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| Kamlesh Barot, president, FHRAI |
Achieving a cumulative annual growth rate (CAGR) of 12% in the next five years, the Indian hospitality will require setting up of 23.4 lakh hotel rooms of which at least 188,000 will be required in the organised sector and the balance in the unorganised sector. According to hospitality industry's apex body, the Federation of Hotel & Restaurant Associations of India (FHRAI), building these many hotels will require an overall investment of Rs 150,000 crore in the next five years.
Kamlesh Barot, president, FHRAI, said that the Indian tourism ministry has a great vision for increasing India’s share in foreign tourist arrivals (FTA) and has all the support from the hospitality association. "The ministry wants to see foreign tourist arrivals in India reach at least 1% by end of the XII Five-Year Plan (2016) from 0.6% at present. We completely support ministry’s target to increase FTAs in 2016 by 11.37 million, domestic tourist visits by 1,496 million and create 44 million new employment opportunities," said Barot.
A discussion to this effect and an effort to create a roadmap will take place at the upcoming 47th Annual Convention of FHRAI to be held in Goa from September 6 to 8. The theme for this year's convention will revolve around employment generation in addition to various aspects of hospitality that will need huge attention in the coming years.
Currently, the size of industry is pegged at $11.2 billion with 6.29 million Foreign Tourist Arrivals (FTA) with foreign exchange earnings of $11.394 billion. The industry’s contribution in India’s GDP was 5.92% (in 2011) which is expected to reach 7.3% in 2012. The industry also contributes 9.24% employment in the country with 53 million direct and indirect employemnt opportunities.
FHRAI estimates that the government shall increase the industry’s contribution to GDP at 7.8% by 2022. Moreover, the enhanced GDP shall be creating approximately 37 million direct & indirect new jobs.
However, there are many impending issues proving to be roadblocks in the growth of the Indian hospitality industry which will be part of the various discussions during the annual convention. "Issues like high taxes on tourism and moral policing due to archaic laws are primary issues. Moreover, high interest rates, inflation, lack of provisions for hospitality under infrastructure policies, sanitation, airport and tourist services, licensing, lack of trained manpower, exporter status, visa issues and the laws pertaining to the land acquisition for projects are other areas of concern," said Barot.
Kamlesh Barot, president, FHRAI, said that the Indian tourism ministry has a great vision for increasing India’s share in foreign tourist arrivals (FTA) and has all the support from the hospitality association. "The ministry wants to see foreign tourist arrivals in India reach at least 1% by end of the XII Five-Year Plan (2016) from 0.6% at present. We completely support ministry’s target to increase FTAs in 2016 by 11.37 million, domestic tourist visits by 1,496 million and create 44 million new employment opportunities," said Barot.
A discussion to this effect and an effort to create a roadmap will take place at the upcoming 47th Annual Convention of FHRAI to be held in Goa from September 6 to 8. The theme for this year's convention will revolve around employment generation in addition to various aspects of hospitality that will need huge attention in the coming years.
Currently, the size of industry is pegged at $11.2 billion with 6.29 million Foreign Tourist Arrivals (FTA) with foreign exchange earnings of $11.394 billion. The industry’s contribution in India’s GDP was 5.92% (in 2011) which is expected to reach 7.3% in 2012. The industry also contributes 9.24% employment in the country with 53 million direct and indirect employemnt opportunities.
FHRAI estimates that the government shall increase the industry’s contribution to GDP at 7.8% by 2022. Moreover, the enhanced GDP shall be creating approximately 37 million direct & indirect new jobs.
However, there are many impending issues proving to be roadblocks in the growth of the Indian hospitality industry which will be part of the various discussions during the annual convention. "Issues like high taxes on tourism and moral policing due to archaic laws are primary issues. Moreover, high interest rates, inflation, lack of provisions for hospitality under infrastructure policies, sanitation, airport and tourist services, licensing, lack of trained manpower, exporter status, visa issues and the laws pertaining to the land acquisition for projects are other areas of concern," said Barot.
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