September 7 2017 I Industry Research Indian Hotels Industry – Overview Structure & Prospects The Indian hospitality industry has emerged as one of the key industries driving the growth of the services sector and, thereby, the Indian economy. The tourism & hospitality sector’s direct contribution to GDP in 2016 was US$ 47 billion. Also, tourism in India accounts for 7.5% of the GDP & is the 3rd largest foreign Contact: exchange earner for the country. Madan Sabnavis Chief Economist
[email protected] At the close of FY16, the country saw macroeconomic stability 91-22-67543489 owing to a decline in inflation, fiscal deficit and current account Darshini Kansara deficit. Going forward, the Union Budget FY18 has identified Research Analyst some major pillars that will support economic growth for the
[email protected] country that includes tax reforms, fiscal discipline, investment in 91-22-6754 3679 infrastructure, ease of doing business, agriculture and farmer welfare, rural sector, social sector, education and job creation. Guided by: This is said to have translated into an overall pick up in the Divyesh Shah economic activities, thereby having a positive impact on the DGM demand for hotels industry in the country.
[email protected] Outlook: Mradul Mishra
[email protected] Going forward, CARE expects the industry to register an overall 91-022-6754 3515 healthy growth in revenue on back of economic growth and consistently growing middle class along with increasing disposable income. There are various other key factors that drive the market, including India’s attractiveness as a medical tourism destination; steadily growing Meetings, Incentives, Conferences and Exhibitions (MICE) segment; and, an increasing fondness among millennial to travel.