Business

Some believe that India is an `idea rather than a nation of nation with different languages, traditions and culture. If so, India is an idea whose time has come. It is no longer on the button an `exotic country, but is now the destination of choice not estimable for foreign tourists, but also for business travellers. The change in image has lead to a boom in hoteliering. While the manufacturing had its vicissitudes in the re centime past, the current boom looks like staying on. The Indian hospitality sector is witnessing one of its rare sustained growth trends, says Ajoy Misra, Senior Vice-President, gross revenue & Marketing, Indian Hotels, owners of the Taj group, the countrys largest hotel company. There is a mismatch betwixt penury and supply, leading to higher occupancies and average room rates. During 2004-5, revenue per accessible room in hotels across India increased by 29 per cent oer the 2001-02 levels. This seems to be is just the beginning, judging by opinions from analysts and industry executives.

Predicts Sudhir K Nair, Head of Research at CRIS INFAC, a prominent question consultancy firm, Demand will outpace supply in the short to mediocre term, and ARRs are expected to increase by 13 to 14 per cent annually over the next two years. Due to the spurt in tourist inflows, occupancy rates are expected to reach 83 per cent by 2008- 09, up from the present 72 per cent. R Venkatachalam, film director - Finance & CFO, Hotel Leelaventure, predicts a CAGR of 35 to 40 per cent every year, over the next five years for the sector. A major reason for the demand for hotel rooms is the underlying boom in the econ- WITNESSING A preserve GROWTH TREND: Indian Hotels Ajoy Misra omy, particularly the growth in the inforhospitality If you want to get a full essay, order it on our website: Ordercustompaper.com

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