A brief research on Rise of Indian Hotel Industry, from ancient times to Modern era and the impact of COVID-19 on Indian Hospitality Sector. It includes statistics and Data Analysis of Current Scenario plus some assumption of Post Covid Hotel operations. I worked very hard to make this presentation for my college project but guess have made it on a wrong topic. That's why i am posting it here. Hope it will help someone, someday...

1. 1
-by ANUBHAV BHARTI

2. C O N T E N T
Acknowledgement
Introduction
Phases of Indian Hotel Industry
Ancient & Medieval Era
Colonial Era
Modern Era
Current Scenario
Impact of COVID-19 on Hotel Industry in India
Road Ahead
2

3. A C K N O W L E D G E M E N T
The satisfaction that accompanies that the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible, whose
constant guidance and encouragement crown all efforts with success.
I am grateful to my respected mentor and project guide, Mr. Sidharth Srivastav for the guidance
and helping me with the project finalization process, showing confidence in me.
Last but not least I wish to avail myself of this opportunity express a sense of gratitude and love
to my friends and my beloved parents for their manual support, strength & help.
Thanking you all
ANUBHAV BHARTI
01111002218
3

4. I N T R O D U C T I O N
The origin of the hotel industry in India cannot
be traced to a definitive point of time, there is
evidence of its presence even during the Indus
Valley Civilization and Vedic Era. In olden days,
travel was predominantly undertaken for
pilgrimage and trade.
4

5. The concept of char dham ( i.e., visiting religious places located in the
four corners of India) among the Hindu community is an important
indicator of significance accorded to pilgrimage by their ancestors.
The country stands dotted with many such shrines, some of which are
frequented by people of all faiths. Ancient texts and literature, as also
Hindu mythology, have many references to travel and the provision of
accommodation facilities for traveling pilgrims and traders by the
authorities of those days.
Ancient India was well known for its silk, spices, gold, and gemstones.
Record of famous travelers of the yore speaks of Indians trading with
countries like Greece, Italy, Indonesia, Malaysia, China, and Japan,
among others. The main mode of transport were animals on land, and
boat and ships that crisscrossed rivers and seas for connectivity with
distant lands.
5

6. K E D A R N AT H
( U T T A R A K H A N D )
Kedarnath Dham is one of
the finest example of
pilgrimage sites in INDIA.
It has been a pilgrimage
Centre since ancient times
for over 1000+ years.
6

7. FA M O U S P I L G R I M A G E C E N T E R S
 Vaishno devi (Jammu),
 Amarnath Cave,(Kashmir),
 Tirupati Balaji (Andhra Pradesh),
 Shirdi Sai Temple, (Maharashtra),
 Golden temple, (Amritsar),
 Dilwara Jain temple, (Mount Abu),
 Bodh Gaya, (Bihar),
 Ajmer Sharif, (Rajasthan),
 Haji Ali Tomb, (Mumbai),
 St. Francis Church, (Goa), etc.
7

8. P H A S E S O F I N D I A N H O T E L
I N D U S T R Y
The origin and evolution of the hotel industry in the country can be
broadly categorized into the following three periods:
Ancient & Medieval Era (Indus Valley Civilization Era - AD 1600)
Colonial Era/British Era (AD 1601 - AD 1947)
Modern Era (1947 Onwards)
8

9. (Indus Valley Civilization Era - AD 1600)
9

10. A N C I E N T E R A
• The beginning of the hospitality sector in India stands rooted in the
Hindu philosophy of ‘ Atithi Devo Bhava‘, implying that an
unannounced guest is to be accorded the status of God.
• While it is not clear when hospitality emerged as a commercial
activity in ancient India, there is evidence of accommodation
facilities for travellers and guests, though not as organized as we see
them today.
10

11. A
‘ D H A R M S H A L A ’
I N H I M A C H A L
P R A D E S H
With the support of the ruling elite, permanent structures were created to
house the tired travellers. The lodging houses in this era were called
‘Dharmshala’(धर्मशाला)
11

