INDIAN HOTEL INDUSTRY AT A GLANCE IN 2017 - 2018 Performance for 2017-2018
The average rate registered in hotel industry in year 2017 was INR4,507, which witnessed a 12.1% drop over the previous year (INR5,128). Hotel occupancy, too, showed a modest decline of 0.5% over the previous fiscal. In 2017, Rooms Revenue contributed a notable 53.6% to the Total Revenue, an increase over its percentage share in 2016, and an improvement from the declining trend exhibited in the years previous few years.
More than 10 million foreign tourists arrived in India in 2017 and the country is estimated to have earned $27 billion from them. According to sector experts, India finally surpassed the 65% occupancy rates threshold in 2017, with revenue per available room growth of 4.2% .
Industry Investments
The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct Investment (FDI). According to the data released by Department of Industrial Policy and Promotion (DIPP), the hotel and tourism sector attracted around US$ 10.6 billion of FDI between April 2000 and September 2017.
Future forecast
According to the source, the Indian hotel market is projected to grow to around 13 billion U.S. dollars by 2020.
