HOTEL SECTOR Finally LIGHT At the End of the TUNNEL
Indian Economy & Market|April 2022
Hotel sector had remained one of the worst hit sectors due to pandemic. Six quarters down the line and they are emerging with flying colours.
IE&M Research
HOTEL SECTOR Finally LIGHT At the End of the TUNNEL

After almost six quarters of forgettable quarters, the holiday season has brought some of the shine back to the hotel industry. This was the sector that had remained one of the worst-hit sectors due to pandemic. The sector, which employs large number of population and contributes a significant portion of India's annual GDP, has been hit hard by the restrictions and curfews imposed by Indian government as well as state governments. Many of these businesses had been brought to a standstill as they were merely allowed to deliver food that qualifies as an essential service. The complete closure of operations, led to humungous revenue loss for the sector.

Deep Fall

Extended lockdown, restrictions on travel, closure of international flights and curtailed cost for business travelled to unprecedented fall in hotel occupancy. The industry's average occupancy hit rock bottom of single-digit in April 2020. Marginal recovery was seen in subsequent months, aided by quarantine stay provided at subsidized rates by key hoteliers. The Indian hotel industry has taken a hit of over Rs 1.30 lakh crore in revenue for the fiscal year 2020-21 due to the impact of the COVID-19 pandemic. Industry total revenue in FY2019-20 stood at Rs 1.82 lakh crore so approximately 75 per cent of the industry's revenues got wiped off. The Indian hospitality industry recorded revenue per available room (RevPAR) of Rs 1,582 during FY21, the lowest in the last 22 years, according to a report by Hotelivate. This, according to the hospitality industry consulting firm, is a 60.8 per cent decline over the last year (FY20).

Cost Measures Helped To Remain Afloat

This story is from the April 2022 edition of Indian Economy & Market.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the April 2022 edition of Indian Economy & Market.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM INDIAN ECONOMY & MARKETView All
Globalism, Freedom & Democracy Do Not Mix
Indian Economy & Market

Globalism, Freedom & Democracy Do Not Mix

The world today is packed with wealthy institutions and individuals that stand in revolt against the ideas of freedom and democracy. They do not like the idea of geographically constrained states with zones of juridical power.

time-read
6 mins  |
November 2024
WORLD DEVELOPMENT REPORT 2024 THE MIDDLE-INCOME TRAP
Indian Economy & Market

WORLD DEVELOPMENT REPORT 2024 THE MIDDLE-INCOME TRAP

A World Bank report titled 'World Development Report 2024: The Middle-Income Trap' indicates that India may take up to 75 years to attain just a quarter of the United States' per capita income. The insights in the report provides a useful reality check for India's ambitious goals, such as becoming a developed economy by 2047 or reaching a $5 trillion economy within the next three years.

time-read
5 mins  |
November 2024
IN CONVERSATION: "We are working with a Vision 2035. I'm sure within next 5 years we will be ranking among the Fortune 500 companies.”
Indian Economy & Market

IN CONVERSATION: "We are working with a Vision 2035. I'm sure within next 5 years we will be ranking among the Fortune 500 companies.”

Sudarshan Pharma Industries Ltd., led by its promoters, Mr. Hemal V. Mehta, a chemical engineer, and Mr. Sachin V. Mehta, has established a strong foundation in specialty chemicals and bulk drugs. Their relentless enthusiasm is visible when they speak. Indian Economy & Market reached out, to piece together the company's achievements and new initiatives in detail.

time-read
9 mins  |
November 2024
Sudarshan Pharma Industries Ltd. A MULTIBAGGER IN MAKING
Indian Economy & Market

Sudarshan Pharma Industries Ltd. A MULTIBAGGER IN MAKING

Sudarshan Pharma Industries Ltd. operates across various sectors in both the pharmaceutical and chemical industries, with a focus on specialty chemicals and intermediates, which find applications in Indian Le pharmaceuticals, paints, food products, and adhesives.

time-read
3 mins  |
November 2024
MUTUAL FUND LITE OR MF LIT PROMISING PROGRESS FOR INVESTORS
Indian Economy & Market

MUTUAL FUND LITE OR MF LIT PROMISING PROGRESS FOR INVESTORS

The SEBI has streamlined rules for passively managed schemes to have the impact of letting more players in the mutual fund ecosystem and offering diversified, low-risk investment options to retail investors. It would increase market liquidity and attract participation from old as well as new Asset Management Companies (AMCs). Shivanand Pandit feels that MF Lite is going to democratize investment opportunities in the Indian financial market.

time-read
5 mins  |
November 2024
BRICS Member States Ready to Dethrone Dollar
Indian Economy & Market

BRICS Member States Ready to Dethrone Dollar

AS the US weaponises the dollar in the Russian and Iranian sanctions, there is increasing desire by other developing countries to seek alternative currencies for trade, investment, and reserves, as well as developing alternative multilateral clearance systems outside of SWIFT.

time-read
3 mins  |
November 2024
7 BEST PHARMA COMPANIES
Indian Economy & Market

7 BEST PHARMA COMPANIES

The pharmaceutical industry in India is expected to reach $65 Bn by end of 2024 and to $130 Bn by 2030. India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. While Nifty's performance has been lackluster over the past month, several pharmaceutical stocks have shown resilience.

time-read
10+ mins  |
November 2024
NEW INVESTMENT PRODUCT CATEGORY IS SEBI'S LATEST MOVE COMMENDABLE?
Indian Economy & Market

NEW INVESTMENT PRODUCT CATEGORY IS SEBI'S LATEST MOVE COMMENDABLE?

The Securities and Exchange Board of India (SEBI) has introduced a consultation paper proposing a new investment product category aimed at addressing a specific market need. This proposed asset class would offer investment options that sit between mutual funds (MFS) and PMS, filling a gap and providing greater flexibility in portfolio management. The new investment vehicle is designed for investors who are prepared to take on riskier market positions but find PMS schemes or AIFs out of reach. SEBI after reviewing the feedback and finalizing the regulations through stakeholder discussions, may issue the final regulations.

time-read
5 mins  |
August 2024
DECODING THE CHINA MYTH
Indian Economy & Market

DECODING THE CHINA MYTH

Myths die hard. Among these is the great myth that China's poised to take over the world. Here, James Rickards debunks that myth.

time-read
7 mins  |
August 2024
What Is In Store For The Indian Economy?
Indian Economy & Market

What Is In Store For The Indian Economy?

Until the 2014 Lok Sabha elections, when the Bharatiya Janata Party secured 282 seats and Narendra Modi ascended to power, India experienced 21 years of coalition governments. A decade later, the BJP holds 240 seats in the Lok Sabha, and India is once again governed by a coalition. Fitch has indicated that coalition politics and a weakened mandate for the NDA could hinder the passage of ambitious reform legislation. It raises the question: Do coalition governments impede the economic reform agenda?

time-read
5 mins  |
July 2024