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CURRENT TRENDS IN MANAGEMENT

THE HOTEL INDUSTRY IN INDIA


Under Guidance of Prof. Vivek Sane

Submitted by : ANAND TUTEJA

Institute : Symbiosis Institute of Management Studies , Pune

e-mail : anand.tuteja@sims.edu

Mobile : +91 97300 89532

Submitted on : 16 FEB 2009


CONTENTS

1. Global Scenario
2. Indian Scenario
3. Hotels in India
4. Growth Drivers
5. Classification
6. SWOT Analysis
7. Current & Future Trends
8. Job Opportunities
9. Effects of Recession
10. Effects of Terrorism
- The share of Travel & Tourism industry to the global GDP was 6.48% in the year
2007 with value of US 3,493.19 billion and industry demand contributed to 13.21% of
global GDP in 2007.

- Middle East was the fastest-growing region in terms of arrivals of international


tourists during 2007.

- According to the report by World Travel and Tourism Council, India currently ranks
18th in business travel and will be among the top 5 nations by the end of 2010.

- ASSOCHAM has projected that Medical Tourism is likely to become the leading
foreign exchange earner for India

- India is now emerging as one of the hot destinations for medical-tourism after
Singapore, Thailand, Hong Kong, Malaysia, Philippines, Columbia

I. GLOBAL SCENARIO
The hospitality and tourism sector is the largest industry in the world.

 Contributes 10.4% of the global GDP & US$5.4 Trillion in 2007


 Employed over 231.2 million people in 2007
 Accounted for 8.3% of Total World Employment in 2007
 Estimated to be comprised of more than 300,000 hotels and over 8
million restaurants, as well as countless tourist attractions, travel
agencies, tour operations, cruise lines, tourism driven
transportation systems, consulting firms, and real estate
investment companies.

The Asia-Pacific Hospitality Industry

 Asia-Pacific is the region with the greatest growth potential for the
hospitality industry.
 2006 - Average tourism growth of 7.7% across APAC
 Average tourism growth of 2.7% across Americas and 2.5% across
Europe
 Total number of tourist arrivals in the Asia Pacific region - over 252
million in 2006.

The UK Hospitality Industry

 The hospitality industry is probably the world’s fastest-growing,


employment-generating profession, employing one in ten people
worldwide. In the UK alone, the industry employs over 1.8 million
people. It is estimated that the industry will require 30,000-35,000
trained people at managerial and supervisory levels every year till
2010 to fulfil its potential.
 Top ranking countries in terms of absolute tourist arrivals
o China (49 million overseas travelers)
o Malaysia (but inflated due to heavy border traffic)
o Thailand
o Singapore
o Japan
o South Korea
o Australia

The Middle East Hospitality Industry

 UAE predicted to average 7% p.a. growth.


