Indian Hospitality Industry – An Overview
Indian hospitality industry is considered a major attraction for FDI. The sector of India is growing at an extremely fast pace and clocking CAGR of 14 %. The existing gap between demand and supply of hospitality services is expected to widen further as the Indian economy grows. The Indian government estimates the requirement of more than 200,000 rooms by the end of this year. The foreign investors are tapping this opportunity in a big way, According to DIPP, the amount of FDI inflow in the industry during the last couple of years was more than US$ 6 Billion.
- Tourism accounts for 6.8% of GDP & the 3rd largest foreign exchange earner.
- Indian hospitality sector is the 2nd largest employer in the country.
- India offers geographical diversity, attractive beaches, 30 World Heritage Sites & 25 bio-geographic zones.
- INR 5 Billion budget for creation of 5 tourist circuits around specific themes.
- India has been the most attractive destination for global hospitality industry players.
- E-visa facility offered to 113 countries by the Govt of India & this will further expand to 150 countries by March 2016.
- ICRA estimates a revenue growth of 9-11% in current Financial year.
- Over 7.757 million foreign tourist arrivals were reported in 2015.
- As per World Tourism Organisation, 15.3 million foreign tourist arrivals are expected to arrive in India by 2025.
- Strong Govt promotion through “Incredible India” & “Athithi Devo Bhava” (Visitors are like God) campaigns.
- Many domestic & International hotel chains have ambitious expansion plans.
- Rapid growth in the industry has created a huge demand for world class ingredient & equipment suppliers.
- Govt of India has proposed to establish cross cultural linkages and to revive historic maritime cultural and economic ties with 39 Indian Ocean countries.