Information of Hotel Industry Laws in India - Part1

- Opportunitiesthrust. The industry is growing at a very rapid pace
- Applicable laws/regulatory policies.and there is a demand for more rooms both in
Introductionmetros and smaller towns. It is estimated that India is
Hotel Industry in India is witnessing tremendouslikely to have around 40 international hotel brands by
boom in recent years and going through an2011.
interesting phase. One of the major reasons for theIndia's booming hospitality industry has transformed
increase in demand for hotel rooms in the country isinto a veritable basket of the choicest of rooms,
the boom in the overall Economy and high growth infood and beverage, health and business facilities,
sectors like information technology, telecom, retailtravel packages and everything that you can think of.
and real estate. Rising stock market and newNew global entrants are vying with existing local
business opportunities are also attracting hordes ofplayers to provide world-class services at prices
foreign investors and international corporate travelerssuited to every pocket.
to look for business opportunities in the countryAn estimated 4.4 million tourists are expected to visit
particularly growth in tourism sector. As hotel industryIndia with an annual average growth rate of 12% in
is inextricably linked to the tourism industry and thethe next few years. The domestic tourist market is
growth in the Indian tourism industry has fuelled thealso flourishing. The commonwealth games in 2010 will
growth of Indian hotel industry.add to the demand for quality accommodation.
Explosive economic growth in India ignitesThe Government of India's Incredible India destination
unquenchable demand for hotel rooms. With hugecampaign and the Atithi Devo Bhavah campaign have
investments flowing into India for the developmentalso helped the growth of domestic and international
of infrastructure such as roads, highways, airportstourism and consequently the hotel industry.
and convention centers, interest in hotelThe opening up of the aviation industry in India has
developments is hitting new highs as tourism,exciting opportunities for hotel industry as it relies on
business and travel are on the rise.airlines to transport 80% of international arrivals. The
The booming tourism industry has had a cascadinggovernment's decision to substantially upgrade 28
effect on the hospitality sector with an increase inregional airports in smaller towns and privatization
the occupancy ratios and average room rates. And& expansion of Delhi and Mumbai airport will
with the continuing surge in demand, many globalimprove the business prospects of hotel industry in
hospitality majors have evinced a keen interest in theIndia. And the upgrading of national highways
Indian hospitality sector. It is estimated that India isconnecting various parts of India has opened new
likely to have around 40 international hotel brands byavenues for the development of budget hotels in
2011.India. Taking advantage of this opportunity Tata
Opportunitiesgroup and another hotel chain called 'Homotel' have
The spurt in India's tourism industry growth has had aentered this business segment.
ripple effect on its hospitality sector. Rising incomeIf you want to read article go to second part of this
levels and spending power combined with the- Information of hotel industry laws in india - part2.
governments open sky policy have provided a major