WITH 7.5% OF INDIAN GDP, NCR IS ALL SET TO WELCOME FDI AND BUSINESS TRAVELERS
HOSPITALITY INDUSTRY IN NCR NEEDS POLICY DIRECTION-ANIL MITHAS
Spread over 46,208 square km (17841 square miles) NCR consists of a total of 20 districts in three neighboring states of Haryana, Uttar Pradesh and Rajasthan along with whole of the National Capital Territory of Delhi. Not to mention it has jewels like Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad etc. also in its kitty. In fact NCR is India’s largest and the world's second largest agglomeration with a population of over 54,000,000 at the 2011 Census. All the areas of NCR together generated GDP of $128.9 billion in 2011-12, which was 7.5 percent of Indian GDP. Obviously it might have increased much more over the last four years, more than even the economies of some small countries.
With Narendra Modi at the helm of affairs as the Prime Minister, who successfully established Gujarat as a tourist destination on Indian map as its Chief Minister, not only NCR but entire country is now waiting in wings to see this success story being repeated on pan India basis. The positive sentiments created by Modi world over about India are bound to have a dramatic impact on the growth of tourism industry in India. As India emerges as a favorite hub of foreign direct investment, its tourism industry is also sure to climb new heights. And it is reflected in the research papers of several internationally acclaimed research agencies too. For instance Deloitte in its research paper about hospitality industry in 2015 said:
-By 2015 India and China will each have absolute year-on-year tourism growth equal to or greater than UK, France or Japan.
-Penetration of the domestic travel markets in India and china will yield the greatest long term results for international brands.
-Local brands still dominate emerging market mid-market and budget sectors.
-Across India the government has identified a shortage of around 1, 50,000 rooms, with most of the under-supply occurring in the budget sector.
Provisions in the Union Budget 2014 – 15 make it vastly clear that the government of India is fully aware of the potential of tourism industry as Finance Minister Arun Jaitley rightly said in his budget speech – “We all know that tourism sector is one of the key industry in terms of generating employment and income apart from being one of the largest foreign exchange earner for the country. The sector can also play a magical role in developing local level economy if policy orientation is in right direction.”
The total budget allocation for tourism sector during 2014-15 is Rs. 1100 crore or Rs. 110 million. The government also made several important announcements to turn India into a hot tourist destination. Some of them are:
1. Facility of Electronic Travel Authorization (e-Visa) to be introduced in phased manner at nine airports in India. Countries to which the Electronic Travel authorization facility would be extended would be identified in a phased manner.
2. Rs. 500 crore (INR 50 million) provided for developing 5 tourist circuits around specific themes.
3. . Rs. 100 crore (INR 10 million) provided for National Mission on Pilgrimage rejuvenation and Spiritual Augmentation Drive (PRASAD).
4. Rs. 200 (INR 20 million) crore provided for National Heritage City Development and Augmentation Yojana (HRIDAY).
5. Rs. 100 crore (INR 10 million) provided for Archaeological sites preservation.
6. Sarnath-Gaya-Varanasi Buddhist circuit to be developed with world class tourist amenities to attract tourists from all over the world.
If the government manages to successfully implement its announcements with respect to tourism industry even partially, the region that will gain most is NCR. If we couple it with Modi’s international campaign to develop India as the best FDI destination, then again the region that is going to benefit most is NCR not just because Delhi is national capital but because Delhi and its adjoining areas have already developed themselves considerably to welcome such investments.
Not surprisingly that is why NCR today is fastest growing hub of hospitality industry. As per Cushman & Wakefield, a real estate adviser for hospitality industry Noida and Greater Noida will have 4,268 rooms from existing 300 rooms of upscale and midscale hotel type. Noida is fifth in the development site sellers’ list in Asia. It is estimated that Noida and Greater Noida will have three budget and three mid-scale hotels by year 2014 and nine upscale hotels and three luxury hotels by year 2015.
In a report released by HVS - Global Hospitality Services in 2013 Gurgaon has emerged as one of the top performing hotel markets in the country with an existing supply of approximately 3,800 rooms in 2011-12. The report said that the area has seen the addition of over 40 million sq ft of office space between 2002-03 and 2011-12 and is expected to see a further addition of a near similar quantum over the next 10 years.
