Contribution of the Hospitality Industry to Indian & Global Ecnomy:
The Hotel & Catering Industry is an important sector in the touristic infrastructure of the country. The state policy towards the Industry has been influenced by the general attitude toward the service industries. The stateaim’s is to improve the standard of living of the country’s inhabitants. Due attention is given to the environment and social life where-ever development projects are started. Changes in travel are carrying the hotel industryinto a new area where the dimensions are unlimited. The average traveler in the new age asks for
while traveling away from home.Today, tourism, including ‘hotels’ is the second largest industry in the world with a rapid rate of growth and is predicted to overtake ‘oil’ in the coming decade. In the old days, international travel and tourism was hindered by war, strife and political climates. Today, there is freedom of approach that compels the domestic privateCompanies to exploit international relationships, such as with international chains of hotels. Sucharrangements are economic and aid the country to develop its tourism ,thus becoming more competitive on theworld stage. India is a relatively new member in the international tourist market, largely with the advent of new hotel companies in different parts of the country. India is thus taking off with the expansion of more investment,increasing competition between larger member organizations of the industry and overall making an atmospherethat gives the common tourist a wider choice and more value for money. Many hotel entrepreneurs are attracted to the Industry, to invest in hotels, because of its vast potential to earn‘
. It needs to be noted that ‘for every rupee directly earned ,there is another two rupees spent by the foreign tourist.’ Contributions to the economy are many:
:The Hospitality industry is mainly a ‘service industry’. The impact is spread widely over the national economy. It effects almost all parts of the service and other sectors. Employment generation, a major contributor to theeconomy, is related to the income created in the first and subsequent rounds of spending of the ‘tourist rupee’ on the consumer goods industry. The main contribution can be measured in terms of direct and indirect employment. The direct impact of the tourism industry on employment creation can be estimated by the tourist expenditure on the following:1)Boarding & Lodging (including restaurant & entertainment)2)Transport
Purchase of handicrafts, souvenirs, jewellery, leather goods, postcards etc. In addition to the direct employment provided by the tourist industry, it further created additional indirect employment in many other activities such as shops and construction activities(ii)
Impact on Rural development
The hotel Industry is a direct employer. It is estimated that the room to staff ratio for a hotel varies between 1 :1.5 to 1 : 3 . There are also a number of other employment avenues created by the hotel Industry. The number of workers engaged in other industries that supply goods and services to the hotel industry. Hotels have a direct impact on rural development. It uses thousands of meters of the ‘ cottage industry’shandlooms’ for furnishings and curtains. Thousands of meters of carpets are used for the hotel’s floor coverings , and a large number of artifacts, curio’s and decorations are required in hotels.