According to the world travel and tourism council, the growth in the hospitality industry is pegged at 15% every year, and with 2,00,000 rooms (both luxury and budget) needed in the country, the segment is poised for a massive growth. (more…)

Premier Inn is planning to open about 80 hotels in the country in the next 10 years. (more…)

Kolkata is feeling the strain of the credit crunch and no more so than the hospitality industry. (more…)

Litolier Group based in Mumbai, plans to build two more five-star hotels in India in the next few years. The group will develop two hotels in Mumbai and Goa under a joint venture with a foreign hospitality major. (more…)

This May Virgin Atlantic will cease its London – Mumbai route, only three years after it was launched. (more…)

Hyatt hotels has announced a major Indian expansion plan today over the next four years.

They plan will not only target leading markets in India but also penetrate tier two and tier three cities with the launch of the Company’s new upper mid-segment brand, Hyatt Place. These will significantly boost Hyatt’s property portfolio in India. (more…)

The Hotel Leela group plans to spend 22 billion rupees over one and a half years to set up three new hotels in India, the company’s chief financial officer said on Thursday according to Reuters. The luxury hotel chain operator will use the proceeds from an earlier foreign currency convertible bonds issue V.L. Ganesh told reporters at a media briefing.”The hotels will be set up in Udaipur, Chennai and New Delhi,” he added. (more…)

Speaking at a discussion organised by FICCI on `Impact of global meltdown and terrorism: India tourism fights back’ the Tourism Secretary, Sujit Banerjee, said he had spoken to the RBI deputy governor earlier this month to allow the hospitality sector to be given infrastructure status. (more…)

The global meltdown, coupled with economic recession and the terror incidents, has hit the tourism industry adversely. While there is a fall of foreign tourist arrival, hotel bookings are also witnessing many cancellations.

The Tourism Ministry has convened a meeting of the National Tourism Advisory Board next week to address the issues arising out of the current crisis.

A meeting has been called with all stakeholders to assess the situation and discuss confidence building measures for both the domestic and foreign tourists, Soni said.

The ministry has already written to all the state governments asking them to beef up security at sites of tourist importance and hotels.

It is also planning to launch a major publicity campaign to assure foreign travellers that India continues to be safe tourist destination and the terror attack like the one in Mumbai was just an aberration.

In the wake of the terror attacks in Mumbai, the ministry is finalising a new campaign trying to spread the message that the security situation in India is well within control and the government is well equipped to guarantee the safety of every tourist coming to the country.

Indian Association of Tour Operators (IATO) has also written to the Tourism Ministry seeking a package to tide over the crisis.

We have written to the ministry seeking certain tax benefits and other incentives to bail out the industry which is passing through a crisis, said IATO president Vijay Thakur.

Exemption of service tax on tour operators, export industry status for the industry, income tax benefits, marketing development scheme, rationalisation of luxury tax and reduction in entry fee in monuments are some of the demands made by the IATO.

Tourism industry contributes to the national economic with its potential to provide foreign exchange for the country, Thakur said, adding that “there is a need to encourage the industry so that inbound arrivals to the country can be sustained”

Source: Times of India

India: Inspiring Business Opportunities Conference

Navyroof.com’s Managing Director, Andrew Fassnidge was invited by the London Chamber Of Commerce to present at the India-Inspiring Business Opportunities conference held in London.

Andrew along with other keynote speakers including Richard Perry (Head of business Services, UK India Business Council), Anjalika Bardalai (Editor, The Economist Intelligence Unit), David Stringer-Lamarre (Director, Morley College), Devyani Vaishampayan (Principal, Global HR Consulting), Babu Datta (MD, Evolve Creative Limited) and Amit Chanda (Risk Advisory Group) discussed the immense opportunities for UK businesses in India.

It was very encouraging to see the unwavering enthusiasm for doing business in India just a week after the Mumbai attacks. The overriding common thread throughout the conference was that India has a bright and growing future for UK business.

Anjalika Bardalai of The Economist Intelligence Unit predicted that India will be affected by the the global downturn in the short to medium term but will come out of with strong GDP growth and resume its upward growth curve in two years with “real GDP growth forecasted to accelerate somewhat to 7.1% in 2010/2011″.

Indian GDP growth - The Economist Intelligence Unit

Anjalika also noted, “although growth is slowing the point to emphasise is that this is still an extraordinary performance not only when compared to any other major economy in the world today, but also by India’s own historical standards.”

Real estate feeling effects but will recover

Andrew Fassnidge of Navyroof.com, similarly presented that the real estate market was feeling the effects of the credit crunch but that it will recover more rapidly after FY09-10. Reduced foreign direct investment (FDI) inflows have taken its toll on developers, as banks are often unwilling to lend which has led to many being faced to liquidate at reduced prices. He predicted that the downturn in the mid to low end of the Indian property market will not be protracted for the following reasons:

– Very strong demand

- Favourable demographics

– Low mortgage penetration – mortgage to GDP ratio only 8%

– GDP growth forecasted to average 8% until 2020

– Declining interest rates

- Inflation decreasing

– Rising long term employment

– Growing middle class

– Ongoing infrastructure demand

– Cheaper raw materials will reduce building costs from current levels

All of these factors combined illustrate the sustainability of the Indian property market in the medium to long term. Ultimately it will be many years before end user demand is even close to being met so India should recover well in this respect. He noted however, the high and luxury end of the market will be slower to recover and develop, as affordability and demand are not as high in this segment.

Tourism – A big opportunity

Andrew, also highlighted many areas he felt offered opportunities for UK companies. He highlighted the tourism sector as one to note, with 100% FDI permitted by foreign investors and a severe shortage of good quality hotels and accommodation. Increased spending on infrastructure and development will boost both business and tourism in India and this sector offers excellent opportunities for foreign investors. Many joint venture opportunities with Indian developers can be taken advantage of and are possibly the best route to enter India initially.

Overall the conference only touched the surface of the immense opportunity that is India. Navyroof.com look forward to paticipating at similar future events and would like to thank the London Chamber of Commerce for inviting us to contribute to such a successful event.