12. O T H E R W O R D S I N L I T E R AT U R E T O S H O W
T H AT I N D I A C A R E D F O R T O U R I S T S A N D
G U E S T S A R E ;
• अन्न क्षेत्र (grains area),
• भोजनालय (house for food),
• पाकशाला (Cooking House) ,
• पन्थागार (house for traveller),
• अवस्थागार (outer portion of the house for visiting guests).
12

13. C H I N E S E T R A V E L L E R S , F A H I E N , ( A D 3 9 9 -
4 1 4 ) A N D , H U E I N T S A N G , ( A D 6 2 9 - 6 4 3 ) ,
H A V E A L S O M E N T I O N E D
A B O U T T H E S H E L T E R S F O R T R A V E L L E R S ,
U N D E R K I N G C H A N D R A G U P T V I K R A M A D I T Y A 13

14. M E D I E VA L E R A - M U S L I M R U L E
• Between 11th & 13th century, many Sarai (सराय) and Musafirkhana
(मुसाफिरखाना) were built, for messengers of the postal system, built by the
sultans of Slave Dynasty, which was later refined by Allauddin Khiljee.
• According to historian Abbas Khan Sherwani, his postal system, Deewaan-
ei- Insaa, दीवान-ए-इंसा employed 3400 horsemen, at 1700 relay stations,
located in these Sarai. Sarai served as the post office, along with the
shelter for ordinary travellers.
14

15. 15
Sarai Amanat Khan,
built by the Mughals
as a caravan sarai
(resting place) on the
Grand Trunk Road,
in a small village
south-west of
Amritsar.

16. 16

17. T H E M U G H A L P E R I O D
17
• Mughals bettered this system and, developed a postal system,
where message from any part of the kingdom could reach
Delhi within 48 hours. Sarai also offered a place of worship,
apart from water, room, stable and fodder for animals.
• Several localities in Delhi still carry the names of that bygone
era, like Lado Sarai, Katwaria Sarai, & Sarai kale Khan. The
building structure is not there anymore, though

18. 18
(AD 1601 - AD 1947)

19. B R I T I S H R U L E
• 17th century was the beginning of many European style Taverns (inns), for the
European, by the Europeans. Among the first such properties were taverns like
Portuguese Georges, Paddy Goose’s, and Racquet Court, which opened in Bombay
between 1837-1840. However, within a period of about ten years, most of the
taverns disappeared but only to be replacement with better ones.
19

20. 20

21. N E X T B AT C H O F H O T E L ,
TAV E R N S & I N N S
• Victoria Hotel aka British Hotel, by Pallanjee Pestonjee (1840),
• Esplanade Hotel (1871),
• The Rugby, Matheran, Maharashra (1876)
• Watson’s Auckland Hotel, in Calcutta (1841), (only for Europeans), which
became Great Eastern Hotel, after India’s independence
21

22. T A J H O T E L & T A T A G R O U P
• The founder of Tata Group, Jamshetji Nusserwanji Tata, was once
refused entry into the Watson Hotel, (Dogs and Indians are not
allowed!!!).
• In reply, he constructed an architectural marvel, the Taj Mahal
Hotel & Tower, regally overlooking the Gateway of India in
Mumbai. Built at a cost of 500,000 Pounds, Taj Hotel was first
open on December 16, 1903 with 17 guests. It had 30 private
suites-cum apartments, 350 double & Single Rooms and 4
electrical passenger lifts.
22

23. 23

24. I N D I A N S T Y L E
H O T E L S ;
 ‘Sardar Griha’ (सरदारगृह) in
1900, &
 Madhavashram, (माधवाश्रम) in
1908,
Were the first Indian style
hotels in India.
24
Sardar Griha, Maharashtra

25. O B E R O I G R O U P
• In 1934 foundations of the Oberoi Group, Rai Bahadur Mohan Singh Oberoi (Founder of the Obroi group),
bought 2 properties: The Maidens in Delhi and The Clarke's in Shimla.
• In 1938, he took over Grand Hotel of Calcutta.
And that’s how Oberoi Group started building their empire.
25

