A supportive state government that has plans to further develop the city with several SEZ’s among other benefits, ensures Amritsar is popular among corporates
Amritsar is the spiritual and cultural centre of the Sikh religion, home to Harmandir Sahib, popularly known as The Golden Temple across the world. Located just 32-kilometres from Lahore and home to the horrific Jalianwala Bagh massacre in 1919, the city has gained importance as a trade centre. It also serves as a stopover for tourists travelling towards the states ofJammu & Kashmir and Himachal Pradesh.
The key commercial activities include tourism, carpets and fabrics, farm produce, handicrafts and light engineering.
However, the state government nourishes ambitious plans to develop the city, which has seen significant increase in tourist arrival in the recent years. Various initiatives for upgrade and widening of roads, implementation of mass rapid transport systems and special drives to restore the religious shrines, are considered to be paramount by the civic administration.
The Rajasansi airport at Amritsar is well linked by flights from all over India and was recently elevated to an international airport. The percentage of international tourists has been growing steadily over the past few years since the city is popular as a centre of historic and religious tourism.
The city’s cosmopolitan outlook, skilled manpower and supportive infrastructure has led Amritsar to be considered by many corporates. Amritsar is also being looked upon as the hub for the manufacturing industry, which has been generating reasonable interest from the garment, food processing and pharmaceutical industries.
There has also been a spurt in real estate activities in the city as it witnesses several residential and retail developments in various locations. This is further propelled by the announcement of several special economic zones that areplanned providing the necessary impetus for the hospitality market in the vicinity. This increase in commercial activity is anticipated to considerably increase business travel into the city.
Amritsar has a total of 31-hotels spread across as a heritage hotel; additionally, it has five four-star hotels, 16 three-star hotels and nine two-star hotels in the city, providing a total inventory of 1325 rooms. Furthermore, there are other developments which are likely to add 929-rooms across the various categories in the coming three-to-four years according to our research.
The existing inventory is mainly comprised of unbranded hotels – with a few exceptions – which is concentrated in the city centre. However, the majority of the upcoming hotels are branded – a trend that stands testimony to the potential of the organised hospitality sector in the city.
The majority of the upcoming hotels are planned in 2010, with a few slated for 2013 and 2014.The city is expected to see a steady growth on the basis of the development of the corporate and manufacturing sectors. Domestic and international tourism will see a steady increase backed by promotion of tourism in the city.
The average room nights however will remain shorter, given the fact that it is largely a leisure tourism destination requiring an average of one-to-two day stay.
