Source: WTTC Country Reports, FHRAI, HVS, Dept. of Tourism
SIZE
Travel
and Tourism is a US$41.8-billion industry in India, 5.3% of GDP
4.9
million international tourist arrivals in 2007, an increase of
over 9% from the previous year
382
million domestic visits estimated in 2006; the domestic tourism
market grew at about 12% CAGR in the last 5 years
Only
109,000 rooms in 1,980 hotels across the country registered in
2006*
Five-star
hotel rooms constitute 27%, four-star 7.5% and three-star 22%
All
India industry wide occupancy of over 66.9% in 2006-07
Scarcity
of rooms in several cities such as Mumbai, Delhi and Bengaluru
has resulted in rates of over US$300 per night
OUTLOOK
Foreign
tourist arrivals are targeted to grow to 10 million in 5 years
Domestic
tourism is expected to increase by 15% to 20% p.a. over the next
5 years
Rapid
growth in average room rates is expected to continue until
sufficient new supply comes on stream
Average
room rates increased by over 15% in 2007; the fastest growth
rate was in 4-star and 5-star segments
POTENTIAL
Favourable
demographics and rapid economic growth point to a long-term
secular uptrend in the domestic demand for hotels – for
business and leisure
International
inbound traffic is expected to grow rapidly with increasing
investment and trade activity
WTTC
has identified India as one of the fastest growing countries in
terms of tourism demand
India
has benefited from an aggressive promotion campaign and an
out-performing economy
The
growth momentum in domestic and international travel is expected
to receive a further boost with more budget airlines/lower
air-fares, open sky policies and expected improvements in travel
infrastructure (roads, airports, railways)
There
are opportunities in all price and value chain segments due to
the shortage of hotel stock; plans are on to increase quality
accommodation from the current 110,000 rooms to 200,000 rooms by
2011
Hotel-asset
construction and ownership
Low
penetration of brands (about 30%) provides opportunities for
management contracts and franchising with local hotel
owners/developers
Serviced
apartments in major cities – no chain operating in all cities,
very little stock
Need
for world-class MICE infrastructure in major Indian cities
Significant
requirement of hotel stock and tourist infrastructure for the
Commonwealth Games in New Delhi in 2010