India

G20 presidency gives big boost to India’s tourism, hospitality sector; hotels see demand for 300,000 rooms


India, which holds the G20 presidency and has completed 100 meetings, is boosting the domestic tourism and hospitality sector, with hotel bookings increasing and hotel rates surging.

According to industry insiders, this is the biggest boost to the Indian hotel industry since the lifting of pandemic restrictions in 2021.

“In the long run, the G20 summit opens up huge business avenues and opportunities. The hospitality industry is recovering and has started to reach pre-COVID levels,” said Somesh Agarwal, MD, Radisson Blu Palace Resort, Udaipur.

JB Singh, President and CEO of InterGlobe Hotels, in an interview with Moneycontrol from the sidelines, pointed out that through the pandemic, Dubai hosted the Expo (Dubai Expo), which is a great opportunity for the country as it is a catalyst for prosperity in Dubai Hotel Investment Conference South Asia (HICSA) 2023.

“Again, the G20 is a major event that will not only boost the hospitality industry, but the country as a whole. It comes at a perfect time, as we emerge from the impact of the pandemic,” he said.

According to a government statement, India’s G20 presidency saw the largest ever in-person participation, with more than 12,300 delegates from more than 110 countries attending G20-related meetings so far.

“Travel bookings have skyrocketed this year with the arrival of dignitaries and dignitaries, and we have seen a tripling of bookings to New Delhi as many foreign ministers arrive in New Delhi for the G20 meeting with other key diplomats,” Nishant said of Pitti , CEO and co-founder of online travel operator EaseMyTrip.

Bookings have doubled the normal amount due to G20-related bookings, he said.

A similar situation is increasing demand at hotels as more than 300 events will be held in 56 locations across the country with more than 150,000 delegates expected to attend.

More punch cards

The Hotels Association of India (HAI) estimates that the G20 meeting in India will require more than 300,000 rooms.

It is estimated that the 300 G20 meetings in India will record over 100,000 hotel room bookings. Indirect demand during the conference will be 150,000 to 200,000 rooms per night.

India’s G20 presidency has opened up new business opportunities for hotels, Pitti said, adding that to accommodate the events, advance bookings are required and most five-star and luxury hotels are fully booked.

“We had about 100 delegates from different countries, and about 40-60 people from the organizing team from the Ministry of Parliamentary Affairs and the Foreign Office. The meeting lasted 3 days, most of the delegates had come the day before and only a few remained. Came down a few days after the meeting,” noted Agarwal of the Radisson Blu Palace Resort.

Agarwal said they expect a huge influx of new business in the near future due to the demands of the G20 meeting.

Another hotel chain, Wyndham Hotels & Resorts, has properties in many G20 chair cities including Bengaluru, Chandigarh, Chennai, Khajuraho, Kolkata, Lucknow, Mumbai and Udaipur, at every location where the G20 is held Both saw positive demand momentum.

Nikhil Sharma, General Manager Markets, said: “We continue to see hotel bookings across the country until November. Our revenue is up 15-20% year-to-date as most of our hotels are booked for the G20 meeting. %.”, Eurasia, Wyndham Hotels & Resorts.

Rising house prices and incomes

He said that since the start of the G20 meeting in December last year, the average house price has increased significantly, by 15-20% compared with 2021. “This drives RevPAR (revenue per available room) growth,” Sharma added.

RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.

The spike in room rates was more pronounced for business hotels booking 10 or more rooms at a time, Peaty said. “From the last quarter of 2022, five-star hotel room rates in India’s major corporate hubs have risen by almost 20 percent,” he added.

So far, G20 meetings have been held in Bengaluru, Pune, Kolkata, Jodhpur, Khajuraho and Chennai.

In the fourth quarter of 2022, Bengaluru recorded the largest RevPAR increase of 110.6% YoY.

RevPAR in other markets such as Delhi, Chennai and Mumbai increased by 94.3%, 82% and 105.3% respectively. Occupancy in these markets increased by 11-16%.

more growth opportunities

Peaty pointed out that India’s attempt to market itself as a global MICE (Meetings, Incentives, Conferences and Exhibitions) destination coincided with the G20 leadership. “The successful scheduling and conclusion of these more than 200 meetings will contribute to this effort,” he said.

Alan Watts, president of Hilton Asia Pacific, said the G20 is an important driver for the hotel industry and the timing is due to the government. “India should be excited about its self-sustainable tourism industry, a large part of which is events and conferences,” he said.

HAI vice president KB Kachru said international arrivals are also expected to increase in FY23 compared to FY22, opening multiple windows of opportunity for the industry.

“India’s FTA (Foreign Tourist Arrivals) at 6 million in 2022 is four times higher than in 2021. The high-profile nature of the 200+ G20 meetings will provide India with a year-long upward chart. India’s Free trade agreement rates, as some diplomats and representatives from G20 member countries and guest countries will attend these meetings. Also, India will have the opportunity to turn every representative into a spokesperson for its tourism industry,” Pitti said.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button