26. “ WA R B A B I E S ” H O T E L S ;
• Between the two World Wars, (1914-18 & 1939-45),
Bombay saw opening of many new hotels, like,
• The Ritz, The Cecil, The Ambassador, West End, & Airlines.
26

27. 27
(1947 Onwards)

28. 28
• After independence, The Oberoi Group and Taj Group took over
several British owned properties.
• With this, the first two Indian Chain of Hotels were born. They
expanded overseas, and are now competing with the best of
International brands today.
• Indian Tobacco Company (ITC), was the third prominent chain to
operate a little later, under Welcome Group brand.

29. F E D E R AT I O N O F H O T E L &
R E S TA U R A N T A S S O C I AT I O N O F I N D I A
( F H R A I )
• 1949 saw the formation of 4 regional Hotels & Restaurants
Associations, headquartered at Delhi, Calcutta (Kolkata),
Bombay (Mumbai) & Madras, (Chennai).
• In 1955, these 4 associations came together, to form FHRAI
(Federation of Hotel & Restaurant Association of India), a
lobbying body to preserve the interests of Hotel & Restaurant
fraternity, in their interactions with Government, Politicians,
International associations, suppliers and other stakeholders.
29

30. 4 R E G I O N A L A S S O C I AT I O N O F I N D I A
HRANI
Hotel & Restaurant
Association of
Northern India
SIHRA
South India Hotels
& Restaurants
Association
HRAEI
Hotel & Restaurant
Association of
Eastern India
HRAWI
Hotel & Restaurant
Association of
Western India
30

31. 31

32. G O V E R N M E N T I N H O T E L B U S I N E S S
• Jawaharlal Nehru, the First Prime Minister of India recognized
the need to build hotel for the foreign dignitaries and this led to
the building of the first Government invested Hotel Ashok in
New Delhi in 1956.
• Government basically opens a hotel, to develop a new
destination, which may not be commercially attractive to private
sector.
32

33. 33
Ashok Hotel, Delhi

34. E S T A B L I S H M E N T O F I T D C ;
To promote and protect tourism, India Tourism Development Corporation was established, in 1966.
The main objectives of ITDC are as follows;
 To develop tourism infrastructure.
 The construction, management, and marketing of tourism products including hotels and catering units.
 Establishment and management of tourist transport facilities.
 The setting up of shopping facilities
 Creating convention and conference facilities.
 Providing consultancy services and training for tourism-related projects.
 Promote tourism traffic in the country through food festivals, fairs and joint ventures abroad.
 Organise cultural and entertainment programmes.
 Provide publicity abroad.
However, for many reasons, many of the ITDC run hotels have now been privatized and someday,
Government may completely exit from running hotels business.
34

35. I N T E R N AT I O N A L B R A N D S
The Government of India started granting license to the International hotels, like;
 Hyatt Hotels & Resorts,
 InterContinental Hotels & Resorts,
 Marriott International,
 Hilton Worldwide,
 Best Western International,
 Shangri-La Hotels & Resorts,
 Four Seasons Hotels & Resorts,
 Carlson Hotels Worldwide,
 Aman Resorts ,etc.
35

36. 36
Current Scenario
• This positive image of Indian hotels helped the hotels chains in
achieving the global recognition.
• Hotel chains like Taj, Oberoi, ISTA Hotels etc., have forayed in
the International markets.
• The Indian tourism and hospitality industry has emerged as
one of the key drivers of growth among the service sector in
India.
• Tourist in India has significant potential considering the rich
cultural and historical heritage, variety in ecology, terrains
and places of natural beauty spread across the country.
• Hospitality &Tourism is also a potential large employment
generator besides being a significant source of foreign
exchange for the country.

