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MINISTRY OF TOURISM

DEPARTMENT OF TOURISM GOVERNMENT OF INDIA

MANPOWER REQUIREMENT IN HOTEL INDUSTRY, TOUR OPERATORS & TRAVEL SECTOR MANPOWER TRAINED BY DIFFERENT INSTITUTES & PLACEMENT SCENARIO

A MARKET PULSE Report

February 05, 2004

Market Pulse: H-20, 1 st Floor, Green Park Extension, New Delhi 110 016 Ph: 2618 7043/45, 2616 5305/10 Fax: 2618 9486, E-mail: marketpulse@vsnl.com

TABLE OF CONTENTS

 

Chapters

Page Nos.

 

BACKGROUND

1

TERMS OF REFERENCE

2

1.0

PROJECT METHODOLOGY

03-06

2.1

TOURISM IN INDIA : A SNAPSHOT

07-9

3.0

HOTELS IN INDIA

10-18

4.0

EMPLOYMENT IN HOTELS

19-26

5.0

PROFILE OF HOTEL EMPLOYEES

27-34

6.0

RESTAURANTS IN INDIA

35-41

7.0

EMPLOYMENT IN RESTAURANTS

42-54

8.0

PROFILE OF RESTAURANT EMPLOYEES

55-59

9.0

PROJECTED DEMAND FOR TRAINED MANPOWER

60-68

10.0

TRAVEL & TOUR OPERATORS

69-73

11.0

HOTEL MANAGEMENT INSTITUTES

74-77

12.0

TRAVEL & TOUR INSTITUTES

78-82

APPENDIX 1

APPENDIX 2

APPENDIX 3

EXECUTIVE SUMMARY Recent tourism statistics reveal that both domestic and foreign tourism are on a

EXECUTIVE SUMMARY Recent tourism statistics reveal that both domestic and foreign tourism are on a robust growth path. This growth will need to be serviced by a substantial increase in infrastructure, including air-road, rail connectivity as well as hotels and restaurants. In this context, Department of Tourism (MR Division), Ministry of Tourism & Culture, Government of India, commissioned our firm– Market Pulse, to assess the manpower requirement in the hotels and restaurants sector as well as tour & travel operation. This study is based on an extensive primary field survey in 27 important tourist destinations. More than 900 questionnaire-based face-to-face interviews with personnel in hotels, restaurants, tour & travel operators, hotel and travel/ tourism management institutes, tourism offices and municipalities have been carried out by our field research team. In addition, physical scanning of cities and sections of highways has been done to estimate the number of hotels, motels and restaurants in the unorganized sector (refers to small businesses that are not members of any trade body). Analysis of secondary data from municipal corporations, trade directories, hotel and restaurant associations has also been used in this estimation. Some of the key findings of this study are mentioned subsequently. Hotels in India There are an estimated 1.2 million hotel rooms in the country. However, the star category hotels account for a mere 7% (approximately 80000 rooms). Our forecast is that there will be a total of 2.9 million and 6.6 million hotel rooms in 2010 and 2020 respectively. The larger four & five star hotels (along with the heritage hotels) employ on an average 162 people per 100 rooms, compared to 122 in the One, Two & Three Star Hotels and 58 in the unorganized sector.

There are almost 750,000 people working in hotels across India. In addition, there are more

There are almost 750,000 people working in hotels across India. In addition, there are more than 1 lakh employees working in motels on state & national highways. Employment is forecast to increase to 3.5 million by the year 2020. A bulk of the employees (approximately 60%) are working in F&B service, Kitchen and housekeeping. Almost 80% of the employees in key hotel functions such as F&B, front office and housekeeping are young; they are less than 40 years old. Most employees in the management/supervisory cadres in the front office, F&B service, kitchen and housekeeping function of the larger four & five star hotels have a formal hotel management qualification. Almost half the managers and supervisors of the one – three star hotels have either a hotel management degree/diploma or a Food Crafts Institute Certificate. Hotels in the unorganized sector employ largely untrained manpower.

Restaurants in India Our estimate is that there are at least 140,000 restaurants in urban India. Delhi and Mumbai account for nearly 15% of these restaurants. Conventional restaurants account for the largest population (30%), followed by sweet shops (16%), fast food outlets (16%) and dhabas (13%). While the number of conventional restaurants ranges between 10-20 numbers per lakh of population, the total number of eating places could be as high as 86 per lakh of population (as in the North). The total number of restaurants could touch 200,000 in year 2010 and 240,000 in year 2020. There are almost 1.85 million people working in restaurants across India. Employment is forecast to increase to 2.73 million by the year 2020. In addition, there are more than 1.3 million people employed in small restaurants and dhabas on the state and national highways.

Almost 70% of the employees in key func tions of F& B service and kitchen

Almost 70% of the employees in key functions of F& B service and kitchen are less than 30 years old. Almost 20% of those employed in F & B of conventional restaurants, cafes and fast food outlets are diploma holders either from private hotel management institutions or Food Craft Institutes. Dhabas, largely, employ untrained manpower.

