A FICCI Survey on ‘Hotel Industry: Putting the Tourism Downturn Behind’ reveals that the Indian hotel industry, which was hit badly due to the economic slowdown, is now on a recovery path. While nearly 40% of the participants in the survey mentioned that the current performance of their industry is ‘moderately to substantially better’ vis-à -vis the last six months, nearly 75% feel that the hotel industry’s performance would improve in the next six months.
The FICCI Survey notes that although the mood amongst members of the hotel industry is fairly buoyant, the degree of optimism about current and near term performance increases as one moves up from the two-star and three-star category of hotels to four-star, five-star and five-star deluxe categories. And this difference can be explained by the nature of the clientele to which these hotels cater to on a regular basis.
Feedback gathered from hoteliers show that with the global economy showing signs of improvement, foreign tourist arrivals, particularly those who travel on business, is once again picking up. Also corporate travel within India is showing signs of revival. As these segment of tourists is the catchment area of large hotels, hotels upwards of four-star category are seeing improvement in business.