 Visitors to Dubai projected to reach 10 million by 2010 & 25 million
by 2029.
 Dubai investing $45 billion in infrastructure and tourism.
II. INDIAN SCENARIO
 Annual Growth Rate = 24 %
 The Travel and Hospitality industries have largely profited from the fast growing
economy of India, mainly due to the 3.5 million tourist arrivals in FY05 (22 % growth)
over the previous period, thus posting a CAGR of around 7 % from FY00-FY05.
 The Average Room Revenues (ARRs) in some metro hotels in India has increased by 15
% from the last year
 According to the estimates of the World Tourism Organisation, international tourist
inflow in India would be 10 million by 2020, which means the tourist influx has to grow
at a CAGR of 6.5 % for the next 14 years.
 According to Government estimates, India needs about 80,000 rooms in all
categories over the next two or three years at an estimated cost of about US$ 8 - 9
billion.
 A major reason for the growing demand for hotel rooms is the underlying boom in the
economy, particularly the growth in the IT and ITES industries. The overall growth
outlook appears buoyant and much of this growth will be driven by the BPO explosion,
IT, Telecom and energy sectors.
 The average employee to room ratio is 1.8 in hotels in India, across all the categories,
except in the three-star category, where the ratio drops to 1.5 per room.
 As new rooms are being added, the manpower requirement of the hotel industry is also
increasing.
 It is further reported that jobs in accommodation and food services as a whole are
expected to increase by 17 percent between 2004 and 2014.
 India‟s hotel industry is increasingly being viewed as investment-worthy, both within the
country and outside, and several international chains are keen to establish or enhance
their presence here. It is anticipated that, over the next three-five years, India will emerge
as one of the world’s fastest growing tourism markets
 There will be a requirement of about 10 million people in the travel Industry in India.
The industry needs manpower, which is highly qualified, has leadership qualities and a
quest to lead the Indian Hotel industry.
 Over the last decade and half the mad rush to India for business opportunities has
intensified and elevated room rates and occupancy levels in India. Even budget hotels are
charging USD 250 per day. The successful growth story of 'Hotel Industry in India'
seconds only to China in Asia Pacific.
 'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4
million tourists visited India last year and at current trend, demand will soar to 10 million
in 2010 – to accommodate 350 million domestic travelers.
 'Hotels in India' has a shortage of 150,000 rooms fueling hotel room rates across India.
With tremendous pull of opportunity, India is a destination for hotel chains looking for
growth.
 The World Travel and Tourism Council, India, data says, India ranks 18th in business
travel and will be among the top 5 in this decade.
 Sources estimate, demand is going to exceed supply by at least 100% over the next 2
years. Five-star hotels in metro cities allot same room, more than once a day to different
guests, receiving almost 24-hour rates from both guests against 6-8 hours usage.
 With demand-supply disparity, Hotel India room rates are most likely to rise 25%
annually and occupancy to rise by 80%, over the next two years.
 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination.
However, the rating on the 'Indian Hotels' is bullish.
 'India Hotel Industry' is adding about 60,000 quality rooms, currently in different
stages of planning and development and should be ready by 2012.
 MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their
share of pie in the race. Government has approved 300 hotel projects, nearly half of
which are in the luxury range.
 The manpower requirements of the hotel industry will increase from 7 million in 2002 to
15 million by 2010.
 With the USD 23 billion software services sector pushing the Indian economy skywards,
more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in
India' is set to grow at 24% a year. This figure will skyrocket in 2010, when Delhi hosts
the Commonwealth Games.
 Already, more than 50 international budget hotel chains are moving into India to stake
their turf.

Therefore, with opportunities galore the Future


Scenario of Indian Hotel Industry looks rosy.

III. HOTELS IN INDIA

ITC GROUP HOTELS


ITC Hotel Maurya Sheraton & Towers,New Delhi
ITC Hotel Grand Maratha Sheraton & Towers,Mumbai
ITC Hotel Sonar Bangla Sheraton,Kolkata
ITC Hotel Grand Central,Mumbai
ITC Hotel Windsor Sheraton & Towers,Bangalore
ITC Hotel Kakatiya Sheraton & Towers,Hyderabad
ITC Hotel Park Sheraton & Towers ,Chennai
Welcome Hotel Rajputana Palace Sheraton, Jaipur
Welcome Hotel Chola Sheraton, Chennai
Welcome Hotel Mughal Sheraton,Agra
Welcome Hotel,New Delhi
Welcome Hotel Rama International , Aurangabad
Welcome Hotel Vadodara
Welcome Hotel New Delhi
Welcome Hotel Grand Bay, Visakhapatnam

HOTELS IN AGRA
Hotel Amar Vilas Agra
Grand Imperial
Hotel Amara
Hotel Atithi
Hotel Ganga Ratan
Hotel Utkarsh Vilas
Royale Residency
Ashok
Hotel Taj Plaza
Amar Yatri Niwas
Yamuna View
Grand Hotel Agra
Trident Hilton Agra
Hotel Clarks Shiraz Agra
Howard Park Plaza
Mansingh Palace Agra
Jaypee Palace Hotel Conventio
Holiday Inn Agra
The Mughal Agra
The Oberoi Amarvilas

HOTELS IN HYDERABAD
Viceroy Hotel and Convention Center
Hotel Sitara
Hotel Tara
Hampshire Plaza Hyderabad
Baseraa Inn
The Golkonda Hyderabad
Comfort Inn City Park
Hotel Woodbridge
The Residence Hyderabad
Best Western Amrutha Castle
Quality Inn Residency Hyderabad
Aditya Park Hyderabad
Katriya Hotel & Towers
Aditya Park Inn Offline
Taj Deccan Hyderabad
Ohris Banjara
Ista
Novotel Hyderabad
Ellaa Compass Suites
Taj Banjara
The Kakatiya Hyderabad
Hyderabad Marriott
Taj Krishna
Green Park Hyderabad