Travel Trade Business in India

There are approximately 6000 travel trade companies/ firms in the country. The population of these agencies could be growing at 7.5 - 10% annually. On an average, each of these travel trade agencies employ 14 – 15 people. This sector employs almost 83,500 people. Of them, a significant proportion are in functions such as ticketing, tour operations and accounts/ administration. Our forecast is that the employment in this sector will touch 242,000 by year 2020. Almost 44% of the employees in ticketing have a formal IATA/ UTA certificate or a diploma in travel & tour management; 17% of those in administration also have a formal education in travel & tour management. Overall, 17.5% of the employees have formal training in tour and travel management.

Annual Demand for Trained Manpower: A Forecast The annual demand for trained manpower in hotels and restaurants is likely to touch 29,000 by the year 2010; this is likely to increase to approximately 39,000 by the year 2020. The demand for trained manpower in hotels and restaurants is likely to be boosted by aggressive expansion of fast food restaurants/ cafe, an increase in 1 – 3 star budget hotels, golden quadrilateral of national highways as well as the preference for youth in this sector. The annual demand for trained manpower in the travel and tour sector is likely to be 1275 and 2075 in 2010 and 2020, respectively.

Training Institutes in Hotel Management/ Food Craft There are approximately 175 training institutes engaged in

Training Institutes in Hotel Management/ Food Craft

There are approximately 175 training institutes engaged in hotel management and food craft; 50 of them are government sponsored/ owned. Of the 125 private institutes, only 47 are registered with AICTE. A total of 18000 students are graduating with a degree/ diploma in hotel management or food craft. Of them, only 20% are obtaining training in government sponsored institutes. Only 3800 students (21%) are completing diploma/ certificate courses; a majority of them are completing 3-year degree courses. These institutes claim 100% placement for the graduating class. However, 35 – 40% of the graduates are joining other emerging sectors such as call centers because of the following reasons:

Better salaries in alternative careers

Poor perceived image of work in hotels

Reluctance to take up job in the service function of hotels & restaurants

In this scenario, there is likely to be a shortage of trained manpower in this sector.

Training Institutes in Travel & Tourism Management

There are 172 training institutes engaged in travel and tour management education; only 11 of them are government sponsored institutes, 78 are affiliated to universities while the balance are privately owned ones. Approximately, 17,500 students are completing IATA/ UFTA certified diploma courses, graduate and post-graduate degree courses.

Strategic Recommendations

Strategic Recommendations The present and new hotel management inst itutes have to train a substantially larger

The present and new hotel management institutes have to train a substantially larger number of students to cater to the increasing demand in hotels and restaurants. In our opinion, the student throughput of diploma and certificate courses needs to be increased substantially; this could be done by altering the mix of students in favour of the short-term courses. Since trained manpower is scarce in the smaller hotels, a training module in the form of audio and video CDs can be explored. The existing training infrastructure for the travel and tour sector appears to be adequate. A joint sector campaign has to be undertaken to generate pride in a hotel management career. This will help attract and retain trained manpower in this sector.

KEY RESEARCH FINDINGS

KEY RESEARCH FINDINGS HOTELS IN INDIA: Present Infrastructure There is an estimated 1.2 million hotel r

HOTELS IN INDIA: Present Infrastructure

There is an estimated 1.2 million hotel rooms in the country. However, the star category hotels account for a mere 7% (approximately 80000 rooms); most of the rooms are contributed by budget hotels, guesthouses and inns, that cater primarily to domestic tourism.

The metropolitan cities of Delhi, Mumbai, Chennai, Hyderabad and Kolkata, along with Goa account for 62% of the rooms in the five & four star category. The other smaller hotels are more geographically dispersed; this results from a strong correlation between hotels in the unorganized sector and domestic tourism statistics. Places of pilgrimage such as Tirupati and Haridwar have significantly lower availability of rooms – 28 & 150 rooms per lakh of tourists, respectively.

Our forecast is that there will be a total of 2.5 million and 5.8 million hotel rooms in 2010 and 2020 respectively. This assumes that the infrastructure growth will keep pace with the anticipated growth in tourism. The other assumption is that the mix of hotels will remain the same; however, this might change in favour of the organized sector, if government initiatives take shape. Geographical spread might also change in favour of North-eastern states, J&K, West Bengal, Andhra Pradesh, Madhya Pradesh & Uttar Pradesh.

HOTELS IN INDIA: Employment Pattern & Forecast Employment intensity increases with the size of hotel.

HOTELS IN INDIA: Employment Pattern & Forecast

Employment intensity increases with the size of hotel. The larger Four & Five star hotels (along with the heritage hotels) employ on an average 174 people per 100 rooms, compared to 122 in the One, Two & Three Star Hotels and 58 in the unorganized sector.