37. • In FY20, 39 Million jobs were created in the tourism sector in
India; this accounted for 8.0% of the total employment of the
country. The number is expected to rise by 2% annum to 52.3
million jobs by 2028.
• Accounting to WTTC, India ranked 10th among 185 countries
in term of travel & tourism’s total contribution to GDP in 2019.
During 2019, contribution of travel & tourism to GDP was
6.8% of the total economy, Rs. 13,68,100 crores (US $194.30
billion).
37

38. 38
1425
1593
1829
2483
1376
1257 1233
1394
1459
1784
1961
0
500
1000
1500
2000
2500
3000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
India's No. of Hotels 2008-2018
No of Hotels
Data shows that India’s No.
of hotels were all time high
in the FY2011 with 2483.

39. 39
54
56
58
60
62
64
66
68
70
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
66.8
69.3
63.1
61.3
62.1
60.9
60.4 60.4
61.3
62.1
61.8
Average Hotel Occupancy Rate 2007-2017
Average Hotel Occupancy Rate

40. M A R K E T S I Z E
• During 2019, Foreign Tourist Arrivals (FTA) in India stood at 10.93 million,
achieving a growth rate of 3.5% y-o-y. During 2019, FEEs from tourist increased
8.6% y-o-y to Rs. 2,11,661 crores (US $ 30.06 billion). In 2019, arrival through e
Tourist Visa increased by 23.6% y-o-y to 2.9 million.
• International hotel chains are increasing their presence in the country, and it will
account for around 47% share in the tourism and hospitality sector of India by
2020 and 50% by 2022.
40

41. The data reached an all-time
high of 1,226,398.000 Person in
Dec 2019.
The Indian Tourism Industry
showed a tremendous growth in
last 10-12 Years.
41
Foreign Tourist Arrival 2010-2019

42. I N V E S T M E N T
• Hotel and Tourism sector received cumulative FDI inflow of US $
15.61 billion between April 2000 and December 2020
• India was globally the 3rd 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
42

43. 43

44. G O V E R N M E N T I N I T I AT I V E
Indian Government has realised the country’s potential in the tourism industry and has taken several steps to
make India a global tourism hub.
In the year 2002, the Government of India announced a New Tourism Policy. The policy is built around the 7-S
Mantra’s
 Swaagat (Welcome)
 Soochnaa (Information)
 Suvidha (Facilitation)
 Surakshaa (Security)
 Sahyog (Cooperation)
 Sanrachnaa (Infrastructure)
 Safaai (Cleanliness)
44

45. 45
 In February 2021, the minister of tourism under the Government of India’s regional office (East) in Kolkata
organised an ‘Incredible India Mega Homestay Development &Training workshop’. 725 homestay owners
from Darjeeling, Kalimpong and foothills of Dooars were trained in marketing, sales and behavioural skills.
 On November 4, 2020, the Union Minister of State for tourism & culture Mr. Prahal Singh Patel inaugurated
the ‘Tourist Facility Centre’ facility constructed under the project “Development of Guruvayur, Kerala” (under
the Prashad scheme of the ministry of tourism).
 The ministry of tourism developed an initiative called SAATHI (System for Assessment, Awareness & Training
for Hospitality Industry) by partnering with the Quality Council of India (QCI) in October 2020. The initiative
will effectively implement guidelines/Sops issued with reference to COVID-19 for safe operation of hotels,
restaurants, B&Bs and other units.
 Under Budget 2020-2021, the Government of India has allotted Rs. 1,200 crores (US$171.70 million) for
development of tourist circuits under Swadesh Darshan for eight Northern States.
 Under Budget 2020-2021, the Government of India has allotted Rs. 207.55 crores (US$ 29.70 million) for
development of tourist circuits under PRASHAD scheme.

