The current scenario
The Indian economic bubble has achieved a commendable feat of growing bigger and bigger without bursting. The consequences are plain to see. The bull run in the Indian stock markets has been unstoppable and the purchasing power of the much ridiculed average Indian has hit new highs. Above all, the Indian economy shows no signs of slowing down and promises to grow at an incredible rate. This scenario has been especially favorable for the hotel and catering sector. The amazing India! The campaign, cheaper airfares and eased security concerns due to better relations with Pakistan have added more fuel to the already booming tourism industry.
Lack of hotels in India
But sadly, the hotel and hotel industry has yet to catch up with this growth. The introduction of the bed and breakfast scheme, which offers tourist accommodation in houses that have spare rooms, is ample proof of the shortage of hotel rooms in India. The demand for rooms stands at 90,000 rooms, which can hardly be covered with the supply of 61,000 rooms. Added to this, the gap between supply and demand is expected to increase, taking into account the growth of the tourism industry. Today, the tourism industry needs 200,000 more rooms.
The requirement of hotels.
We are in the process of revealing the power of India to the world. Be it cultural tourism, business tourism or medical tourism, India has already earned a place on the world map. And we definitely cannot afford to lose our position due to the unavailability of hotels for tourists to stay. Although the current growth rate of the hotel industry as a whole is a whopping 40 percent per annum – with Bangalore experiencing the highest growth rate – we are in dire need of hotels in various categories including five-star luxury hotels, executive class and reasonable adjustments to meet national traffic.
The causes of the increase in demand
Rising disposable incomes for India’s increasingly affluent middle class have been one reason for rising demand for hotel accommodation, along with flexible visa rules, public freedom and abundant airline fares. low cost. The new corporate culture with travel incentives and the proliferation of blue-chip companies in India have contributed their share in increasing the demand for hotel accommodation in the country.
Government measures to meet demand
The government has increased foreign direct investment (FDI) in the industry to 100 percent, in May 2001. Considering the many opportunities for hotel owners here, the sector is seen in the top position among competing sectors for FDI. Although this has certainly paved the way for foreign hotel giants to establish themselves in India, the lack of infrastructure facilities, red tape and lawless land laws are a discovery for many. The government, while focusing on reactivating tourism, must also take care to provide the necessary bases required for the development of new hotels. Hotel taxes in India are higher than in most other Asian countries. This needs to be urgently addressed.
Why is India the next big destination?
domestic tourism
What could be better news than hotel industry stalwarts from around the world waiting to settle in India to experience a piece of the action of its booming economy and, in turn, meet the demand for tourist accommodation? ? Consider this: the Indian domestic market is one third of total international arrivals in all global markets combined. Religious tourism and the Incredible India initiative destination campaign also represent the growing domestic tourism industry.
The international tourism market in India
The number of international visitors to India has been increasing steadily over the past decade due to a number of reasons. With multinationals converging on India to establish business operations, there has been an increase in business travelers from various parts of the world. Indian culture has played an important role in attracting leisure tourists to the Holy Land, while the splendid beauty of our untouched countryside and incomparable monuments make for an interesting journey. Religious tourism is also catching up, with circuit-induced Buddhist tours attracting Japanese tourists in droves. The boost in medical tourism in recent years can be attributed to low-cost medical treatments at the hands of some of the world’s smartest brains.
The challenges that lie ahead
The experts are not entirely wrong in painting an optimistic picture of our hospitality industry in the coming years. But they are not entirely right either. We can help brands to establish hotels here only when we improve some of our drawbacks. Our crumbling infrastructure needs to be fixed before we expect the trickle of foreign visitors to turn into a deluge. Dilapidated roads, railways that never run on time, and airports that don’t get any younger are some of the first obstacles to receiving international traffic. Esoteric business practices and corruption could also scare off foreign investors.
bottom line
With the fact that there is a huge demand for hotels in India being true, we are at a crossroads where moving forward is a matter of tackling the associated challenges. If we can do it successfully, we will reap its benefits; if not, we are missing out on one of the greatest opportunities before us.