As per Indscan Hotel Project Diary NCR had seventeen hospitality projects in 2014 in which around 3,663 rooms are either being planned or are still under implementation whereas 812 room have been commissioned.
Some projects in NCR are being planned by established hospitality chains whereas some are being planned by real estate developers in association with hospitality experts which are clearly aimed to augment the valuation of their residential and commercial projects.
Besides welcoming tourists, business travelers, pilgrims and diplomats, hospitality industry is now gearing up to ripe the benefits of medical tourism also as India offers state of the art medical facilities at less than one fifth of the cost in developed countries. An ASSOCHAM study has predicted that medical tourism in India is set to grow into a Rs 12,000-crore industry by 2015 with more than 45 lakh people expected to visit the country for treatment due to much lower cost of surgeries than western countries.
As a result, hotel chains are also setting up properties near prominent specialty hospitals. Ramada Powai, for example, is located in the vicinity of healthcare chains like Hiranandani, Fortis and Seven Hills.
Last year, Hilton Worldwide opened the 201-room Hilton Garden Inn Gurgaon Baani Square in proximity to specialty hospitals like Medanta Medicity, Artemis and Max Healthcare in Gurgaon, with several design features to support medical tourists. In fact, some hotels have also tied up with these hospitals to offer contracted rates.
Hotels are also developing specialized ramps, interconnecting rooms for patient’s attendant, specially designed recreational activities etc. apart from special offerings for food & beverages to suit their dietary requirements.
Undoubtedly the $4 billion dollar medical tourism market of India presents a great opportunity to hotel business, prompting hotels to think of ways to make the most out it.
Mr. Anil Mithas, CMD, Unnati Fortune Group says that though hospitality industry in NCR is developing by leaps and bounds but it needs a policy direction and government must prepare a blue print for the next at least 20 years in consultation with national and international hospitality experts keeping in view the demand escalation in various fields. He says that Delhi and NCR offer great opportunities to national and international tourists but this region needs to be developed further as a gateway to entire North India as India is rapidly developing as a hot destination for religious and medical tourism also.
For more information Visit Us : http://www.unnatifortune.com/
HOSPITALITY INDUSTRY IN NCR NEEDS POLICY DIRECTION-ANIL MITHAS
Spread over 46,208 square km (17841 square miles) NCR consists of a total of 20 districts in three neighboring states of Haryana, Uttar Pradesh and Rajasthan along with whole of the National Capital Territory of Delhi. Not to mention it has jewels like Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad etc. also in its kitty. In fact NCR is India’s largest and the world's second largest agglomeration with a population of over 54,000,000 at the 2011 Census. All the areas of NCR together generated GDP of $128.9 billion in 2011-12, which was 7.5 percent of Indian GDP. Obviously it might have increased much more over the last four years, more than even the economies of some small countries.
With Narendra Modi at the helm of affairs as the Prime Minister, who successfully established Gujarat as a tourist destination on Indian map as its Chief Minister, not only NCR but entire country is now waiting in wings to see this success story being repeated on pan India basis. The positive sentiments created by Modi world over about India are bound to have a dramatic impact on the growth of tourism industry in India. As India emerges as a favorite hub of foreign direct investment, its tourism industry is also sure to climb new heights. And it is reflected in the research papers of several internationally acclaimed research agencies too. For instance Deloitte in its research paper about hospitality industry in 2015 said:
-By 2015 India and China will each have absolute year-on-year tourism growth equal to or greater than UK, France or Japan.
-Penetration of the domestic travel markets in India and china will yield the greatest long term results for international brands.
-Local brands still dominate emerging market mid-market and budget sectors.
-Across India the government has identified a shortage of around 1, 50,000 rooms, with most of the under-supply occurring in the budget sector.
Provisions in the Union Budget 2014 – 15 make it vastly clear that the government of India is fully aware of the potential of tourism industry as Finance Minister Arun Jaitley rightly said in his budget speech – “We all know that tourism sector is one of the key industry in terms of generating employment and income apart from being one of the largest foreign exchange earner for the country. The sector can also play a magical role in developing local level economy if policy orientation is in right direction.”