 

Employment Intensity (Employees per 100 rooms)

Total

Total

Total

Employment

Employment

Employment

2002

2010

2020

5/4 star Hotels

174

57,000

83,000

1,10,400

1-3 star Hotels

122

52,500

63,000

83,000

Smaller hotels

58

638,000

14,05,000

32,61,500

Total

NA

7,47,500

15,51,000

34,54,900

In addition, there are more than one lakh employees working in motels on state and

national highways.

A bulk of the employees approximately 60% are working in F&B service, Kitchen

and housekeeping. Front offices of the larger hotels account for nearly 7% of the employees.

Hotel Employee Profile

Hotel Employee Profile Five/Four Star Hotels : Most employees in the management/supervisory cadres in the front

Five/Four Star Hotels: Most employees in the management/supervisory cadres in the front office, F&B service and housekeeping have hotel management backgrounds. Almost 90% of the chefs are having a hotel management degree/diploma or a certificate from a Food Crafts Institute.

Three, Two & One Star Hotels: Almost half the managers and supervisors have either a hotel management degree/diploma or a Food Crafts Institute Certificate. A majority of those at junior levels are just graduates or even SSC pass.

Unorganized Sector: Only a few of the managers have a hotel management degree/diploma. Most of the employees consist of untrained manpower.

Almost 80% of the employees in key hotel functions such as F&B, front office and housekeeping are young; they are less than 40 years old. In the smaller hotels, more than 50% are less than 30 years old.

RESTAURANTS IN INDIA: Infrastructure The burgeoning middle class and evolving lif estyle is driving the

RESTAURANTS IN INDIA: Infrastructure

The burgeoning middle class and evolving lifestyle is driving the demand for quality

restaurants – both conventional ones as well as fast food outlets and cafes. Our

estimate is that there are at least 140,000 restaurants in urban India. Delhi and

Mumbai account for nearly 15% of the restaurants. Conventional restaurants account

for the largest population (30%), followed by sweet shops (16%), fast food outlets

(16%) and dhabas (13%). Northern region already has over 10000 fast food outlets

serving Chinese, Western and Indian food.

While the number of conventional restaurants ranges between 10-20 numbers per

lakh of population, the total number of eating places could be as high as 80 per lakh

of population (as in the North).

Employment Pattern & Forecast: The total number of restaurants could touch

200,000 in year 2010 and 240,000 in year 2020. The mix is likely to remain largely the

same; however, fast food outlets and cafes in the organized sector are likely to grow

much faster than the others if one goes by the stated expansion plan of large chains.

 

Employment

Total

Total

Total

Intensity

Employment

Employment

Employment

(Employees per

2002

2010

2020

100 chairs)

Conventional

26

926000

1226000

1436000

Restaurants

Cafes/Coffee/

Tea

31

270000

406700

504500

Vendors

Fast food Outlets

32

284000

401600

487800

Dhabas/Bhojanalays

26

179000

253900

306300

Total

NA

1659000

2288200

2734600

In addition, there are more than 1.3 million people employed in small restaurants and dhabas

In addition, there are more than 1.3 million people employed in small restaurants and dhabas on the state and national highways. By 2020, even a 10% share for the organized sector will generate nearly 130,000 jobs for trained manpower.

More than half the employees are in key functions of F& B service and kitchen and are less than 30 years old.

Almost 60% of these employed in kitchens of conventional restaurants, cafes and fast food outlets are diploma holders either from private hotel management institutions or Food Craft Institutes. Only 20% of people in F&B Service are hotel management degree/diploma holders. Restaurants, employ largely untrained manpower.

PROJECTED ANNUAL DEMAND FOR TRAINED MANPOWER   Year 2010 Year 2020 Hotels 7000 10000 Restaurants

PROJECTED ANNUAL DEMAND FOR TRAINED MANPOWER

 

Year 2010

Year 2020

Hotels

7000

10000

Restaurants

45000

45000

Total

52000

55,000

Key drivers of demand for trained manpower are likely to be the expansion of the organized sector, golden quadrilateral and preference for youth in the hospitality sector.

Presently, 16850 students are being trained in hotel management, annually. Only 22% are graduating from the Government promoted institutes. Nearly 40% of them are pursuing alternative careers in other emerging service sectors (such as call centres).

These statistics indicate that there could be a severe shortage for trained manpower by the year 2010.

PROJECT TEAM

PROJECT TEAM Chief Technical Advisor: Ejaz Hoda (38 years) A graduate of IIT, Delhi and a

Chief Technical Advisor: Ejaz Hoda (38 years)

A graduate of IIT, Delhi and a post-graduate from IIM, Bangalore, has over 15 years

of experience in the area of market research. Brings to the team a marketing focus as well as experience of diverse products and services. Specializes in consumer research, statistics and market entry strategy.

Has pioneered the use of databases in marketing, spearheads the research and development of new research methodologies and techniques such as mpEVOLUTION & intelliPROBE, has co-authored iConsumer, a comprehensive research publication on Indian consumer markets and MACCESS 2002 – a unique report on Indian Men’s Accessories.

