The hotel industry in India will experience exponential growth over the next five years. According to analysis conducted by HVS, a company that operates globally offering consulting services to companies and operators in the hotel and restaurant industry, the opportunities in India vis-à-vis this market are enormous. After the global recession and the horrific attacks that rocked the city of Mumbai in 2008 (in which the luxury hotels Oberoi, Taj Mahal and Trident were stormed), a significant growth process took place starting the following year, and today the data presented by the report testify to the incredible boom in that industry.
Indiana's hotel capacity may have a total of 62,404 rooms, but approximately 90,000 rooms will be built in the next 5 years, or 143% more than the existing number. Specifically, 2010 was the year with the highest number of new hotel openings, with a considerable increase of 14,081 new rooms. The growth is undoubtedly driven by India's great metropolis, New Delhi: 20,021 more rooms will be built by 2015 (today's number is around 11,018), an increase of 182%. This is, in any case, a phenomenon that is affecting the country across the board and affecting all major cities.
Hoteliers point to Ahmedabad (20 more hotels will be added to today's 21, with an additional 2,339 rooms being built for a growth of 154%), Pune (22 more hotels compared to the existing 24, 5,196 new rooms and a +194%), Whitefield (7 new hotels compared to today's 5 and 1.350 new rooms), Hyderabad (where 22 more hotels are scheduled to open compared to today's 19 and 5302 new rooms, for a +140%), and Noida (18 more hotels will be added to the existing 4 hotels, with the construction of 4268 rooms) the new destinations that will be affected by this phenomenon.
The cities with the highest percentage regarding the construction of new rooms are Calcutta with a +229% (3481 more will be added to the current 1520) and Chandigarh +227% (1482 more than today's 653).
The breakdown in terms of quality of the hotels to be built will be as follows:
In light of this data, it can be said that the opportunities for investors and industry players are enormous. India can count on an annual population of about 650 million travelers, or more than twice the entire population of the United States, and the emergence of a middle class that is able (and especially inclined) to be able to spend on tourism and vacations is one of the main factors that can drive the sector's economy. This thesis is reinforced by an additional element: domestic hotel demand has historically been higher than foreign demand in India (5 million in 2009), so, especially in today's India, the immense domestic demand is able to largely support the growth of tourism, despite the difficulties in the economies of Western countries.
The governments of Rajasthan, Goa, and Kerala have sniffed out the deal and have long since begun to focus their efforts on upgrading tourism and hotel facilities.
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