A Presentation of Research Proposal on

PERFORMANCE ANALYSIS OF HOTEL INDUSTRY IN SOUTH GUJARAT REGION

Presented By DARSHANA S. SHIROYA

Table of Contents

Introduction Statement of the Problem Objectives of the Study Scope of the Study Hypotheses Review of Literature Sources of Data Sample Design Method of Analysis Limitation of the Study Scheme of the Study Bibliography

INTRODUCTION

Hotel industry providing a luxury service valuable to the economy only as a foreign exchange earner. The industry contributes directly to employment. The industry indirectly facilitates tourism and commerce. The hotel industry comprises a major part of the Tourism industry.

Important Facts about Tourism,2010

WORLD
No. of International Tourist Arrivals 940 Million Annual Growth Rate 6.6% International Tourism Receipts Annual Growth Rate
(Source: India Tourism Statistics 2010 at a Glance)

1.

2.

US$ 919 Billion 8.0%

INDIA
1.

2.

3.

No. of Foreign Tourist Arrivals in India Annual Growth Rate No. of Domestic Tourist visits to all States/UTs Annual Growth Rate Foreign Exchange Earning from Tourism In US$ terms Annual Growth Rate US$ terms (as per RBI)
(Source: India Tourism Statistics 2010 at a Glance)

5.58 Million 8.1% 740.21Million 10.7%

14.19 Billion 24.6% In 14.16 Billion

Indias Position in World

Share of India in International Tourist Arrivals Indias rank in World Tourist Arrivals
Share of India in International Tourism Receipts Indias rank in World Tourism Receipts
(Source: India Tourism Statistics 2010 at a Glance)

0.59%

40

1.54% 16

Number of Approved Hotels in India & Their Room Capacity in August, 2011
Category of Hotels
5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Heritage Others Total

No. of Hotels
79 82 69 657 208 141 55 251 1,542

No. of Rooms Available

17,131 9,609 6,141 27,404 5,923 3,717 1,491 3,100 74,516

(Source: India Tourism Statistics August,2011)

Leading Brands of Indian Hotel Industry Leading Indian Brands

Leading International Brands in India

GUJARAT

Gujarat is a land of festivities and celebration.

It is the only state in India that has combination of deserts, forests, coastline, cultural heritage and this aspect of the state makes it a fascinating tourist spot.

There are 23 major tourist centers in Gujarat, big and small, each offering different tourist products.

Major Travel Circuits of Gujarat

The South Gujarat
The Central Gujarat The Kachchha The North Gujarat

The Saurastra

SOUTH GUJARAT REGION

The South Gujarat Circuit is known as a South Gujarat Region. This region is divided into two parts: Kantha vistarIt is Western part of South Gujarat. Dungar vistarIt is Eastern part of South Gujarat.

Travel Circuits in South Gujarat Region

There are four Core Centre

1. Surat with 13 major & 7 minor centers 2. Saputara Hill Statio with 3 major & 4 minor centers 3. Vansda National Park with 4 major & 1 minor centers 4. Purna Wildlife Sanctuary with 3 major & 1 minor centers

Overall Key Tourism Drivers

Business- 55%
Leisure- 7% Religion- 34% Other- 4%
(Source: Tourism Sector Profile 12-13 Jan,2011)

STATEMENT OF THE PROBLEM

1. The slow growth of tourism in Gujarat in terms of percentage increase in the number of foreign tourist & domestic tourist Year Within Other Foreigner/ Gujarat Indian NRI (%) arrivals is indicative State (%) of the fact that we (%) have not succeeded 2006-07 78.0 20.4 1.6 19.4 1.6 in promoting tourism 2007-08 79.0 20.4 1.8 to the desired level. 2008-09 77.8
(Source: Tourist Flow in Gujarat, TCGL) 2009-10 2010-11 76.2 76.0 22.0 22.0 1.8 2.0

STATEMENT OF THE PROBLEM

2.Major tour operators were reported to have expressed reservation about tourism infrastructure over the lack of enough luxury Category No. of No. of No. of of Hotels Hotels Hotels in Hotels in hotels in South in Surat Saputara Valsad Gujarat Region. 5 Star 02 00 00
(Source: Southern Gujarat Hotel & Restaurant Tourist Guide line)

4 Star 3 Star

01 06

00 03

01 00

2 Star
1 Star Other

20
30 25

06
01 06

00
00 03

STATEMENT OF THE PROBLEM

3.We have to pay attention to other types of hotel too, in view of the domestic tourist. 4.It is dangerous to depend only on export oriented tourism.

STATEMENT OF THE PROBLEM

5.Travel trade will suffer in the absence of continuous stream of foreign tourist. 6.It needs to create a well balanced accommodation structure to maintain uniform flow of tourists.

SWOT Analysis of Hotel Industry in South Gujarat Region

Strength
1. 2.

Weaknesses
1. 2.

3.
4.