46. R E C E N T A C H I E V E M E N T S & S TAT I S T I C S
 During 2019-2020, an additional fund Rs. 185.67 Crores (US$ 269.22 million) was sanctioned
for new project under the Swadesh Darshan scheme.
 Ministry of Tourism sanctioned 18 projects covering all the North Eastern States for Rs. 1,456
crores (US$ 211.35 million) to develop and promote of tourism in the region under Swadesh
Darshan and PRASHAD schemes.
 Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in October
2018 and the total revenue generated till November 2019 stood at Rs. 82.51 crore (US$ 11.81
million).
46

47. 47
Tourism Revenue Growth 2008-2018
India’s Tourism Revenue declined as a result of a strong economic slowdown between the second
half of 2008 and end of 2009 because of the H1N1 influenza virus, but slowly recovered.

48. 48
Foreign Exchange Earning (2008-2018)

49. 49
Visitor Arrival Growth % (2008-2018)

50. S h a r e O f To p 1 0 To u r i s t A r r i v a l I n
I n d i a
Domestic Tourist Visit (2019) Foreign Tourist visit (2019)
50
Tamil Nadu,
21.9
Maharashtra,
17.6
Uttar Pradesh,
15.1
Delhi, 9.5
West Bengal,
5.3
Rajasthan, 5.1
Kerala, 3.8
Punjab, 3.5
Bihar, 3.5
Goa, 3
Others, 11.8
% SHARE
Uttar Pradesh,
23.1
Tamil Nadu,
21.3
Andhra
Pradesh, 10.2
Karnataka, 9.8
Maharashra,
6.4
West Bengal, 4
Madhya
Pradesh, 3.8
Telengana, 3.6
Gujrat, 2.5
Rajasthan, 2.2
Others, 13
% SHARE

51. I M P A C T O F C O V I D - 19 O N
I N D I A N H O T E L I N D U S T R Y
51

52. 52
COVID-19 is an unprecedented impact on the global economy. Tourism and hospitality
sector is struggling with the effect of the Economic slowdown and its big state of shock
at present situation tourism and hospitality has come to halt with India under
lockdown and imposition of section 144, also cancellation of flights, suspensions and
cancellation of entry permits, visas and shut of tour operators and travel agents, with
this situation anyone will barely do the future booking.
The fresh hit affected in February, 2020 where the Indian tourist and travellers total
number declined and then latest hit crisis in tourism and hospitality sectors.

53. 53
771,353
610,590
721,015
817,455 798,587
750,514
944,233
1,091,946
1,225,672
1,118,150
1,015,632
328,462
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
April, 19 May, 19 June, 19 July, 19 Aug., 19 Sep. 19 Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20
Tourist Arrival, Monthly (April 2019- Mar 2020)
April, 19 May, 19 June, 19 July, 19 Aug., 19 Sep. 19
Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20
• India Visitor Arrivals recorded 328,462 people in Mar 2020, compared with 1,015,632 people in the previous
month (February).

54. 54
 United Nations World Tourism Organization (UNWTO) took the SARS scenario of 2003 as
standard, component in the size and dynamics of global travel and present interruptions,
the environmental spread of COVID-19 and its likely to have economic impact.
 UNWTO approximate that in 2020 global international tourist arrivals could decline
between 25-35% down from an estimated growth of 2.8% - 3.9% forecast in early January
2020 which could translate into a loss of US$ 31 - 51 billion in spending by international
visitors.
 Federation of Association in Indian Tourism & Hospitality (FAITH), has appealed for an
instant relief package from the government to stay afloat and avoid job losses.
 Close to 90% MSMEs of 52,000 travel agents, 1,15,000 tour operators, 15,000 adventure,
9,11,000 tourist & transporters, 53,000 hospitality and 5,00,000 restaurants are facing the
heat due to lack of cash flows, said by FAITH.
 Investment Information and Credit Rating Agency (ICRA) expects the industry to contract
65% in the FY21.
 ICRA research also observed that pan-India occupancy hit an all-time low of 18-20 % in 8
months of the FY 2021, down from 64-65 % in the previous year.

55. 55
3.237 4.182
8.239 7.131 5.359
12.089
20.07 20.591
15.318
11.224
1.67
-66.323
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Tourism Revenue Growth % (April 2019-March2020)
Tourism Revenue Growth % (April 2019-March2020)
• India’s Tourism Revenue dropped 66.3 % YoY in Mar 2020, compared with an increase of 1.4 % YoY in the
previous month.

