Hotel Industry

Time and again the government has neglected tourism. It has failed to realise how important a role this sector can play in terms of generating employment and foreign exchange. Room rates in India when compared to those in developed countries are on the higher side, primarily due to land ceiling acts and bureaucratic procedures that one has to go through for obtaining a license before starting a hotel.

The government should clear these procedural delays. It could do release more land when occupancies reach a certain level. Rationalisation of tax rates would do wonders.

The government should also concentrate on improving infrastructure. All this will go a long way in terms of developing the hotel sector and the Indian economy as a whole.

 

Untapped potential
For hoteliers the good old days of 1994 are over. Economic liberalisation that began in 1993 led to such a boom that five-star hotels in Mumbai started charging room rates equivalent to that in New York. But with occupancies going for a toss, hoteliers today have pruned room rates steeply and are ready to bargain for discounts.

Agenda for the government
Despite the service sector accounting for a whopping 51 per cent of the country's GDP and notwithstanding various talks about incentives to the hotel industry, the hotel and tourism industries remain a neglected lot.

"Hotels should have more exhibitions, conventions and trade shows"
Stephen Rushmore is the president and founder of Hotel Valuation Services (HVS) International, a global consulting firm with offices in New York, Miami, Denver, San Francisco, Vancouver, Mexico City, London, New Delhi and Singapore. In his entire career he has visited more than 6,000 hotels and has appraised at least 1,000 hotels all over the globe.

Ecotel tag rings the bell for hotels
How does one five-star hotel differ from another? Except for the location and some subtle variations in themes, most hotels under this category are the same. All are expected to provide luxurious and most modern facilities.

(Source: Financial Express)