Has been the chief research advisor on important assignments for multinational corporations such as Frito Lay (a PepsiCo), Hyundai Motor, Nestle India, Pillsbury India and Spice Telecom.

Has also been on the Young Business Committee of Confederation of Indian Industry (CII).

Chief of Project:

Makarand Chaurey (40 years)

A graduate of IIT, Kanpur and a post-graduate from IIM, Ahmedabad, has over 10

years of experience in the areas of industrial research, project appraisals and financial

services. Has established cutting edge quality systems and specializes in demand forecasting and advanced statistical analysis for the industrial & automotive sectors. Has co-authored iConsumer, a comprehensive research publication on Indian consumer markets and worked on important assignments for Honda Cars, DCM group and PVR.

Head of Data Processing & Analysis : Dominic Sebastian (33 years): Heads the data processing

Head of Data Processing & Analysis: Dominic Sebastian (33 years):

Heads the data processing team and specializes in computer-aided statistical analysis. Has 8 years of hands-on experience with specialized software (SPSS, XLSTAT & STATS) that enables statistical analyses such as correspondence analysis, multiple discriminant analysis, significant testing and database management. He is assisted by a team of 5 data processing executives.

Program Coordinator: Akhtar Siddiqui (28 years) Heads the field function and is responsible for field briefing, accurate implementation of sampling plans and quality control in relation to field research. Has played a key role in mapping different cities and rural areas in terms of consumer demographics, on an al-India basis. He is assisted by a team of 12 field officers and research associates.

Research Executives/Associates: Qammar Naseem Ahmad, Prabhat Kumar, Deepak Raj, Kaushal Kishore and Rajendra Prasad Have been instrumental in collection of all primary data as well as compilation of secondary data.

BACKGROUND India offers diverse opportunities for tourism, be it for leisure or business. Over 2.5 million foreign tourists (including NRI’s & PIO’s) visit India every year. By comparison, domestic tourism is significantly greater. Statistics reveal that we are likely to witness a sharp increase in both domestic and international tourist traffic. The rapid increase in tourism is being fuelled by a wide range of contributory factors as outlined in the table below.

Tourism Segment

Growth Drivers

Domestic tourism

Rapidly increasing purchasing power of the middle class. Better road connectivity Evolving lifestyle

International tourism

Development of internationally acclaimed destinations such as Kerala & Rajasthan Favourable perception of Brand India Attractive market that motivates foreign business travelers

The growth in tourism will have to be serviced by a substantial increase in infrastructure, including air-road-rail connectivity, hotels and restaurants. It is in this context that Department of Tourism, Ministry of Tourism & Culture, Government of India, has decided to undertake a study to assess the manpower requirement in the hotel and restaurant sector as well as the tour and travel operation business. Our firm Market Pulse has been commissioned to conduct this study. This document presents the findings of the study.

TERMS OF REFERENCE

1. To analyze the job opportunities in the hotel sector by assessing :

Current manpower requirement and the requirement by 2010 & 2020 of different categories of personnel in star category, heritage hotels, un-approved hotels, restaurants and cafeterias (both region-wise and state-wise) The manpower available in the hotel industry and a comparison of the same with the total workforce.

2.

To make an estimate of trained manpower by assessing the number of personnel (category-wise) trained presently and in 2010 & 2020. The institutes to be considered are as follows:

National Council for Hotel Management and Catering Technology (NCHMCT)

Private sector and other agencies related to travel and tourism

3.

To analyze the placement scenario (category-wise) of the students and quantify the number of students passing out from various institutes, offering courses related to travel and tourism. The institutes to be considered would be IHMs/ FCIs under NCHMCT as well as private institutions and other agencies related to travel and tourism.

4. To assess the current manpower requirement as well as for 2010 & 2020, in the tour operation and travel sector.

CHAPTER 1

PROJECT METHODOLOGY

This study is based on an extensive primary field survey, analysis of secondary data as well as physical scanning of cities. The primary field survey has been carried out in 27 important tourist destinations. These have been selected from different destination categories on the basis of their tourist traffic.

More than 900 interviews have been conducted by our field research team, comprising 3 field officers, 2 research associates and a team of 5 field interviewers. The sample composition is detailed in table 1.1. below.

The interviewee in each of the segments comprised of middle – senior level managers in the Human Resource departments of large organizations as well as the owners- managers of smaller organizations. Secretaries and director level officials of state tourism offices, municipal bodies and relevant hotel associations have also been interviewed.

The sample has been randomly selected so as to be representative of a cross-section of that segment.

