The hospitality industry is one of the fastest growing sectors of the Indian economy. Riding on the economic growth and rising income levels that India has witnessed in recent years, hospitality has emerged as one of the key sectors driving the country's economy. The current market size is US$ 23 billion, accounting for 2.2% of India's GDP. Rising disposable incomes and increase in double-income households have also played a part in this growth phenomenon.
Hotels in India have a supply of 110,000 rooms. To put things into perspective, New York City has a supply of 80,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2011. Therefore India has a shortage of 150,000 rooms fueling hotel room rates across India. With this tremendous opportunity, India is a destination for hotel chains looking to expand.
The India Hotel Expansion Summit took place on May 19-20, 2011 in Mumbai. With 150 attendees the event brought together government representatives, industry experts and members of the international community to discuss the pressing question of how to expand India's hotel industry.