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Potential Of Hotel And Tourism Industry In India

Hotel industry going places, eyes 10m foreign visitors by 2010

The long-term outlook for the domestic hotel industry remains upbeat as the country's tourism industry experiences unprecedented growth, according to the latest Indian hotel market outlook report, 'India Digest 2008', by Jones Lang LaSalle Hotels, one of the leading hotel investment and advisory service providers.
Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry.
While domestic tourism is expanding in India owing to an increasingly affluent and growing population, greater consumption and the introduction of low cost airline carriers, the government is looking to grow foreign visitation to 10 million international visitor arrivals by 2010, the year of the Commonwealth Games in Delhi. Over the last five years, India has seen a double-digit growth in foreign visitors to a 10-year high of five million arrivals in 2007. Foreign exchange earnings for the same year soared in tandem to $12 billion (Rs 48,000 crore), a year-on-year increase of 34%.
The strong performance of the corporate sector and the growth in the economy has led to an unprecedented surge in business travel. “While the Indian economy has been affected by the current challenges faced by the global economy, the impact is expected to be short term,” said Sudeep Jain, executive vice-president (India), Jones Lang LaSalle Hotels....