Hotel Industry

Globally, the travel, tourism and hospitality industry is one of the largest service industries in terms of
revenue generation and foreign exchange earnings, contributing over 9% to global GDP. It is also one of
the largest employment generators in the world. An estimated 235 million people work directly or in related
sectors, accounting for more than 8% of global employment.
The industry had witnessed a slowdown in 2009 on account of the global financial meltdown. Low business
and consumer confidence along with other concerns such as availability of credit, exchange rate fluctuation,
H1N1 virus, terrorist attacks, etc aggravated the situation. Nevertheless, the industry witnessed a revival in
the last quarter of 2009, largely led by recovery in Asia and the Middle East.
India is one of the fastest growing tourism markets in the world today. Various policy measures undertaken
by the Government have aided the Indian travel, tourism and hospitality industry’s growth. Concerted
efforts by both the private and public sectors will enable us position India as a global brand to take
advantage of the burgeoning global travel trade and the vast untapped potential of India as a major tourist
destination.
Some of trends covered in this publication include:
 India’s travel and tourism industry directly and indirectly is expected to account for around 8.6% of
the country’s GDP in 2010. The direct contribution of the travel and tourism industry is expected to
be around 3.1% of total GDP.
 Foreign tourist arrivals in the country in 2009 were adversely impacted by the global economic
slowdown and threat of terror attacks. Globally, foreign tourist arrivals declined by 4.2% in 2009.
While arrivals in emerging economies declined by less than 3%, arrivals in advanced economies
declined by over 5%. Foreign tourist arrivals in India declined by 3.3% in 2009.
 Domestic tourist movement was at an all-time high of 650 mn during 2009, 15.5% higher as
compared to the previous year. This was due to the recovery in the second half of the year and the
preference for domestic visits over international visits.
 Changing lifestyles and higher disposable incomes have resulted in a change in travel preferences.
To cater to this shift in travel preferences, travel service providers are innovating in order to offer
niche and customised services in India.
 The Indian hospitality industry was also impacted by the global economic slowdown. Average
occupancy rates and average room rates in the hotels declined in FY09.
 With the global economy showing signs of recovery from the economic slowdown and supported by
the surge in domestic tourist movement, occupancy rate in the Indian hotel industry has also
shown signs of recovery.
 The major challenges faced by the travel, tourism and hospitality industry include lack of proper
infrastructure, shortage of skilled manpower, regulatory issues and security threats.
The Indian hospitality industry has emerged as one of the key industries driving growth of the services
sector in India. It has evolved into an industry that is sensitive to the needs and desires of people. The
fortunes of the hospitality industry have always been linked to the prospects of the tourism industry and
tourism is the foremost demand driver of the industry. The Indian hospitality industry has recorded healthy
growth fuelled by robust inflow of foreign tourists as well as increased tourist movement within the country
and it has become one of the leading players in the global industry. Foreign tourist arrivals (FTAs) into the
country increased steadily from 2002 to 2008. FTAs dipped in 2009, due to the global economic slowdown;
however, the impact on the Indian industry was much lower than that on the global counterparts. FTAs are
expected to increase in 2010. On the other hand, domestic tourist movement within the country was the
highest in 2009.
Industry characteristics
Major characteristics of the Indian hospitality industry are:
High seasonality
The Indian hotel industry normally experiences high demand during October–April, followed which the
monsoon months entail low demand. Usually the December and March quarters bring in 60% of the year’s
turnover for India’s hoteliers. However, this trend is seeing a change over the recent few years. Hotels
have introduced various offerings to improve performance (occupancy) during the lean months. These
include targeting the conferencing segment and offering lucrative packages during the lean period.
Labour intensive
Quality of manpower is important in the hospitality industry. The industry provides employment to skilled,
semi-skilled, and unskilled labour directly and indirectly. In India, the average employee-to-room ratio at
1.6 (2008-09), is much higher than that for hotels across the world. The ratio stands at 1.7 for five-star
hotels and at 1.9 and 1.6 for the four-star and three-star categories respectively. Hotel owners in India
tend to “over-spec” their hotels, leading to higher manpower requirement. With the entry of branded
international hotels in the Indian industry across different categories, Indian hotel companies need to
become more manpower efficient and reconsider their staffing requirements.
Fragmented
The Indian hotel industry is highly fragmented with a large number of small and unorganised players
accounting for a lion’s share. The major players in the organised segment include The Taj, Oberoi, ITC
Hotels, and East India Hotels. The fragmented nature of the Indian hospitality industry is reflected in the
Herfindahl Index of Concentration, which was at 0.062 in FY07.
Classification of hotels
The Ministry of Tourism has formulated a voluntary scheme for classification of operational hotels into
different categories, to provide contemporary standards of facilities and services at hotels. Based on the
approval from the Ministry of Tourism, hotels in India can divided into two categories:
1) DoT (Department of Tourism) classified hotels 2) DoT (Department of Tourism) unclassified hotels
Classified hotels
Hotels are classified based on the number of facilities and services provided by them. Hotels classified
under the Ministry of Tourism enjoy different kinds of benefits such as tax incentives, interest subsidies,
and import benefits. Due to lengthy and complex processes for such classification, a significant portion of
the hotels in India still remain unclassified. The Ministry of Tourism classifies hotels as follows:
 Star category hotels

 Heritage hotels
 Licensed units
Star category hotels
Within this category, hotels are classified as five-star deluxe, five-star, four-star, three-star, two-star and
one-star.
Heritage hotels
These hotels operate from forts, palaces, castles, jungles, river lodges and heritage buildings. The
categories within heritage classification include heritage grand, heritage classic and heritage basic.
Licensed units
Hotels/establishments, which have acquired approval/license from the Ministry of Tourism to provide
boarding and lodging facilities and are not classified as heritage or star hotels, fall in this category. These
include government-approved service apartments, timesharing resorts, and bed and breakfast
establishments.
Unclassified hotels
Branded players
This segment mainly represents the branded budget hotels in the country, which bridge the gap between
expensive luxury hotels and inexpensive lodges across the country. Budget hotels are reasonably priced
and offer limited luxury and decent services. Increased demand and healthy occupancy have fuelled growth
of budget hotels. These hotels use various cost control measures to maintain lower average room rates
without compromising on service quality. Ginger Hotels, ITC Fortune, Hometel, and Ibis are some of the
popular budget hotels.
Other smaller players
These are small hotels, motels and lodges that are spread across the country. This segment is highly
unorganised and low prices are their unique selling point.
Growth drivers
The fortunes of the hospitality industry are closely linked to the tourism industry and hence tourism is one
of the most important growth drivers. In addition, all factors that aid growth in the tourism industry also
apply to the hospitality industry. The Indian hospitality industry has recorded healthy growth in recent
years owing to a number of factors:
Increased tourist movement
Increased FTAs and tourist movement within the country has aided growth in the hospitality industry.
Healthy corporate profits and higher disposable incomes with easier access to finance have driven the rise
in leisure and business tourism, thus having a positive impact on the hospitality industry.
Economic growth
India is one of the fastest growing economies in the world. It recorded healthy growth in the past few
years, at more than 9% each during FY06-FY08. Despite the global economic slowdown, the Indian
economy clocked growth of 6.7% and 7.4% in FY09 and FY10 respectively. Attractiveness of India has
encouraged foreign players to set up their operational facilities in the country. Domestic industries have
also made heavy investments to expand their facilities through greenfield and brownfield projects.
Changing consumer dynamics and ease of finance
The country has experienced a change in consumption patterns. The middle class population with higher
disposable incomes has caused the shift in spending pattern, with discretionary purchases forming a
substantial part of total consumer spending. Increased affordability and affinity for leisure travel are driving
tourism in India and in turn aiding growth of the hospitality industry. Emergence of credit culture and
easier availability of personal loans have also driven growth in the travel and tourism and hospitality
industries in the country.
Measures undertaken by the government
Various policy measures undertaken by the Ministry of Tourism and tax incentives have also aided growth
of the hospitality industry; some of them include:
 Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts, and
recreational facilities) through the automatic route
 Introduction of ‘Medical Visa’ for tourists coming into the country for medical treatment
 Issuance of visa-on-arrival for tourists from select countries, which include Japan, New Zealand, and
Finland
 Promotion of rural tourism by the Ministry of Tourism in collaboration with the United Nations
Development Programme
 Elimination of customs duty for import of raw materials, equipment, liquor etc
 Capital subsidy programme for budget hotels
 Exemption of Fringe Benefit Tax on crèches, employee sports, and guest house facilities
 Five-year income tax holidays for 2-4 star hotels established in specified districts having UNESCO-
declared 'World Heritage Sites'.
Trends in the industry
The hospitality industry recorded healthy growth in early-2000, leading to a rise in occupancy rate during
2005/06 and 2006/07. Consequently, average rates for hotel rooms also increased in 2006/07. The rise in
average rates was also a result of the demand-supply gap for hotel rooms, especially in major metros.
Hotels were charging higher rates, at times much higher than that those charged by their counterparts in
other parts of the world.
Lured by higher returns experienced by the hotel industry, a number of players, domestic as well as
international, entered the space. India became one of the most attractive destinations for such
investments.
While on the one hand, investments continued to flow into the hotel industry, hit by sharp rise in rates,
corporates started looking for alternate cost-effective lodging options. This led to emergence of corporate
guest houses, especially in major metros, and leased apartments as replacements for hotels. While average
room rates rose in 2007/08, occupancy rates dropped. Occupancy rates plunged sharply next year, as
demand declined following the global economic slowdown and the terror attacks in Mumbai. As a result,
hotel rates declined during 2009-10.
The hospitality industry reported improvement in 2009-10, with domestic tourist movement in the country
being at a high. While average rates remained lower, occupancy rates rose, supported by surge in domestic
tourist movement. The industry is expected to report healthy growth in 2010/11, with expected increase in
domestic tourist movement and rise in international tourist arrivals.
Development of other markets
A major trend in recent times is the development of the hotel industry in cities other than major metros. As
real estate prices have been soaring, setting up and maintaining businesses and hotels in major metros is
becoming more expensive, leading to search for other cities entailing lesser costs. Consequently, hotel
markets have emerged in cities such as Hyderabad, Pune, and Jaipur. This has led to increase in hotel
development activity and expansion of hotel brands within the country.
The industry has also seen development of micro markets, especially in primary cities. As cities grow larger
and more office spaces come up across the city, travelers prefer to stay at hotels closer to the place of
work/visit to save on time. This has led to the same hotel company setting up hotels across different
location within a city.
Marketing strategies
Marketing strategies in the hospitality industry have changed drastically over the past decade. A decade
back, the brand name of the hotel was a major driver. However, with the arrival of well educated and
experienced travelers, hotel companies have had to change/realign their marketing strategies. Today, hotel
companies marketing strategies are differentiation, consistency, customer satisfaction, delivery of brand
promises, and customer retention. Development and use of technology have also changed the way hotel
companies operate, creating the need for online marketing. Travelers increasingly conduct basic research
on the Internet. Blogs, networking sites, and travel sites are therefore being used for making choices and
the information provided tends to influence opinions and choices. Several travel portals have emerged in
recent times and travelers are increasingly using these portals to make hotel reservations.
Opportunities
The prospects for the hotel industry in India are bright. With revival in the global economy, international
tourist inflow into the country is expected to rise. Additionally, hosting of international sports events and
trade fairs and exhibitions in the country are expected to aid both inflow of international tourists and
domestic tourist movement.
The upcoming industrial parks, manufacturing facilities and ports across the country provide a good
opportunity for budget and mid-market hotels. Although around 89,500 additional rooms are expected to
come up in India in the next five years, the supply of branded/quality rooms in India is much lower
compared to other countries across the globe. Hence, there exists huge potential for investors and
operators across all the segments of hotel industry in India. The increase in room inventories is expected to
make the hotel industry more competitive and hotels would be under pressure to maintain quality and
service levels at competitive prices. Competitive pricing amongst the branded hotels along with the addition
of more budget and mid-market hotels would make the hotel industry cost competitive with other
destinations. This would aid the growth of segments such as MICE, amongst others.
While there is immense potential, concerns for growth of the industry remain. These include high real
estate prices in the country, security threats, shortage of manpower, high tax structure, and non-
uniformity in taxes.