 

1.1. Sample composition (Number of Interviews)

 

Region

Cities

Hotels

Restaurants

Travel

Hotel

Tourism

Total

&Tour

Mgmt.

offices &

operators

Institutes

Municipalities

North

Delhi

42

59

2

11

3

117

Agra

14

18

2

0

3

37

Haridwar

3

10

0

0

3

16

Shimla

3

5

3

1

2

14

Varanasi

5

13

1

1

4

24

Amritsar

5

10

2

0

2

19

4

Region

Cities

Hotels

Restaurants

Travel

Hotel

Tourism

Total

&Tour

Mgmt.

offices &

operators

Institutes

Municipalities

South

Trivandrum

11

21

2

1

4

39

Cochin

6

15

2

1

4

28

Ooty

6

14

1

1

0

22

Mysore

3

4

1

1

2

11

Bangalore

8

7

3

3

8

29

Chennai

8

6

1

3

4

22

Tirupati

2

5

2

0

1

10

Hyderabad

2

11

2

3

8

26

East

Kokata

17

33

4

2

7

63

Bhubanesh

8

11

2

1

6

28

war

Puri

3

1

1

0

2

7

North

Guwahati

5

12

1

1

9

28

East

Shillong

3

9

0

0

2

14

West &

Mumbai

31

77

7

11

7

133

Central

Ahmedabad

10

24

2

2

6

44

Pune

9

20

3

3

3

38

Aurangabad

8

9

1

0

4

22

Goa

15

36

4

2

5

62

Udaipur

10

4

2

1

3

20

Jaipur

7

6

1

2

11

27

Khajuraho

5

6

1

0

2

14

All

 

249

446

53

51

115

914

India

5

Project Coverage

Hotels

All star category & heritage hotels Others registered with municipal bodies or hotel associations. Various small hotels/ guest houses/ inns scattered in residential areas or located in pockets near the railway station, inter-state bus depots, etc.

Restaurants

All conventional restaurants (AC /non AC) registered with municipal bodies or listed in telephone/trade directories Fast Food chains Dhabas/hawkers/ juice corners Cafeterias, etc.

Travel & Tour Operators

Organized sector players registered with TAAI Other small and medium sized travel agencies Ticketing agents

Hotel Management and Travel & Tour Institutes

Those registered with NCHMCT Private sector institutes

The states of Jammu & Kashmir and Bihar have not been directly covered in addition to some union territories such as Andaman & Nicobar, Pondicherry and Lakshwadeep.

The states covered by our research account for 88% and 94% of domestic and foreign tourist visits, respectively. Hence, for purposes of estimating national statistics these contribution ratios have been used.

Information Areas Structured questionnaires (refer Appendix 1) were developed for each of the segments under study. The information areas addressed by the questionnaires are briefly mentioned subsequently.

Hotel/ Restaurants/ Travel & Tour Operators

Employment pattern across functions

Age profile of employees

Business particulars

Proportion of temporary employees across functions

Institutes of Hotel Management (both private and NCHMCT)

Batch size, i.e number of students graduating annually

Courses/ Subjects offered

Tenure of the course

Interviews with the officials of municipal bodies and hotel associations were used to estimate the number of hotels and restaurants in each of the cities under study. Additionally, comprehensive physical scanning of each of the destinations under study was carried out to estimate the proportion of hotels (guest houses, inns and small hotels) and restaurants (including dhabas) in the unorganized sector.

A study of the local telephone and trade directories as well as registered Internet websites was also used to estimate the number of travel and tour operators as well as private institutes of hotel management and travel management institutes.

CHAPTER 2

TOURISM IN INDIA : A SNAPSHOT

Attractiveness of diverse destinations and increased levels of marketing are transforming India into a thriving tourist centre of the world. Although, India’s shape of world tourist arrivals is a mere 0.37%, recent statistics indicate a robust growth of more than 15%.

In addition, growth in the disposable income of more than 200 million people belonging to the middle class is changing the profile of domestic tourism. Statistics from Ministry of Tourism and Culture reveal that domestic tourist visits have increased from 191 million in 1999 to an estimated 272 million in 2002. This represents a compounded annual growth rate of 17%.

Domestic tourism in both North and North-Eastern regions have registered high growth rates (20% and 63% CAGR, respectively). While Southern India experienced a 6% growth, West/ Central and Eastern regions experienced a marginal decline.

The growth rates point towards relative needs for infrastructure development in these regions.

2.1 Geographic Contribution of Domestic Tourism

13% 6% 1% 39%
13%
6%
1%
39%

41%

North South East West & Central North East
North
South
East
West & Central
North East

2.2 Geographic Contribution of Foreign Tourism

35%

0% 34%
0%
34%

23%

8%

North South East West & Central North East
North
South
East
West & Central
North East

2.3. Tourist Traffic in Important Destinations (covered by research)

State

City

Domestic

Foreign

Total

AP

Hyderabad

7099871

475131

7575002

Tirupati

7967264

718325

8685589

Tamilnadu

Chennai

4635278

310198

4945476

Ootty

1806969

67014

1873983

 

