The Hindu : New Delhi News : Tourism industry poised for huge growth

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New Delhi

Tourism industry poised for huge growth

Sujay Mehdudia

Foreign tourist arrivals in India show an upward trend

India named as one of the fastest growing tourism destinations in the next 10 years
‘Emergence of mid market segment hotels which are doing very well presently’

NEW DELHI: With tourist arrivals showing an upward trend this past December, the Indian hospitality industry which had come under a lot of pressure due to global recession and economic slowdown is all poised now for a huge growth with big investments lined up in Delhi, the National Capital Region (NCR) and adjoining townships.

Giving a boost to the sagging tourism industry, foreign tourist arrivals in India registered a 21 per cent growth in December over the corresponding month in 2008. Foreign tourist arrivals in 2009 had declined 17.6 per cent during the first 11 months but revived sharply in December to register a 21 per cent growth over the year-ago period. Union Tourism Minister Kumar Selja is confident that the Indian tourism industry will grow at a fast pace and make the necessary changes to cater to the rising number of domestic and international tourists.

In fact, the Indian tourism industry has been outperforming the global tourism industry in terms of volume of international tourists and revenue. The World Travel and Tourism Council has named India as one of the fastest growing tourism destinations in the next ten years, a view shared by many experts.

“The best thing which can ever happen to the Indian hospitality sector is emergence of mid market segment hotels which are doing very well presently. I feel that the Indian subcontinent has a strong appetite for three-star and four-star hotels and is currently witnessing a huge demand-supply mismatch literally in all metros and Tier I, II and III cities all over the country,” says Amitabh Sanduja, hospitality consultant and executive vice-president of Atlantic Hotels.

Mr. Sanduja said it is high time five-star and other star category hotels introduce “fixed value for money room tariff in the range of $120-$180 across the board while mid-market segment hotels should boast of value in the $60 to $120 range throughout the Indian subcontinent”.

“I strongly believe that the industry will outperform in the next five years. It will be one of the largest foreign currency earners and will give employment boost to this country,” he added.

The sentiment is shared by a large number of developers and hospitality sector organisations. Since the revival of the economy, leading groups have chalked out ambitious plans. The Amrapali Group, which is heavily into the housing sector, is coming up with a star hotel property in Greater Noida. Similarly Parsvnath Developers, headed by Pradeep Jain, are engaged in making huge investments in the hospitality sector with properties coming up in Delhi, NCR and Uttar Pradesh. The Bhasin Group has launched Grand Venezia, India’s first theme-based shopping mall with a commercial tower and a five-star hotel on the same premises in Greater Noida near Pari Chowk.

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