Indian Hospitality: A Strategic Shift….

The last few months have seen countries strategising to recover from the turmoil of the global economic crisis, thus resulting in a focal shift from conventional growth centres to areas with significant yet untapped growth potential. As global output growth falls to one per cent in 2008-09 and developed economies (US, Euro zone and Japan) reflect negative growth, transition economies (4.6 per cent) and developing economies (4.8 per cent) emerge as major growth contributors. China, India, Brazil and Mexico emerge as top economies demonstrating sustained growth despite the slowdown. Hospitality in India, an industry where growth is dependent on both transient and local demand presents a unique opportunity as economic activity and resulting interaction shifts towards India and Asia.

Though it has felt the impact of the economic crisis, hospitality has emerged as one of the key service sector industries in India. It accounts for two per cent of GDP; one per cent of capital investment and three per cent of private consumption nationally. The industry increased its GDP contribution 2.5 times between 2002 and 2008,