TOURISM AND

HOSPITALITY

Submitted By:

Sushant Bahadur (MS-50) Shekhar Tandale (MS-51)

Tushar Gupta (MS-52) Uday Gupta (MS-53)
Upasana Pudel (MS-54) Upneet Grover (MS-55)
Tourism and Hospitality

Hospitality
refers to the
industry of hotels, Tourism is travel for
restaurants, recreational, leisure
or business purposes
casinos, catering, where people stay for
resorts, clubs and more than 24 hrs and
any other service less than 1 year.
position that deals
with tourists.

12/07/2021 Tourism and Hospitality Sector : An Overview 2

Tourism Sector
 Size-INR 604.32 billion in 2008
Tourism and Hospitality
sector
 Generates 5% of GDP, third largest net 10
earner of foreign exchange for the country 8
Tourism
6 and Hospitality
Growt
sector
4 h rate
 Generates highest no. of employments
2
0
2007 2008 2009
 Growth- 9.4% over previous year

India is second of the fastest growing tourism economy in the world today.
(Exclusive research by the World Travel and Tourism Council- WTTC)

3
12/07/2021 Tourism and Hospitality Sector : An Overview
Trends in the Sector
In INR Crores Investment Trend

40000
35000
30000
25000
Investment
20000
15000
10000
5000
0
Dec/97 Dec/99 Dec/01 Dec/03 Dec/05 Dec/07

4
12/07/2021 Tourism and Hospitality Sector : An Overview
Global Trends

Projected 17.1-percent decrease The outlook for 2010 looks

in revenue slightly better than 2009

12/07/2021 Tourism and Hospitality Sector : An Overview 5

International Average Duration of Stay
(India leading the pack)
 Country  Days
 India  31.2
 Canada  5.22
 Brazil  13.00
 France  7.31
 Hong Kong/China  3.38
 Japan  8.80
 Malaysia  5.50
 Singapore  2.60
 Spain  12.9
 Thailand  8.4

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International Tourism Revenues (India
nowhere in the picture)
Intl. Tourism Receipts (US $
billion)
1. United States 72.3
2. Spain 32.9
3. France 29.6
4. Italy 25.9
5. China 17.8
6. Germany 17.2
7. United Kingdom 15.9
8. Austria 12.0
9. Canada 10.7 (2000)
10. Greece 9.2 (2000)

12/07/2021 Tourism and Hospitality Sector : An Overview 7

Local Trends (India)

The contribution to GDP is

expected at 6.0 per cent (US$
67.3 billion) in 2009 rising to US$ Revenues expected to rise by 42
187.3 billion by 2019. per cent from 2007 to 2017.

8
12/07/2021 Tourism and Hospitality Sector : An Overview
 Industry Outlook
Growth
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urism forand
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out
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ne
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ect
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rs

12/07/2021 Tourism and Hospitality Sector : An Overview 9

 Positives for the Industry
High
Stable
High occupancy
economic
rate ofand rate, of
political
growth
conditions,
around booming
75%, and service
due industry,
to greater number
FDI inflow,
significant
infrastructure increase
development, in
of foreign
average
tourist
emphasis on room
tourismrate
by the
arrivals
central government
(ARR).

10
12/07/2021 Tourism and Hospitality Sector : An Overview
Challenges faced by the industry

Indian Tourism and Hospitality Industry is still way behind even from
its small neighbors in South-East Asia, not to mention the large
counterparts like China

On one hand, in order to be competitive, this industry needs the

cooperation of both public and private sector players, and on the other
hand, cut throat competition also exists between the two in this
industry itself

Indian Tourism and Hospitality Industry has to be a ‘historian’ and a

‘futurist’ simultaneously

12/07/2021 Tourism and Hospitality Sector : An Overview

SWOT ANALYSIS OF
THE SECTOR
STRENGTHS

India has a rich cultural heritage. The "unity in diversity" tag attracts
most tourists.