Rich Culture Demand-Supply gap Government Support Increase in the Market share

3.

Poor Support infrastructure Slow implementation Seasonal income

Opportunities
1. 2.

Threats
1.

3.

Rising income Open sky benefits New business opportunities

2.

Fluctuations in international tourist arrivals Increasing competition

OBJECTIVE OF THE STUDY

To study the trends in the hotel industry of South Gujarat Region. To study in terms of the financial performance with reference to the aspects of the customers and employees of the hotel industry in South Gujarat Region. To study the contribution of the hotel industry in employment generation and income generation.

SCOPE OF THE STUDY

A number of studies made earlier on tourism promotion unanimously agree that hotels have a significant role in tourism development.

No academic study is known to have been made in South Gujarat Region regarding the hotel industry in relation to tourism development.
The present study will suggest various measures to provide hotel facilities of the right type in this region.

HYPOTHESE

The number of hotels available is inadequate in relation to the flow of tourists.

The right type of accommodation and facilities demanded by the tourists is not available. The management of hotels needs to be streamlined to cater to the needs of tourists.

REVIEW OF LITERATURE

Anand M.M., Tourism and Hotel industry in India, 1976

In his study examines the reason for the poor tourist traffic in India. He says that hotels and other supplementary accommodations are the core of tourism industry.

Negi J.M., Hotel for Tourism Development, 1984

He deals with all kinds of demands and problems faced by hotel industry. He predicts that hotel industry has a big scope for expansion in future.

Seth P.N., Successful Tourism Management,1987

His opinion is that there should be close connection between growth of accommodation facilities and developments in the modes of transport.

Thaker M.D., Problems and Prospects of Tourism Industry in Gujarat, 2004

She also suggests in her study that there is a need for developing a sound policy of tourism based on scientific principles of hotel management both at the national and state levels.

SOURCE OF DATA

1. 2. 3.

Primary Data
Hotel establishments Employees of hotels Tourists

SOURCE OF DATA

1.

Secondary Data

2.
3. 4. 5. 6. 7.

Information and Statistics from publication of department of Tourism Govt. of India, T.C.G.L.,F.H.R.A.I. South Gujarat Hotel & Restaurant Tourist Guide Tourist Desk Annual Report of Hotel sector Tourism and Hotel Magazines Periodicals News papers and Books on Hotel and Tourism industry

SAMPLE DESIGN

Fifty hotels are going to be survey. These are consisting of approved hotels, classified hotels and unapproved hotels. Structured questionnaires will have been used for the survey of the 100 employees, 100 foreign tourists and 150 domestics tourists from the respondent hotels.

METHOD OF ANALYSIS

Appropriate accounting methods like ratios, percentages, indices graphs etc. and Statistical analysis tools like SPSS etc. will be used, to be decided at a later stage.

LIMITATION OF THE STUDY

The study will be restricted to the South Gujarat Region only so conclusions cannot be drawn for infernal analysis. Since personal interview with the employees of hotel will be not permitted, the questionnaires will have to be supplied to them and received back through the managers. Hence it is doubted if free opinions of the employees will have been expressed or not. Most of the hotelier will not ready to divulge the information relating to their foreign exchange earnings. For the financial analysis of hotel industry, we have to depend on annual reports.

SCHEME OF THE STUDY

The study is to be divided into six chapters. Chapter Introduction Theoretical frame work of the study Literature Review Research methodology and profile of the study Data analysis Findings and Conclusions Appendices Bibliography

1. 2.

3.
4. 5.

6.
I. II.

BIBLIOGRAPHY

Books
Andrews Sudhir, Introduction to Tourism & Hospitality Industry, 2007 Bhatt Harish, Hospitality and Tourism Management, 2006 Kannan s, Hotel Industry in India, 2005 Mohanty Pragati, Hotel industry and Tourism in India, 2008 Negi Dr. Jagmohan, Hotels for Tourism Development, New Delhi, 1984 Rues Eberharat H., Eco-Hotel Management Guide book, 1993 Sharma Sunil, Planning and Development of Tourism and Hospitality, 2007 Sajnani Dr. Monohar, Indian Tourism Business, 2008 Sharma K.K., Tourism and Travel Industry, 2006 Zulfikar Mohammed, Tourism and Hotel Industry, new Delhi, 2007

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

E-Sources and Others

CRISIL, Review of Blueprint for Infrastructure in Gujarat, Final Report,2010 F.H.R.A.I., Indian Hotel Industry Survey,2009-10 G.I.D.B., Report on Project Opportunity in Gujarat iDEXTb, Tourism Policy of Gujarat,2011 Industrial Commissionerate, Government of Gujarat, Industrial Policy, 2009 Wikipedia, Tourism www.emeraldinsight.com www.gujarattourism.com www.hotelmub.com www.slideshare.com

1. 2. 3.

4.
5. 6. 7. 8. 9. 10.