Reasons behind the Upswing of Indian Hotels Industryby STG Journey Best Corporate Travel Company
The push of government of making India a 5 trillion dollar economy by year 2024 has given a good indication to the hotel industry in India. Keeping in mind the economic growth, improving global conditions, expanding status of middle class, increasing conferences and exhibitions (MICE) segment and growing craze among the wanderlust, a report by CARE Ratings suggests that there will a significant growth of 7 per cent to 9 per cent in Indian hotel industry. Apart from these factors, India has also become a medical tourism destination which is also one of the big reasons of robust growth in this industry.
The rise in tourism industry has given some positive indication of long-term hotel industry growth. In last couple of years, government has taken few positive steps to boost the travel and tourism industry. Due to some good policies and initiatives like Swachh Bharat Abhiyan, some modification of visa rules and e-visa facility, the industry has witnessed a sharp jump in foreign tourist arrivals, resulting in sharp jump in hospitality sector.
There is no doubt in saying that tourism sector and hotel industry are largely reliant on each other. According to the report of World Economic Forum, India is placed on the sixth position in tourism and hospitality sectors. Therefore, the road head looks very much promising for the industry ensuring higher room revenues and profit margin.
India is known for its vast culture and diversity. There are a number of tourist places across the country to explore. In view to promote tourism, many world class hotels are built in various parts of India aiming to provide comfortable accommodation to the travelers. Due to high potential of tourism in India, the hotel industry is always expecting good growth. As several development projects are in operation and some in pipelines, tourism and hotel industry is all set to register continuous growth in future as well.
Asset-light model, mid-market boom, local flavor and splendid hospitality are also some of the key reasons behind the upswing of Indian hotel industry. Ease of doing business has also encouraged entrepreneurs to invest and setting up their brand in India. This means more business trips, increase in foreign tourist arrivals and jump in forex earnings growth. Keeping in mind all these points, a number of corporate travel company are spreading their footprints in India promising to provide best corporate deals at unmatched prices.
In last few years, a significant jump has been noticed in the occupancy of mid range hotels (2-star and 3-star) where travelers get all kind of modern amenities at reasonable prices. Business travelers and wanderlust now like to stay at business hotels, resorts, boutiques or havelis instead of spending night at five-star hotels. Travelers now like to spend more on exploring rich history and vast culture of India therefore they prefer long stay in this part of the world. The current trends and statistics clearly show that the hotel industry in India will grow at good pace and the industry will be estimated to expand at 13 billion U.S. dollars by the end of 2022.
Created on Sep 20th 2019 03:22. Viewed 1,199 times.
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