Potential for the travel and tourism industry in India is enormous. However, at the same time, the industry
faces numerous challenges, of which the most critical is lack of proper infrastructure.
Challenges
Various challenges/issues faced by the domestic travel and tourism industry in India:
 Lack of proper infrastructure

 Human resources
 Service levels
 Lack of adequate marketing and promotion
 Taxation
 Security
 Regulatory issues
Lack of proper infrastructure
Infrastructure needs for the travel and tourism industry range from physical infrastructure such as ports of
entry to modes of transport to urban infrastructure such as access roads, electricity, water supply,
sewerage and telecommunication. The sectors related to the travel and tourism industry include airlines,
surface transport, accommodation (hotels), and infrastructure and facilitation systems, among others.
Access and connectivity
To harness India’s tourism potential, several efforts are being taken for opening new destinations and
exploring niche segments. However, infrastructure facilities such as air, rail, road connectivity, and
hospitality services at these destinations and the connecting cities are inadequate. This remains a major
hurdle for development of tourism. Roadways form a vital network in the tourist industry with almost 70%
tourists in India travelling by road. Moreover, many tourist circuits depend on roads. Despite numerous
efforts to improve road infrastructure, connectivity remains a major problem. There is a greater need for
strengthened road and rail network, development of more expressways, and tourist-specific routes to
improve connectivity to various locations across different regions.
Aviation infrastructure is also critical since it is a major mode of entry for inbound tourism. Passenger
traffic is expected to increase in the coming years; however infrastructure facilities at airports are cause for
concern. Expansion and development of airports at major gateway cities is underway to cater to the
increasing passenger traffic. However, in addition, airport facilities at important secondary cities and tourist
destinations also need to be improved to be able to handle greater passenger traffic.
Amenities
Amenities available at various tourist locations and en route need to be improved. These include basic
amenities such as drinking water, well maintained and clean waiting rooms and toilets, first aid and
wayside amenities (to meet the requirement of the tourists travelling to tourist destinations) such as
lounge, cafeteria, and parking facilities, among others.
India scores poorly in terms of availability of these infrastructure facilities. Inadequate infrastructure
facilities affect inbound tourism and also could lead to an increase in the outflow of domestic tourists from
India to other competitive neighboring countries. Hence, for the industry to register healthy growth, issues
concerning all the related sectors need to be addressed.
Human resource
Availability of skilled manpower is a major challenge faced by the travel and tourism industry, one of the
largest employment generators in the country. To sustain growth in the travel and tourism industry, trained
manpower/ workforce is required at every level — managerial, supervisory, skilled or semi-skilled.
Challenges faced at each level are different. At mid and senior management levels, the industry faces
talent crunch and at the front-line staff level, although human resources are adequate, a boom in other
service industries such as banking, retail, airline and BPO have resulted in shortage of manpower at this
level for the travel and tourism industry. Thus, we have a demand-supply mismatch with respect to
manpower in the travel & tourism and hospitality sector in India. A study conducted by Ministry of Tourism
suggests that existing supply of human resources do not cater to even 40% of the demand. Thus, the
industry has no alternative but to fill the void with untrained resources. Such a high proportion of untrained
manpower would adversely affect quality of services offered to the tourists.
Attrition, shortage of tourism training infrastructure, qualified trainers, and lack of proper strategies and
policies for human resource development also affect the industry. The industry needs to address these
problems at the earliest.
Service level
In addition to tour operators and hotel staff, tourists interact with persons from different backgrounds,
occupations and experience. Such people include staff at bus/railway station, immigration staff at airports,
taxi/coach operators, ticketing/ travel agencies, small hotels, dhabas/roadside eateries, staff at heritage
sites, and tour guides, among others. The degree of service offered by these various stakeholders has a
significant impact on determining the tourist’s overall experience of India as a tourist destination. The
government has taken initiatives to promote responsible tourism by sensitising key stakeholders of the
tourism industry through training and orientation, to develop a sense of responsibility towards tourists and
inspire confidence of foreign tourists in India as a preferred destination. One such major initiative is the
“Atithi Devo Bhava” campaign. More such efforts are required to improve the degree of service across
various operators.
Marketing and promotion
Marketing and promotion of India as a major tourist destination is critical for the industry to achieve its
potential. Lack of adequate budgetary support for promotion and marketing, compared with competing
tourist destinations, is a major reason for India lagging behind as a tourist destination. Marketing under the
“Incredible India” campaign helped place India as a good tourist destination on the global tourism map.
Indian tourism products are promoted primarily by the Ministry of Tourism with the involvement of state
governments through the State Tourism Development Corporations. Newer tourism concepts, which include
cruise tourism, adventure tourism, agri tourism or rural tourism, are emerging in India and these require
support to develop and flourish. Hence, greater marketing push for these different products is required. To
remain competitive in the fiercely competitive field, India needs to change its traditional marketing
approach to a more competitive and modern approach. There is a need to develop a unique market position
and the brand positioning statement should capture the essence of the country’s tourism products: i.e.,
they should be able to convey an image of the product to a potential customer.
Taxation
Travel and tourism in India is a high-taxed industry, which makes India expensive as a tourist destination.
This is affecting the growth of the industry in India and India is losing out to other low-cost destinations.
Inbound tourism is the one most affected. Various taxes are levied across the entire industry right from
tour operators, transporters, airline industry to hotels and these include service tax, luxury tax, tax on
transportation, tax on aviation turbine fuel (airline industry), and various taxes on transportation. In
addition, these tax rates tend to vary across different states in the country.
Security
Security has been a major problem as well for growth of tourism for a number of years. Terrorist attacks or
political unrest in different parts of the country have adversely affected sentiments of foreign tourists.
Terror attacks at Mumbai in November 2008 dealt a strong blow to tourism in the country. The terror
attacks raised concerns of safety. In addition, insurgency in different parts of the country also mars India’s
image as a safe destination. Following the terror attacks in Mumbai, security at tourist spots, airports and
hotels has been beefed up to regain confidence of tourists. However, the government needs to take a
proactive approach in addressing these issues and in averting the potential impact on the industry.
Cyber crime is another major challenge the travel industry faces. Use of Internet in the travel and tourism
industry has increased rapidly in recent years and has emerged as one of major segments for online
spends. However, some of the biggest frauds have been detected in this segment and the issue of online
security has assumed significant importance. While the online travel industry has registered robust growth,
major concerns relating to security of online transactions persist. The industry needs to take measures to
make the process of online bookings more secure and transparent and also needs to create awareness
regarding this.
Regulatory issues
For inbound international tourists, visa procedures are seen as a hindrance. A number of countries
competing with India for tourists provide visa on arrival. India should provide visa on arrival for more
countries or for certain categories of tourists for a specific duration.
A number of projects in the tourism infrastructure segment and in the hotels industry are delayed due to
non-attainment of licenses and approvals on time. The government recently cleared the long-standing
proposal for single window clearance for hotel projects to hasten the process of infrastructure development.
Implementation of this proposal would help development of tourism and hospitality infrastructure in the
country. There is a greater need for speedier clearances and approvals for all projects related to the
industry.
Opportunities
India’s size and massive natural, geographic, cultural and artistic diversity offers enormous opportunities
for the travel and tourism industry. The promotion and aggressive marketing measures undertaken by the
government is expected to aid influx of tourists. The industry would also benefit from introduction of new
forms of tourism and development of niche segments.
Medical tourism in India has gained considerable popularity in recent years. India has a major cost
advantage in this field compared with other countries. In addition to cost advantages, Indian healthcare
industry offers state-of-theart equipment, technological advancement, qualified and experienced medical
personnel and a blend of modern and traditional medicines. Thus, medical tourism has immense potential
