The Indian tourism and hospitality industry is on a roll, driven by the huge surge in both business and leisure travel by domestic and foreign tourists. The year 2007 was a record year for India's inbound tourism it was the fifth consecutive year showing an increase in foreign tourist arrivals. Travel and Tourism is a $32 billion industry in India, 5.3% of GDP. Currently, over 142 luxury hotel projects are coming up in India with an investment of $1.6 billion. 

Favorable demographics and rapid economic growth point to a long term secular uptrend in the domestic demand for hotels – for business and leisure. International inbound traffic is expected to grow rapidly with increasing investment and trade activity. India's rich heritage and natural beauty are just beginning to be marketed to international leisure travelers. 

The growth momentum in domestic and international travel is expected to receive a further boost with more budget airlines/lower air-fares, open sky policies and expected improvements in travel infrastructure. There are opportunities in all price and value chain segments over the next five years. Low penetration of brands (about 30%) provides opportunities for management contracts and franchising with local hotel owners/ developers. Investment opportunity of about $8 -10 billion in the next 5 years.

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