HOTELS IN MUMBAI
Ramada Plaza Palm Grove
Hilton Towers Mumbai
Taj President Hotel
The Leela Kempinski Mumbai
The Maratha Mumbai
Vits Mumbai
Sun N Sand Hotel Mumbai
The Grand Central Mumbai
Hotel Singhs International
Taj Wellington Mews Luxury Residences
The Orchid
Hotel Bawa Continental
Hotel Bawa International
Hotel Red Rose
Hotel Solitaire
Hotel Tunga Regency
Ramada Powai
Krishna Palace Hotel
Hotel Kohinoor Continental
Sutra D'onyx
The Gordon House Suites
Sahara Star Hotel
Palms Hotel
Hotel Airlines International
Hotel Samrat
Hotel Arma Court
Empire Royale Hotel
Hotel Bandra Residency
Chateau Windsor Hotel
Ambassador Hotel
Ramee Guestline Hotel
West End Hotel
The Fariyas Hotel
Comfort Inn Heritage
Hotel Transit
Hotel Golden Manor
Royal Garden Hotel
The Mirador
The Park Navi Mumbai
Quality Inn Parle International
Ramee Guestline Hotel - Juhu
Best Western the Emerald
Orchid An Ecotel Hotel
Ramee Guestline Hotel Dadar
Hotel Tunga Paradise
Hotel Tunga International
Peninsula Grand Hotel
The Shalimar Hotel
The Oberoi - Mumbai
Intercontinental The Grand Mumbai
Park Plaza Royal Palm Mumbai
The Marine Plaza
Le Royal Meridien Mumbai
Renaissance Mumbai Hotel and Convention Centre
Hyatt Regency Mumbai
Intercontinental Marine Drive
The Taj Mahal Palace Mumbai
Taj Mahal Palace and Tower
Taj Lands End
Lakeside Chalet - Marriott Executive Apartments Mumbai
Jw Marriott Hotel Mumbai
Hotel Sahil Pvt Ltd
Sea Princess
Residence Hotel and Convention Center

HOTELS IN DELHI
The Imperial
Hotel Vasant Continental
The Hans New Delhi
Hotel Chand Palace
The Grand New Delhi
Le Meridien New Delhi
Radisson Hotel New Delhi
Intercontinental The Grand New Delhi Ashok Country Resort
Hotel Metro Heights
Comfort Hotel Royale Residency
Dee Marks Resorts
Maurya Sheraton Htl N Twr
The Oberoi
Hotel Royal Residency
Hotel Dream Inn
Good Times
The Claremont Hotel
Hotel Red Castle
Hotel Omni
Sunstar Grand Hotel
Hotel Megha Sheraton
Hotel Megha Palace
Hotel Orichid Garden
Hotel Ashiana
Hotel Le Heritage
Hotel Lohmod
The Courtyard
Hotel Lohias
Hotel Grand Sartaj
Hotel Corporate Park
Hotel Blue Sapphire
Hotel Paras International
Grand New Delhi
Hotel Bb Palace
Icon Towers
Ashu Palace
Ashoka International
Hotel Classic
Hotel All Seasons
Hotel Garden View
Hotel Welcome Palace
Hotel Grand Park Inn
Hotel C Park Inn
Grand Godwin
Nice Palace
Thirty Three 33
Raunak International
Star Grand Villa
Swagat Palace
Hotel Pallvi Palace
Hotel Astoria
Hotel Cosmo
Hotel Ajanta
Hotel Pauls Court
Hotel Yuvraj Deluxe
Hotel Mohan International
Hotel Ivory Palace
Hotel Naman Palace
Hotel Maurya Heritage
Hotel Welcome Palace
Hotel Pooja Palace
Hotel Metro City
Hotel Swati Deluxe
Hotel Mohan Sheraton
Hotel Ashu Palace
Hotel Perfect
Hotel Rahul Palace
Hotel Pablas International
Hotel Raunak Karol Bagh
Hotel Metro Continental
Suncity Hotel
Hotel Tara Palace
Hotel Sunstar Residency
Hotel Sunstar Heritage
Hotel Southern
Hotel Asian International Annaught Place
Hotel Swati
Hotel Sri Nanak Continental
Hotel Star
Hotel International Inn
Park Hotel
Hotel Madonna
Hotel Regent Continental
Hotel Suncourt Yatri
Airport Hotel
New Haven Hotel
Hotel Westend Inn
Hotel Clark International
Taj Palace Hotel New Delhi
The Residence Delhi
The Metropolitan Hotel New Delhi
Uppals Orchid
The Tivoli Garden Resort
Jaypee Siddharth
Crowne Plaza Delhi
Maidens Hotel
The Ambassador Hotel
Intercontinental Nehru Place
Shangri-la New Delhi
Sheraton New Delhi Hotel
The Oberoi New Delhi
The Maurya New Delhi
Taj Palace Intercontinental
Hotel Dee Marks
Taj Mahal Hotel
The Claridges New Delhi
Hotel Palace Heights
Crowne Plaza Today Gurgaon
Hyatt Regency Delhi