in India.
Opportunities also exist in ecotourism, adventure tourism, and cruise tourism. Eco-tourism is increasing in
popularity, evident in the development of eco-friendly hotels and tour packages. With increasing
environment awareness and consciousness among tourists and given efforts undertaken by the government
and private players, the ecotourism segment is expected to record handsome growth in the coming years.
India holds immense potential in adventure and cruise tourism. India’s greatest adventure tourism assets
are Himalayas and its mighty rivers. The peak period for adventure tourism is the “lean period” of cultural
tourism. Development of adventure tourism can make India a round-the-year tourist destination. The
cruise industry is one of the most promising industries in India. However, strong efforts need to be made to
develop this industry. Other forms of tourism such as agri tourism, pilgrimage tourism, heritage tourism,
and MICE tourism also hold enormous potential.
Prospects
Healthy economic growth recorded in past few years, especially in the services industry, has led to increase
in business travel. Higher disposable income and affordability have increased domestic leisure travel in
India. Foreign tourist arrivals in India have also grown. The industry’s performance was hit in 2009 due to
the global economic slowdown, terror attacks in Mumbai (November 2008) and H1N1 virus. However, the
industry has shown signs of recovery in the first half of 2010. This is a clear indicator that the long-term
prospects for the Indian travel and tourism industry are bright. India is expected to witness increased
tourist activity both in the business and leisure segments in the coming years. International inbound traffic
is expected to grow rapidly with increasing investment and trade activity. India has been identified as one
of the fastest-growing countries in terms of tourism demand.
The travel and tourism demand is expected to reach US$ 266.1 bn (` 14,601.7 bn) by 2019. During 2004–
2009 travel and tourism demand in India increased at a compound annual growth rate (CAGR) of 16.4% to
US$ 91.7 bn (` 4,412.7 bn) and foreign exchange earnings from tourism increased ~13% to US$ 11.39 bn.
In an attempt to develop tourism in India systematically and to harness full potential of the industry, GoI
has taken several measures from time to time. These include formulation of the tourism policy and various
initiatives to promote tourism infrastructure development and marketing and promotion activities.
Tourism Policy 2002
The first major step GoI took towards development of the tourism industry was launch of the “Tourism
Policy” in 2002. The Tourism Policy is based on a multi-pronged approach, which includes speedy
implementation of tourism projects, development of integrated tourism circuits, special capacity building in
the hospitality sector, and new marketing strategies. This policy was built around seven key areas:
Government initiatives
The Ministry of Tourism undertakes various initiatives to promote tourism in the country. These include:
Infrastructure development
Adequate infrastructure facilities are vital for the tourism industry. Thus, the Ministry of Tourism has been
making efforts to develop quality tourism infrastructure at tourist destinations and circuits. The Ministry has
launched a scheme for development of nationally and internationally important destinations and circuits
through Mega Projects. It is also taking initiatives with other Central Govt. Ministries — Railways, Civil
Aviation, Road Transport & Highways, and Food Processing and Urban Development and the concerned
state governments — to achieve convergence and synergy with their programmes, to maximise the impact
of investments. The various schemes offered are as follows:
Marketing and promotion initiatives
Incredible India Campaign
To promote India as an ultimate tourist destination on the global tourism map, in 2002, GoI promoted the
“Incredible India” campaign in the overseas markets. The campaign was an integrated marketing
communication effort to attract tourists to the country. It projected India as an attractive tourist
destination by showcasing different aspects of Indian culture, history, spirituality, and yoga. This campaign
included visible branding in the outdoor media such as advertising at airports, on trams, taxis and buses
and through the print, online and electronic media as well as via participation in travel marts and road
shows. The campaign was conducted globally and received appreciation from industry persons and
travelers.
Atithi Devo Bhavah
This is another initiative of the Ministry of Tourism to harness the potential of the tourism industry in India.
It aims to create awareness about the effects of tourism and sensitise people about our country’s rich
heritage and culture, cleanliness and warm hospitality. It intends to instill a sense of responsibility towards
tourists among the stakeholders of the tourism industry. The main components of the campaign are
training and orientation of taxi drivers, guides, immigration officers, tourist police and other personnel
directly interacting with the tourists, while simultaneously creating brand equity for the trained persons.
This concept was designed to complement the “Incredible India” campaign.
The Atithi Devo Bhavah is a seven point programme of hospitality and training. The components are
captured in the table below.
Visit India 2009
In an attempt to boost the inflow of visitors and tourists after the terror attacks in Mumbai in 2008 and to
weather the impact of the global economic slowdown, the Ministry of Tourism and the World Travel &
Tourism Council jointly announced the “Visit India 2009” scheme. The scheme which was valid from April to
December 2009 and had the support of the hospitality sector, tour operators, travel and airline companies,
who offered various incentives and valueadded services during this period. The incentives included one
complimentary air passage for a travelling companion, one night complimentary stay in a hotel and
complimentary sightseeing tour in a city. Rural eco-packages and wellness packages were also offered to
overseas tourists. Road shows were organised in important tourist markets overseas with participation of
different segments of the travel industry.
Other promotional initiatives

In addition to the aforementioned marketing and promotional activities, the Ministry of Tourism also
organises road shows in important tourist markets overseas; arranges overseas marketing meets;
undertakes familiarisation tours under the hospitality programme; and participates in major international
travel fairs and exhibitions. It also undertakes online promotional activities on Websites in the US, UK,
Germany, Italy, France, Japan, and China as well as on search portals (Yahoo! and Google). The Ministry of
Tourism has 14 offices overseas, through which it undertakes these activities. It also generates tourist
publications in different foreign languages to promote India as a tourist destination in other countries.
Initiatives undertaken to promote different tourism products
Several other initiatives undertaken to promote different tourism products include the following:
Rural tourism
Rural tourism showcases rural life, art, culture and heritage at rural locations and interactions with the
tourists benefit the local community economically and socially. The existing scheme for destination
development supports the development of infrastructure in rural areas. Under this scheme, the thrust is on
promotion of village tourism as a primary product to spread tourism and its socio-economic benefits to
rural and new geographic regions. The Ministry of Tourism has joined hands with the United Nations
Development Programme (UNDP) for capacity building. Around 153 rural tourism projects have been
sanctioned in 28 states/union territories including 36 rural sites where UNDP offers support in capacity
building. During the “Visit India 2009” scheme, around 15 rural tourism sites were selected as rural eco-
holiday sites.
Cruise tourism
To facilitate growth in the cruise tourism sector, GoI approved the cruise tourism policy in June 2008. The
objective of the policy is to a make India an attractive cruise tourism destination. With state-of-the-art
infrastructure and cruise facilities across various parts of the country, the aim is to attract foreign tourists
to cruise shipping in India and popularise the concept of cruise shipping with Indian tourists. The Ministry of
Tourism provides Central Financial Assistance to state governments/union territories for development of
tourist infrastructure and promotion of tourism including river cruises.
Adventure tourism
GoI is taking several measures in this regard. These include financial assistance to the state
governments/union territory administrations for development of adventure tourism destinations and
granting of exemption from customs duty on inflatable rafts, snow-skis sail boards and other water sports
equipment. In July 2009, the Ministry of Defence gave permission for opening of 104 additional peaks in
Leh area of Jammu & Kashmir for adventure tourism.
Medical tourism
Medical tourism has emerged as one of the important segments of the tourism industry; initiatives taken
for promoting this include financial assistance to service providers under the Market Development
Assistance Scheme and issuance of Medical visas for patients and their attendants coming to India for
medical treatment. In addition, GoI has also requested the state governments to promote medical tourism
by offering suitable packages of identified hospitals and price banding for specific treatments.
Open Sky Policy
GoI’s Open Sky policy, which gives permission to domestic airlines to commence international flights, start-
up of various low-cost carriers, and fleet expansion by domestic players have created immense incentives
for domestic travelers to explore far-off destinations within and outside India. The booming aviation
business is bringing an ever-increasing number of passengers to India and pulling Indians out of their
homes.
Foreign Direct Investment

