A brief review about Aviation Hospitality & Tourism Industry
The promise and the potential of the Indian aviation market are awesome. Over 135 aircraft have been added in the last two years alone in India's fleet and hundreds more to be added to the fleet strength in near future. With the Aviation sector expanding at a fast pace and the number of aircraft being used on the rise, the need for pilots and air cabin crew is growing. Not surprisingly, aviation school is the latest buzzword among students as India would require 7,500-8,000 pilots and around 85,000 to 100,000 or more Air cabin crew and Ground Personal by 2010. Heavy pay packets are awaiting the aspirants.
Hospitality industry has emerged as the largest global industry of the 20th century and is projected to grow faster in the 21st century. With the tourism sector revealing immense potential, global hospitality majors are exploring plans of entering India. These include Dawnay Day, Whitbread, Jumeirah, Golden Tulip, Istithmar and Mandarin Oriental.
While hotel companies like Golden Tulip are looking to launch budget hotels, others like UK's financial and real estate major, Dawnay Day and Whitbread's Premier Travel Inn, are launching cookie-cutter business models. The Jumeirah and the Mandarin Oriental are the hi-end luxury hotel brands looking to set base in the country. Dubai's leading alternative investment house, Istithmar, is looking to invest in luxury hotels in key gateway cities around the world and emerging markets.
Hospitality majors from India and abroad are likely to pump in close to US$ 1 billion in the next 2 years into the sector. This will surely open up job opportunities to qualified persons having a relative degree or diploma. Pay-packets are going to be very high in the hospitality industry.
India has immense potential of growth and National Tourism Policy envisages new initiative towards making tourism the catalyst in employment generation, environmental re-generation and socio-economic development. It is boom time for India's Tourism and Hospitality sector. Driven by a surge in business traveller arrivals and a soaring interest in India as a tourist destination, the year 2006 has been the best year till date, with foreign visitor arrivals reaching a record 4.5 million.
Foreign tourist arrivals have grown by 10-15 per cent in the last one year. Over the last few months, tier-II cities like Jaipur, Gurgaon, Hyderabad, Pune, Bangalore are seeing growth both in occupancy and room rates. While occupancy is around 75-80 per cent, room rates are up by 15-20 per cent in these markets. The importance of tourism for the Indian economy is evident from the fact that it contributed to 5.9 per cent of the Gross Domestic Product and provided employment to 41.8 million people.
The year 2006 was not only a record year for India's inbound tourism but was the fourth year showing a double-digit increase in arrivals. Moreover, arrivals recorded a double-digit growth in all 12 months of last year -- even during the lean months of summer and the monsoon period. The 4.5 million arrivals recorded were 13 per cent above the level of 2005 and reflected an average annual growth of nine per cent over the six years from 2000.
In a bid to encourage the tourism sector further, the Government is planning to infuse equity capital of over US$ 55.5 million for reviving Ashok Hotel, Samrat Hotel and Hotel Janpath in New Delhi. Further, a sum of US$ 16.2 million has been spent in the current fiscal on the Incredible India campaign to promote tourism both in the domestic and overseas markets.
The Government has also proposed to declare a conditional 10-year tax holiday for all tourism projects in the country. While companies would enjoy full tax exemption up to 50 per cent of the profit, for enjoying tax benefits for balance amount they would be required to re-invest that part of the profit in tourism projects. Be it Medical tourism, Adventure tourism, Heritage tourism, Wellness tourism, Pilgrimage tourism, Golf tourism, Eco-tourism, or Wildlife tourism, the scope for theme travel is very vast in India. Significantly, the 100 per cent foreign direct investment regime in tourism permitted through the automatic route will help boost the country's tourism. With the country hosting the 2010 Commonwealth Games, this share will only increase to about 1.5 per cent in 2010, from a mere 0.52 per cent in 2006. India's tourism industry is poised to grow to about US$ 90 billion--from the current US$ 39 billion--in the coming decade.
With the growth of the Tourism industry, more and more jobs opportunities will open up for trained persons. From tourist guides to travel agents various jobs will be easily available. What is needed is a degree or diploma in the same field. Moreover, it will also help eligible persons to self establish themselves by opening up travel agencies and the like and help others to avail a job.
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