The document provides an overview of the growth of the hotel and hospitality industry in India. It notes that India offers diverse tourism products and experiences. The tourism and hospitality industry has emerged as a key driver of growth in the services sector. Foreign tourist arrivals in 2019 were 10.89 million and are expected to reach 30.5 million by 2028. The industry contributes significantly to GDP and employment. The government has undertaken various initiatives like e-visas and infrastructure development to boost tourism.

1. An Introduction
Indian Hospitality Industry

2. Introduction
• India offers a wide range of geographical diverse portfolios of tourism
products with 37 world heritage sites, attractive beaches, adventure,
religious and 10 bio geographic zones.
• India is the most digitally advanced traveller nation in terms of digital
tools being used for planning, booking and experiencing a journey.
• The tourism and hospitality industry has emerged as one of the key
drivers of growth among the services sector in India.

3. Overview
• In 2019, foreign tourist arrivals (FTAs) in India stood at 10.89 million,
achieving a growth rate of 3.20% and is expected to reach 30.5 million
by 2028.
• Inbound tourist expenditure per head is third highest in the world and
over more than the global tourist spending average.
• October – March accounts 60% of total tourist arrivals
• March – September slack time
• Focusses of international and domestic tourists

4. Growth of Hotel Industry in India
• Growth of hotel and catering Industry in India started in 19th century with
the development of major cities, transport and railways.
• Resting houses called serais/sarais and dharamshallas were established
on highways by kings of ancient and medieval periods.
• During Mugal rule, the forts and their surroundings would cater to the
needs of travellers.
• Political and pilgrimage movement of people, stressed the need for better
and improved facilities to cater to various classes of society.
• Development of catering can also be attributed to the legacy left by
people of different cultures and ethnic groups who ruled over India.

5. Growth of Hotel Industry in India
• The British introduced hotels and restaurants in India similar to those
found in Europe.
• Most of modern hotels sprouted were managed by European families.
• The Bombay hotel was opened in 1799.
• The oldest was John Spence’s Hotel. Spence’s, the first ever hotel in Asia
was opened to the public in 1830.
• Pallonjee Pestonjee opened first western style hotel under the name of
British Hotel in Bombay in 1840.It was first hotel to offer a la carte and
table d’ hôte menu.

6. Growth of Hotel Industry in India
• The Auckland hotel was opened by David Wilson in Calcutta in 1840-41
(now – The Lalit Great Eastern Hotel)
• Connemara hotel was opened in Chennai in 1870 by E. A. Oakshroff. Now
this hotel belongs to Taj group.
• In 1903 Taj Mahal hotel with 220 rooms was built in Bombay.
• Mohan Singh Oberoi took Carlton hotel in Shimla on lease in 1927,
renamed it as Clarks hotel.
• He took a building in 1933 and built grand hotel in Calcutta.

7. Growth of Hotel Industry in India
• India Tourism Development Corporation (ITDC) was set up in 1966 as a
corporation under the Indian Companies Act of 1956, with the merger of
Janpath Hotel India Ltd.
• Today, ITDC provides a complete range of tourism services including
accommodation, catering, and entertainment and shopping, hotel consultancy,
duty free shops, and an in-house travel agency.
• In 1971-72 beautiful palace of Rajasthan, the lake palace Udaipur, was linked
to the Taj.
• Three Welcome Group non-franchised hotels inspired by the slogan “Be Indian,
Buy Indian” and using Indian expertise were commissioned in 1975 to 1977.

8. Growth of Hotel Industry in India
• For 1982 Asian Games, Government of India granted licenses for building hotels
to the Taj Palace, Asian Hotels Hyatt Regency, ITDC – Lodhi Hotel, Samrat Hotel,
Kanishka, Le Meridien and Surya Sofitel, with stipulation that new hotels had to
be completed in time for games.
• India hosted Commonwealth Games in 2010, at Delhi. It was India’s most
successful Commonwealth Games to date with Indian athletes winning 38 gold,
27 silver and 36 bronze medals.
• This also added to growth of hotel industry in India.

9. Size of Indian Tourism Sector
• Till 2018 there were about
54,185 five star hotel rooms, of
which more than 46000 are in
just 10 states.
• Six of these states are among
the top 10 destinations for
foreign tourists in the country.
10,795
7,604
4,355
4,230
3,620
3,572
3,390
3,000
2,911
2,911
8,077
Rooms
Source: TOI, May 10, 2018
Read more:
https://timesofindia.indiatimes.com/india/85-of-five-star-hotel-rooms-are-in-just-10-states/articleshow/64104054.cms

11. Contribution to The Economy
• Ranked 10th among 185 countries with contribution of Rs 13,68,100
crore (US$ 194.30 billion) to GDP in 2019 which is 6.8% of the total
economy.
• Foreign Exchange Earnings (FEEs) from tourism increased 4.8% to Rs
1,94,881 crore (US$ 29.96 billion).
• Total earning from the sector is expected to reach US$ 50 billion by 2022
and (US$ 492.21 billion) by 2028.
• Created 40 million jobs in 2019-20 accounted for 8% of total in country.
• Expected to rise to 52.3 million jobs by 2028.

12. Investments
• India was globally the third largest in terms of investment in travel and
tourism with an inflow of US$ 45.7 billion in 2018, accounting for 5.9% of
the total investment in the country.
• Hotel and Tourism sector received cumulative FDI inflow of US$ 15.28
billion between March and April 2020.
• International hotel chains are increasing their presence in the country,
and it will account for around 50% by 2022

13. Government Initiatives
The Government has realised country’s potential in tourism industry and has
taken several steps to make India a global tourism hub.
• Statue of Unity is the highest standing statue in the world. It is expected to
boost the tourism sector and put it on the world tourism map.
• Government of India is working to achieve 1 % share in world's
international tourist arrivals by 2020 and 2% share by 2025.
• E-Visa and Visa on arrival initiatives have increased the tourist inflow by
23.6% to 2.9 million.

14. Government Initiatives
• In 2019, Government reduced GST on hotel rooms with tariffs of Rs 1,001
to Rs 7,500 per night to 12% and those above Rs 7,501 to 18% to increase
India’s competitiveness as a tourism destination.
• The Government of India will develop 17 iconic tourist sites into world
class destinations as per union budget 2019-20.
• Under Budget 2020-21, Rs 1,200 crore have been allotted for
development of tourist circuits under ‘Swadesh Darshan’ for eight
Northeast states and Rs 207.55 crore for development of tourist circuits
under PRASHAD scheme.