Straight Talk: One Of The Biggest Contributors To India's GDP Has Yet To Get Its Due!

Riding on the back of steady economic growth, vibrant domestic tourism and increased tourists arrival, India’s hotel industry has come-of-age, accounting for nearly 7.5% of the country’s GDP. By 2022, it will valued at INR 2,796.9 crore.

The jaunty, sprightly Indian hospitality segment has emerged as a top-dog in India’s growth story, contributing significantly to employment and GDP growth, while emerging as a major force on the FDI inflows front.

Despite the immense contribution it makes to the Indian economy, however, it receives scant support from the Indian government and continues to struggle for more recognition and better policies. Through Hotelier India’s newest initiative, Straight Talk, we speak to industry leaders on the myriad roadblocks the Indian hospitality industry faces and the possible solutions, both governmental and otherwise.

Take a careful look at the statistics and they reveal a fascinating growth story: A CARE Ratings report claims that the buoyant Indian hospitality industry witnessed a robust growth of 7 per cent to 9 per cent in FY18-19, riding a wave of steady economic growth and bullish domestic travel scene, besides increased international arrivals in both the business and leisure segments. According to Hotelivate’s new report, The Ultimate Indian Travel & Hospitality Report, India boasts a staggering 2.72 million rooms across branded/traditional hotel chains, new-age hotel chains, independent or unbranded hotels and alternate accommodation.

Let us indulge in some more number-crunching: India ranks 133 out of 136 nations in terms of hotel rooms (World Economic Forum’s Travel & Tourism Competitiveness Report, 2017); the hospitality and tourism industry contribute INR 5.9 trillion to the economy, a surge of 23.7 percent in the last two years; the hospitality sector is witnessing a healthy growth and accounts for 7.5 per cent of the country's GDP (KPMG) and is expected to grow at 16.1 per cent CAGR to reach INR 2,796.9 thousand crore in 2022.