Hospitality Project
Executive Summary
Tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. India offers a wide variety of options to tourists both international and domestic varying from rich heritage to forests and mountains. Indian Government recognizes the potential of Tourism as an avenue for equitable growth and has announced a number of policy initiatives to sustain and develop the tourism sector. Also, 100% FDI is allowed in Tourism and Hospitality Sector which has led to explosion of brands and investment in the sector. The factors driving growth of tourism in India has been largely economic arising from higher disposable income with the growing middle class and surging status of India in eyes of foreign countries. The revenues in the sector are expected to surge by 42% from 2007 to 2017 and is likely to generate US$ 121.4 billion of economic activity by 2015. The key trends defining the industry have been growth of branded hospitality sector and growth of entrepreneurial activity especially in the sectors like food, travel or services. The growth of tourism is not without its perils. The mounting fear of terror attacks, inflationary trends in Real Estates and dearth of skilled manpower have been the key challenges facing the sector. Also, as most of the Western Economies still grapple over the after effects of recession, tourism remains low on the priority for most of the spenders. Image Building campaigns, Vocational Training Program specific to the sector and Collaboration with the International Tourist Agencies should be major focus areas for the entrepreneurs and organizations in the sector. The government should also complement the effort as much as possible and can make the sector more competitive by granting Infrastructure status to the Hospitality Sector. A major source of impetus in future would be development of niche tourism like Medical Tourism, Adventure Tourism, etc.
Tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. India offers a wide variety of options to tourists both international and domestic varying from rich heritage to forests and mountains. Indian Government recognizes the potential of Tourism as an avenue for equitable growth and has announced a number of policy initiatives to sustain and develop the tourism sector. Also, 100% FDI is allowed in Tourism and Hospitality Sector which has led to explosion of brands and investment in the sector. The factors driving growth of tourism in India has been largely economic arising from higher disposable income with the growing middle class and surging status of India in eyes of foreign countries. The revenues in the sector are expected to surge by 42% from 2007 to 2017 and is likely to generate US$ 121.4 billion of economic activity by 2015. The key trends defining the industry have been growth of branded hospitality sector and growth of entrepreneurial activity especially in the sectors like food, travel or services. The growth of tourism is not without its perils. The mounting fear of terror attacks, inflationary trends in Real Estates and dearth of skilled manpower have been the key challenges facing the sector. Also, as most of the Western Economies still grapple over the after effects of recession, tourism remains low on the priority for most of the spenders. Image Building campaigns, Vocational Training Program specific to the sector and Collaboration with the International Tourist Agencies should be major focus areas for the entrepreneurs and organizations in the sector. The government should also complement the effort as much as possible and can make the sector more competitive by granting Infrastructure status to the Hospitality Sector. A major source of impetus in future would be development of niche tourism like Medical Tourism, Adventure Tourism, etc.
References: 1) Dissecting the Indian Hospitality Industry, volume 1, Technopak perspective 2) Indian Tourism : Managing Growth by Breaking Barriers, volume 2, Technopak perspective 3) The McKinsey Quarterly, Healthcare 4) Cygnus Business Consulting & Research, Quarterly performance analysis of companies (Indian Hospitality Sector) 5) Cygnus Business Consulting & Research, Industry Monitor – Hotels and tourism 6) India Tourism Report Q3 2010 7) Dewan P.N. Chopra Consultants Private Limited, The Indian Tourism and Hospitality Industry 8) Firstcall India Equity Advisors Pvt. Ltd., Hospitality Industry in India 9) www.indiahealthvisit.com 10) www.zimbio.com 11) www.wikipedia.com 12) http://www.india-now.org/artdisplay.aspx?cat_id=181&art_id=25343&arc=show 13) http://tourism.gov.in (Website of Ministry of Tourism, Government of India) 14) http://www.indiatourism.com/en_newsdetail.0.html?&tx_ttnews%5Btt_news%5D=504&cHash=4fb428c7999cb4 5b5a2d3c3ee566b408 15) http://www.ibef.org/industry/tourismhospitality.aspx 16) http://adventure-tours.indianholiday.com/adventure-tourism-in-india.html 17) http://www.toursoperatorindia.com