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CHAPTER IINTRODUCTION

INTRODUCTION TO THEINDIAN TOURISM INDUSTRY

Tourism is the basic and most desirable human activity describing the praise andencouragement of all people and government.Hotel industry is an essential part of tourism. The expansion of tourism iswell inevitable bringing out development of the hotel industry. Hotel industry isclosely linked with the tourism industry that it is responsible for about 50% of theForeign exchange earning from tourism trade and enterprises. The rising volume of tourism influx brought into light, the shortage of hotels in important tourists Centers,keeping in view the changing standards in the international hotel keeping. The Indianindustry has to make a number of improvements. It is not enough to have adequatehotel accommodations, it is equally necessary to have at various levels, low priced,moderately priced, high priced, and a few luxury hotels.Hotels may be categorized depending upon factors such as1.Location2.Categorization according to plan3.Categorization according to number of rooms4.Categorization by type of clientele

5.Categorization by length of stay of guest6.Categorization by the facilities the hotel offers.The devaluation of the Asian currencies, the Kargil issue, the attack on the twintowers on September 11 2002 and the parliamentary elections had affected growth inthe tourism industry. The situation is gradually moving back to normal with thetourist arrival figure marginally increasing from 2.3million in 1997 to 2.5millionin2003. The industry is growing at a rate of 9% with the political and economicstability being more clearly visible, both tourist as well as business arrivals are likelyto gather momentum in the remaining part of the year.The Indian hotel business focuses largely on foreigntourists with only 30% of the business coming from the domestic business and theleisure travelers. The tourist arrivals in India are seasonal in nature, with the bestseason being from September to December followed by a steep fall till May. The period June to September gains momentum again. Once the monsoons are over. Theslack season is generally used for renovation work and the period is characterized bydiscounts to attract clients. High capital expenditure acts as an entry barrier in theindustry with the availability of prime land at economically viable rates being amajor constraint. The gestation period is long and break even normally takes five toeight years to happen. Due to this the established players like Indian hotels, EIH, etc.,have an advantage over foreign majors as they already have good establishments at prime locations.

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problogger9

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reply05 / 20 / 2010

sonali1303

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reply06 / 25 / 2009

pipay040905

is it possible for you to send it to me hazel_faytaren@yahoo.com thanks

reply06 / 08 / 2009