Contribution of Hospitality Industry to Indian Economy
There is a significant contribution of hospitality industry to Indian economy. Hospitality refers to the relationship between a host and a guest. It is the practice or act of being hospitable. Hospitality reflects respect and courtesy to guests. It is characterized by receiving, welcoming, entertaining and hosting guests. Hospitality and tourism are related. This is because hospitality entails showing a generous welcome to tourists.
Tourism can be defined as a practice that entails traveling for leisure or recreational purpose. It is a temporary and short term movement of individuals. Tourism entails staying away overnight from a place where people lives. It entails traveling and staying in a place outside the place where people are used to. Entertainment, accommodation and transportation are characteristics of tourism. Different categories of tourism include cultural tourism, adventure tourism, sports tourism, wildlife tourism, medical tourism, and space tourism among others. In most cases, tourism relates to traveling, arriving or going somewhere, holidays and pleasure.
What is the major contribution of hospitality industry to Indian economy?
Hospitality occupies the local services’ sector. These include accommodation, catering and entertainment for tourists. It is simply a business of offering lodging, entertainment and catering services to the tourists. It has a close link with tourism and it plays a very significant role in the overall growth of the economy of a country.
Some of the ways through which the hospitality industry contributes to the economy of India includes:
The hospitality industry together with tourism form one of the major sectors in the Indian economy attracting high foreign direct investment. Between April 200 and May 2015, the hospitality industry together with the tourism sector attracted about US$ 8.1 billion in form of foreign direct investment as per the data that the Department of Industrialization Policy and Promotion released. Global tourists have increased and India is realizing her potential. This has made many companies to invest in the hospitality sector in India. They include Fairfax, Vantage Hospitality Group, Onyx Hospitality and Kingsbridge among others.
- Foreign exchange earner
The hospitality and tourism industry is among the major segments that earn revenue for this country. Each year, this industry earns billions in form of US dollars from foreign visitors. Additionally, this sector contributes money that flows into the economy through taxations. This includes money that is collected in form of Corporate Tax, Capital Gains Tax, Service Tax, Personal Income Tax, Excise Duty, Wealth Tax and value Added Tax. All these taxes flow into the Indian economy.
Many citizens are employed in the hospitality industry directly or indirectly. They include hotel managers, waitresses and waiters, concierges and chefs. These are employed in the industry to ensure that it runs smoothly.
How the contribution of hospitality industry to Indian economy can be boosted
To boost the contribution that this industry makes to the economy of India, several measures should be taken.
- Developing the infrastructure
- Ensuring security and safety of tourists
- Provision of financial assistance to investors in the hospitality industry in India.
- Treating tourists humbly whenever they visit the country.
- Introducing various schemes that will promote the sector including nonmonetary and monetary award institutes.
- Enhancing publicity and advertising for the sector
The hospitality industry is a vital component of the tourism industry. This sector contributes to the flourishing of the economy of India by attracting more tourists both domestic and foreign who visit the country for holiday and professional purposes. It is expected that the contribution of this industry to the economy of India will grow by 2020 to 9.0 percent. This will place India as a third country globally in the tourism and hospitality industry.
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