Tourism and hospitality, a key sector of the Indian economy, plays a key role in the growth of Brand India and accounts for around 12.4 per cent of the total employment in India. Globally, tourism ranks fifth as an export category after fuels, chemicals, food and automotive products. The tourism and hospitality sector is among the top 10 sectors in India to attract the highest foreign direct investment (FDI).
The tourism and hospitality sector in India is highly optimistic with a large number of hotel chains having lied up their expansion plans. Global consultancy company Deloitte stated that more than 400 hotels offering over 70,000 branded rooms were likely to be commissioned in the next two years across the country. Some of the recent investments in this sector are as follows:
- Carlson Rezidor Hotel Group announced that it would have over 50 operational Park Inn by Radisson properties in India by 2024.
- Starwood Hotels & Resorts operates 39 hotels in India under six brands, including Luxury Collection, Westin, Sheraton, Le Meridien, Four Points by Sheraton and Aloft. It is looking to have a total of 100 hotels in its Indian portfolio by 2015.
- Luxury hotels chain Kempinski has plans to operate three new hotels in India by 2020 in Kolkata, Mumbai and Kerala.
- InterGlobe Hotels plans to have 19 ibis hotels operational in India by 2016.
- Lemon Tree Hotel Company has plans to add 5,200 rooms across India in the next four years.
With the expected boom in the room inventory over the next five years, the demand for trained manpower in the hospitality sector ‘will rise dramatically’. Already the sector was facing a near 30 per cent shortage in skilled workforce.
The renewed sense of optimism comes on the back of a volatile economic environment for most part of 2014 and the sector hopes that initiatives announced by the new government, including those related to e-visas, Tourist Visa on Arrival and specific funds for developing tourist circuits, would lead to good business.
The policies and changes implemented by the Government of India have been instrumental in providing the necessary boost to the Indian tourism and hospitality industry and attracting more and more foreign tourists every year.
According to 2014 statistics shared by the Ministry of External Affairs, Government of India, the Indian hospitality sector has been growing at a cumulative annual growth rate of 14 per cent every year.
References:Media Reports, Ministry of Tourism, Press Releases, Department of Industrial Policy and Promotion (DIPP)