HOTEL INDUSTRY IN INDIA

Hotel Industry in India

Hotel Industry in India

The Research Problem

The research pertains to the identification of prospects in India, which can encourage investments in the development and expansion of the hotel industry. The hotel industry in India has entered the global arena, supported by its emerging economy and the growth of the brand "Incredible India" tourism. The government has taken significant measures to promote tourism in the country (Hirsch 2010, pp. 23-56). The rising number of tourists, as a result of events such as Common Wealth Games, Cricket World Cup and IPL has given emphasis on meeting the increasing demand of people from other countries. As a result, the government needs to focus on the development and expansion of the Hotel Industry in India in order to meet the increasing demand of international tourists (Baker 2010, pp. 42-50).



Research Aim & Objectives

The aim and objective of the research is to discuss the development and expansion of the Indian Hotel Industry and identify the potential for investors in the growth of the sector.

Research Questions

There is a significant prospect for international investors to finance the development of hotel industry in India.

Key Theories which will be Used to Address the Problem

The development and expansion of the Indian hotel industry is based on demand and supply. There is a significant growth of the tourism sector of India as a result of the government's initiative to promote it (Brotherton 2003, pp. 15-33). Campaigns such as Incredible India have resulted in a growing number of tourists visiting India. This has a significant increase in the demand for accommodation in the form of hotels. However, the country lacks supply to meet the increasing demand of tourists. The economy of the country along with the encouragement from the government gives confidence to International investors to contribute in the development and expansion of the local hotel industry (King 2006, pp. 63-86).

Key Literature

The Hotel Sector in India

The Indian government, recognizing the growing importance of the tourism sector has earmarked large sums of money to promote it. “Incredible India” is a clear example of this tourism promotion campaign launched internationally and with remarkable effect. The campaign aims to increase the flow of international tourists (Stutts 2001, pp. 136-184). In this regard, India's tourism sector is in the right track, but it is still far behind China or Vietnam. This is mainly due to structural problems that have in terms of hotel infrastructures, roads and transport, although in the past two years this situation has begun to change, especially with regard to transportation (Teare 1998, pp. 18-39).

Missing Hotel Beds

India has only 92,000 hotel rooms in operation. The total number of rooms required, according to estimates from industry and government are about 130,000. The tourism boom that the country relies on experience could be hampered by this situation. Events like the Commonwealth Games in New Delhi in 2010 required a strong boost from government and private enterprise to solve this situation. That is why, the Indian government aware of the limitations ...