The year 2014 proved to be a watershed year for India's tourism and hospitality sector, and the new government at the Centre defined and drafted some progressive policies and projects to provide the necessary impetus for hospitality and tourism growth
The year 2014 proved to be a watershed year for India’s tourism and hospitality sector, and the new government at the Centre defined and drafted some progressive policies and projects to provide the necessary impetus for hospitality and tourism growth. The Budget 2014 further made some relevant announcements namely on REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust) and mapped interesting development projects, such as smart cities, industrial corridors, setting up of new airports, development of surface transport, development of five new tourist circuits around specific themes, The National Mission on Pilgrimage, Rejuvenation and Spiritual Augmentation Drive (Prasad), National Heritage City Development and Augmentation Yojana (Hriday), development of the Sadhana-Gaya – Varanasi Buddhist circuit to name some.
Varanasi is being watched very closely as a growth centre. HA Mishra, chairman of FHS Hotel Management, expressed confidence in terms of business growth in the religious city. He runs the local Zeera Hotel and has witnessed robust growth from 2012-14, both in terms of infrastructure development and RevPAR. The corporate business inflow has also witnessed growth in the city. This change is not only reflected in the PM’s constituency but in many secondary and tertiary cities across the country. F&B trends are also fast changing in the smaller towns and cities. Secondary and tertiary cities are witnessing double digit growth as compared to their metro counterparts with single digit growth, as per hospitality reports. Today the serious investors and brands have finally realised the power of India beyond the metros and are stepping into hubs and future growth cities with a clear vision and plan. Home grown brands to international chains are coming up with projects in India’s new growth regions. To name a few, cities like Bilaspur, Asansol, Raipur, Ranchi, Shillong, Tirupur, Vijaywada are attracting hospitality investments across categories from budget to mid-market and more.
All this makes perfect business sense for investors and developers. The next three to four years, that is 2015-2018, may see a series of hotels coming up in pilgrim regions and new economic zones.
On this optimistic note, I wish all our readers a happy and prosperous 2015.