The government has realized the importance of tourism and has given
priority to the development of the infrastructure and of new tourist
destinations

India's share in international tourism and hospitality market is

expected to increase over the long-term

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WEAKNESSES

Poor support of infrastructure

The lack of adequate recognition for the tourism industry

The internal security scenario and social unrest also hamper the
foreign tourist arrival

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OPPORTUNITY

Owning to the rise in income levels

leisure tourism is expected to enhance

With the open sky policy, the travel and

tourism industry has seen an increase
in business

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12/07/2021 Tourism and Hospitality Sector : An Overview
THREATS

The total dependency on foreign tourists can be risky, as there are

wide fluctuations in international tourism

Several international majors are entering the Indian markets. This will
increase the competition for the existing Indian hotel majors.

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India as an attractive investment
option
World’s largest democracy with a stable political environment

English speaking, educated, skilled human resource base at far lesser

rates than other developing or developed country

World’s leader in global outsourcing with excess of 80% market share

Young population: 80% below 45 years of age

Attractive fast growing consumer-class, markedly western in orientation

Favourable foreign investment policies, tax incentives, strong

economic fundamentals and attractive investor returns

Tourism and Hospitality Sector : An Overview 17

12/07/2021
Major Players of the
Hospitality sector : PUBLIC
SECTOR

ITDC Hotels

Hotel Corporation of India

12/07/2021 Tourism and Hospitality Sector : An Overview 18

Major Players of the Hospitality
sector : PRIVATE SECTOR
ITC Hotels -- Market share of around 70%

Oberoi Hotels (East India Hotels)

Indian Hotels Company Ltd. (The Taj Hotels)

Resorts & Palaces)

Hotel Leela Venture

Asian Hotels Ltd.

Radisson Hotels & Resorts

12/07/2021 Tourism and Hospitality Sector : An Overview

Major Players of the Tourism
sector

Cox and Kings

Thomas Cook

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Overview of Major Players

ITC Hotels Ltd. Oberoi Hotels ITDC Hotels

ITC was founded on The company's ITDC came into existence
August 24, 1910 in development plans are in October 1966 for the
Kolkata. ITC's hotel focused on the Middle promotion of tourism in
East and Asia. It has 32 India. The hotel portfolio of
business operates over
hotels in five countries ITDC includes 33 hotels
60 hotels across more across India. The
and is planning to open
than 50 destinations in new properties in Corporation is running
India. Mr.Yogesh C several locations, hotels, restaurants at
Deveshwar is the including Marrakesh, various places for tourists,
chairman of the hotel Muscat, Maldives, besides providing
group. Cambodia and Thailand. transport facilities.

12/07/2021 Tourism and Hospitality Sector : An Overview

 Projections for the Sector
Real GDP growth for travel and
tourism economy is expected
to be 0.2 per cent in 2009 and
to an average 7.7 per cent per
annum over the coming 10
years.

Expo
rt
earni
ngs
from
intern
ation
al
visito
rs
and
touris
m
good
s are
expe
cted
to
gene
rate
6.0
per
cent
of
total
expor
ts
(almo
st
US$
16.9
billio
n) in
2009,
growi
ng
(nomi
nal
terms
) to
US$
51.4
billio
n in
2019.

12/07/2021 Tourism and Hospitality Sector : An Overview 22

 Central Government Initiatives to
promote Tourism and Hospitality

The Ministry of Tourism is to provide Central

This year has been designated as the ‘Visit
India’ year. The ministry has increased
financial support to tour operators for
promoting India in international exhibitions.
Financial Assistance of up to US$ 158,670 to
States and Union Territories for the
construction of heliports around the country to
promote tourism to potential areas hampered
by connectivity issues. .

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 Central Government Initiatives to
promote Tourism and Hospitality
(contd)

Now, foreign medical tourists
will be offered one additional
treatment for free. Apollo,
Manipal, Moolchand, Fortis
and Wockhardt among
others have forwarded their
proposals for the same.
To strengthen the Indian
tourism sector ahead of the
Commonwealth Games in
2010 and to double foreign
tourist arrivals from 5.37
million in 2008 to 10 million
by 2010
Tourism ministry has also
asked overseas offices to
promote rural tourism
sites which will also
benefit local community
economically.