In the hotel and tourism industry, 100% FDI is permissible through the automatic route. Here, the term
‘hotel’ refers to restaurants, beach resorts, and other tourist complexes providing accommodation and/or
catering and food facilities to tourists. The tourism industry includes travel agencies; tour operating
agencies; tourist transport operating agencies; and units providing facilities for cultural, adventure and wild
life experience and surface, air and water transport facilities; and leisure, entertainment, amusement,
sports, health and convention/seminar units.
Archive for the 'Hotels and resorts' Category

Swosti group plans resorts in Puri and Satapada and around Chilika lake
Hotels and resorts, Khordha, Purichitta2 Comments »
Following is an excerpt from a report in Hospitality Biz India.
… All the resorts are expected to be operational within the next 30 months. Swosti Group currently operates
Hotel Swosti and Swosti Premium in Bhubaneswar and Swosti Palm Resort in Gopalpur-on–sea (Ganjam district).
Speaking with Hospitality Biz, J K Mohanty, Chairman, Swosti Group said, “Rural Tourism is a big source of
employment for the rural youth. Looking at the potential of Rural Tourism, Swosti Group plans to open resorts in
rural areas around Chilka Lake, Satapada and Puri in Orissa. Targeted to corporates as well as high-end Indian
and foreign tourists, these projects will have villas, spas, entertainment activities, cruising service along with
convention facilities. Eminent consultants and architects are involved in planning and designing of these projects,
which are likely to come up in next two years.”
Swosti Chandan Spa Retreat, which is likely to come up in Puri, will have 106-rooms (including eight suites).
“However, we are awaiting an approval from the Coastal Regulatory Zone authorities for the Puri property,” informed
Mohanty. The resort near Chilka Lake, which is Asia’s largest brackish water lake famous for migratory birds and
dolphins, will have 72 cottages. The resort will have spa, health club, gymnasium, restaurants, conference facilities
and a landscape spread across nine acres of land. The luxury resort in Satapada will have 43 rooms. …
shareshareshareshare
BRM Group plans several boutique hotels in Odisha

Cuttack, ENTREPRENEURSHIP, Hotels and resorts, Khordha, PurichittaNo Comments »
Following is an excerpt from http://www.hospitalitybizindia.com/detailNews.aspx?aid=9394&sid=1.
Bhubaneswar-based BRM Group plans to open more boutique hotels in Orissa including Bhubaneswar and Puri. The
Group will spend Rs 100 crore for both the properties, which are scheduled to open by the end of this year. The
hotel in Bhubaneswar will have 35 rooms, while the Puri hotel will have 40 rooms. Recently, the Group has
launched their first hotel in Cuttack named as Hotel Triple C.
According to Dr Biswajit Mohanty, Chairman, BRM Group, the Group will become a 120-key hotel chain by the end
of 2011. … The Group also plans to go out of Orissa to destinations like Darjeeling, Goa, in future.
Peerless plans a 4 star hotel in Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, KhordhachittaNo Comments »
Following is an excerpt from a report in Telegraph.
Peerless Hotels is looking for land to set up four-star facilities in Bhubaneswar, Noida and Navi Mumbai,
according to a senior official of the company.
“Our negotiations with the Orissa government for the Bhubaneswar project are at an advanced stage, and if we
get the land that we have chosen, the construction of the 80-room hotel will start in another one year,” Peerless
Hotels chief executive officer Kunal Sen said.
… “The setting up of a four-star hotel with 80-100 rooms entails an investment of between Rs 75 crore and Rs 95
crore, including land cost that may be between Rs 15 crore and Rs 35 crore depending on location,” Sen said.
Gokul Agrawal of CTC Education Pvt Ltd intends to invest Rs 6000 crore over five years
in developing a 1000-acre knowledge city
Bhubaneswar- Cuttack- Puri, Ganjam, Hotels and resorts, Jagatsinghpur, Jharsugurha, Jharsugurha- Brajarajnagar-
Belpahar, Khordha, Paradip - Jatadhari - Kujanga, Sambalpur-Burla-Jharsugudachitta1 Comment »
Following is an excerpt from a report in Business Standard.
Topping the lists of the prospective investors is Gokul Agrawal of CTC Education Pvt Ltd who intends to invest Rs
6000 crore over five years in developing a 1000-acre knowledge city.
In the higher education sector, Silicon University of the Silicon Valley Group has proposed to set up its campus in
the state at a cost of Rs 300 crore. Investments would also be pouring in for the state’s hospitality sector with
the US-based Best Western Hotel lining up a Rs 100-crore investment plan for setting up a chain of properties at
Bhubaneswar, Paradip, Chilka and Jharsuguda.
Land could become an issue with respect to the proposed knowledge city. A city/town/community that may want
such a knowledge city which, I am told, would include multiple universities could offer help in the land part. They
should of course first investigate if the group really has that much money and if their plan is for real.
Astha International of Gujarat has several plans for Odisha: Textile mill near
Bhubaneswar, Astha city near Berhampur, Hotel in Puri, etc.
Berhampur- Gopalpur- Chhatrapur, Bhubaneswar- Cuttack- Puri, Food processing, Ganjam, Hotels and
resorts, Khordha, Puri, Textileschitta2 Comments »
Update: Following are excerpts from a report in Business Standard.
Astha International Limited, one of India’s leading direct selling companies based out of Surat (Gujarat), would
invest Rs 5000 crore on a slew of business ventures in Orissa by the end of 2012.
The investment which is to be raised through a mix of debt and internal accruals as well as from its 4.5 lakh odd
distributors across the country, will be made on developing an integrated township project called ‘Astha City’
near Berhampur, a star hotel in Puri and a textile mill in Bhubaneswar.
Besides, Astha International would set up a dairy production unit, a multiplex and a hyper mall in the city.
The company has opened an office in the city and this would serve as the zonal office for the states of Orissa,
Andhra Pradesh, Chhattisgarh and West Bengal.
Together, all these projects will generate direct employment for over 10,000 people in the state.
All these projects are expected to be commissioned by the end of 2012.
"… The company would first begin with the integrated township project for which it has already identified around
200 acres of land near Berhampur.”
The company is betting big on the Orissa market which currently accounts for about 50 per cent of its overall
revenues.
Astha International which has operations in 12 states of the country, clocked a revenue of Rs 300 crore in the last
fiscal.
Out of 4.5 lakh distributors of the company, 1.5 lakh are based out of Orissa.
Astha International, which has more than 10,000 products in 26 different segments, also plans to float a bank
called Astha Bank by 2011-12.
“We have already got the license of the Reserve Bank of India for starting banking operations and our bank will
commence operations from 2011-12”, Chauhan claimed.
The website of this company is http://www.asthainternational.in/. In that site they mention anAstha city in
Gujarat. Following is from Samaja.
Kamat Hotels India Ltd (KHIL) redeveloping properties in Puri, Konark and Chilika
Bhubaneswar-Puri, Chilika, Circuit: Bhubaneswar-Chilika-Puri, Food joints, Hotels and
resorts,Khordha, Konark, Puri, Puri, Sites in and around Bhubaneswarchitta1 Comment »
Following is an excerpt from a report in hospitalitybizindia.com.
Kamat Hotels India Ltd (KHIL) which owns and operates hotels brands like The Orchid, VITS, Lotus Resorts and
Gadh Hotels … has acquired the heritage palace ‘Mahodadhi Niwas’ in Puri and also the Eco Resort at Ramchandi,
near the Sun Temple in Konark, in addition to the Parikud Palace and Rambha Palace, which are located near the
Chilka Lake.
Of the three heritage properties acquired by KHIL, Mahodadhi Niwas opened for business on November 28, 2009.
In the first phase, Mahodadhi offers 12 rooms and an additional 60 are expected to be developed over the next
phase. KHIL is presently involved in restoring Parikud and Rambha Palaces, which will be commissioned in a
phased manner in 2010.
… KHIL intends to strengthen the portfolio of its heritage brand – ‘Gadh Hotels’ in the state. We have already
acquired three palaces from OTDC on a long-term lease and their restoration work is currently in progress.” As a
part of its Corporate Social Responsibility (CSR) activity, KHIL has also undertaken cleaning and conservation task
of Chilka Lake.
KHIL’s F&B arm Kamat Restaurants Pvt Ltd (KRPL), which operates the ‘Vithal Kamat’ chain of vegetarian quick-
service restaurants is also making inroads in to Orissa. KRPL has recently commissioned four company-owned
outlets in Orissa, on the Bhubaneswar-Puri highway.
Assotech to bring Radisson hotel to Bhubaneswar; Maize processing complex proposed

