Topic > SWOT Analysis of Hospitality Industry in India

SWOT Analysis of Hospitality Industry in India Hospitality is about serving guests to provide them with a “feel-good effect”. “Athithi devo bhavha” (The guest is God) has been one of the central tenets of Indian culture since time immemorial. In India, the guest is treated with utmost warmth and respect and is provided with the best services. Today the hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent and Marriott International are already established in the Indian markets and are still expanding. SWOT Analysis STRENGTHS1. Natural and Cultural Diversity: India has a rich cultural heritage. The label "unity in diversity" attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow-capped Himalayas and quiescent lakes are incredible.2. Supply-Demand Gap: The Indian hotel industry is facing an imbalance between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting the 2010 Commonwealth Games there is an increased demand for rooms in five star hotels. This has led to the rapid expansion of the industry.3. Government Support: The government has realized the importance of tourism and has proposed a budget of Rs. 540 crore for the development of the sector. Priority is given to the development of infrastructure and new tourist destinations and circuits. The Department of Tourism (DOT) has already started the “Incredible India” campaign for the promotion of tourism in India.4. Increase in market share: India's share in the international tourism and hospitality market is expected to increase in the long term. New budget and star hotels are emerging. Additionally, foreign hospitality players are heading towards Indian markets. Hospitality is about offering warmth to someone seeking help in a strange or hostile place. It refers to the process of welcoming and entertaining a guest with good will. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inns, resorts or clubs that have the vocation of treating tourists. Aided with unique efforts by the government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees working in the industry, the Indian hospitality industry has gained a level of acceptance across the world. It still has miles to go to be recognized as a global leader in hospitality.