The hospitality and tourism were the worst hit sectors during the pandemic. Closed borders
and severe lockdown to contain the pandemic brought almost the entire industry to a
standstill. Particularly the SMEs which constitute approx. 80% of the industry were worst
affected and many of them went out of business. The impact on job loss was colossal.
According to the Union Tourism Minister, G Kishan Reddy, nearly 14.5mn people lost their
jobs during the first covid-wave, 5.2mn during the second wave and close to 1.8mn during
the third wave.
As per the Ministry of Civil Aviation (MoCA), domestic air passenger traffic went up to the
*3,00,000 level for the first time post-covid, after two months in FY2021.). This played a
major role in bringing back the hospitality industry on the recovery path. As of now,
occupancies and bookings are already match pre-covid levels (FY2019) for most of branded
hotel chains. The highest rise in room occupancies ranging between 6-9% was seen in New
Delhi, Pune, Goa, Kochi, and Kolkata, followed by Bengaluru and Chennai. However, the
sector is expected to achieve a broad-based recovery by the end of this calendar year.
The industry is observing changes in consumer behaviors post-pandemic and is accordingly
working on adapting to the new normal. Staycations, long-weekends getaways, nature eco travels are the new travel trends. The urge to travel post-pandemic is at all time high. Fears
related to covid-19 have abated and a lot people are travelling for short vacations with
family and friends. This is resulting in quick and sustained recovery of the sector, supported
by festival season as well.
Domestic and business travel is catching up. Medical tourism and eco-tourism are growing
in India and opening new prospects for business. Other than that technology and
sustainability are playing a major role in reshaping the sector. Different government policies
and schemes are attracting inbound tourism, helping the sector to recover fully.
The hospitality industry has huge growth potential with fresh talent entering into the sector.
As suggested by the experts, the industry currently targets 40 million jobs and could easily
reach a hundred million number 2047. The Hotel Association of India and its member hotels
are working towards nurturing new talent by providing in-house training, focusing on
inclusivity, practical training and collaboration with institutions. The industry is also paying
attention towards hiring specially abled people at various levels and building an ecosystem
for them as well. The Ministry of Tourism is running various online programs to better train
them and provide them with the best opportunities in the industry.
According to Union Civil Aviation Minister, Jyotiraditya Scindia, the industry has seen a drop
of about **30% so far as the air fairs are concerned. This will particularly lead to increase in
tourism in various locations across India. Thereby, increasing occupancy of the mid market
and upscale hotels and giving a boost to the hospitality industry overall.
With consistently growing middle class population and increasing disposable income, the
hospitality industry is witnessing a healthy growth – accounts for 7.5% of the country’s GDP.
Being the highest foreign exchange earner for the country, the hospitality sector is expected
to grow at ***16.1% CAGR to reach INR 2,796 thousand crore in FY2022. (Source: As per
KPMG report).
The government is taking number of initiatives to promote and make India as a major
tourism destination. According to the government report, there will be a renewed focus on
enhancing the contribution of tourism to India’s economy by increasing visitations, stay, and spending. This new export incentive scheme of the government will emphasize on creating ****jobs and entrepreneurial opportunities.
Reference Link:
*https://www.moneycontrol.com/news/business/domestic-air-passenger-traffic-tops-3-
lakh-mark-expected-to-cross-pre-covid-levels-soon-8142661.html
**https://www.thehindu.com/business/civil-aviation-minister-jyotiraditya-scindia-urgesstates-to-reduce-tax-on-jet-fuel/article66025099.ece).
***https://www.bizzbuzz.news/markets/festive-season-holds-big-promise-for-hospitalityand-liquor-industry-1172237
****https://www.livemint.com/news/india/tourism-likely-to-be-1-tn-sector-by-2047-
11662748335526.html
