Trade Articles

With the dawn of globalization, the Indian hospitality industry has set new benchmarks of development and progress. The Indian industry is on a roll as both leisure and business travelers are taking keen interest in becoming part of India's soaring hospitality sector, which in turns opening up new avenues for both domestic and international players. In 2008-09 Union Budget Mr. P Chidambaram has proposed a scheme of tax holiday which is applicable on all hotels across the India irrespective of their categories. There are at least 21 five star hotels in India. The promising economy of India and increasing trading opportunities has turned out to be a boon for Indian hospitality industry. The success rate of the Indian hospitality industry can be adjudged against the- Occupancy Rates, Revenue Per Available Room, Average Room Rent and Operating Margins. Hospitality Industry shares close link with both travel and tourism industries. Travel Industry is inextricably connected to the hotel industry therefore growth in one industry propelled the growth rate of others. For past many years tourism sector has emerged as one of the high economic sector in the Indian industrial arena. In last few years, growth rate in tourism industry has been recorded to be somewhere between 17% or 18%. The Government's declaration to recognize hotel and tourism industry as a high priority industry with a total provision of 100% foreign direct investment (FDI) has provided impetus in encouraging investors from throughout the world.

Hotels in India can be categorized as- Heritage Hotels, Luxury Hotels, Budget Hotels, Resorts. India is seeing as one the most wonderful holiday destination and thus hospitality industry is going tizzy and continuously showing remarkable progress in its state. The toll of foreigners visiting India has touched to a mark of 3.92 million with a similar increase in the international tourism receipts which has crossed the landmark of US $ 5.7 billion and is experiencing the robust growth. Domestic tourists are also driving the industry and it is thriving due to the increase in number of tourists visiting hill stations, beaches, pilgrimages and other beauties of country. Stiff competition and desire to be ranked on the no.1 position is driving the players of industry to excogitate on new innovative ideas and concepts every day. Around 11% demand of hotel industry is generated by the long staying guests. As there is an acute shortage of branded serviced apartments within the country so this shortage is filled by the hotels. According to one report, in today's date the Indian hotel industry is witnessing a short fall of around 1,50,000 rooms against a supply of nearly 11,00,00 rooms. As per an estimate, demand for rooms will be exceed to at least 100% of supply in next two years. To combat with this demand and supply gap, Indian hotel industry is ready to add about 60,000 good quality rooms, which are currently in different stages of planning and development. Government is required to take a move for fillip of this gap for coming 2010 Commonwealth Games, scheduled to be held in New Delhi. But there are several factors which are acting as a roadblocks in Indian hospitality industry. Poor urban infrastructural planning, rigid FSI norms, High costs, political interference have put some constraints on the progressive growth rate of hospitality industry.

Recognition on international front

• India has been selected a a head of the UN World Tourism Organization (UNWTO). It is the highest policy maker world tourism board with a participation from 150 members.
• The world's leading travel and tourism journal, "Conde Nast Traveller", has recognized India as the numero uno travel destination in the world.
• India's official programme "Incredible India" campaign has been characterizes as the Highest Recall Advertisement worldwide by "Travel and Leisure".
• Tajmahal, India's monument is ranked among 7 wonders of the world.
• Leela Palace Kempinski of Bangalore has been rated as the most favorite business hotel in Readers' Choice Awards by Conde Nast Traveler around the globe.

Reasons for such boom
Many reasons could be put forward for the buoyancy in sagging Indian Industry. The considerable rise in the Indian economy growth rate has increased the income level of middle class, which in turns prompting people to increase their holiday budget. Also, the Indian economy has transited itself into an IT hub and has emerged as a key player in almost every area.

Upcoming Hotel Projects

• After the formation of its first hotel Holiday Inn in the year of 1973, the Inter-continental Hotels Group (IHG) brand is back with a new project of establishing luxury hotel in Chennai by 2011. The hotel will be called Holiday Inn. The Rs150 crore project will encompasses 200 rooms, 75 suite. Holiday Inn will be situated in Estancia Integrated Township near Guduvancherry on the southern suburbs, which is about 35 km from the Chennai. The project will be completed through the joint venture between L&T , leading player of construction industry and Arun Excello, township developer.
• The property development front of Ashok Piramal Group, Peninsual Land has embarked its entry into the hospitality industry by entering into a joint venture with textile maker and real estate developer Arrow Webtex. The joint venture is moved towards establishing hotels in India. The hotels will be set up in Pune, Mumbai, Nagpur, Nashik and Kolhapur of Maharashtra and afterwards the hotel chain would be increased for covering the area of Ahmedabad, Surat, Mundra Port, Jamnagar, Goa and Kerala. The hotels in Maharashtra are expected to become operational within 30 months.
• Kerala Tourism Development Corporation (KTDC) has formulated its strategy of renovating all its hotels within a period of 6 months. Total Rs. 9 crore are set aside for renovation work. The renovation work will include areas like-

• Constructing watch towers at bird santuaries of Hotel Chaithram.
• Establishment of Convention Centres at Kovalam Samudra and Kochi Bolgatty.
• Beautification of gardens, parks and all premises.
• Establishment of new toilets in all Aramams with airconditioning and recretaional facilities in all rooms.
• Around 30 additions rooms are supposed to be attached at Munnar Tea Country.

'Hotelex India 2008'

'Hotelex India 2008' will be organized in November, 08 for tapping the unprecedented growth rate of the Indian hospitality industry. Characterizing as a potent platform, the event shall be a trading hub for all major players of hospitality industry from both India and throughout the world. In recent years India's hospitality industry has recorded a huge rise in its economic rate which in turns has massive effect on the country's foreign exchange reserves. Hotelex India 2008 assures a vital launching pad for introducing latest technologies, services and products related to the hospitality industry. The 3 days trade fair would provide an entrusted platform to buyers, sellers from all facets of hospitality industry. The event will bring together czars from both Indian and international arena to have a dialog on current and future status of hospitality industry. It is an endeavor to bridge the gap between buyers and sellers from hospitality sector and at the same time offering immense opportunities to increase their business share.

The event is scheduled to be held at Bombay Exhibition Center, Mumbai in India. It is a 3 days trade event which will be started from 21st November, 08. The event would exhibit innovative products, equipments and technologies like food service equipments, tableware & accessories, production machinery, bed & bath linen, mattress & bedding systems, pest management services, dairy products, and many more. The trade fair will fulfill the buying and sourcing requirements of hospitality industry that will cover restaurants, hotels, resorts, retail chains, clubs etc. Hotelex India 2008 encompasses various events and seminars like Hotelex Bar Challenge, Hotelex Conclave, Technology Seminar etc.