Law and Legal Expert

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Introduction hotel industry in India is undergoing a huge boom in recent years and going through an interesting phase. One of the major causes of the increased demand for hotel rooms in the country is the boom in the global economy and high growth in sectors such as IT, telecom, retail and real estate. Rising stock market and new business opportunities also attracting hordes of foreign investors and international business travelers to seek business opportunities in the country particularly growth in tourism. As the hotel industry is inextricably linked to the tourism industry and growth in the Indian tourism industry has promoted the growth of Indian hotel industry. explosive economic growth in India ignites unquenchable demand for hotel rooms. With large investments flowing into India for development of infrastructure such as roads, highways, airports and convention, interest in hotel developments is reaching new highs as tourism, business and travel is on the march. The booming tourism industry has had a cascading effect in the hospitality sector with an increase in occupancy ratios and average room rates. And with the continued increase in demand, many global hospitality majors expressed a strong interest in the Indian hospitality sector. It is estimated that India will probably have around 40 international hotel brands 2011th options spurt in India’s tourism industry growth has had a ripple effect on its hotels and restaurants. Rising incomes and purchasing power in combination with the governments open sky policy has been an important element. The industry is growing very rapidly and there is a demand for more rooms both in metros and smaller cities. It is estimated that India will probably have around 40 international hotel brands 2011th India’s booming hospitality industry has been transformed into a veritable basket of the choicest of rooms, food and beverage, health and business facilities, travel packages, and everything you can imagine. New global players fighting with existing local players to provide world class services at prices to suit all pockets. An estimated fourth 4 million tourists expected to visit India with an annual average growth of 12% over the next few years. The domestic tourist market is also booming. Commonwealth Games in 2010 will increase demand for quality accommodation.

The Indian government has Incredible India destination campaign and Atithi Devo Bhavah campaign has also contributed to the increase in domestic and international tourism and consequently the hotel industry. The opening of the aviation industry in India has exciting opportunities for the hotel industry as it relies on airlines to transport 80% of international arrivals. The government’s decision to substantially upgrade 28 regional airports in smaller towns and the privatization and expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. And modernization of national roads linking different parts of India have opened new opportunities for development of budget hotels in India. Take advantage of this opportunity Tata group and another hotel chain called Homotel “have entered this business. To read the article go to the second part of this – Information of hotel industry laws in india – part2.