Sector - Hotel

The Hotel industry is relatively young in India. Its potential for growth is quite substantial as the country has a rich heritage, chequered past with its vast remains, apart from the enormous business potential, which can attract a huge number of foreign business and leisure travelers.

The main demand drivers are liberlisation, increased tourist traffic because of increase in air seat capacity, better roads and airports, simplicity of visa procedure. India has more natural and cultural resources providing for a wide range of tourists. If India is effectively promoted as a major tourist destination in the world, then the hotel business can boom. International business will drive the growth of premium hotel business and disposable income of the middle class will boost the demand for budget segment.

Favourable tax benefits i.e. removal / reduction of the burden of the various taxes on the industry, will be vital for the success of the industry. The continuous depreciation of the rupee is a boon to the premium segment. As premium segment is a luxury service quality management and branding  are also vital factors.