Increase Of Foreign Visitors To Indian Boosted Revenue For Hotel Industry In India

With the growth in the incoming numbers of foreign visitors in India along with Indian tourists, the hotel industry in the country is experiencing a huge growth. The same is reflected with the increased rates of the room rents of hotel varying from average to luxurious hotels. It has experienced an improvement of 6%-7% in the rents of the room. This result is shown in the survey that was conducted by the ICRA on the yearly growth in the room rent per year. During last year, there was a slowdown in the incoming number of foreign tourists, which was down by 4.4% than the previous year.

This year ICRA estimated the growth of 8% during 2015-16, which is further expected to be 9% to 10% this year. Thus, these results states that the rise in room rents of hotel rooms are justified with the growing number of foreign and domestic travelers. Thus, the strong growth is also experienced in domestic airline Revenue Passenger Kilometer (RPKM) in last 12 months, which ultimately results in the higher confidence of consumers. Hence, the overall revenues of the Indian hotel industry are growing 9%-10% each year.