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Tourism and Hospitality

Industry Summary

  • In FY20, 39 million jobs were created in the tourism sector in India accounting for 8.0% of the total employment in the country.
  • The number is expected to rise to 53 million jobs by 2029.
  • During 2020, foreign tourist arrivals (FTAs) in India stood at 2.7 million, decreasing by nearly 75% from the previous year.
  • The Indian hotel industry has lost around 17 billion dollars in revenue due to the impact of the COVID-19 pandemic.
  • Demand from the corporate side (conferences, meetings, interviews, etc) expected to fall due to rise of Work From Home
  • International hotel chains are increasing their presence in the country, and it will account for around 47% share in the tourism and hospitality sector of India by 2020 and 50% by 2022.

Value Chain

Step 1

Services Suppliers

foods, beverages, and essentials

Step 2

Training

Step 3

Operations

Step 4

Marketing and online presence

Cost Drivers

  • Salaries
  • Consumables (Beverages and food)
  • Power
  • Fuel

Revenue Drivers

  • Room Rents
  • Bars
  • Dining and Restaurant facilities
  • Event organizations

Growth Drivers

  • Reduced GST on hotel rooms
  • UDAN scheme
  • E-visa for foreign tourists
  • PRASHAD scheme

Key Customers

  • Indian as well as Foreign tourists
  • MNCS for event organization
  • Weddings and cultural programmers

Key Players

  • Marriot Hotels
  • IHCL (Taj Hotels)
  • Hyatt Hotel
  • EIH (Oberoi Hotel)

Channels

  • Websites
  • Online Travelling Agents (OTAs)
  • Flight service providers