New Year’s Resolutions for the Hospitality Industry

New Delhi, Dec 22 (PTI) As the Indian hospitality industry prepares to pop the champagne into 2025, it is preparing to roll out the red carpet to foreign tourists whose arrivals next year are likely to exceed pre-Covid levels while looking forward to Continue to contribute significantly to the country’s economy and make “India inevitable”.

However, the industry, which is expected to contribute $1 trillion to the Indian economy by 2047, is looking to the government for policy interventions such as unified licensing, workforce upskilling and targeted infrastructure investments to vertically meet India’s Demand generated by the economy. Strive to become the third largest economy in the world.

Hotels Association of India (HAI) said: “India aims to become the third largest economy by 2047 and the hospitality industry will play a key role in achieving this goal. The multiplier effect of the industry on the economy exceeds that of manufacturing industry and agriculture,” President KB Kachru told PTI.

He asserted that the future of the hotel industry looks promising, with “higher occupancy and average room recovery rates expected”.

“India’s tourism market is expected to grow from US$75 billion to US$125 billion by fiscal 2027,” Kachru, who is also chairman of Radisson Hotel Group South Asia, said citing an IBEF report. The number of international tourists is expected to reach 30.5 million.”

The boom in domestic tourism over the past few years has helped put the hotel industry on a path to accelerated growth. However, international tourist arrivals to India are down compared to pre-COVID-19 outbreak, causing concern in the industry.

However, Kachru said the inbound tourism market was also showing signs of steady recovery and could reach pre-COVID levels early next year.

Expressing similar optimism, Puneet Chhatwal, Managing Director and CEO of Indian Hotels Limited (IHCL), said India will continue to be one of the fastest growing major economies and move towards The world’s third largest economy.

“Coupled with limited supply in the country’s top 10 accommodation markets, foreign tourist arrivals expected to exceed pre-COVID-19 levels, and a permanent shift in consumer behavior as travel becomes a discretionary expense, will continue to drive demand for the hotel industry Exuberance is going on,” he noted.

Equally optimistic is Pradeep Shetty, vice-president of the Federation of Hotels and Restaurants Associations of India (FHRAI), who believes that the prospects for the Indian hotel and tourism industry in 2025 are very bright.

“Domestic tourism is expected to grow by 15-20 per cent, driven by initiatives like ‘Dekho Apna Desh’ and infrastructure improvements under the Swadesh Darshan 2.0 scheme,” he said.

Shetty further said: “International tourism is expected to make significant progress, with the number of foreign tourists expected to exceed 17 million, generating over $36 billion in foreign exchange earnings. The Ministry of Tourism expects 30.5 million international tourists to come to India by 2028. “.

He said hotel occupancy rates are expected to rise to 75% or higher, driven by increased leisure and business travel. India hosts several high-profile global events and the meetings, incentives, conferences and exhibitions (MICE) sector will make a significant contribution.

“Overall, the hospitality industry is expected to grow by 10-12%, with a significant impact on GDP and employment,” Shetty said.

Similarly, Arjun Baljee, president of Royal Orchid Hotels, said the industry will continue to grow, driven by digital innovation, personalized experiences and eco-friendly tourism.

Balji added: “We look forward to a promising 2025, creating unforgettable experiences for travelers and contributing to the growth of India’s tourism industry.”

However, the path to creating memorable experiences and playing a role in India’s economic growth has not been smooth for the hospitality industry, which has been seeking government intervention.

“Despite the emphasis on infrastructure development in the recent budget, the critical role and huge potential of the hospitality industry in creating jobs, contributing to GDP growth and foreign exchange earnings has yet to be recognized,” Kachru lamented.

Reiterating HAI’s demand to classify hotels as infrastructure and confer benefits to the hospitality industry, he said, “Such designation will enable hotels to obtain favorable financing terms including lower interest rates and extended repayment periods, thus attracting and promoting invest”.

He emphasized that the industry is not seeking subsidies, “however, we need to fully recognize the role of the industry in the national economy. These supportive policies will promote investment in the industry.”

“The industry is expected to contribute $1 trillion to the economy by 2047, but this will depend on the strength of these timely policy interventions. The industry wants to grow in a responsible and sustainable way and continue to contribute to a more inclusive economy Contribute and make ‘India inevitable’,” he added.

FHRAI’s Shetty reiterated the demand for uniform recognition of hospitality as an industry by all states, saying: “This will bring benefits such as lower power tariffs, easier land use clearance and better access to finance. Many hotels are unable to to qualify. “The state of infrastructure suffers due to stringent requirements, which limits their ability to obtain low-cost loans.”

Looking back on 2024, Royal Orchid Hotel Group’s Balji said it has been a year of strong growth and resilience for the Indian hospitality industry, driven by a surge in domestic travel, a shift towards experiential accommodation and a focus on sustainability.

Kachru acknowledged that the government’s massive investments in transport infrastructure, such as new airports, high-speed rail networks and improved highways, have made travel more accessible and convenient.

“Improved connectivity has driven growth in hotels and resorts and the development of tourism in new regions,” he added.

A spokesperson for Chalet Hotels said that India’s hotel industry is experiencing impressive growth, with record occupancy rates and significant growth in average daily room rates (ADR) across the country, underscoring the industry’s resilience and its ability to meet travelers’ continued demand for quality experiences. capacity for growing needs.

Shetty concluded: “2024 is a landmark year for the Indian hospitality and tourism industry, worth over $24 billion”.