Hospitality & Tourism

Background

Market Size
1,368,100 crore (US$ 194.30 billion). In 2020, the Indian tourism sector accounted for 39 million jobs, which was 8% of the total employment in the country. By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

INTRODUCTION

The Indian tourism and hospitality industry have emerged as one of the key drivers of growth among the services sector in India. Tourism 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. Tourism is an important source of foreign exchange in India similar to many other countries. The foreign exchange earnings from 2016 to 2019 grew at a CAGR of 7% but dipped in 2020 due to the COVID-19 pandemic.

According to WTTC, India is ranked 10th among 185 countries in terms 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. 1,368,100 crore (US$ 194.30 billion). In 2020, the Indian tourism sector accounted for 39 million jobs, which was 8% of the total employment in the country. By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. The Indian airline travel market was estimated at ~US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. The Indian hotel market including domestic, inbound and outbound was estimated at ~US$ 32 billion in FY20 and is expected to reach ~US$ 52 billion by FY27, driven by the surging demand from travelers and sustained efforts of travel agents to boost the market.

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue over US$ 59 billion. However, domestic tourists are expected to drive the growth, post pandemic. 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. FTAs during the period January- March, 2022 were 784,750 as compared to 306,641 in March, 2021 registering a positive growth of 155.9%. The percentage share of Foreign Tourist Arrivals in India during March 2022 among the top 15 source countries USA (24.58%) followed by UK (14.01%), Bangladesh (11.78%), Canada (6.86%), Australia (5.68%), Sri Lanka (4.30%), Nepal (3.10%), Germany (1.94%), Singapore (1.79%), France (1.69%), Maldives (1.51%), Portugal (1.27%), Russian Federation (1.00%), Oman (0.95%) and Italy (0.93%)

Case Study

The Problem

1.Shortage of skilled employees:

Hospitality industry is lacking behind to provide the

skilled employees unavailable of the skilled workforce at

different level is one of the biggest drawback of the industry

metro and tier two cities are not able to sustain without

skilled employees.

2.High Turnover Of Quality Workforce:

Hospitality industry has found the difficult in retain the

quality workforce even after giving training and

development to the employees. Hotel industry needs

professionals but they are very easily attract towards the

better paying industry like retail, banking, aviation and

much more service industry (parwar2012)

3.Hign guest expectations:

As the competition has been increased at both level

with in and outside the industry due to this guest expectation

has increased. This results the hospitality facing the

challenges with short-term investment like new technology

infrastructure etc. which effects the long term business

objective.

4. New Technology Awareness:

As the technology is developing day-by-day.

Hospitality manager should be aware of the new technology

in the market up to date and should give awareness and

training to their employees to work on the new technology.

5. Competition faced amongst various players:

This is the one of the industry which is facing the high

competition by arrival of new products, new players and

new systems. the neighbor countries are also serving equally

by providing cheaper destination with better infrastructure.

The findings of the study revealed that the challenges including financial issues, global uncertainty, branding issues, human resources, financial viability, customer issues, operating cost creep, supply, safety, and security, all hugely impact the growth and development of the tourism and hospitality industry in India

Our Solutions

Cooperatives or alliances of small players in the marketing, promotion, logistic, and branding field help them to compete, sustain and grow in this 4th industrial revolution period- no other option.

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