of India (FHRAI) has voiced its opposition to a proposal by the Ministry of Tourism to replace the current hotel classification system with a third-party star-rating system.
The ministry had sought feedback from industry associations on a new “System for Tourism Accreditation Rating (STAR)” based on a concept note prepared by the Quality Council of India (QCI). This system would involve third-party assessment by agencies accredited under the National Accreditation Board for Certification Bodies (NABCB). The evaluation would align with ISO/IEC 17020 international standards.
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The government believes this approach would enhance credibility, transparency, and impartiality while streamlining the process. However, FHRAI argues that the proposed system would be “rigid and mechanical.”
The federation favors retaining the existing Hotel & Restaurant Approval & Classification Committee (HRACC) system, calling it “the most transparent, professional, industry-friendly and most credible system” for hotel classification.
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The HRACC system, established in 1957, is considered by the federation to be the pioneer of unified quality standards within the industry. The federation deems the suggestion of merging HRACC with ISO and BIS to be inappropriate at this time.
According to the federation, ISO standards, introduced later, primarily focus on defining a business quality manual for processes chosen by individual businesses, making them “subjective in nature.” There may be room for personal interpretation, which can lead to disputes and challenges in the future.
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The HRACC system, on the other hand, brings together industry stakeholders and regional tourism directors to work together and make inspections more beneficial for hotels, FHRAI contends. However, the federation is worried about the possibility of bias and inconsistency with the third-party system.
Additionally, FHRAI raises questions about potential integrity issues, cost increases, and the suitability of the proposed app-based filing and inspection process for the hospitality sector. The federation claims this system was developed without considering the industry’s specific needs and feedback.
