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Jaipur is a popular MICE destination; its proximity to the NCR and proactive government policies are credible factors for a lot of corporates and hotels to head there.

Jaipur’s proximity to NCR and comparatively lower property prices than the adjacent metros, have been credible factors for corporate sectors eying it as a possible hub. The Tourism Unit Policy increasing the FSI from 1.75 to 2 has further played in drawing the attention of hoteliers to the city.

Another factor acting as a catalyst has been the growing physical infrastructure of the city. The government has been able to promote Jaipur on various grounds including cultural and medical tourism, eco-friendly vacationing, and as a MICE and commercial destination.

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For long, the city has attracted international and domestic travellers from all over the world, contributing almost 12% to the state’s GDP. With the gradual revival in the country’s economy, hoteliers expect the ratio of domestic travellers against international to experience some change.

Jaipur’s strategic location has also facilitated increased footfalls to the city on account of the leisure tour route – the Golden Triangle.

The city has a lot on offer for hoteliers to experiment with the hotel accommodation format.

The array of products in the city ranges from royal palaces to five-star, four-star and budget hotels, to guest houses, lodges and havelis.

The city has both branded and unbranded segments which are being operated by owners and global hotel companies; 52% (2,262-rooms) of the total room inventory of the city falls into the branded segment while 48% (2,069-rooms) comprise of the unbranded segment.

Primarily, the luxury segment makes up for 39% (885-rooms), of the total branded segment while the upscale segment makes up for 21% (464-rooms), followed by the midscale segment which makes up for the balance 40% (913-rooms) of the total room inventory.

The presence of more than one nature of clientele has allowed the existence of multiple hotel brands by the same brand affiliation without fearing cannibalisation of demand.

The city has luxury products like Raj Vilas, Rambagh Palace and Trident catering to the luxury segment, with focus on leisure travellers. Another example would be Starwood which currently has three operational properties, namely, Le Meridien, Sheraton and Four Points.

Country Inn and Suites, Holiday Inn and other business hotels cater to the demand generated by the business segment.

Since the city has shown potential as a MICE destination, many hotels have started to offer various kinds of product mix which include large areas allocated for conventions and also additional service offerings.

The recently launched 248-room property by Fairmont Hotels & Resorts offer guests a variety of restaurants and bars, including a poolside bar, a 10,000-sq ft Willow Stream spa, and a 5000-sq ft health club.

To accommodate the area’s growing meetings market, there is also a 48,500-sq ft convention center as well as gardens that can host over 1000 guests for business functions or weddings.

The overall performance of Jaipur hotels has declined in year 2009-10 as compared to that of 2008-09. The midscale segment achieved approximately 63% occupancy at an ARR of Rs3443 in the year 2008-09.

The global economic slowdown and the Mumbai terror attacks impaired the city’s hospitality market, with occupancies dropping to 60% and ARRs to Rs3,155.

The upper upscale segment witnessed a decline in occupancies from 56% in the year 2008-09 to 53% in year 2009-10 while the ARRs decreased to Rs8476 from Rs 9375 of the last year.

The same trends continued for the upscale segment; hotels achieved 60% occupancy in year 2009-10 dropping from 66% in the previous year. At the same time the ARRs of the segment dropped from Rs6615 in year 2008-09 to Rs5739 in year 2009-10.

While growth is obvious, it will take earnest efforts from key stakeholders in the private and pulic sector to change the city’s hospitality landscape in the future.