Bangalore

5181381

172880

5354261

Karnataka

Mysore

1373637

45832

1419469

Kerala

Cochin

961820

87357

1049177

Trivandrum

775225

65240

840465

UP

Agra

1543988

682737

2226725

Varanasi

3027277

272938

3300215

HP

Shimla

1227710

37860

1265570

Delhi

Delhi

1228059

543036

1771095

Uttaranchal

Haridwar

5316980

5859

5322839

Punjab

Amritsar

172404

5057

177461

Orissa

Bhubaneshwar

373122

9611

382733

Puri

1014449

9691

1024140

WB

Kolkata

5280530

529366

5809896

Assam

Guwahati

1953915

6409

1960324

Meghalaya

Shillong

268609

3146

271755

Maharashtra

Mumbai

8599938

749206

9349144

Pune

     

Aurangabad

584874

50953

635827

Gujarat

Ahmedabad

1077971

13179

1091150

Goa

Goa

1325296

271645

1596941

Rajasthan

Jaipur

589414

81451

670865

Udaipur

471576

101303

572879

MP

Khajuraho

122616

24093

146709

2.4. State-Wise Tourist Traffic –2002 (covered by research)

 

Domestic

Foreign

Total

Andhra Pradesh

60487370

210310

60697680

Tamil Nadu

41274392

804641

42079033

Karnataka

8678170

59545

8737715

Kerala

5568256

232564

5800820

MP

6487773

111813

6599586

UP

73067000

109464

73176464

HP

4958917

144383

5103300

Orissa

3289205

23279

3312484

Assam

2833042

4262

2837304

Meghalaya

268609

3146

271755

Rajasthan

8300190

428437

8728627

WB

8503573

531335

9034908

Delhi

1228059

543036

1771095

Utranchal

11818221

55762

11873983

Maharashtra

10896408

949269

11845677

Gujarat

5735286

34187

5769473

Goa

1325296

271645

1596941

Punjab

305977

8975

314952

Total

237874638

4526231

242400869

Contribution %

88

94

88

All India

271840337

4828624

276668961

CHAPTER 3

HOTELS IN INDIA

One of the pillars of tourism infrastructure is made up of the places of lodging. Given the disparate socio-economic profile of domestic tourists, hotels exist in both the organized and the unorganized sector. In addition to the star category hotels, there are smaller hotels, guesthouses and inns that cater largely to domestic tourists. The pilgrimage destinations also have a large number of dharmashalas to support the seasonal increase in the number of tourists.

In this study, we have carried out the required analyses for the following 3 segments:

5star, 4 star and heritage hotels

Three, two & one star hotels

Small budget hotels, guesthouses & inns in the unorganized sector.

3.1. A Hotel Map There is an estimated 1171000 hotel rooms in the country in both the organized and unorganized sectors combined. The star category and heritage hotels account for 7% of the hotel rooms; the balance is contributed by other places of lodging such as budget hotels, guesthouses and inns.

3.1 % Contribution of Hotel Segments to Total Rooms

3% 4% 93% 5star/4star/Heritage Hotels 1-3 star Hotels Others
3%
4%
93%
5star/4star/Heritage Hotels
1-3 star Hotels
Others

3.1.1. Five & Four Star/ Heritage Hotels

These hotels have a total of almost 36000 rooms. The metropolitan cities of Delhi

(21%), Mumbai (17%), Chennai (7%), Hyderabad (5%) and Kolkata (5%) account for 55% of the rooms in this category. Goa accounts for 7% of the rooms.

3.1.2. Three, Two & One Star Hotels

These hotels have 43000 rooms and are more extensively spread than their larger counterparts. They are not concentrated in the metropolitan cities. Both Mumbai and Goa have a significantly higher presence of these hotels; they together account for 5939 rooms (14%). The states of Andhra Pradesh (5045 rooms), Tamil Nadu (6213 rooms) and Maharashtra (6588 rooms) together account for almost 42% of the rooms in this category.

3.1.3. Other Hotels in the Unorganized Sector

These hotels are also well spread throughout India; their presence is correlated with

the number of domestic tourists visiting different tourist destinations. The 3 states of

U.P, Rajasthan and Tamil Nadu account for almost 45% of the total availability in the

country.

 

3.2. State-wise Rooms Availability 2002

 

State

Total

5 & 4 Star Hotel rooms

1, 2 & 3 Star Hotel rooms

Other Hotels

rooms

Andhra Pradesh

58362

2007

5045

51310

Tamilnadu

89293

2431

6213

80649

Karnataka

71897

1875

1967

68055

Kerala

44049

1464

3694

38891

MP

39181

547

922

37712

UP

295436

2504

1739

291193

HP

53236

262

372

52602

Orissa

46683

389

703

45591

Assam

10900

160

414

10326

Meghalaya

2115

50

115

1950

Rajasthan

128823

3351

2798

122674

WB

17278

1797

1428

14053

Delhi

27272

7677

1507

18088

Uttaranchal

17846

323

1013

16510

Maharashtra

51893

7561

6588

37744

Gujarat

60468

712

1629

58127

Goa

11924

1819

1099

8952

Punjab

8975

499

1508

6968

All India

1171121

35574

42991

1092556

3.2. Total Rooms Availability per Lakh Tourists

Places of pilgrimage such as Tirupati and Haridwar have significantly lower

availability of rooms – 28 and 150 rooms per lakh of tourists, respectively. Even

Agra’s availability of rooms is substantially lower (175) than the national average.

