Tuesday, 28 November 2017

Indian Hospitality & Tourism Sector likely to grow to $ 48 Billion by 2020

Much has been happening in the Indian hospitality and tourism sector in recent times. Following the implementation of the GST, some were not very happy with the high GST rates which were being levied on luxury hotels. However, much to the relief of most the rates have been brought down. This is being seen as a welcome move by most players in the sector and revived hopes that it would help the sector grow. Already there are many significant indications which show that the travel and tourism sector in India is growing fast.

Recent trends in the growth in tourism in India


As per a recent report released by India Brand Equity Foundation (IBEF), the hospitality industry as a whole in India is set to create more than 13 million jobs across different sub-segments. These include restaurants wherein around 10.50 million jobs would be created, followed by hotels where 2.3 million jobs would be created and employment in Travel Agents/Tour Operators would be around 0.66 million.
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In the opinion of travel experts, the Hospitality industry in India is evolving at a faster pace in recent years. This has mainly happened owing to the growth of tourist inflow. This has also meant that the hospitality industry has become one of the main sectors to increase foreign direct investment (FDI) influx. In fact, since more people have now come online, smartphone penetration has increased and use of digital payments go up, it is being estimated that India’s online hotel market will grow to $4 billion with 31 percent penetration at a CAGR of 25 percent.

In another report released by Boston Consulting Group and Google India titled ‘Demystifying the Indian Online Traveler’ has predicted the Indian passenger travel market to grow at 11-11.5 per cent to $48 billion by 2020. The report also projects the hotel industry growth at 13 percent to $13 billion by 2020.

Experts from the hotel and tourism sector feel that the inbound tourism industry in India is in a great shape at present currently. They also predict that the rising interests of travelers from across the world indicate a healthy shift and a positive growth in Indian inbound tourism sector. In sharp contrast to the past, there is an increase in the share of visitors looking to spend their vacations or explore exotic Indian destinations. Thus new tourist destinations are now emerging in India like never before.

Why you should be happy about the growth as a tourist?



Apart from the great benefits to the economy, you should be happy too as a tourist. This is because with the growth happening in the sector more and more investments are likely to happen in the sector and with it more development. With this, more and more tourist destinations would emerge and with it more options for you as a traveler. To keep you up to date with the latest in travel and tourism keep following our blogs on Hotel Cocoon Dhanbad, the best luxury hotel in Dhanbad.

Thursday, 9 November 2017

Weddings at luxury hotels get GST Relief

Ever since the implementation of the Goods and Services Tax (GST) in India, much has been happening in all sectors. The same is with the hotel and hospitality industry at large as well. Many were upset with the higher rates of GST announced initially for luxury hotels.

Recent relief on GST

Following many discussions in regard to the levy of GST on luxury hotels in recent times there has been a relief for some. In fact for most of India’s luxury hotels the goods and services tax (GST) has proven to be more than auspicious for the upcoming wedding season.  It is true that, the 28% GST on luxury hotel rooms has hurt. But at the same time the flattening of multiple taxes promises to cheer up the banqueting end of the business. This is what some hoteliers from the industry feel.

   


Most hotels already sold for the wedding season
According to  some of the senior officials in major hotels in the capital the hotels are all sold out for the upcoming wedding season. In their opinion of course the GST rates have helped.
Previously, the multiple taxes were such that the overall costs of booking and hosting at an event like wedding at luxury hotels could go up as much as 30-35% .

In comparison the GST for such events have all been clubbed under banqueting and would be taxed at the rate of just 18%. This is a major relief in comparison to the very high tax rated in the past.

Bookings at luxury hotels for such events encouraging now
Going by the present trends the bookings at most of the major luxury hotels have been quite encouraging. In fact statistics show that some luxury hotels have seen their business in the segment witness a growth of as much as 18- 20 % in recent times. This is very encouraging indeed.

In conclusion we can say that now that even the taxation seems to be more favourable for hosting events at luxury hotels, you could consider hosting any such event in luxury hotels as well if something is coming up in the future.

In case you happen to be based in Dhanbad or around you could consider hosting such an event at our hotel. We are one of the leading luxury business hotel in Dhanbad offering the best hospitality facilities and services at the most affordable rates. To know more about our services please visit our website.