The total budget allocation for tourism sector during 2014-15 is Rs. 1100 crore or Rs. 110 million. The government also made several important announcements to turn India into a hot tourist destination. Some of them are:
1. Facility of Electronic Travel Authorization (e-Visa) to be introduced in phased manner at nine airports in India. Countries to which the Electronic Travel authorization facility would be extended would be identified in a phased manner.
2. Rs. 500 crore (INR 50 million) provided for developing 5 tourist circuits around specific themes.
3. . Rs. 100 crore (INR 10 million) provided for National Mission on Pilgrimage rejuvenation and Spiritual Augmentation Drive (PRASAD).
4. Rs. 200 (INR 20 million) crore provided for National Heritage City Development and Augmentation Yojana (HRIDAY).
5. Rs. 100 crore (INR 10 million) provided for Archaeological sites preservation.
6. Sarnath-Gaya-Varanasi Buddhist circuit to be developed with world class tourist amenities to attract tourists from all over the world.
If the government manages to successfully implement its announcements with respect to tourism industry even partially, the region that will gain most is NCR. If we couple it with Modi’s international campaign to develop India as the best FDI destination, then again the region that is going to benefit most is NCR not just because Delhi is national capital but because Delhi and its adjoining areas have already developed themselves considerably to welcome such investments.
Not surprisingly that is why NCR today is fastest growing hub of hospitality industry. As per Cushman & Wakefield, a real estate adviser for hospitality industry Noida and Greater Noida will have 4,268 rooms from existing 300 rooms of upscale and midscale hotel type. Noida is fifth in the development site sellers’ list in Asia. It is estimated that Noida and Greater Noida will have three budget and three mid-scale hotels by year 2014 and nine upscale hotels and three luxury hotels by year 2015.
In a report released by HVS - Global Hospitality Services in 2013 Gurgaon has emerged as one of the top performing hotel markets in the country with an existing supply of approximately 3,800 rooms in 2011-12. The report said that the area has seen the addition of over 40 million sq ft of office space between 2002-03 and 2011-12 and is expected to see a further addition of a near similar quantum over the next 10 years.
As per Indscan Hotel Project Diary NCR had seventeen hospitality projects in 2014 in which around 3,663 rooms are either being planned or are still under implementation whereas 812 room have been commissioned.
Some projects in NCR are being planned by established hospitality chains whereas some are being planned by real estate developers in association with hospitality experts which are clearly aimed to augment the valuation of their residential and commercial projects.
Besides welcoming tourists, business travelers, pilgrims and diplomats, hospitality industry is now gearing up to ripe the benefits of medical tourism also as India offers state of the art medical facilities at less than one fifth of the cost in developed countries. An ASSOCHAM study has predicted that medical tourism in India is set to grow into a Rs 12,000-crore industry by 2015 with more than 45 lakh people expected to visit the country for treatment due to much lower cost of surgeries than western countries.
As a result, hotel chains are also setting up properties near prominent specialty hospitals. Ramada Powai, for example, is located in the vicinity of healthcare chains like Hiranandani, Fortis and Seven Hills.
Last year, Hilton Worldwide opened the 201-room Hilton Garden Inn Gurgaon Baani Square in proximity to specialty hospitals like Medanta Medicity, Artemis and Max Healthcare in Gurgaon, with several design features to support medical tourists. In fact, some hotels have also tied up with these hospitals to offer contracted rates.
Hotels are also developing specialized ramps, interconnecting rooms for patient’s attendant, specially designed recreational activities etc. apart from special offerings for food & beverages to suit their dietary requirements.
Undoubtedly the $4 billion dollar medical tourism market of India presents a great opportunity to hotel business, prompting hotels to think of ways to make the most out it.
Mr. Anil Mithas, CMD, Unnati Fortune Group says that though hospitality industry in NCR is developing by leaps and bounds but it needs a policy direction and government must prepare a blue print for the next at least 20 years in consultation with national and international hospitality experts keeping in view the demand escalation in various fields. He says that Delhi and NCR offer great opportunities to national and international tourists but this region needs to be developed further as a gateway to entire North India as India is rapidly developing as a hot destination for religious and medical tourism also.
For more information Visit Us : http://www.unnatifortune.com/