Analysis of the Hotel Market in India
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Analysis of the hotel market in India
Hotel industry in India has witnessed tremendous boom in recent years. Hotel industry is linked to the tourism industry, and the growth in the Indian tourism industry has fuelled the growth of hotel industry.
The economy and increase business opportunity in India have acted as a boon for Indian hotel industry. These include the abolishment of the inland air travel tax of 15%, reduction in excise duty on aviation turbine fuel to 8% and removal of the number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft.
According to a report hotel industry in India currently has supply of 110000 rooms and there is a shortage of 150000 rooms fueling hotel room rates across India. According to estimates demands is going to exceed supply by at least 100% over the next two years, five stars hotels in metro cities allot same room, more than once a day to different guest, receiving almost 24hours rates from both guest against 6-8hours usage with demand and supply disparity, hotel rates in India are like to rise by 25% annually and occupancy by 80% over the next two year. This will affect the competitiveness of India as a cost effective tourist destination.
Indian hotel industry is adding about 60000quality rooms, currently in different stages of planning and development m which should be ready by 2012. Hotel industry in India is also set to get a fillip with Delhi hosting 2010 commonwealth Games. Government has approved 300 hotel projects, nearly half of which are in the luxury range. The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.
The government law in India
Before 1991, for the foreign investors to be able to understand the law of the India is very important, not only the law
Analysis of the hotel market in India
Hotel industry in India has witnessed tremendous boom in recent years. Hotel industry is linked to the tourism industry, and the growth in the Indian tourism industry has fuelled the growth of hotel industry.
The economy and increase business opportunity in India have acted as a boon for Indian hotel industry. These include the abolishment of the inland air travel tax of 15%, reduction in excise duty on aviation turbine fuel to 8% and removal of the number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft.
According to a report hotel industry in India currently has supply of 110000 rooms and there is a shortage of 150000 rooms fueling hotel room rates across India. According to estimates demands is going to exceed supply by at least 100% over the next two years, five stars hotels in metro cities allot same room, more than once a day to different guest, receiving almost 24hours rates from both guest against 6-8hours usage with demand and supply disparity, hotel rates in India are like to rise by 25% annually and occupancy by 80% over the next two year. This will affect the competitiveness of India as a cost effective tourist destination.
Indian hotel industry is adding about 60000quality rooms, currently in different stages of planning and development m which should be ready by 2012. Hotel industry in India is also set to get a fillip with Delhi hosting 2010 commonwealth Games. Government has approved 300 hotel projects, nearly half of which are in the luxury range. The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.
The government law in India
Before 1991, for the foreign investors to be able to understand the law of the India is very important, not only the law