Friday, November 7, 2008

>Hotel Industry update

Indian Tourism Industry witnessed over 5 millions of Foreign tourist arrivals in FY08 reporting an impressive growth of 11% over previous year under the Incredible India, the highly successful promotional campaign by Government of India. The high growth in FTA resulted into the economy earning a whopping Rs 50723 crore or US$ 5.83 billion in foreign exchange. Forex earnings grew by 19% in INR terms and by 34% in US Dollar terms.Forthcoming quarters are expected to be a mixed one for the hospitality industry. Factors like weaking global scenario, poor industrial growth witnessed in the recent months, rising inflation, growing competition, rising crude oil prices and liquidity crunch, it will derive benefit from the recent weakening of rupee against all major currencies. In April 08-May 08, rupee has already declined by around 6.5% against US Dollar and by 6% against Euro. As forex constitutes more than 50% of the Hospitality Industry revenue, this is a positive factor for the industry.

For full report Hotel Industry update