The Indian Hotel industry thrives on tourism and business visits. It is an important source of employment for the Indian population and also earns a sizeable foreign exchange. India, with its vast land with diverse culture and tradition has been attracting foreign visitors for long. Of late, business travellers also rely on the Indian Hotel industry. The rapid growth of Information and Technology industry in India has seem many global companies setting shop here and hence the hotel industry has huge prospects.
The revenue per available room (RevPAR) stood at INR 5,458.68 in FY 2020 as against INR 5,671.00 in FY 2017. It is expected to reach INR 6,292.85 by FY 2025 while expanding at a compound annual growth rate (CAGR) of about 2.49% between FY 2021 and FY 2025.
The Hotel and Tourism sector received cumulative FDI inflow of US$ 15.61 billion between April 2000 and December 2020. Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.
All key markets in India reported a decrease in RevPAR Performance in Q2 2020 over the same period last year. Mumbai continues to be the RevPAR leader in absolute terms, despite the decline of RevPAR by 81 percent in Q2 2020 compared to Q2 2019. Goa saw the sharpest decline in RevPAR in Q2 2020, with a 93.9 percent drop compared to the same period in the previous year.The Covid Impact
As per the Federation of Hotel & Restaurant Associations of India (FHRAI), in FY21, the Indian hotel industry has taken a hit of about Rs. 1.30 lakh crore (US$ 17.81 billion) in revenue due to impact of the COVID-19 pandemic.