Tuesday, March 6, 2007


Hotel potential.

Tourist arrivals to India have shown a robust growth and we will go past the 4 million international arrival mark for the first time in 2006. While the Incredible India campaign has been a huge success in the recent past, India now runs the risk of over playing it. India suddenly has the most expensive hotel markets in the region.

The government of India grants star categories to all approved hotels in India. This approval status is voluntary; however, only approved hotels can avail of various incentives, import licenses and other benefits from the government. Nearly all the five-star deluxe, five-star, four-star and three-star hotels in the country are members of Federation of Hotel & Restaurant Associations of India (FHRAI), although membership is not so comprehensive in lower star categories.

The following table lists the number of FHRAI member hotels in different categories in the last five years.

2002

2003

2004

2005

2006

Categories

hotels

rooms

hotels

rooms

hotels

rooms

hotels

rooms

hotels

rooms

five star deluxe

68

15672

68

16050

74

17903

78

18625

85

19935

five star

72

8662

72

8669

71

8554

77

9326

81

9162

four star

100

7614

102

7408

104

7355

124

8693

119

8086

three stars

413

21387

409

21098

414

21433

468

24401

455

24123

two stars

234

9278

226

8903

221

8639

212

8242

196

7009

one star

48

1696

44

1520

43

1480

44

1504

35

1098

heritage

71

2492

67

2252

69

2297

75

2567

76

2611

approved (unclassified)

308

12515

297

11921

304

12058

333

13426

440

17937

un-approved

455

17925

452

17895

477

18796

470

18286

493

19,431

total

1769

97241

1737

95722

1777

98515

1881

105,070

1980

109392

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