With the constantly evolving time, India has managed to successfully engrave its name among the top nations for producing lucrative opportunities in terms of establishing businesses. As the process continues to evolve, more and more companies are penetrating different sectors which are being led by creative, enthusiastic, and passionate entrepreneurs.
The Indian hospitality sector is among those segments that have witnessed substantial growth and expansion, especially in the last decade. As a matter of fact, the services sector in India is now coherently dependent upon the hospitality sector and upon realizing its hidden potential both aspiring and existing entrepreneurs are looking to tap this sector, utilizing the modern-day technology along with several other tools.
Citing a report by KPMG, the Indian hospitality sector is growing at 16.1% CAGR. The hospitality growth is assumed to maintain its pace which will uplift this industry to reach INR 2,797 thousand crores by 2022. Furthermore, the Indian hospitality sector encompasses a wide variety of activities within the services sector, turning into a major job provider, both directly and indirectly.
Hospitality Sector: Growing the Economy & Generating Job Opportunities
The Indian travel and hospitality sector is now creating more job opportunities than ever. As per reports, it is widely believed that 1 out of 10 jobs in the world are backed up by hospitality. As of now, a bright and fruitful future awaits for the Indian hospitality sector, creating lucrative job opportunities for the aspiring
The craze to be a part of the hospitality sector is widely being witnessed among the Indian youth that are rapidly marching their ways in travel agencies, logistics, airlines, and of course hotel management courses. Talking about Africa and Asia only, by the end of 2028, the hospitality sector is predicted to create 20,037,000 jobs directly which is huge. India has already become the hub for the hospitality sector which itself defines the potential available here in our country.
Besides India, Japan and China are also in the league who are successfully dominating the hospitality employment in the Asia-Pacific region.
Lucrative Opportunity for the Hospitality Sector
The previous Union budget is surely responsible for shaping the current Indian hospitality scenario. Soon after the Union budget announced improvisation on the rural connectivity, the avid travellers saw this as a great initiative for exploring undiscovered and untapped destinations of our incredible India.
Furthermore, the GST rate cut took place a few months back, which served as a big relief to the hospitality sector. It not only cheered up the hospitality sector but went ahead to increase the footfall and the occupancy rates got further elevated, directly boosting the revenues of the hospitality sector.
Will 2020 be the Year for the Indian Hospitality Sector?
The way things have behaved last year for the Indian hospitality sector, the future definitely looks promising. 2020 is already on a roll where the latest Union budget is about to get revealed in a few days. Precisely analyzing the hospitality industry's graph, this year indeed looks great entrepreneurs associated with this segment.
The nation can assume to see more focus towards this sector which will eventually open more gates of opportunities for the passionate masses. Quoting our PM, Mr Narendra Modi claimed that the growth in domestic tourism will directly increase the international footfalls. Not only this, but he also urged people to explore fifteen domestic tourist destinations by 2020. The way things are going on for this sector, we all can expect something big, great, and encouraging days before the budgetary announcement.
With the upcoming Union Budget for 2020-21, we are looking forward to various reforms that would enable the industry to grow exponentially. While the government is aggressive across various global markets with the marketing of India as a tourism destination, it is imperative to focus internally and address issues around infrastructure, licensing, approvals and inconsistent regulations that are imposed by various states. We are expecting reforms to be taken around single-window clearance for all operations related to approvals and licensing that makes day to day workings complicated. Further, easing of GST on F&B equivalent to Room category could be a great boost for inviting more guests into the hotels.
Eco-Tourism Will Impact the Hospitality Sector
There is no denying the fact that India has been actively working towards preserving its natural assets along with sustaining its indigenous cultures. Every year, a lot of people migrate to India just to explore its amazing scenic visuals. With more tourists invading India, the hospitality industry continues to utilize this opportunity for thickening their existence in this competitive ecosystem.
But as every coin has two sides, so is the situation here. Various hotels have great pressure on them to promote recycling, water reuse and usage of solar power. Tourists could opt for different ecotourism friendly options like camps, eco-friendly resorts in jungles, treehouses in hotels and others which are managed by both the local and professional people.