for Nabarangpur
Bhubaneswar- Cuttack- Puri, Food processing, Hotels and resorts, Khordha, NabarangpurchittaNo Comments »
Following are two excerpts from reports in Pioneer, one about Radisson and another about a maize processing
complex.
Tourist activity mostly centred in Bhubaneswar, Puri and Konark, coupled with corporate houses and MNCs
making a beeline to Odisha has made Assotech Group, a real estate developer, bring Radisson Hotels to
Bhubaneswar, the leading upscale full service five-star hotel brand which will put Bhubaneswar on the global
map of five star luxuries.
It is estimated that there is a current demand of around 1,000 rooms of five-star category hotel and 4,000 rooms
of three-star category hotels in Bhubaneswar.
Kolkata-based Four Star Export House LMJ International Ltd and National Niryat Award winner in 2009 having Rs
2,000 crore of agri export during 2008 has proposed to set up a maize processing complex in Nabarangpur district.
… LMJ International is likely to start the unit as early as December this year, subject to approvals by the
authorities.
… An exclusive port for export of processed fruits and vegetables has also been proposed by the company.
The Chief Executive Officer of the company made the proposal at a meeting in Bhubaneswar … which was
convened as a follow-up to the meeting of Agri Business Summit Agro Protech 2009 held in Kolkata …
Vipul plans to invest 80-100 crores for a 4-star hotel in Bhubaneswar
Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Vipulchitta1 Comment »
Gurgaon-based real estate firm Vipul Limited, one of the leading real estate developers in the country, plans to
invest Rs 80-100 crore in setting up a four-star business hotel in Bhubaneswar .
Vipul Limited had identified Bhubaneswar as one of the 5-6 strategic locations in the country where it intends to
set up three-star and four-star business hotels.
Apart from Bhubaneswar, these business hotels are set to come up in the states of Punjab, West Bengal and
Andhra Pradesh. Each of these business hotels would cost Rs 80-100 crore.
“We have identified two to three plots of land in Bhubaneswar, including one close to the airport for setting up a
four-star business hotel. "
The proposed hotel would come up on an area of 2-3 acres”, Punit Beriwala, managing director, Vipul Limited
told Business Standard.
He declined to comment on the time-frame of setting up of the business hotel as the details were yet to be
worked out.
Orchid brand hotel coming up in Konark

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Konark, PurichittaNo Comments »
Kamat Hotels India Ltd (KHIL) is in the process of developing 600 additional rooms under ‘The Orchid’ brand
across India. Presently, properties are under development in Nagpur, Coimbatore, Raipur and Konark. Upcoming
properties will be set up at greenfield locations and will be entirely managed and operated under the KHIL
banner.
“The Orchid brand will continue to grow through tier I and II locations across India. For KHIL’s premium brand, we
plan to tap emerging markets for potential locations,” says Vishal Kamat, Director, KHIL to Hospitality Biz. KHIL
will develop a 30 room all-suite hotel in Konark, Orissa and a 100 room hotel in Nagpur. The Coimbatore and
Raipur properties are expected to come up with about 200 and 120 rooms, respectively. “KHIL has always
positioned The Orchid as a business hotel and we are keen that we develop and manage hotels under this brand
to maintain its exclusivity in the market. Unlike Concept Hospitality Ltd (CHL), which presently manages a few
Orchid hotels in New Delhi, Kollam and Jalandhar, KHIL will not operate simply as a hotel management entity in
the market,” clarifies Kamat.
Mayfair Hotel group’s expansion plans

Hotels and resortschittaNo Comments »
The State Bank of India (SBI), the largest bank in the country, has picked up 19.7 per cent equity in Orissa-based
Mayfair Hotels and Resorts (MHRL) through a private equity (PE) deal.
The deal was for 37,33,333 shares with a face value of Rs 10 each. … As a result, the subscribed equity base of
the company has increased to 1,89,33,333 shares from 1,52,00,000 shares previously. Post-deal, the promoters’
share will be 80 per cent.
… Dilip Ray, chairman and the managing director of MHRL, said. He said, the company plans to hit the capital
market with an initial public offer (IPO) in about 24 to 36 months after utilisation of the proceeds of the 19.7
percent equity issued to SBI. The timing of the IPO will depend on the market condition. The group is in the
process of executing a Rs 260-crore expansion plan. While the company intends to raise about Rs 124-150 crore
from the proposed IPO, the borrowing component is likely to be about Rs 65 to 75 crore. The remaining funds will
be mobilised in the form of internal accruals. The new 5-star deluxe property of Mayfair Gangtok, developed by a
subsidiary, is expected to be commissioned by March 2009.
Meanwhile, the company has forayed into western India tourist circuit through acquisition of of an existing 32-
room hotel at Betul Beach in Goa. This unit will be operational by September 2009 after refurbishment and
upgradation to a 5-star boutique at an investment of about Rs 25 crore.
MHRL has been achieving an annual growth of 22 per cent for the past four years and has completed the
expansion of its four operative properties at Bhubaneswar, Puri, Rourkela and Darjeeling by adding 52 rooms with
additional facilities. Post-expansion, MHRL will have an inventory of 600 rooms spread over 12 properties in ten
locations, sources said. It intends to add three properties at Puri (second unit), Cuttack and Chilika, which will
add 134 rooms to the inventory. Since land for these projects are available, Cuttack and Puri properties are
expected to be operational by June 2010. Similarly, Chilika property is expected to be operational by September
2010. The land acquisition for the Paradeep and Jharsuguda property will be taken up in 2011 and the entire
process of expansion will be completed by June 2011, sources added.
The company achieved a turnover of Rs 48.5 crore in 2007-08 with a net profit of Rs 9.27 crore. Despite the
slowdown, it hopes to achieve a turnover of Rs 60 crore in 2008-09 with expected net profit of Rs13 crore.
“Nowhere the slowdown has impacted our business. We have 100 per cent occupancy in our Bhubaneswar, Puri
and Rourkela property,” Ray added.
IMRS plans boutique hotel in Orissa

Hotels and resortschitta1 Comment »
IMRS Hospitality Private Limited will spend approximately Rs 100 crore as a part of its expansion strategy to
consolidate its position in the eastern region.
The company will set up five ’boutique hotels’ in the eastern region, with 40 rooms, offering facilities equivalent
to a four star hotel.
Arindam Chokroborty, director of IMRS said, "We are looking at coming up with boutique hotels with 40 rooms in
the eastern region with similar facilities that match the four star hotels. We have already started acquiring land
in Rajarhat."
The projects have been lined up for West Bengal, Jharkhand and Orissa and the approximate investment incurred
will be around Rs 20- Rs 25 crore each, and is expected to be operational by the second quarter of 2009-10.
Swosti Hotel group’s plan for Puri and Chilika

Beaches, Bhubaneswar-Berhampur, Bhubaneswar-Puri, Chilika, Circuit: Bhubaneswar-Chilika-Puri,Ganjam, Hotels and
resorts, Khordha, Puri, Puri, Tourist promotionchitta1 Comment »
Swosti Group is redesigning two of its upcoming resorts according to chartered tourist requirements, since both
properties were initially designed for individual and MICE segments. Puri’s Swosti Chandan Spa Resort and the
company’s upcoming resort at Chilka, Orissa will undergo a number of redesigning and renovation processes as
they target chartered segments (in large numbers), instead of regular tourists.
About this sudden change in plans, S Patnaik, General Manager, Swosti Group, told Hospitalitybiz, “We have
experienced a sudden influx of MICE travellers in Bhubaneswar; this has resulted in many hospitality giants
commissioning projects in the state capital. Similarly, other places in the state, especially Puri and Chilka, will
be ideal to host chartered segments. Moreover, the segment’s favourite Indian destinations like Goa and Kerala
are exceeding their carrying capacity; therefore, chartered operators are now looking for other options.”
The number of chartered flights to Puri is increasing from 180 to 250. Hence, Swosti Group is already in talks
with leading chartered tour operators in India, who have exhibited an interest in the suggested places and
upcoming properties. “Our Puri property was earlier designed with 70 rooms, but the inventory has been hiked to
100 rooms in favour of hosting chartered groups. The Chilka property, which has not been named as yet, will
offer 50 cottages to start with, while it will be somewhat experimental with chartered tourists. The Chilka
property will upgrade rapidly if it did well with the mentioned segment,” informed Patnaik. Slated to start
operations in October 2008, both properties will take another few months to start. “The season for this segment
(to visit India) is from October – March 2008,” added Patnaik. He added that even though the company will lose
out on most of the season, it wishes to atleast begin catering to some chartered tourists.
On the other changes in terms of architect and design, Patnaik said that both properties will highlight their
swimming pool as it is the biggest attraction for the chartered segment. The resorts will be equipped with bigger
lawns and additional private areas as the segment does not appreciate external disturbance from other guests.
“We are working on the properties’ sloping structures and the proximity of the pools and beaches from the
resorts,” informed Patnaik.
… We are inclining our properties towards chartered tourists as we will be able to provide them with the peace
and serenity that they seek.” Swosti Group is also interested in presenting Buddhist tourism to this segment, in a
new light.
Hoteliers selected for the Shamuka beach project

