Home > Growing Hospitality Sector of India
In 2019 India’s position in World Economic Forum’s travel and tourism competitiveness index moved to 34th from 65th in 2019. This shows that the Indian hospitality and tourism sector is flourishing each and every day.
The tourism and hospitality sector of India contributes a lot to the country’s economy. In 2019, hospitality and tourism contributed 6.8% to the country’s net GDP in the past year. The hospitality sector of India holds around 39 million jobs, which accounts for 8% of India’s total employment.
Status of hospitality sector of India:
The statistics prove the importance of the hospitality sector in balancing the Indian economic backbone. Thus, it is essential to look at the present growth of the Indian hospitality sector and what can be the future scenario in the same. Here is a blog to analyze and summarize the growing hospitality sector of India.
With a moderate growth rate in past years, it is believed that the Indian hospitality sector still has enormous potential to discover. The rich culture and heritage of India every year attracts tourists from around the world. Domestic travel in the country has also increased in the past few years; this credit goes to hotel chains like Oyo rooms and Airbnb, attracting middle-class millennials to travel around their country.
Due to pandemic travel restrictions, these flourishing statistics took a dip in 2020. Even in April-June 2020, the hotel industry of India contracted to 47%. Among all GDP sectors, hospitality has suffered the most on pandemic days. But, as soon as the globe changed its boundaries and relieved the restrictions, the Indian tourism sector started slowly expanding.
Incentives taken by GOI to strengthen the hospitality sector of India:
As soon as the attack of COVID-19 started fading, the government of India launched several schemes and incentives to promote tourism in the country and strengthen the hospitality sector of the country. For consideration:
- To encourage the participation of stakeholders in the tourism industry, GOI has reframed the guidelines for Market Development Assistance (MDA). This ended up providing financial support to stakeholders.
- The union budget of INR 24,000 crore has been allocated to the Ministry of Tourism for 2022-23.
- IRCTC is running trains under Bharat Darshan Scheme to promote local tourism in the country.
- At the same time, promotional campaigns promoting different state tourism have been carried out on a huge scale by respective state governments.
- To encourage domestic tourism in the country, PM Shri Narendra Modi has urged every citizen to visit at least fifteen prominent tourist destinations before Independence Day, 2023.
- The infrastructure of and near famous tourist destinations has also been improved to facilitate travelers and tourists.
- GOI boosted the hospitality sector’s 100% Foreign Direct Investments (FDI) to strengthen the economy.
Private Ventures who brought a revolution to Indian Hospitality Sector:
Along with GOI, ventures like ITC hotels and Oyo Chain have also expanded internationally to hit the Indian hospitality sector. These hotels offer several loyalty programs. Other prominent names in the hospitality sector which have grown locally or globally are:
Top players in Hotel Industry:
- Lemon Tree Hotels
- Oberoi Hotels and Resorts
- ITC Hotels
- The Park Hotel
- Leela Palace
- Marriott International Group
- Taj Hotels
- Oyo rooms
- Radisson Group
- Hyatt Hospitality Group
Concluding the blog, India has a traditional culture of worshiping guests as God; Athithi Devo Bhava is what we say. Thus, all the government, private ventures, and individuals should play their role in strengthening the hospitality sector in India. From Kashmir to Kanyakumari, from snow-capped mountains to deserts, there is a lot to invest in and explore here in India.