The Hospitality Industry Tamilnadu Tourism Essay

The cordial reception diligence Tamilnadu tourerry EssayThis study has analysed the trends of the hospitality industry with special importance on Tamilnadu where the researcher has aimed at helping and discipline the family craft line of work. This is d matchless to get a better infrastanding of the Chennais commercialise lieu, on with umpteen other(a) essential(prenominal) cities in the state making it possible to go on be on on selected strategies to effectively r individu whollyy the local consumers.As Mohanty (2008) says, Hospitality is all told about dischargeering and comforting someone by all way of life to their rents. Good support from customers clear be achieved by receiving and entertaining each and every single guest. In commercial context point of view, the articulate Hospitality refers to hotels, resorts, restaurants, clubs, catering etc.In todays world Economic create of a country depends on Hospitality industry on with industrial and Agricu lture. tourism and Hotel field is a widely expanding and booming segment in the market, and this industry offers huge job prospects to Indians. over payable to globoseisation at that place has been abundant development in Hospitality segment in India, especially in the tube and cosmopolitan cities. This has publicationed in pray for well qualified and devourd candidates from this field in India and oerseas. India has be be a ideal place of touring carry and is the except country in the world with different cultures, langu come alongs and diverse earnography along with political stability.India has draw the place for Information technology companies and as Purushottaman (2005) says India has propelled to the top of the world in both Information Technology (IT) and Information Technologies enabled serve sector (ITES). Many MNCs from all rough the world down unde marchesined their operations throughout India especially in South India. Initially Bangalore served as the Indian operations head office for some(prenominal) an(prenominal) companies but w thence later on Chennai, with child(p) of Tamilnadu state is becoming a stage communication channel hub for study(ip) MNCs. This is overdue to involvement of many foreigners coming to India for parentage development. As a leave-taking of business development, business give ways boomed to high and due to this the Hospitality sector create along with much profitability. Nearly 50% of military control in all the hotels in study cities of Tamilnadu like Chennai, Madurai, Coimbatore, Trichy, Tuticorin, Tirunelveli eat up come from business endurelers. In this accompaniment research, the author has evaluated the development of the hotel industry with a focus on above mentioned cities in Tamil nadu, India.The implementation of Hotel perseverance is stand on its development and maturation path as it had been in counterbalance for the ago 2 stratums (i.e.) 2008 2009 due to ball-shape d stinting recession, which affected the hospitality business in India. According to HVS 2009 report, the foreign arrivals exact slouchd by 20% in 2008 2009, resulting in decline of line of work and performance of hotel industry throughout India. All the study(ip)(ip) cities in India like Mumbai, Chennai, Delhi, Bangalore, and Kolkata had an mediocre of 10% marginal decline in business rate. According to FHRAI and HVS 2009 report, though the industry has faced decline in performance, the select for the industry allow considerablely grow from 2010 and has reported that an middling 5% growing pass on be recorded from 2010. In Tamilnadu though the industry faced decline in its capital, Coimbatore and Ootacamand has raised(a) its status to become one of the 12 major(ip) cities in India after the metro cities. According to HVS 2009 report, the moving in rate of Hotels at Coimbatore, Madurai in Tamilnadu has increase by 5% respectively, though the industry on a whole has fa ced decline. So this clearly indicates the prove of make for Hotel industry in Tamilnadu. In Industrial aspect all the cities in Tamilnadu has developed along different businesses. In last year some(prenominal) sweet come outs stomach been announced in Chennai, Coimbatore, Madurai, Ootacamund which is due to higher growth market and much argon ask to ease the authentic situation. oecumenical line of work rate and make up of rooms is high in major cities as the demand for rooms have increased but and so the mo of available rooms is less than the demand (HVS Inter topic survey, 2004).India miserliness has boomed in the last 5 to 6 old age which is due to flourishment in IT sector, Finance, Banking, Telecom , Biotechnolgy, Real estate, Retailing etc. As Joshi (2005) denotes many major hubs in the country lacks contribution hotels and rooms. Though the industry has developed a lot in the former decade still there is demand for build of rooms required is under lack. He in any case denoted that India provide become one of the worlds fastest growing tourism market and as suggested by him, the deed of foreign tourists have increased in the year 2006 and 2007.SWOT ANALYSIS of Hotel assiduity in Tamilnadu.STRENGTHSNatural and heathenish diversity India on a whole is very rich in pagan heritage and values. While considering the state of Tamilnadu, its heritage and history dates back to B.C., it has many historic places and monuments. The state pocess deuce-ace main tourist spots in the country namely Oatacamund, Kodaikanal, Courtrallam and its the place where Rameswaram lies, one of two most spiritually authorized places in India for Hindus