As India is one of the largest fastest growing economies in the world, it has seen a steep rise in investments for the Travel and Hospitality Industry not only from the Indian investors but from the overseas. There are several international hotel groups expanding their operations in India so the number of hotels have increased in large numbers in all the categories including in tier 1 -3 cities. While the growing economy of India and unsaturated hospitality and travel market has best of opportunities for the investors, fierce competition between the stand alone hotels and increasing numbers of hotels have also impacted on revenues of existing and upcoming hotels.
In 2015 India was the fastest growing economy among the BRICS countries and its travel and tourism sector contributed Rs. 8,309.4 billion which was around 6.3% of the GDP. As per the forecasts from the industry experts the travel and tourism sector is expected to contribute in even greater numbers in future which continues to grow in all aspects. At the same time when the opportunities in Travel and Hospitality industry are growing, it is facing real challenges in terms of sustainability in the market of fierce competition. Best resources available are in very limited numbers who have the potential to drive an organization to success and same is divided in uneven ratios across the industry. That has impacted the business prospects of several pre-existing and upcoming projects and now the lead time for the breakeven cost recovery has significantly increased due to market unpredictability in the hospitality and tourism sector. Recent growth in cases of violence against women and increased issues of north east as well as Kashmir crisis has impacted a lot in decreasing nos. of tourist from across the world. At the same time political crisis in almost all regions of the world has fueled the decrease in tourism in different parts of the world.
In the other hand make in India program of the BJP government has encouraged people from across the industries for the investments in different sectors, and alongside the hospitality industry has also seen a consistent growth in opening of low budget standalone hotels along with brands such as OYO Rooms, Bloom Rooms etc who have a lot to offer in very economical pricing. This has increased the competition among the hoteliers and at the same time has provided numerous options for the customers. Increasing numbers of the hospitality and tourism projects has also given rise in terms of the job opportunities the people (students) and in turn is contributing increase in business for several related industries as the demand has increased in a very large scale. Hospitality and tourism sector has seen severe demographical changes in past 10 years, as now the investors are not only making investments in urban areas but also in lesser known small town and remote areas where the guests can have entirely different experience of their lifetime. There’s a continuous growth in adventure and sports tourism in the country in the field of Mountaineering, stream watersports, paragliding and motorbike rallies in mountains etc. This has also not only increased the opportunities for the entrepreneurs but also the working communities across the country thereby contributing in the growth of the country’s GDP.
India is one of the best tourist destinations of the world with locations known for its beauty, historical importance and the environment which have been attracting the travellers from across the world for centuries. Now the governments (state and central) along with the private organizations have started developing several locations with regional and historical importance which is proving to be a great success among a section of international travellers who visit India for exploring the fabled traditions, culture and history of the places and people. However, such developments have provided with the opportunities for the locals and under privileged people of the areas it has also impacted upon the culture and old traditions and environment of several areas. Hill stations are commercialized to an extent in the country that, urbanization has started taking toll on the environment and the people in a way that the places have started losing its own charm, natural essence which it was once known for.
In a nutshell, there’s a considerable growth in opportunities in Travel and Hospitality sector which has contributed in several socio-cultural, environmental and economic changes in both good and bad ways, which in turn needs to be balanced for the wellbeing of all concerned including people, environment and economic growth of the region. There is need of the well-organized governance by the authorities concerned, focused in preserving the essence of the very objective of sustainable growth and same shall be expected by the organization’s and people involved in the activity related to the Travel and Hospitality Industry.