Sponsored Links
03/27/2019 20 plazas to come up for Brand Khadi...Read More
03/27/2019 Ambani’s new content coup...Read More
03/27/2019 Bajaj Auto unveils its first car, the RE60...Read More
03/27/2019 Godrej Interio partners with Linet for healthcare biz...Read More
03/27/2019 Honeywell Turbo Tech to expand turbocharger portfolio in India...Read More

FDI in Retail will affects farmer?

View Results

Loading ... Loading ...

The market

  • In 2010, industry is expected to contribute 8.6 percent of GDP (USD 117.9 billion) rising to USD 330.1 billion by 2020.
  • Despite short- and medium-term setbacks, tourism economy is expected to grow at an average rate of 8.5 percent per annum from 2010 to 2020.
  • India is expected to become an increasingly important player in the global tourism economy, climbing to fourth place in the contribution of its Travel & Tourism Economy to total GDP growth over the next ten years
  • India is expected to remain at the forth place in terms of annual growth in Travel & Tourism demand between 2010 and 2020, averaging 8.5 percentage per annum – ahead of Vietnam, Thailand, Indonesia, Sri Lanka and Malaysia.
  • The medical tourism sector is also expected to generate revenue of USD 2.4 Billion by 2012, growing at a CAGR of over 27percentage during 2009–2012.
  • Growing popularity and marketability of India as a business destination as well a tourist destination, aided by campaigns like Incredible India, there has been an upswing in inbound tourism in the past few years. During 2002-2008, Foreign Tourist Arrivals (FTAs) in the country grew at a CAGR of 14.5 percentage.
  • The recent inbound tourist figures show that FTAs grew by 12.8 percentage during Jan-March 2010 as against 13.5 percent drop during Jan-March 2009, staging a full recovery after the 2009 slowdown. Hotels in key business and tourists destinations depend a lot on FTAs.
  • The market size of Indian hospitality sector has crossed USD 3.9 billion in 2008-09, registering an impressive CAGR of 15 percent from 2004-09. The domestic hospitality sector is expected to see investments of over USD 11 billion in the next two years within 40 international hotel brands making their presence in the country in the next few years.


  • Increased budgetary allocation for tourism.
  • Up-gradation of national highways to expressways connecting major cities and towns in India has created integrated tourist circuits.
  • Medical tourism – Medical care, packaged with traditional therapies like yoga, meditation, ayurveda, allopathy, and other traditional systems of medicines, attract high-end tourists especially from European countries and the Middle East.
  • The Union Budget 2009 spells out a sound framework for restoring the economic growth on a nine percent trajectory during 2009 -10. This will usher in opportunities for growth sectors like hospitality and tourism to make a larger contribution to both GDP and employment in the country.
  • Service tax exemption has been provided for transportation of passengers in vehicles bearing contract carriage permits which is expected to bring down the cost of travel within the country and increase popularity of tourist circuits like the Golden Triangle.
  • Abolition of Fringe Benefit Tax will also benefit the industry of hospitality.

Sources: WTTC, Travel & Tourism Economic Impact – India, 2010
Ministry of Tourism, Statistics, FTAs and FEE from tourism during 2010 and Analyst Reports

Industry Snapshot

Size of the hotel Industry (2009) USD 3.9 billion
Share of premium hotels segment (2009) USD 2.3 billion
Growth rate 2004 to 2009 15 percent
International visitor average spend USD 2000 in 2010 and Expected to grow more than USD 3,000 in 2020
Select foreign players in India Marriott, Intercontinental, Hyatt, Shangri-La, Starwood Hotels, Hilton, Accor Etc.
Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • LinkedIn

Leave a Reply

You must be logged in to post a comment.