Bhubaneswar- Cuttack- Puri, Circuit: Bhubaneswar-Chilika-Puri, Hotels and resorts, Puri, Puri,Shamuka Beach
project, Sites in and around Bhubaneswar, Tourist promotionchitta1 Comment »
Following is from a report in hospitalitybizindia.
Eleven hospitality majors like the Indian Hotels Company, ITC Welcomgroup, Dubai-based Emaar MGF, DLF, IHHR
Hospitality, Apeejay Surrendra Park Hotels, Goa-based VM Salgaonkar Bros Pvt Ltd, Unitech, Delhi-based Zoom
Developers, Kolkata-based Shristi Infrastructure Development Corporation and Mumbai-based Subha Hospitality
have been selected by the Tourism Department of Orissa to convert Samukha Beach, the long virgin beach
situated near the Konark Temple, into the biggest beach city of India.
The project was planned to be completed in two phases on a public private partnership (PPP) format in October
2007. The beach city will house five-star properties, golf courses, convention centres, handicrafts centres, art
centres and conventions halls. It will also include special varieties of housing estates, social housings,
condominiums, budget hotels and villas.
The Tourism Department inaugurated the commencement of the awaited hop-on and hop-off bus services,
recently. Sasank Rath, Officer on Special Duty, Orissa Tourism said that the work for sizing of the lands is
currently going on, while lands will be disbursed by the end of August 2008. The Tourism Department plans to
invest Rs 2000-3000 Crore to build the whole project. The State Government will invest Rs100 Crore for
infrastructure development. Work on the project is expected to start in August 2008 and it will take another 42
months for it to be completed.
Aman resorts scouting for land to set up a resort in Orissa

Hotels and resorts, PurichittaNo Comments »
Aman Resorts, the internationally acclaimed chain of luxury hotels has decided to invest in Orissa.
A team of this Singapore-headquartered hotel chain today visited three possible locations between Pipili and
Konark for setting up a resort in the state.
It visited locations like Khelar (near Pipili), Sarada (near Nimapada), Beruhan (near Konark). However, the exact
location has not been finalised.
… Adrian Zecha, chairman of the group accompanied by the leading architect Karan Grover met the Orissa Chief
Minister Naveen Patnaik and Tourism Minister Devi Prasad Misra.
They have sought about 45-50 acres in the rural sorroundings nearing Konark for their proposed resort project. …
Sources said, the group is looking for the rural hinterland having natural ambience. Positioned as a high ended
hotel in the 7 star category, it is expected to attract high spending tourist to the state from foreign countries.
Rail budget hotels in Puri and Bhubaneswar
Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Puri, RailwayschittaNo Comments »
Following is an excerpt from a report in Times of India.
The ambitious plan of railways to set up about 100 budget hotels across the country, popularly known as Rail
Ratna, has finally got a nod from the Railway Board. Twenty-two of these budget hotels are to be built in the
first phase of work which is likely to be taken up soon.
… According to Indian Railway Catering and Tourism Corporation (IRCTC) director Vinod Asthana, it has been
decided to commercially exploit the vacant land of railways across the country. The ambitious budget hotel plan
will yield good revenue to railways. IRCTC will go ahead with the plan as approved for the first phase of work, he
said.
IRCTC MD Nalin Singhale said the proposed budget hotels will be built and developed on public-private
partnership basis with a view to promoting tourism and providing full comfort to tourists.
IRCTC has already selected important places where these budget hotels are to be built. These places are Delhi,
Varanasi, Ajmer, Jaipur, Bhubaneswar, Allahabad, Darjeeling, Sealdah, Lucknow, Mysore, Mumbai, Ooty, Puri,
Amritsar, Shimla, Ujjain, Udaipur, Chandigarh, Kanyakumari, Pune, Nagpur and Agra, he said …
… According to sources, the budget hotel project is likely to yield about Rs 4,000 crore annually to railways on its
completion. These hotels will be built on thousands of hectares of the vacant land leased out by the Railway Land
Development Authority (RLDA). Railways have roped in reputed companies of the country to invest in such an
ambitious project. Tenders have been finalised and awarded to successful bidders at 20 locations at the country
level, sources said.
As per the approved plan, each budget hotel is to be developed on the pattern of plush hotels equipped with all
modern facilities. IRCTC has already formulated policies with regard to budget hotels, a Railway Board official
said.
… Sources said Railway Board is yet to approve the tariff for each room of the proposed budget hotels. Railways
are likely to fix Rs 1,000 and Rs 2,000 for each plush room of such hotels per night. IRCTC proposes to provide its
own quality catering services in these budget hotels.
OSL’s hotel plans for Bhubaneswar and Puri

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Purichitta1 Comment »
Orissa Stevedores Limited (OSL), Hospitality Division plans to update its Bhubaneswar property, The Triumph
Residency, to keep pace with the growing competition. Triumph Residency will go through a complete makeover
in terms of interiors, rooms and public areas (lobby, bar and restaurants) as well as in terms of the power
backup. The renovation process, which will last for a period of seven to eight months, is due to take off in mid-
April 2008.
Speaking to Hospitality Biz, Dinesh Kumar, General Manager, OSL, Hospitality Division, said, �Over the past
couple of years, the influx of business travellers to Bhubaneswar has gone up to 100 per cent due to various
reasons like industrial congestion and high Average Rooms Rates (ARR) in the metros�.
Bhubaneswar has become well connected lately, which has led to an increase in the meetings and conferences
held in the city. �The competition has also shot high, as the existing properties like Swosti Plaza and Mayfair are
in the process of adding their room inventories. Alongside this, hospitality majors like Radisson, Sarovar Group of
Hotels and Best Western Group of Hotels are coming up with their properties,� Kumar said. Ginger Hotels and
Hotel Hindustan International are also coming up with hotels in the city with an inventory of 100 rooms.
Triumph Residency plans to add seven more rooms. The hotel will be operational during the renovation period.
�With this revamp, we plan to target the high-end business travellers. We foresee ourselves to be at par with
properties like Mayfair and Trident. Occupancy is expected to shoot up by at least 30-40 per cent, along with a
doubling of ARR,� Kumar added.
Also under consideration at OSL is the possibility to create its own hospitality brand or to rope in any
international hospitality major to brand all of its properties. The group is coming up with a 40-room property in
Puri. … The property, which is under construction currently, is slated to be operational by the end of 2008.
OSL also plans to build a high-end flagship property at Chandaka, a place in the outskirts of Bhubaneswar. �We
have already bought the land. We intend to make this 150-key five star property the best in eastern India,�
informs Kumar.
OSL hotels in Orissa

Following is an excerpt from travelbizmonitor.com.
Orissa Stevados Ltd (OSL) [? http://www.orissastevedores.com/] plans to bring more hotels into Eastern India,
under the brand names Country Inn & Suites (CIS) and Radisson. After its five star properties in Paradeep,
Bhubaneswar and Orissa, the group is now taking up projects in Kolkata, Puri, Bhubaneswar, Gopalpur and
Guwahati.
On the Kolkata project, Suvodip Rai Choudhury, Manager, Sales and Marketing, OSL, comments, "A twin property
is coming up at Rajarhat, Kolkata by the end of 2009. Two five star hotels will be accommodated here in the
same complex. …"
OSL is also associated with the first state-of-the-art 50 room hotel in Puri, which is expected to be operational by
2009. The 80 room property in Bhubaneswar and 75 room Gopalpur property are slated to start in 2010. The
group is yet to decide on the affiliations of the Bhubaneswar and Puri properties (from CIS or Radisson).
On the projects in Orissa, Choudhury claims that the company is getting far better responses in this state. The
hospitality scenario is changing fast with adequate support from the ministry. … OSL employs Country
Development Management Service (CDMS) for both operational and management purposes in these properties. On
the challenges faced, Rai Choudhury says, "Acquiring quality staff poses as the greatest problem. Moreover, most
of our properties have been classified as four star properties despite having all the possible facilities. This is
because they do not meet the requisite number of rooms for a five star rating."
Sarovar Premiere 4-5 star hotel to come up in Bhubaneswar: Vipul infrastructure to