12/07/2021 Tourism and Hospitality Sector : An Overview

State-wise and Regional Initiatives to
promote Tourism and Hospitality
The country's first inter-state cruise between Visakhapatnam in Andhra
Pradesh to Kolkata via Orissa is being planned for tourists.

Karnataka has decided to set up a separate tourism authority for

Mysore.

In order to boost the tourism sector in the East and North East, Union
ministry of tourism has increased fund allocation further in these two
regions.

The permit system in Arunachal and Sikkim has been relaxed.

Tourism and Hospitality Sector : An Overview 25

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 Growth of Major Players
ITDC – increased turnover
from 311 crores to 324
crores. Grew at 5.84%

ITC Welcome Group net

turnover up by 11% and
profit by 7%

Oberoi group saw a huge

dip in growth rate,
witnessed only a 2% growth

12/07/2021
Tourism and Hospitality Sector : An Overview 26
Products of the Tourism and
Hospitality Sector
Star Rated Hotels

Heritage Hotels

Budget Hotels

Unclassified

Restaurants

Contract Catering

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Regulations governing the sector
The draft of legislation governing the hospitality industry can be
divided into three sectors:

The first governs the construction

and commissioning of hotels,
restaurants, guest houses and
other establishments

The second governs the operation,

maintenance and management of
establishments, and the health and
safety of occupants

The third set of rules governs

taxation, employment and
other contractual
relationships

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Tourism and Hospitality Sector : An Overview 28
Latest developments in the industry

100%
FDI
100% A five year
tax holiday
under the FDI is has been
automati now extended
c route is to
permitt Companies
now
ed in all that set up
permitted hotels,
in all airport resorts and
constructi develo convention
on pment centers at
develop specified
project destination
ment
projects s s

12/07/2021 Tourism and Hospitality Sector : An Overview

29
 Improving Tourism as a whole

Improve the quality of airports that are to the international standards.

Improve important railway stations to international standards.

Have smart, computer literate friendly immigration officers who will ensure that a
tourist need not wait more too long in the immigration queue.

Improve airport access roads.

Build more three star functional clean hotels with friendly affordable tariffs.

Maintain monuments and attractions as it is done worldwide.

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Reforms in Legislation
Rationalisation in tax rates in the hospitality sector

Tourist-friendly visa regime

Emphasis on developing the existing and new destinations to world-

class standards

Improvement in connectivity to important destinations

FDI in hotels was always allowed, but opening of real estate will allow
more investment in this sector

Tourism and Hospitality Sector : An Overview 31

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Recent Mergers & Acquisitions in this
industry
Deal Type Deal Date Target/Seller Co. Merged/Acquirer
Co.
Takeover 12 Jun 2009 Elel Hotels & Invsts. Ltd. Indian Hotels Co. Ltd.

Takeover 09 Jun 2009 Sterling Holiday Resorts Indus Hospitality Fund Ltd
(india) Ltd.
Takeover 28 Apr 2009 Sterling Holiday Resorts Indus Hospitality Fund Ltd
(india) Ltd. & Blue Ocean Investment
Trust

Takeover 13 May 2009 C H L International C H L Ltd.

Sale of Asset 11 May 2009 Shristi Infrastructure Devp. Shristi Hotelciti Pvt. Ltd.
Corpn. Ltd.

Takeover 22 May 2009 B W Highway Star Pvt. Ltd. Kamat Hotels (india) Ltd.

12/07/2021 Tourism and Hospitality Sector : An Overview

CONCLUSION
 Tourism and Hospitality is a fast-growing
sector, with tremendous potential for
growth.
 Medical Tourism is growing as a
potential high-revenue earner
 India has a great scope for improvement
in this sector, especially given its widely
known heritage and culture history

12/07/2021 Tourism and Hospitality Sector : An Overview 33

THANK YOU!!