HOTELS IN BANGALORE
Ramee Guestline Hotel Bangalore
The Orchard Suites Sankey Road
Inn Bangalore
Vivienda Hotel
Blue Chip Serviced Apartments
12th Avenue
Hotel Pai Viceroy- Jayanagar
Hotel Pai Comforts-jp Nagar
Hotel Golden Landmark
Hari International
Bell Hotel and Convention Center
Central Park Bangalore
Park Field Resortel
Maia Beacon Residences
Jp Churchill Hotel and Suites
Hotel Museum Inn
Crowne Plaza International
Nalapad Residency
Rainbow Homes
The Tricolour
Hotel Chalukya
Monarch Hotel
Cross Roads Inn
Hotel Bangalore Gate
The Libra
Monarch Luxur
Mallika Residency
Nalapad Hotel
Srk Samrudhii Suites
White Regency Hotel
The Atria Hotel
Hotel Vintage Residency
Lake View Residences
Ramanashree Richmond Circle Bangalore
Evoma Bangalore
Jaya Mahal Palace Hotel
Royal Orchid Harsha
Drive Rajkumar International
Ramanashree California Resort
Radha Hometel Bangalore
Hotel Bangalore International
The Bride Corporate Suites
D Habitat Hotel Apartments
Hotel the Elite
Shilton Residence
Mepc Residences Castle Street
Hotel Infantry Court
The Chevron Shashank Association
Hotel Regaalis
Shilton Suites
The Residence Bangalore
Nahar Heritage Hotel
Royal Orchid Central
The Capitol
Mapple White Field Bangalore
The Chancery
Goldfinch Hotel
The Park Bangalore
The Chancery Pavillion
The Leela Palace Kempinski
Taj Residency Hotel
Hotel Royal Orchid
Ista Bangalore
The Taj West End
The Windsor Bengaluru
The Oberoi Bangalore
The Nandhana Grand Kormangala
E Inn Bangalore
The Mark Boulevard
The Grand Ashok Bangalore

HOTELS IN PUNE
Hotel Raviraj
Oakwood Residence Naylor Road
St Laurn Business Hotel
The Coronet Elegance
The Coronet Hotel
Beverly Hills Hotel
Deccan Rendezvous
The Sagar Plaza
Quality Inn Centurion
Quality Hotel Regency
Lemon Tree Hotel Hinjawadi Pune
Hotel Central Park Studios
The Central Park Hotel Pune
Sun-n-sand Pune
Seasons Apartment Hotel Aundh
The Gordon House Hotel Pune
Taj Blue Diamond
Le Meridien Pune
Royal Orchid Golden Suites

IV. GROWTH DRIVERS

Rising GDP in developing nations is being rapidly followed by rising living


standards in countries such as China, India, Indonesia, Malaysia and
Thailand.

Affluence = Travel
Asians are on the move.
Recent years have seen outbound travel
from Asian countries grow by more than 20% .

The middle class - A changed mind set


People now have the money and are willing to spend it not only on
necessities but also on luxury products, travel, adventure and cultural
experiences.

