Economics Uncategorized

The Hospitality Industry in India: Adhering to the Atithi Devo Bhava Principle

As time passes, the service sector, including travel and tourism, is emerging as a major growth engine for the Indian economy. People are flying in large numbers again, airports are congested, hotels are fully booked, and travellers want to explore, connect, and feel alive through the exhilarating emotion of travel. Despite several challenges and a difficult infrastructure, the hospitality industry has done exceptionally well.

What exactly is meant by the term “hospitality”?

  • Hospitality is defined as the friendly and generous treatment of guests or strangers.
  • Making guests feel welcome, at ease, and cared for during their stay or visit is part of it.
  • The goal of hospitality is to give the guest a positive experience while also making sure they have everything they need to feel at ease and enjoy their stay.

India’s Hospitality Industry

  • Hospitality benefits the economy in the following ways: India’s hospitality industry is expanding and contributing significantly to the country’s economy.
  • India is a popular tourist destination: Due to its diverse culture, ancient civilization, art and architecture, spiritual knowledge centre, and paradise of natural beauty, India is home to a number of popular tourist destinations.
  • Infrastructure is being upgraded over time: The hospitality industry in India has grown significantly in recent years, fueled by an increase in domestic and international tourism, as well as the construction of new infrastructure such as airports and roads.
  • Hospitality businesses determined to provide a diverse experience: Hospitality companies have consistently added supply across all segments, including budget, business, and luxury hotels, homestays, villas, and so on, by developing new circuits and offerings that tap into Incredible India’s diverse and myriad potential.

What role does the hospitality industry play in the economy?

  • Tourism as a motivator: Tourism is regarded as a major economic driver. It has a knock-on effect on related industries such as hospitality.
  • Earnings from spillovers: Not only does it improve the economy, but it also raises the standard of living: The spillover of tourism earnings into other industries not only improves economic conditions but also raises the living standards of the local population.
  • For example, GDP and employment in Goa: This is most visible in Goa, a popular beach destination. According to the IBEF Report 2022, the sector contributes more than 16% of GDP and 35% of direct employment within the state, and its domino effect on indirect job creation is unparalleled. According to the RBI, Goa now leads the country in per capita NSDP (Net State Domestic Product).
  • Significant impact on high employability: According to trends, each hotel room directly and indirectly generates five to seven jobs, resulting in a significant impact on other high-employability sectors such as real estate and infrastructure.
  • More than 100 million jobs will be created globally: Indeed, according to the most recent World Travel and Tourism Council (WTTC) report, the sector is expected to generate nearly 126 million new jobs globally over the next decade, with the Indian subcontinent accounting for at least 20% of these. However, government assistance will be critical in accomplishing this.
  • Will help the Indian economy grow to $1 trillion by 2047: With Indian companies reporting positive earnings this fiscal year, the sector is poised to grow three times faster than before the pandemic to reach $250 billion by 2030 and $1 trillion by 2047.

Way ahead

  • Improving infrastructure to meet new consumer demands: The travel and tourism industry is constantly changing to meet the demands of rapidly changing consumers. As a capital-intensive industry, the hospitality industry must continually invest to keep the ball rolling.
  • Attracting more investments: A good start will be the Centre granting infrastructure status to the sector, which will boost the industry by incorporating necessary incentives such as regulatory relief, lower interest rates, and tax breaks, contributing to a cycle of attracting more investments.
  • Enhancing infrastructure growth: Enhancing industry status at the state and union territory levels, as well as augmenting infrastructure growth, will have a much-needed positive impact. States such as Maharashtra, Karnataka, Assam, Goa, Gujarat, Madhya Pradesh, and Rajasthan have led the way, and others should follow.

India’s G20 presidency provides an opportunity for India

  • Challenge to provide visiting dignitaries with a world-class experience: As India assumes the G20 presidency and begins planning for the summit in 2023, the country’s positioning as a safe, tourist-friendly destination is dependent on how the government can collaborate with the industry to provide world-class experiences to visiting dignitaries.
  • Meetings will be held mostly in hotels: Around 300 meetings are expected to take place during the summit, with the majority of them taking place in the corridors of the country’s finest hotels.
  • Following the Aithi Devo Bhava principle: Hospitality companies are going to great lengths to highlight India’s cultural essence, as well as the inherent warmth of Atithi Devo Bhava in our service philosophy.
  • India can make a statement: By using the summit to highlight the country’s distinct and differentiated travel offerings, India can assert its place on the global tourism stage.

@the end

India’s growth story continues to be extremely encouraging. Travel and tourism offer promising growth and are at an important inflection point as a result of strong consumer demand. We can undoubtedly shape an even more thriving future for the industry through collaborative action between industry stakeholders and government, one that will have a positive impact on the economy and society at large.

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