New Delhi, June 2024: On behalf of the Federation of Hotel & Restaurant Associations of India (FHRAI), we extend our heartiest congratulations to the Hon’ble Prime Minister Shri Narendra Modi ji for a resounding victory in the 2024 General Elections. His leadership skills and visionary approach have resonated with the people of our nation, resulting in this historic third term for the NDA government. We are confident that under his dynamic and visionary leadership, India will achieve greater heights of growth and development in the next five years.
India has experienced steady economic growth over the last five years, with GDP growth rates ranging between 4% to 7% annually. Despite the challenges posed by the COVID-19 pandemic, which led to a contraction in 2020, the economy showed resilience and bounced back with a robust recovery in 2021 and 2022.
Before the pandemic, the tourism and hospitality sector contributed significantly to India’s GDP, employment, and foreign exchange earnings. The sector contributed around 9% of GDP and employed over 12% of the workforce. However, the sector was severely affected by the pandemic, suffering losses due to lockdowns and travel restrictions. The sector has bounced back and today the tourism sector in India is on an excellent growth trajectory, looking to accelerate in the coming years. In the post-pandemic period, domestic tourism has been a major driver of recovery, with government initiatives promoting domestic tourism under the “Dekho Apna Desh” campaign being one of the enablers.
Mr. Pradeep Shetty, President of FHRAI, said, FHRAI extends heartfelt congratulations to the newly elected BJP-led NDA Government. This development brings a sense of continuity and stability that is highly beneficial for the hospitality industry. We anticipate that the ongoing focus on economic stability, infrastructure development and tourism promotion will further enhance the growth of our sector. We are optimistic about potential policy reforms, especially in addressing the disparities in the GST framework for restaurants within hotels. Moreover, we look forward to the implementation of industry status and infrastructure status for the sector, which are crucial for our sustainability. The emphasis on developing transportation networks and heritage sites will undoubtedly make various regions more attractive to tourists, benefiting the hospitality sector at large”.
“The hospitality sector looks forward to the new government with optimism and confidence to realize the full potential of our industry and to become a global tourism powerhouse. The ambitious goal set by the Government and the Industry to become a USD 3 trillion tourism economy by 2047 with 100 million foreign tourist arrivals mandates major policy and regulatory reforms from the new government.,” says Mr Pradeep Shetty, President, Federation of Hotel & Restaurant Associations of India (FHRAI).
Currently, India has a branded hotel room inventory of around 1,70,000, which is expected to grow to approximately 2,35,000 by 2026. Despite this addition, the Indian hotel sector will continue to be underserved compared to major lodging markets worldwide. According to ICRA reports, the Indian hotel industry is expected to witness a 13-15% revenue growth in FY2024. The demand recovery has been strong in the last year and is expected to continue in FY2024.