build it
Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, OtherschittaNo Comments »
Update on March 25 2009: Pioneer reports:
The Sarovar Hotels and Resorts announced the signing of a hotel in the 4-5-star category at the Sarovar Premiere
here. The hotel with 150 guest rooms and all modern services and facilities will be located at Nayapalli.
Commenting on the signing, hotel’s managing director Anil Madhok said, “With the increase in the number of
business and leisure travellers in the city, we are pleased to offer accommodation of international quality for
them.” The hotel will have five star services, multiple dining options, extensive meeting and banquet areas as
well as a health club and spa.
Following is an excerpt from a news report in dnaindia.com.
Gurgaon-based Vipul Infrastructure Group is set to board the hospitality train. The company’s hotels division,
Vipul Hospitality, has signed a memorandum of understanding with leading operator Sarovar Hotels and
Resorts to open five new hotels, to start with.
Vipul Hospitality will invest and own the hotels, while Sarovar will provide technical assistance right from
inception to completion besides managing and marketing the hotel operations.
The overall investment in the initial five projects is estimated at over Rs 500 crore.
Ajay K Bakaya, executive director, Sarovar Hotels and Resorts told DNA Money that a number of these hotel
projects will also have retailing component.
“Out of the five sites being identified jointly, at least four will be mall-o-tels. Going forward, we will be working
together with the realty partners in identifying more locations. All the current and future projects will be
operated and managed under Sarovar’s bouquet of brands,” said Bakaya.
The upcoming hotels in Amritsar, Bhubaneswar and Raipur will be branded under Sarovar Premiere, the Mohali
property will be a Sarovar Portico and the one in Siliguri will be branded as Park Inn.
Each hotel will have a room inventory of 100-150 rooms in addition to food and beverage, banqueting and
conferencing facilities.
One of the pioneers in the Indian mid-market hospitality segment, Sarovar Hotels has grown rapidly since its first
hotel opened in 1994.
The hospitality company currently manages 35 hotels across the country under the brands Sarovar Premiere,
Sarovar Portico and Hometel, besides Park Plaza and Park Inn, which are operated under master franchise pact
with Carlson Hospitality for India.
IRCTC tour packages from Orissa

Bhubaneswar- Cuttack- Puri, Chilika, Hotels and resorts, RailwayschittaNo Comments »
Following is an excerpt from a news report in New Indian Express.
Giving safety and passenger comfort the utmost priority, the regional office of Indian Railway Catering and
Tourism Corporation (IRCTC) has rolled out well-knit packages for pilgrims and holiday-makers for the first time
to major tourist places in the country.
… The new packages, however, do not include ghat sections. Nonetheless IRCTC has left no room for complaints.
��We have even posted a manager who would look into the wellbeing of the people round the clock,�� he
said.
The packages include a week-long tour to North covering New Delhi, Jammu, Haridwar and Risikesh. The cost per
adult has been fixed at Rs 11,800. Similarly, the �explore Rajasthan� tour package, taking travellers to all
known places, has been priced at Rs 17,050. They include expenses like on and off board catering, board and
travelling.
Optimum return of the money spent would be the USP of the plans. The third package called � Southern
Splendours I and II � covering places like Bangalore, Mysore, Ooty and Hassan among others � would cost
between Rs 10,250 and Rs 10,650.
In the ensuing months, IRCTC would also offer travel plans to Madurai , Rameswaram and Kanyakumari. Likewise,
tour packages to Darjelling , Gangtok and Peling are also on the cards. It is also contemplating to offer
customised packages.
Meanwhile, IRCTC�s budget hotel project in Bhubaneswar would start soon, having received nod from the State
Government. It will come up in front of the Railway station. IRCTC has also acquired about five acres at
Bhabakundaleswar near Satapada at Chilika Lake for a similar project.
Mohanty said, plans for the budget hotels in Cuttack, Puri and Visakhapatnam are awaiting the Railway Board�s
clearance.
Wi-fi in Hotel Crown, Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Wi-fichittaNo Comments »
New Indian Express reports on this.
Railways and others plan hotels and resorts in Chilika

Chilika, Hotels and resortschittaNo Comments »
Following is an excerpt from a Pioneer report.
The Indian Railway Catering and Tourism Corporation (IRCTC) has decided to open a hotel at the river mouth at
Chilika Lake. The corporation has identified a patch of 500 acres required to set up the resort to which the State
Government has agreed, according to official sources. Earlier local hospitality groups like Mayfair, Holiday Resort
and Marrion had procured land to set up hotels, near the proposed project site of IRCTC. The river mouth of
Chilika Lake is situated in Babhukundeswar in Puri district. Notably, Chilika is spread over a area of 11,000 sq km
in Puri, Khurda and Ganjam district and is India’s largest lake , which attracts huge number of tourists and also
birds.
Archive for the 'Hotels and resorts' Category

HHI Hotel in Bhubaneswar
Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, PurichittaNo Comments »
Following is an excerpt from a New Indian Express report on this.
Hotel Hindustan International Group announced its arrival in the city with HHI Bhubaneswar having 104 luxury
rooms in four different categories, a spa, banquet, dedicated swimming pool and a lawn over a sprawling 11,000
sq ft.
The star hotel which promises to provide quality services is looking to tap the ever-growing business class
travellers from across India and abroad. For a start, each room will have plasma TVs, Wi-Fi connectivity and
toilets with four compartments besides other amenities.
The hotel, at Kharvela Nagar where once another such property stood, has seen an investment of Rs 50 crore and
boasts of a total makeover.
It has a dedicated “kebab centre” called “Kebaabs Unlimited”, a 24-hour multi-cuisine restaurant “Flavours”,
“The Lounge Bar” besides business centre facility. Underground, a party floor, will soon add to the charm. HHI
Bhubaneswar is the group’s third unit …
Jaiswal said that the group was planning a beach resort at Puri and is in talks with the Orissa Government for
this.
ITC plans foodparks and luxury hotels in Orissa

Food processing, Hotels and resorts, INVESTMENTS and INVESTMENT PLANS, ITCchitta1 Comment »
Following is an excerpt from a report in Economic Times:
ITC group on Tuesday expressed keen interest in making investments for setting up luxury hotels and food parks
in Orissa, official sources said.
This was conveyed to the state government during a meeting ITC vice president Nazib Arif had with chief minister
Naveen Patnaik here, the sources said, adding Patnaik promised necessary cooperation for the proposed ventures.
The proposed food parks would have facilities for setting up of processing units, sources said.
Tata Ginger hotels in Paradeep and Konark in 2008; future plans for Jharsuguda, Angul
and Kalinganagar
Angul, Anugul- Talcher - Saranga- Nalconagar, Hotels and resorts, Jagatsinghpur, Jajpur, Jajpur Rd- Vyasanagar- Duburi-
Kalinganagar, Jharsugurha, Jharsugurha- Brajarajnagar- Belpahar, Paradip - Jatadhari - Kujanga, PurichittaNo Comments
»
Following are excerpts from a New Indian Express report on this.
Tata�s budget hotel chain Ginger is expected to open doors to foodies in Paradip and Konark by the end of 2008.
Chief executive officer of Roots Corporation, Prabhat Pani said, they have already acquired one acre of land each
in both these towns and would start construction in the next two months. Plans are also afoot to come up with a
Ginger hotel in industrial towns like Jharsuguda, Angul and Kalinga Nagar in the next couple of years.
Roots Corporation is a wholly owned subsidiary of Tata Group and manages the Ginger chain of hotels. The
company entered into the State in September last year with the launch of Ginger in the city.
Shamuka beach high end luxury tourism project in Puri with multiple 5 star hotels;
other hotel projects
Angul, Anugul- Talcher - Saranga- Nalconagar, Beaches, Bhubaneswar- Cuttack- Puri, Hotels and resorts, Island
tourism, Jagatsinghpur, Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar,Jharsugurha, Jharsugurha- Brajarajnagar-
Belpahar, Paradip - Jatadhari - Kujanga, Puri, TOURISM, ENTERTAINMENT and SHOPPING, Websites of InterestchittaNo
Comments »
Update: The Orissa government’s tourism web page has additional information on the Shamuka beach project.
Following is an excerpt on this from Expresshospitality.com.
Shamuka Beach in Orissa near Puri is being developed as a high-end luxury tourism destination by the Orissa
Tourism Development Corporation. The department has acquired a 1000 acre property south of Puri, and is in the
process of acquiring 2000 acres more. It is a natural island and is being developed by the name Shamuka Beach
project. Divulging further details about the project, Asit K Tripathi, secretary, Orissa Tourism, says, "It is going
to be one of India’s best integrated, dedicated and up market tourism project, with only 5-star hotels. We had
advertised and the response has been overwhelming. We have got responses from leading players in the country
as well as abroad. ITC-Welcomgroup, the DLF-Hilton combine, Taj Hotels Resorts and Palaces, IHHR’s Ananda Spa,
Casino Group of Hotels Earth (CGH Earth), The Oberoi Group, Apeejay Surrendra Group, Marriott International,
and Carlson Hotels Asia Pacific have all shown interest. We can allot land to approximately 20 national and
international hotel brands. We are coming out with a blue print to develop infrastructure. The third stage will be
to establish a golf course and convention center. This will raise the value of Orissa as a leisure destination."
"Although we have 934 hotels in Orissa and 2000 rooms, the majority cater to primarily low spending groups, and
the rest target high spending tourists or corporates. With this initiative, within 1-2 years, we will have more
quality rooms," says Devi Prasad Mishra, tourism minister, Orissa. Samukha Beach and Puri, as well as industrial
growth centers like Paradeep, Talcher, Kalinganagar, as well as Jharsuguda and Angul have generated interest
from the hospitality industry in recent times – especially budget hotels and business hotels. The no-frills brand of
The Indian Hotels Company, Ginger Hotels opened their first hotel in Bhubaneshwar. Carlson Hotels Asia Pacific
plans to open its Radisson Hotels & Resorts in Chilika, Puri and Bhubaneswar. Cabana Group, the master licensee
of the world-renowned chain of hotels – Best Western International from California is setting-up an international
standard culinary college cum 5-star property in Bhubaneswar, and is eyeing Puri to develop the brand.
Oberoi’s delink with Hilton: Trident Hilton to become just Trident