56. 56
• India Foreign Exchange Earnings data was reported at 58,330.000 INR Mn in Mar 2020. This records a
decrease from the previous number of 181,900.000 INR Mn from Feb 2020.
170,610
135,410
159,630
181,910 178,170
167,910 170,430
198,310
226,170
202,820
182,810
58,330
0
50,000
100,000
150,000
200,000
250,000
April, 19 May, 19 June, 19 July, 19 Aug., 19 Sep. 19 Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20
Tourist Arrival, Monthly (April 2019- Mar 2020)
April, 19 May, 19 June, 19 July, 19 Aug., 19 Sep. 19
Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20

57. 57
“We expect FY21 RevPAR to decline by 70-75 % pan-India and close at
Rs 900-1,000 per night. It will continue to be impacted by the
lockdown, travel restrictions because of the virus spread. "FY22 will
see the industry witnessing over 120 % growth in revenues and
operating margins clawing up to 13-15 % supported by pick-up in
revenues and some continued benefits of the large-scale cost
rationalisation measures undertaken during the pandemic, particularly
in staffing,“
Mr. Pavethra Ponniah.
ICRA VP and Sector Head

58. 58

59. 59
1. More with Less isn’t a Paradox, It’s the Future: Hotels will initially reopen in a
partial manner with low occupation levels, keeping certain floors shut down and
running at reduced staff counts in order to control costs. Early indications are that
the expectation of reduced staff counts and an increased focus on efficiency,
safety, and heightened cleanliness standards will require hotels to have better tools
to solve their problems. Hotels will need to do more with less, which is where
technology (especially contactless technology) provides the most leverage.
2. High Tech, Not High Touch: The demand for contactless hospitality has
skyrocketed, and it isn’t going away anytime soon. Throughout the recovery,
hoteliers will be asking themselves how they can continue to deliver the expected
hospitality experience, while managing the health and safety of both their staff
and their guests, from mobile check-in to keyless entry, the amount of physical
assets that change hands will decrease. Minimizing face to face guest and staff
interactions will also be a common trend. Technology will help hoteliers adapt to
a future with contactless communication and contactless hospitality.

60. 60
3. Luxury will be Redefined: Luxury is now being redefined in terms of safety and
cleanliness. What was once a request for champagne in the room may now be a
request for the mini bar, and other physical assets, to be removed. In order for
consumers to feel confident that it is safe to begin staying in hotels again, the
hotel will have to feel as close to a safe haven as their own home. This means
they will be expecting heightened cleaning standards, clear and rigorous policies
around social distancing and contact-free interactions.
4. Hotel Concierges may be the difference: Concierge is the first point of contact for
guests who are looking for assurances from trusted sources about your new
sanitization standards, and your city’s public health status. They may be
questioned about the cleaning procedures, products used, disease control and
prevention, and how the hotel is tracking it all. The core purpose of the
Concierge will not change but the definition of what great hospitality is in these
times is shifting.

61. 61
Road Ahead
The Indian Hospitality Industry has huge growth potential. It has seen many
changes and Development along the way to this point, from Dharmshalas to
Sarai, from British Rule to establishment of ITDC. It has progressed a lot,
especially in last 20 years.
At present Covid-19 pandemic is the disease which is affecting public health,
the present disaster has become a downside economic crisis to the entire
world and therefore the tourism and hospitality sectors.
Experts have guessed that industry will get back on track by 2023-2024.
Also, Indian Government will be investing more in the Hospitality Industry in
the coming future.
So, what do we do for now? Well.. Nothing in particular. Just Hospitality, and
right now, that means providing a safe, clean space for guests and
employees, and embracing the new SOP’s that make this possible.

62. T H A N K
Y O U
Sample
Footer
Text
Submitted to-
Mr. Siddharth Srivastav
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