Growth prospects and concerns of
hospitality industry in India
Meaning of hospitality
The friendly and generous reception and
entertainment of guests, visitors, or strangers.
HOSPITALITY INDUSTRY INCLUDES..???
• IT INCLUDES LODGING,EVENT PLANNING,THEME
PARKS,TRANSPORTATION,CRUISE LINE AND
ADDITIONAL FIELDS WITHIN THE TOURISM INDUSTRY.
• Tourism sector contributed 9 percent of global
GDP in 2012 and generated over 260 million
• International tourist arrivals worldwide
growing from 4.1 per cent in 2012 to 5.0 per
cent in 2013 as per the United Nations World
• Tourism sector in India contributed around 6.6
per cent of India’s GDP in 2012.
• TOURISM SECTOR ALSO CONTRIBUTED 7.7% OF
• The sector is projected to grow at an annual
average rate of 7.9 per cent from 2013 to 2023.
• India’s share in world inbound tourist arrivals
increased from 0.4 per cent in 1997 to 0.63 per
cent in 2013.
• The size of domestic tourism has also already
crossed an estimated 1.1 billion annual travel
POLICIES & INITIATIVES
• Liberalization in aviation sector.
• Rationalization in tax rates in the hospitality sector.
• Tourist friendly visa regime.
• Immigration services
Governments open skies policy.
Foreign Trade policy.
FDI in HOTEL & TOURISM INDUSTRY.
Incredible India-Atithie devo bhava.
POTENTIAL OF TOURISM SECTOR REMAINED
UNTAPPED IN INDIA
• A World Economic Forum 2013 study of
tourism competitiveness, rated India at a low
of 65 among 140 countries.
• India was ranked 21 on tourism natural
• It was ranked 67 on ease of business
• On its regulatory framework for tourism and
travel, India was ranked 110.
CHALLENGES IN HOSPITALITY
• SHORTAGE OF SKILLED EMPLOYEES
• RETAINING QUALITY WORKFORCE.
• SHORTAGE OF ROOMS.
• INTENSE COMPETITION AND IMAGE OF INDIA.
• CUSTOMER EXPECTATIONS.
• LACK OF PROPER INFRASTRUCTURE
CHALLENGES IN HOSPITALITY INDUSTRY
• SERVICE LEVELS
• Lack of adequate marketing and promotion
• Regulatory issues
• MAN RESOURCE DEVELOPMENT
• India’s share in world tourism expenditure is
relatively higher at 1.65 per cent (rank 16).
• Singapore, a small country, attracted 11.10
million tourists in 2012, while a large country
like India attracted only 6.97 million foreign
tourists during 2013.
• Creating world class tourism infrastructure
even by PPP.
• Skill and etiquettes training to cater to the
needs of tourists.
• Special focus on cleanliness at tourist sites and
safety of tourists.
• Using the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) for
creating permanent assets like tourism
infrastructure and facilities.
• Organizing mini India cultural shows on a daily
• Implementing urgently visa on arrival and E
visa facilities at 9 airports to 180 countries
barring 8 ‘prior reference’ countries
• Faster GDP growth
• Natural heritage
• India as a global player
• Lack of publicity.
• Hectic rules
• Influence of politicians
• Marketing gap.
• Health tourism.
• Strong in cultural and nature aspects.
• Commercialization of sports and games
• . FDI policy.
• Poor domestic tourism infra structure
• Political conditions
• Increase in pollution
• Entry of new competitors
FUTURE PROSPECTS OF TOURISM INDUSTRY
• Demand for travel and tourism-8.2%.
• Expected to b 2nd largest employer.
• Capital investment expected to grow- 8.8%
• Get capital investment worth US$ 94.5 billion
• Expected to become 5th fastest growing business travel destination
with an estimated real growth rate of 7.6 per cent.