Affordability = Low Cost Carriers (LCC)


Air Asia “Now everyone can afford to fly”
Budget airlines are here to stay - Air Asia, Value Air, Air Sahara, Air
Deccan, Kingfisher, Tiger, JetStar Asia, Star Flyer, Spring Airlines etc
Lower fares = Higher Demand
40% could not afford to fly
30% can now afford to fly more
PLUS more business travel

LCC radically changing travel volumes 45 budget airlines


870 more aircraft in Asia Pacific by 2012
250,000 pax per aircraft p.a.
75,000,000 more tourists by 2008

Access = Technology
Online travel market
Only a decade old
Fastest growing distribution channel in Asia
Advantages for consumers:
 Comparison shopping is easier.
 Consumers understand busy periods command premiums and that
“cheap” comes with some inconvenience.
 Custom designed holidays

Online Suppliers and Distributors: Airlines and Hotels


Cheapest way to sell travel
Eliminate the middle man - TAs
Can pass on savings to the consumer

Online sales
USA market - maturing - battle for market share
Europe market - still growing rapidly
East Asia - is developing - potential is huge
In Europe, thousands of travelers go abroad each
weekend with same ease and cost as going to a
restaurant.
Similar behavior can be expected from Asian travelers as travel habits
become more sophisticated.

V. CLASSIFICATION
VI. SWOT ANALYSIS

VII. CURRENT & FUTURE TRENDS

 JOINT VENTURES

MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their
share of pie in the race. Government has approved 300 hotel projects, nearly half of
which are in the luxury range.

 E-BUSINESS

One of the top strategies for hotel e-business is evolving from selling to engaging the
customer. Hoteliers need to think more like retailers. To succeed, hoteliers need to fulfill
the experience expected by customers, not just think of them as heads in a bed.

Another strategy is engaging the customer through social computing, which is the fifth
generation of electronic distribution. Travel plays a big role in social computing, making
social computing a blend of marketing and distribution,

The sixth generation for electronic distribution is mobile technology. Mobile phones are
becoming ubiquitous in many countries. Travelers are an ideal group for mobile-based
services and activities. Frequent travelers are the ones who find the most utility from
using mobile services.

Some of the opportunities center around the five important trends affecting hotel e-
business. These trends are: more demanding consumers; more complex distribution
channels; changing business models where companies must give more but expect less in
return; an emphasis on technology and richer content; and a change in the structure of
hotel e-business.

 COMMONWEALTH GAMES

These will be organized by Delhi in 2010. Will provide a boost to the hotel industry.

 CHANGING FACTORS IN DECISION MAKING

Shaping customers expectations is becoming crucial as customers look for an


„experience‟ rather than just a room. The more compelling the experience for the
customer, the more satisfied the customer will be.
“Content will replace price as a deciding factor for customers,”
But who then owns that content and the customers that are attracted by it? Is it the hotel
or is it the online service?

Consumer generated content, which is more and more in demand, is all about a traveler‟s
experience. This is a great way to match content with traveler‟s age group and interests.
It‟s also a way to bolster the customer‟s expectation about what that experience at the
hotel will be like.

There‟s an incredible reluctance by hotels to post consumer generated content, fearing


that it will be negative. However, most people that take the time to write have positive
comments about their travel experience.

 GLOBALIZATION VS LOCALIZATION

Are globalization and localization competing strategies? No. “Any business needs to
think about both,”

Globalization is here to stay as evidenced by changes in demographics and affluence. For


instance, Russia is becoming the biggest European market while India, China and other
Asian countries are emerging as important markets, too. In all of these regions, there‟s a
huge rise in an affluent middle class who will be interested in travel.

A globalization strategy needs careful planning, “You can‟t rush into it. You need to give
it some thought,” Don‟t forget about the local aspects of your strategy. You need to
incorporate local and global to be successful.
 FOCUS ON TECHNOLOGY

 GROWTH OF OTHER INDUSTRIES

With the USD 23 billion software services sector pushing the Indian economy skywards,
more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in
India' is set to grow at 24% a year. This figure will skyrocket in 2010, when Delhi hosts
the Commonwealth Games. A major reason for the growing demand for hotel rooms is
the underlying boom in the economy, particularly the growth in the IT and ITES
industries. The overall growth outlook appears buoyant and much of this growth will be
driven by the BPO explosion, IT, Telecom and energy sectors.
The opening up of the aviation industry in India has resulted in exciting opportunities for
the hotel industry.
The various emerging concepts in India such as service apartments, spas, medical
tourism, wildlife resorts, cruise tourism, adventure tourism etc will boost the hotel
industry in India.

