Home / COMMENT / Hospitality Trends / We are not down and out

India is undoubtedly full of potential and there’s proof all around. The government has pegged the growth of the Indian economy to 7.1% this year, despite the global economic slowdown.

A technical research report by US-based Elliot Wave International has termed India, Taiwan and New Zealand as potential “baby bulls”.

Market dynamics are bound to improve, but to turn potential into reality we need to be committed.

The domestic market, tier 2 and tier 3 cities show immense potential and must be tapped. The midmarket segment is bound to grow in the coming times as financial analysts do not expect the economy to show signs of recovery until the last quarter of this year. We must act swiftly in the immediate term to gain from this segment.

The hospitality sector in India is expected to touch $275 billion in the next 10 years. According to the World Travel and Trade Council, India’s tourism demand is likely to grow at an average of 8.8% till 2013, making it the third fastest growing tourism market in the world.

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And we still have many more reasons to be upbeat. Low occupancy rate does have its advantages.

Savvy hoteliers have embraced the low period to train staff, refurbish and overhaul old rooms and upgrade  facilities. All this will see them in good stead when the upswing takes place. The liquidity exists and financers say that stable projects backed by sound management will get the capital they need.

Analysts and developers feel that investors are willing to invest in projects that seem stable and are backed by able management. The current ‘lean’ period is the right time to invest and build hotels.

It is important is learn from trying times and try to handle them effectively - the industry is after all cyclical in nature. That ambition and the drive to make hopes and expectations a reality is prevalent in the Indian hospitality industry.

At HICSA Manav Thadani of HVS India rightly said, “The recession doesn’t last forever.” We must look at the future and long term opportunities.