However, this could be attributed to the fact that a large number of Agra tourists stay

in Delhi.

By comparison, states such as Delhi, Karnataka, Himachal Pradesh, Orissa, Rajasthan

and Gujarat have substantially higher availability of rooms for tourists.

 

3.3. State-wise Availability of Rooms

State

City

Total Rooms

Rooms per lakh Tourists

Andhra

 

58362

96

Pradesh

Hyderabad

13183

174

Tirupati

2452

28

Tamilnadu

 

89293

351

Chennai

17577

355

Ooty

6334

338

Karnataka

 

71897

823

Bangalore

51507

962

Mysore

4230

298

Kerala

 

44049

759

Cochin

5861

559

Trivandrum

8488

1010

M.P

 

39181

594

Khajuraho

871

594

State

City

Total Rooms

Rooms per lakh Tourists

U.P

 

295436

404

Agra

3891

175

Varanasi

18423

558

H.P

 

53236

1043

Shimla

13202

1043

Orissa

 

46683

1409

Bhubaneshwar

3467

906

Puri

16360

1597

Assam

 

10900

556

Guwahati

10900

556

Meghalaya

 

2115

778

Shillong

2115

778

Rajasthan

 

128823

1476

Jaipur

12874

1919

Udaipur

5482

957

W.B

 

17278

184

Kolkata

10709

184

Delhi

 

27272

1540

Uttaranchal

 

17846

150

Haridwar

8000

150

Maharashtra

 

51893

438

Mumbai

28682

307

Pune

2935

NA

Aurangabad

15060

2369

Gujarat

 

60468

1048

Ahmedabad

11436

1048

Goa

Goa

11924

747

Punjab

 

8975

2850

Amritsar

5057

2850

All India

 

1171121

423

3.3. Growth in Tourist Traffic

1999-2002

2003-10 (Projected Growth)

12.7 Andhra Pradesh

Tamilnadu

Karnataka

Kerala

14.7 Madhya Pradesh

Himachal Pradesh

Orissa

Assam

Meghalaya

Rajasthan

West Bengal

Delhi

16.3 Uttar Pradesh

Uttaranchal

Maharashtra

Gujarat

Goa

Punjab

6.4

-18.5

4.5

4.7

Uttaranchal Maharashtra Gujarat Goa Punjab 6.4 -18.5 4.5 4.7 6.8 408.0 18.9 24.2 6.4 -14.1 10.0
Uttaranchal Maharashtra Gujarat Goa Punjab 6.4 -18.5 4.5 4.7 6.8 408.0 18.9 24.2 6.4 -14.1 10.0

6.8

408.0

18.9

24.2

6.4

-14.1

10.0

11.4

-20.7

8.7

9.7

4.7 6.8 408.0 18.9 24.2 6.4 -14.1 10.0 11.4 -20.7 8.7 9.7 10.0 20.0 20.0 Growth
4.7 6.8 408.0 18.9 24.2 6.4 -14.1 10.0 11.4 -20.7 8.7 9.7 10.0 20.0 20.0 Growth

10.0

20.0

20.0

Growth statistics pertaining to tourist traffic are based on statistics of Ministry of Tourism. For the period 2003-10, we have assumed that growth in tourist traffic will follow more or less the same trend as in the past. Thus, some (north-eastern state are likely to experience very quick annual growth of approximately 20%, others like Delhi, U.P, Tamul Nadu and Karnataka, where growth has already slowed down, will experience a 5% growth annually. Still others like W.B, A.P and M.P are likely to grow at 10% annually, since they have displayed robust statistics in the recent past.

3.4. Rooms Availability: A Forecast (2010 – 2020) In order to arrive at an estimate of hotel rooms in different states, the following bases have been assumed. The growth in star category hotels will follow the same trend as in the last 4 years. This trend has been obtained from the projects approved by the Ministry of Tourism in the last 4 years. If growth rate in tourism accelerates, this estimate can be treated as a conservative estimate. The growth in hotels in the unorganized sector will depend on the growth in tourism (domestic and foreign combined). The other assumption is that the 18 important states covered in the primary research will continue to represent 88% of hotel rooms in the unorganized sector.

In 2010, there will be a total of 2.9 million hotel rooms, more than twice the numbers in 2002. Star category hotels will have almost 100,000 hotel rooms, while the balance will be present in the unorganized sector.

The states of Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Assam/Meghalaya and West Bengal will register the quickest growth trends. The states of Delhi, Karnataka and Gujarat might experience a stagnant phase. These are also those states that already have a high availability of hotel rooms.

In the year 2020, there should be approximately 6.6 million hotel rooms, if the full potential of tourism is tapped. We feel that the contribution of North-eastern states as well as J&K, would be substantially higher than the present levels.

