World Wide Journal of Multidiscip linary Research and Development

WWJMRD 2017; 3(6): 81-83

www.wwjmrd.com
Impact Factor MJIF: 4.25
e-ISSN: 2454-6615 Hospitality industry in India Today and Tomorrow
Lenin Selvanayagam
Research Scholar, AIMS, Lenin Selvanayagam, M.Thiagarajan
Alagappa University,
Karaikudi, Tamil Nadu, India Abstract
The paper reports the growth and development of hospitality industry in India in recent years. It also
M.Thiagarajan
Assistant Professor, Head of
deals about the broad divisions of the industry, the growth of the industry and the initiatives of the
Dept. Business Administration, Government of India. The prospects of the industry are discussed and how the industry is
Alagappa Arts College, contributing to the growth of GDP of India.
Karaikudi, Tamil Nadu, India
Keywords: Hospitality Industry, India

Introduction
India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism
products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and
religious tourism. India has been recognised as a destination for spiritual tourism for
domestic and international tourists (IBEF2017).
The industry is broadly compartmentalized in two segments
Tourism: The tourism sector includes medical and healthcare tourism, adventure
tourism, heritage tourism, ecotourism, rural tourism, wildlife tourism and pilgrimage
tourism.
Hotels: These include business hotels, suite hotels, resort hotels, airport hotels, extended
stay hotels, apartment hotels, resort hotels, timeshare hotels, casino hotels, convention
centers and conference centers.

Hospitality Industry
The Indian tourism and hospitality industry has emerged as one of the key drivers of growth
among the services sector in India. The industry is expected to generate 13.45 million jobs!
across sub-segments such as Restaurants (10.49 million jobs), Hotels (2.3 million jobs) and
Travel Agents/Tour Operators (0.66 million). The Ministry of Tourism plans to help the
industry meet the increasing demand of skilled and trained manpower by providing
hospitality education to students as well as certifying and upgrading skills of existing service
providers. The industry is expected to generate 13.45 million jobs! across sub-segments such
as Restaurants (10.49 million jobs), Hotels (2.3 million jobs) and Travel Agents/Tour
Operators (0.66 million). The Ministry of Tourism plans to help the industry meet the
increasing demand of skilled and trained manpower by providing hospitality education to
students as well as certifying and upgrading skills of existing service providers.

Growth of Indian Hospitality Industry

The fortunes of the hospitality industry are closely linked to the tourism industry and hence
tourism is one of the most important growth drivers. In addition, all factors that aid growth in
the tourism industry also apply to the hospitality industry. The Indian hospitality industry has
recorded healthy growth in recent years owing to a number of factors:

Increased tourist movement

Increased FTAs and tourist movement within the country has aided growth in the hospitality
industry. Healthy corporate profits and higher disposable incomes with easier access to
Correspondence: finance have driven the rise in leisure and business tourism, thus having a positive impact on
Lenin Selvanayagam the hospitality industry.
Research Scholar, AIMS,
Alagappa University,
Karaikudi, Tamil Nadu
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World Wide Journal of Multidisciplinary Research and Development

Economic growth guide, air hostess, chef, waiter and managers other
India is one of the fastest growing economies in the world. opportunities await those who are keen on taking up a job
It recorded healthy growth in the past few years, at more in the sector. The new trends that have been emerging off
than 9% each during FY06-FY08. Despite the global late are as follows:
economic slowdown, the Indian economy clocked growth Cruise Ship Management
of 6.7% and 7.4% in FY09 and FY10 Club Management and Recreation and Healthcare
respectively. Attractiveness of India has encouraged Management
foreign players to set up their operational facilities in the Airline Catering and Cabin Service
country. Domestic industries have also made heavy Hotel Tourism and Association
investments to expand their facilities through Greenfield Fast Food Joint Management and Restaurant
and Brownfield projects. Management
Beverage, food and confectionery production
Measures undertaken by the government Institutional and Industrial Catering and
Various policy measures undertaken by the Ministry of
Government owned catering departments like armed
Tourism and tax incentives have also aided growth of the
forces mess, ministerial conventions and railways
hospitality industry; some of them include
services.
Allowance of 100% FDI in the hotel industry
(including construction of hotels, resorts, and
The Contribution of Hospitality Industry in Indian
recreational facilities) through the automatic route
Economy
Introduction of Medical Visa for tourists coming into
The contribution of the entire travel and tourism sector in
the country for medical treatment
India to Gross Domestic Product is estimated to rise from
Issuance of visa-on-arrival for tourists from select
8.8% (USD 118.9 billion) in 2010 to 9.16% (USD 335.7
countries, which include Japan, New Zealand, and
billion) by 2020. Between 2010 and 2019 the demand for
Finland
travel and tourism in India is expected to grow annually by
Promotion of rural tourism by the Ministry of Tourism
8.4%, which will place India at the third position in the
in collaboration with the United Nations Development
world. Travel and tourism in India also accounts for
Programme
50,087,000 jobs in 2010 (about 10.22% of total
Elimination of customs duty for import of raw
employment) and is expected to rise to 59,142,000 jobs
materials, equipment, liquor etc
(10.7% of total employment)by2020.Within the travel and
tourism sector, the Indian hospitality industry is one of the
Various policy measures undertaken by the Ministry of
fastest growing and most important segments, revenue-wise
Tourism and tax incentives have also aided growth of the
as well as employment wise. According to Economic
hospitality industry; some of them include:
Survey of India and Technopak, the Indian hotel industry
Allowance of 100% FDI in the hotel industry
accounts for USD 19 billion, 71.50% (USD 11.95 billion)
(including construction of hotels, resorts, and
of which take their origin from the unorganized sector and
recreational facilities) through the automatic route
the remaining 29.7% (USD 5.67 billion) from the organized
Introduction of Medical Visa for tourists coming into
sector. In 2000, India hosted only 2.8 million international
the country for medical treatment
visitors. By 2009, the figure had already increased to 5.25
Issuance of visa-on-arrival for tourists from select
million arrivals. Compared to other tourism markets in
countries, which include Japan, New Zealand, and
nearby Asian countries, this is still a limited success, but
Finland
has a potential to turn into a tremendous success story.
Promotion of rural tourism by the Ministry of Tourism
in collaboration with the United Nations Development
Conclusion
Programme
Indias travel and tourism industry has huge growth
Elimination of customs duty for import of raw
potential. The medical tourism market in India is projected
materials, equipment, liquor etc
to reach US$ 3.9 in size this year having grown at a CAGR
of 27 per cent over the last three years, according to a joint
Consumer Dynamics and Ease of Finance
report by FICCI and KPMG. Also, inflow of medical
The country has experienced a change in consumption
tourists is expected to cross 320 million by 2015 compared
patterns. The middle class population with higher
with 85 million in 2012. The tourism industry is also
disposable incomes has caused the shift in spending
looking forward to the expansion of E-visa scheme which
pattern, with discretionary purchases forming a substantial
is expected to double the tourist inflow to India. Rating
part of total consumer spending. Increased affordability and
agency ICRA ltd estimates the revenue growth of Indian
affinity for leisure travel are driving tourism in India and in
hotel industry strengthening to 9-11 per cent in 2015-16.
turn aiding growth of the hospitality industry. Emergence
India is projected to be the fastest growing nation in the
of credit culture and easier availability of personal loans
wellness tourism sector in the next five years, clocking over
have also driven growth in the travel and tourism and
20 per cent gains annually through 2017, according to a
hospitality industries in the country.
study conducted by SRI International.
Employment Opportunities
References
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World Wide Journal of Multidisciplinary Research and Development

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