Bhubaneswar- Cuttack- Puri, Hotels and resortschittaNo Comments »
This is reported in many papers, such as Telegraph. Thus, the Bhubaneswar Trident Hilton will become simply
Trident.
Dawnay Day 4-star hotel likely to come up in Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, KhordhachittaNo Comments »
Following is an excerpt from a report on this.
The UK-based Dawnay Day Group plans to invest $1.2 billion to set up four-star properties in the country over the
next 10 years.
It has already committed $200 million in the Indian hospitality market. …
Mandeep Lamba, managing director, Dawnay Day Hotels India, told DNA Money that an initial public offer (IPO)
over the next 4-5 years could not be ruled out either.
The current commitment of $200 million is being funded through internal accruals. Already, land has been
acquired in Pune, Ahmedabad, Jaipur, Lucknow, Bangalore and Hyderabad. Prospective properties are likely to
come up in Chennai, Bhubaneswar, Chandigarh, Coimbatore, Mumbai and Kolkata.
Orissa government plan to develop a high end beach resort just south of Puri
Bhubaneswar- Cuttack- Puri, Hotels and resorts, Puri, TOURISM, ENTERTAINMENT and SHOPPINGchittaNo Comments »
The Orissa government’s call for expression of interest on this is here. (Thanks to Manoj Padhi for the pointer.)
Odisha.com reports on hotel groups interested in Orissa

Odisha.com reports about various hotel groups that have expressed interest in building hotels and resorts in Orissa.
The list of such hotel groups include:
 Carlson Hotels
 ITC Welcome group Sheraton brand hotels
 Laxmi Franklin Hospitality
 Unitech
More Hilton brand hotels in Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordhachitta2 Comments »
Deepikaglobal reports that Hilton plans to open a Hilton Hotel and a Homewood Suites in Bhubaneswar.
Bhubaneswar already has a Trident Hilton. Following is an excerpt from that report.
Speaking to mediapersons here today, DLF Home Developers Ltd Chief Financial Officer Surojit (Babu) Basak said,
”We plan to open two hotels under Hilton brands–Hilton Garden Inn, amid market segment hotel, and Homewood
Suites, which are service apartments, entailing an investment of around Rs 500 crore. The hotels would have 600
rooms altogether. … The hotels would be operational in three years, he added.
The US-based Hilton Hotels is looking at ten-fold increase in the number of hotel property in India. Hilton Hotels
would also open hotels in Delhi, Mysore, Bhubaneswar, Bangalore, Hyderabad, Goa and Kolkata. Homewood
Suites, the longstay brand in Hilton’s portfolio, would debut at Kolkata, Bhubaneswar and Hyderabad.
Cabana group announces a hotel and a management institute

Berhampur- Gopalpur- Chhatrapur, Bhubaneswar- Cuttack- Puri, Bhubaneswar-Berhampur,Bhubaneswar-
Paradip, Ganjam, HRD-n-EDUCATION (details at orissawatch.org), Hotels and
resorts,Jagatsinghpur, Khordha, Management institutions, Paradip - Jatadhari - Kujanga, Puri, Vocational
educationchittaNo Comments »
Various newspapers (Telegraph, Financial Express) report that the Cabana group has announced a hotel and a
management institute in Bhubaneswar and plans to open many hotels in various locations in Orissa. Following is an
excerpt from Telegraph.
Co-chairman of Cabana Hotel Management Private Limited and venture capitalist, Prabhu Goel, said the institute
will be the group�s first training venture anywhere in the world. �Since the industry demand is huge, we hope
that all students will be absorbed after training,� Goel added.
The institute, for which the government has allotted a seven-acre plot near Dumduma, will have hostels for 1,500
students, classrooms, labs, kitchens, along with a an attached 200-bed hotel. The group will represent Best
Western brand in India, provide hotel management services and consultancy, he said.
Over the next 10 years, the group intends to add more than 100 hotels and 10,000 rooms to the growing Indian
hospitality market. �We have visited places like Chilika, Puri, Konark and Paradip. We are interested to set up
hotels there. We have plans to invest around Rs 350 crores in developing properties in the state,� said Goel.
Cabana Hotel Management plans Best Western-branded hotels in Bhubaneswar

Hotels and resorts, INDUSTRY and INFRASTRUCTURE, TOURISM, ENTERTAINMENT and SHOPPING DigambaraNo Comments »
The Telegraph reports that Mumbai-based Cabana Hotel Management plans to set up Best Western-branded hotels
in Bhubaneswar.
�We are establishing hotels in Ooty (Udhagamandalam), Bangalore, Kanyakumari, Jaisalmer, Rameshwaram and
Bhubaneswar, on which we will start construction soon,� Prabhu Goel, co-chairman of Cabana Group, said.

Hotel Industry

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Globally, the travel, tourism and hospitality industry is one of the largest service industries in terms of

Some of trends covered in this publication include:

Major characteristics of the Indian hospitality industry are:

 Star category hotels

Star category hotels

Other smaller players

Increased tourist movement

Changing consumer dynamics and ease of finance

Measures undertaken by the government

Trends in the industry

Development of other markets

 Lack of proper infrastructure

Lack of proper infrastructure

Access and connectivity

Marketing and promotion

Tourism Policy 2002

Marketing and promotion initiatives

Incredible India Campaign

Atithi Devo Bhavah

Visit India 2009

Other promotional initiatives

Initiatives undertaken to promote different tourism products

Open Sky Policy

Foreign Direct Investment

Archive for the 'Hotels and resorts' Category

Following is an excerpt from a report in Hospitality Biz India.

BRM Group plans several boutique hotels in Odisha

Following is an excerpt from http://www.hospitalitybizindia.com/detailNews.aspx?aid=9394&sid=1.

Peerless plans a 4 star hotel in Bhubaneswar

Following is an excerpt from a report in Telegraph.

Following is an excerpt from a report in Business Standard.

Update: Following are excerpts from a report in Business Standard.

All these projects are expected to be commissioned by the end of 2012.

Following is an excerpt from a report in hospitalitybizindia.com.

Assotech to bring Radisson hotel to Bhubaneswar; Maize processing complex proposed

Following is an excerpt from a report in Business Standard.

Orchid brand hotel coming up in Konark

Following is an excerpt from a report in hospitalitybizindia.com.

Mayfair Hotel group’s expansion plans

IMRS plans boutique hotel in Orissa

Following is an excerpt from a report in Business Standard.

Swosti Hotel group’s plan for Puri and Chilika

Following is an excerpt from a report in hospitalitybizindia.com.

Hoteliers selected for the Shamuka beach project

Following is from a report in hospitalitybizindia.

Aman resorts scouting for land to set up a resort in Orissa

Following is an excerpt from a report in Business Standard.

Following is an excerpt from a report in Times of India.

OSL’s hotel plans for Bhubaneswar and Puri

Following is an excerpt from a report in hospitalitybizindia.com.

OSL hotels in Orissa

Following is an excerpt from travelbizmonitor.com.

Sarovar Premiere 4-5 star hotel to come up in Bhubaneswar: Vipul infrastructure to

Update on March 25 2009: Pioneer reports:

Following is an excerpt from a news report in dnaindia.com.

IRCTC tour packages from Orissa

Following is an excerpt from a news report in New Indian Express.

Wi-fi in Hotel Crown, Bhubaneswar

New Indian Express reports on this.

Railways and others plan hotels and resorts in Chilika

Following is an excerpt from a Pioneer report.

Archive for the 'Hotels and resorts' Category

Following is an excerpt from a New Indian Express report on this.