Indian Hospitality and catering industry
The hotels, catering and tourism sector is one of the fastest growing sectors of the global economy. Tourism is becoming a significant industry in India ranking as third largest foreign exchange earner of the country. The tourism industry has had a cascading effect on the hospitality sector thereby increasing the occupancy ratios and average room rates.
The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct Investment (FDI). The hotel industry in India thrives largely due to the growth in tourism and travel. Uneven increase in both domestic and foreign tourists not been supported with equal number of rooms is a latent source of opportunity for growth.
The sector’s total GDP contribution is expected to rise from Rs. 28,491.8 billion (US$ 424.5 billion) to 10% in 2027. International hotel chains are increasing their presence in the country, as estimated to account for about 47% share in the Tourism & Hospitality sector of India by 2020 & 50% by 2022. This has made the competition intense in metros, slowly picking up in tier-2 and tier-3 cities.
During the period April 2000-June 2018, the hotel and tourism sector attracted around US$ 11.39 billion of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP).