3.5. Rooms Availability in 2010 (A Forecast)

 

State

Total rooms

4/5 star

1-3 star

Other

Hotels

Hotels

Andhra Pradesh

141312

1802

5973

133537

Tamilnadu

144250

3609

8327

132314

Karnataka

76034

2875

3159

70000

Kerala

64595

2396

7102

55097

Madhya Pradesh

114919

857

1360

112702

Uttar Pradesh

978216

3340

1779

973097

Himachal Pradesh

76769

342

372

76055

Orissa

78758

589

879

77290

Assam

45068

154

514

44400

Meghalaya

7950

50

115

7785

Rajasthan

209019

3815

3106

202098

West Bengal

83336

2421

1576

79339

Delhi

31528

9807

1721

20000

Uttaranchal

36727

323

1013

35391

Maharashtra

107952

10333

8324

89295

Gujarat

12281

732

2501

9048

Goa

21989

3035

1545

17409

Punjab

17372

975

1822

14575

All India

2877168

46690

54867

2775611

3.6. Rooms Availability in 2020 (A Forecast)

 

State

Total rooms

4/5 star

1-3 star

Other

Hotels

Hotels

Andhra Pradesh

355296

1802

7133

346361

Tamilnadu

231577

5082

10970

215526

Karnataka

122797

4125

4649

114023

Kerala

104671

3561

11362

89748

Madhya Pradesh

295471

1245

1908

292319

Uttar Pradesh

2530177

4385

1829

2523963

Himachal Pradesh

124699

442

372

123885

Orissa

127836

839

1099

125898

Assam

275706

154

639

274913

Meghalaya

48369

50

115

48204

Rajasthan

337082

4395

3491

329196

West Bengal

210746

3201

1761

205784

Delhi

47036

12470

1989

32578

Uttaranchal

58984

323

1013

57648

Maharashtra

169744

13798

10494

145452

Gujarat

19087

757

3591

14739

Goa

35016

4555

2103

28358

Punjab

27526

1570

2215

23741

All India

6554019

49469

57836

6446714

CHAPTER 4

EMPLOYMENT IN HOTELS

4.1. Employment Pattern 4.1.1. Five, Four Star/Heritage Hotels: A single five star hotel could employ more than 400 employees. A total of 57508 people are employed to service about 36000 rooms in this category. On an average, there are approximately 162 employees per 100 rooms in these hotels. The employment pattern is the across geographic regions.

The major employing functions are F&B Service, F&B Kitchen and Housekeeping. They, together, account for 56% of the total employment in these hotels.

4.1. % Contribution of Key Functions to Employment

15%

7% 7% 21% 8% 7% 20% 15%
7%
7%
21%
8%
7%
20%
15%

F&B serviceHousekeeping Management Purchase/stores & accounts F&B kitchen Front office Engineering Others

HousekeepingF&B service Management Purchase/stores & accounts F&B kitchen Front office Engineering Others

ManagementF&B service Housekeeping Purchase/stores & accounts F&B kitchen Front office Engineering Others

Purchase/stores & accountsF&B service Housekeeping Management F&B kitchen Front office Engineering Others

F&B kitchenF&B service Housekeeping Management Purchase/stores & accounts Front office Engineering Others

Front officeF&B service Housekeeping Management Purchase/stores & accounts F&B kitchen Engineering Others

EngineeringF&B service Housekeeping Management Purchase/stores & accounts F&B kitchen Front office Others

OthersF&B service Housekeeping Management Purchase/stores & accounts F&B kitchen Front office Engineering

4.1.2. Three, Two & One Star Hotels

A total of 52,577 employees are present in these hotels to service almost 42,991 rooms nationally. On an average, there are 122 employees per 100 rooms in this category. The key employing functions are F&B and housekeeping. They together account for 62% of the total employment in these hotels.

To a large extent, the employment across geographic regions depends on the

4.2. % Contribution of Key Functions to Employment

20%

12% 7% 8% 9% 22%
12%
7%
8%
9%
22%

22%

ManagementF&B service Housekeeping Others Front office F&B kitchen Purchase & accounts

F&B serviceManagement Housekeeping Others Front office F&B kitchen Purchase & accounts

HousekeepingManagement F&B service Others Front office F&B kitchen Purchase & accounts

OthersManagement F&B service Housekeeping Front office F&B kitchen Purchase & accounts

Front officeManagement F&B service Housekeeping Others F&B kitchen Purchase & accounts

F&B kitchenManagement F&B service Housekeeping Others Front office Purchase & accounts

Purchase & accountsManagement F&B service Housekeeping Others Front office F&B kitchen

presence of hotels; however, there are some differences in the employment intensity

across regions.

4.3. Regional Employment Intensity North 149 South 123 East 170 West 77 Overall 122
4.3. Regional Employment Intensity
North
149
South
123
East
170
West
77
Overall
122

4.1.3. Other Hotels in the Unorganized Sector : There are approximately 638,000

employees working in hotels in the unorgan