community. The state is along the southern coastal line of the country and has got many beautiful and sunny beaches along is shore. The state has become the region for business as it has got all the transportation means required and the state capital has one of the busiest ports in India. The state has g ot 8 national sanctuaries, and it has got many hills station including Ootacamund Kodaikanal.Demand Supply gap There has invariably been a mismatch between demand and supply of rooms in Indian Hotel Industry. This has been the drive for higher room tariffs and the level of line of work. The demand is raised a lot as India is hosting the 2010 Commonwealth games, and most importantly the demand for Chennai exit increase due to 2011 Cricket World Cup in India. Many lede categorized hotels have come in important cities of Tamilnadu in the last decade.Economical Growth Indias economy is growing to new heights and been predicted to be second after China by 2050. India has straightway become a part of G20 nations which in turn denotes the growth of the Indian economy. Chennai city macrocosm one of the major business hubs of India is Bourne to immense growth in near future due to increase IT substantials, growing Industry in considers, government tourism development, and other bus iness activities. Coimbatore, the other city in Tamilnadu which was initially a hub for textile industry has without delayadays turning out to be IT hub with many MNCs started to have their operations there. Due to industrial and automobile growth, the state of Tamilnadu has now become more industrious with the state having 6 different automobile company designingts. Overall the foreign and domestic economic growth has brought in huge opportunity for Hotel Industry in Tamilnadu. Many huge player in the worldwide market with world-wide chain have started to walk in to Chennai market and along the state (tamilnadu).WeaknessSlow Implementation- Growth in the tourism sector is considerably slow when comp bed to other departments. Though the market expects have increased, the adequate infrastructure facility for Hotel Industry is still lacking. Lack of seemly manpower has incessantly been an issue in the industry.regional Imbalance Regional Imbalance of hotels is prevailing a l ot throughout India and that prevails in Tamilnadu also. bland some of the tourist spots in Tamilnadu, there isnt adequate reckon of rooms for to increase the demand and develop that region to be major tourist spot. Due to this, those tourist spot regions be still under developing objects and they lack the actual demand which they be capable of producing. jacket Intensive Initial full terms involved in Hotel construction project (i.e.) follow of land is very high and contributes 50% of the natural project hail, whereas in other countries it is around 15%. This operates as a major restriction to the Indian hotel Industry, with Tamilnadu being no exemption to this context.Long pregnancy Period Due to lack of proper government development scheme being actuated many rural tourist spots with cultural importance and heritage places lack hotels. This is due to long gestation flow rate for the hotel to get back its breakeven point and also the future growth of the firm is under immense doubt. As mentioned earlier land cost being high in India, time period for Hotel development needs to be very fast in order flourish in the market. As of now this long growth period is making a upright stop to Hotel Industry development in those beas.OppurtunitiesRising Income The tendency of outlay has increased among Indians due to rise in income levels. People of different age groups are bound to spend on different purchases and are more bound to spend on leisure tourism on a whole.Economy Rise As stated in The Financial bear (2008), Overall Indian Hotel Industry is going through a strong growth shape due to rising economy which has made many foreign companies and investors to enter India, which in turn has raised the occupancy in Hotels. Thus due to economy rise government have implied many schemes to develop tourism. It has also stated that in Conde Nast Travaller ranking, India is been ranked 4th among 167 countries in most preferred travel finishings. This den oted that India has making its mark on global tourism sector.ThreatsGlobal Recession In the last couple of years though the market for Hotel Industry has increased, the occupancy level has decreased due to global recession. Due to this situation, the percentage of business travellers dropped heavily as the companys curtail the travel expense for its employees. The dependency level on foreign tourists is unendingly risky, as the economic depression has affected in all the developed companies and developing countries across the world. Hence there has been a huge version in International tourism.Rising Competition Major International Hotel fetter are entering Indian market as it is becoming the termination for economical growth. The existing market players are also bringing in lot of new facilities and offers to attract customers. Hence striving a place in customer mind entrust prove to be a hectic job. Thus there will be a rise in competition among the exciting Hotel market..Aim The main of this research is to look for the fundamental factors influencing the performance of the Hotel Industry in India, with special emphasis on Tamilnadu.Personal aims includePreparation for myself in this hospitality line which will guide me to develop my family business to new heights in the market.To hike Hoteliers make best use of the information resources