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INTRODUCTION TO THE INDIANTOURISM INDUSTRY
Tourism is the basic and the most desirable human activity describingthe praise and encouragement of all people and government.Hotel industry is an essential part of tourism. The expansion of tourismis well inevitable bringing out development of the hotel industry. Hotelindustry is so closely linked with the tourism industry that it is responsible for about 50% of the foreign exchange earning form tourism trade and enterprises.The rising volume of tourism influx brought into light, the shortage of hotels inimportant tourists centers. Keeping in view the changing standards in theinternational hotel keeping. The Indian industry to make a number of improvements. Its not enough to have adequate hotel accommodations, it isequally 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 as:
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Locations
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Categorization according to plan
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Categorization according to number of rooms.
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Categorization by type of clientele.
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Categorization by the length of stay of guests.
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Categorization by the facilities that the hotel offers.
 
The devaluation of the Asian currencies, the Kargil issue and the parliamentary elections had affected growth in the tourism industry. Thesituation is gradually moving back to normal with the tourist arrival figuremarginally increasing from 2.3mn in 1997 to 2.5mn in FYOO. The industry isgrowing at a rate of 9%. With the political and economic stability being moreclearly visible, both tourists as well as business arrivals are likely to gather momentum in the remaining part of the year.The Indian hotel business focuses largely on foreign tourists with only30% of the business coming from the domestic business and the leisure travels.The tourist arrivals in India are seasonal in nature, with the best season beingfrom September to December followed by a steep fall till May. The period Juneto September gains momentum once the monsoons are over. The slack seasonis generally used for renovation work and the period is characterized bydiscounts to attract clients.High capital expenditure acts as an entry barrier in the industry with theavailability of prime land at economically viable rates being a major constraint.The gestation period is long and break even normally takes five to eight yearsto happen. Due to this the established players like Indian Hotels, E.I.H, etc.have an advantage over foreign majors as they already have wellestablishments at prime locations.India was late to wake up to the potential of tourism as an industry thatis not just an earner of previous foreign exchange but also one that couldgenerate a lot of employment through horizontal and vertical linkages. Theimportance and significance of tourism could be understood from the
 
observation of UNESCO, which says, "tourism is a traditional instrument,which enables culture to the rehabilitated and made know to the rest of theworld". It is said it's a smokeless industry and has become second to the petroleum industry in world trade.This great importance was formally acknowledged when the XXIU.NGeneral assembly designated 1967 as international tourist year with aunanimous resolution recognizing that "tourism is a basic and most desirableactivity deserving the praise and encouragement of all peoples of government".When traveling away from home, tourist comes in contact with the places they visit with their inhabitants and social exchange takes place. Their  presence and social background affect the social structure and mode of life atthe destination. Tourists are in turn affected by the experience and and oftencarry back home with them, new habits and new outlook on life.Tourist has great educational significance. Contact between people of different races and nationalities widen ones outlook. Tourism, whether domestic or international has common economies significance in the sense thatmoney earned in places visited large sums of transferred to the host economieswhere this money provided a source of income, a means of livelihood andamenities for the resident population. Purchasing power is generated in thereceiving areas through the expenditure of visitors. Money received is spentand resent and this multiplier process the host country is a beneficiary.
 
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