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covering exciting investing ideas and opportunities in India.
The hotel industry is a very important part of the Indian economy.
The industry is labour intensive and is a big job creator. It accounts for about 8% of the total employment in India. It provides employment to about 40 million people in the country.
The industry has bounced back after taking a massive blow due to the covid lockdowns. As per the Federation of Hotel & Restaurant Associations of India (FHRAI), the Indian hotel industry took a hit of about US$ 18 bn in revenue in FY21.
However, travel and tourism demand recovered strongly as people began travelling for leisure once again.
As per India Brand Equity Foundation (IBEF), the entire travel market in India, which is a good proxy for the growth of the hotel industry, is projected to reach a size of US$ 125 bn by FY27. This is up from US$ 75 bn in FY20.
A key driver for growth of the hotel industry is tourism, both domestic and international, which in turn rests on the solid foundation of the geographical and cultural diversity of India.
The hotel industry in India is expected to grow its revenue from US$ 32 bn in FY20 to US$ 52 in FY27.
The entire travel and tourism industry (including hotels) is strongly supported by the government, at the center and state levels, through various programs.
For a list of hotel stocks in the market please click here.
Also do read Equitymaster's hotel sector report.
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