 BUDGET HOTELS

Already, more than 50 international budget hotel chains are moving into India to stake
their turf.

VIII. JOB OPPORTUNITIES


IX. EFFECTS OF RECESSION

 The Indian Hotel Market Outlook Report, India Digest 2008 (brought out by Jones Lang
LaSalle Hotels) states in an assuring manner that the impact is expected to be short term.
The Indian economy has withstood such upheavals in the past so there is nothing to
panic about.

 Organizations that want to effectively take note of the recessionary trends and protect
their business will have to take on some hard decisions like 'back to basic' kind of
planning, and ensure that input costs are maintained at levels that would continue to give
them the profit margins without sacrificing the quality of delivery or the products.

 The hospitality industry should work on training, preventive maintenance, multi-skilling,


employee exposure, cross training and such measures that are non-financial and would
enhance guest satisfaction. Staff retrenchment, cost cutting, travel and advertisement cuts
may show savings in the short run but would certainly damage the long term growth of
the hospitality industry. The next 18 to 24 months are testing times for the industry, but
hoteliers with a proven track record will take things in their stride and come out of the
recession with learning and experience.

 Another opportunity before the hoteliers is to look at options of joint promotions. Many
hoteliers are already operating in collaboration with airlines, travel agents, etc for
packages, not only for tourists but also groups, MICE as well as wedding promotions.
Hotels have also associated with car rentals, travel portals and airline networks. This is
expected to help ease the recessionary cascading effect.

 Hoteliers can join hands with the respective state tourism boards and other private
operators to take full advantage of the hitherto unexploited domestic tourism potential.
With the baton of the Commonwealth Games 2010 being passed on to India, and hotels
increasing rooms, things will definitely start looking up in a few months.

 Increased interest in the Indian markets, improved international access coupled with the
modernising of major airports will definitely boost hotel industry in India.

X. EFFECTS OF TERRORISM
 The Mumbai terrorist attacks, on top of a global economic recession, have come as a
double whammy for India's hotel & tourism industry. For example, Only 14 of 90 rooms
were occupied at one of the top luxury hotels in India's most popular tourist destination,
Agra, on Thursday. And on Wednesday, the northern Indian city saw only about 2,000
people visiting the Taj Mahal, the white marble mausoleum built by a medieval emperor
for his beloved queen. Usually in the high tourist season of Indian winter the monument
draws more than 15,000 visitors each day.

 There were 40 to 45 per cent cancellations since November 26, the night armed gunmen
unleashed three days of mayhem in India's financial hub, Mumbai, killing more than 170
people and injuring over 300. Most of the cancellations are from the US, Britain and
France.

 As this was the beginning of the high tourist season in India (November to March), there
was already a drop in business of about 15 per cent with the recession in the western
countries, Japan, Australia, where the high-end tourists mainly come from. Now with
these attacks it has probably dropped by at least another 10 per cent.

 Travel advisories put out by several countries warning of a high terrorist threat
throughout India and specifically mentioning the attacks on the luxury hotels have added
to the negative impact.

 The hospitality industry has been harder hit with a drop of almost 20 per cent in business
since the Mumbai attacks of November 26 and is struggling to give a sense of security to
prospective guests.

 Several conferences and events had been cancelled or put on hold. Non-resident Indians
who flock to India in the winter were changing plans. Even smaller cities like Chandigarh
and Punjab are seeing 20 to 30 per cent cancellations. Foreigners are preferring what they
see as safer destinations. Domestic tourism has also dropped.

 The industry has been cutting rates. A room in a Delhi hotel that cost around 18,000
(about 362 dollars) to 23,000 rupees a night now comes at 12,000 to 15,000. Rooms in
the range of 12,000/13,000 rupees are now 9,000. Elite guest houses are coming as cheap
as 4,000 rupees a night, Kumar said.

 All luxury hotels across the country are upgrading security measures. Hotels are
incorporating thorough checks at the gates and main porch. X-ray machines and metal
detectors are being installed. All baggage is being thoroughly checked. Guests'
identification papers are also being closely scrutinized.

 The hotels are employing private security agencies to bolster an increased armed police
presence at the entrances and perimeters. Staff have been asked to be alert and vigilant.

"But hospitality and security don't go together,"