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Indian tourism growing – rise of hotels

The supply of hotel rooms is inadequate in Kolkata, Chennai, Hyderabad, Mumbai and Goa.

An economy that is growing with unbounded optimism and with tourism numbers touching astral highs, the movers of the hospitality industry in India are building more hotels. Many, many more. Despite a sharp rise in hotel tariff, about 20% annually; rates are much higher than most comparable properties in the Asia Pacific region, India maintains an average 71% occupancy rate! The nationwide hotel boom may add a mammoth 55,366 new rooms, more than doubling the existing 22,400. Some of the international brands that will contribute to this expansion include Four Seasons, Mandarin Oriental, Sofitel, Aman and Marriott in Mumbai and Crowne Plaza, Novotel, Grand Hyatt and Leela in New Delhi and its environs. Bangalore will see a Golden Tulip, a Shangri-La and a Radisson come up shortly.

The supply of hotel rooms is inadequate in Kolkata, Chennai, Hyderabad, Mumbai and Goa. However, with the forthcoming Commonwealth Games to be held in 2010 in New Delhi, it is the hoteliers in the national capital region, Jaipur and Agra who should not go overboard in their enthusiasm to increase room capacity. Goa, as the most favoured leisure destination, will see a mindboggling 117% growth in hotels and predictably the cybertech cities of Hyderabad and Bangalore will see a five-fold growth.

A catalytic factor is the 18% growth in domestic and international air traffic over the previous year, and that the international visitor arrivals have increase exponentially. Incredible India ! campaign has been showcased effectively by Indian hospitality sellers at international travel marts and the surge in disposable income of the average Indian has together fuelled a travel boom within the country.

The domestic M.I.C.E ( Meetings, Incentives, Conferences, Exhibitions ) market is growing with the advent of healthy economic growth of the Indian corporate sector and attractive bottomlines experienced by the multinational business influx into India. The perception that India may offer a less spectacular growth than China but a more sustained and permanent one, has increased investments from global players into an already buoyant economy.

The Indian outbound traveller, freed from stringent foreign exchange regulations for overseas travel which allowed them only US$ 500 per person per year a decade back, and with more exposure to exotic yet affordable overseas destinations are now packing their bags with a new found sense exhilaration and adventure. India is rising. It is time for the rest of the world to sit up and take notice.


Consultant Editor - TravelDailyNews Asia-Pacific | Website

Shekhar is a veteran journalist and destination marketing consultant. With over three decades of experience in covering MICE and all aspects of tourism, he continues to travel extensively and contribute news, analysis and commentary on trends in the industry, globally. Email: