HEADLINES:  

The performance of the Indian Hotel industry in 2014-2015 was rather subdued. This was because there was a major gap between the demand and supply. ICRA reports state that the growth for 2014-15 are in the range of 7-9%, largely driven by incremental rooms and Food and Beverage income.

Growth is expected to accelerate to 9-12% over the next two years. Average Room Rates are expected to be largely flat while occupancies improved by 2-4% during 2014-15.Domestic traffic registered a growth of over 10% driven by both business and leisure travelers during 2014-15.

However, falling global economic sentiments around the globe have affected inbound travel and with a booking window of 8-12 months for Western leisure travel, the impact is expected to be felt in 2015-16 as well.


Foreign Tourist Arrivals growth increased from 5.9% in CY2013 to 7.1% during CY2014. Double taxation with the Centre and State levying taxes on the same services/products is also an issue for the Indian Hotel industry.

However, the expected implementation of Goods and Services Tax (GST) in April 2016 will negate the double taxation effect thus easing business for the Indian Hotel Industry.

  INDIAN Hotel INDUSTRY AT A Glance IN 2013 - 2014

  INDIAN Hotel INDUSTRY AT A Glance IN 2012 - 2013

  INDIAN Hotel INDUSTRY AT A Glance IN 2011 - 2012

  Hotel Association of India

  The Federation of Hotel and Restaurant Associations of India (FHRAI)

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