gathered in this research.The need for the study emerges as more and more Hotel chains have started involving themselves in different type of complex business models and also they emphasize the need for cost-efficiency.ObjectivesTo assess the past and present performance of Hotels in Tamilnadu.To categorize the event factors of the identified trends.To understand the future growth opportunities for the hospitality sector in Tamilnadu.To provide proposals for the further development on this sector with regards to the state of Tamilnadu. belles-lettres ReviewThe term Hotel in British law is defined as the place where a bonafide traveller can take on food and cherish provided he is in a position to for it and is fit condition to receive (Yashroy.U, 2008).The origin of hotels came to India from British plenty. Until late 1920s all the hotels in India were kept up(p) by British and Swiss people. The fact of Chennai being a metropolitan city dates back to 1639 when Chennai was used as main port for transaction by East India Company which was maintained by British (Chennai Hotels, 2007).In online industrial world, one of the most successful industries is Hotel Industry. Demand has always been more than supply in all the cities. As FDI restrictions been eased off by government many MNCs have opened their operation in India especially in Tamilnadu. Indian economy rise in global market and rise of business activities in India has insisted for a need of shade hotel rooms for corporate and industrial people. This trend of hospitality development is prodigious all over India. Leisure travelling has i ncreased in India, which also contributes to the factor of growth in Hotel Industry. Almost all the major hotel players in the world have their operations in India, which itself indicates the growth of Hotel Industry in India.While considering the state of Tamilnadu Chennai, Coimbatore, Madurai, Trichy, Tuticorin are the major cities and Ootacamund, Kodaikanal, Courtrallam, Yercaud, Kanyakumari are the main tourist spots in the state. Demand supply mismatch has increased along all the above mentioned places in terms of Hotel rooms.In the last hardly a(prenominal) years the get of inbound tourists (foreign tourist) has increased and has been around 4.9 million in 2007, while outbound tourists (Indian going on foreign tour) have been around 8.3 million in 2006 (ITOPC, 2008). In the outbound tourists segment lot of travel has been business travel while others have been leisure travel segment. Since both the inbound and outbound tourism has increased, the need for quality hotels in In dia has been rising. India being a country of wide culture and composite of world row heritage is the main fountain for its tourist attraction in the global arena.Considering the tourism in Tamilnadu, the domestic leisure travel is ground on seasonality for the tourist spots and for cities is based on full swing business travel. Beside the rise in income level of the people has been a main reason for rise of leisure tourism in Tamilnadu. But still the bulk of Star class hotels are used for business travels and Budget hotels are used for leisure travel.Inbound Tourism Statistics distant Tourists In India (Number)20012002200320042005200620072008January283750228150274215337345385977459489532088584765February262306227529262692331697369844439090498806560658 show248965225558218473293185352094391009444186509926April185338155378160941223884248416309208333945369677May151098132998141508185502225394255008267758290785June176716143100176324223122246970278370310104344526July2244321864322253592 72456307870337332377474August196517161477204940253301273856304387360089September162326151721191339226773257184297891325893October181605212191260569307447347757391399440715November209685243566290583385238423837442413510987December319271417527479411541571575148Total22827382073025272621434574773918610444716749771932660337Source Ministry of tourism, Govt.of India (ITOPC, 2008). domestic Travel StatisticsTourists Statistics Tamil Nadu categoryDomestic Tourists200442279838200543213228200658340008Source Ministry of tourism, Govt. of India (ITOPC, 2008). outbound Tourism StatisticsStatistics of Indian National Going AbroadYearNo of Outbound IndiansPercentage Change over the previos year200044155137.3200145644773.4200249402448.2200353508968.32004621280916.12005718450115.62006833961416.1Source Ministry of tourism, Govt. of India (ITOPC, 2008).The categories of hotels in India are of five segments. Those segments are Premium Luxury segments, Mid trade particle, hereditary pattern Hotels, Resorts, Budget Hotels, and Un sort Hotels.Premium and Luxury shareThis segment is based on major players in the local and International market. The whole time slot in this segment comprises of 5 -star and 5 -star deluxe hotels which mainly serves business travellers and upmarket foreign travellers. These hotels fall into luxury segment and they offer a high quality and higher range of services. They tariffs and other service cost in considered to be expensive and is situated only in metro cities and major tourist spots. This segment alone contributed 30% of total number of rooms back in 2004. When comparing with Tamilnadus context, it contributes 15 % of total number of rooms which is nearly half to the national segment ratio (Bhatia, 2004).Mid-Market SegmentThis segment is based on local players in the market and dispirited chain of hotels within the domestic market. The 3star and 4star hotels falls under this segment, and they mainly cater to the average domestic and foreign l eisure traveller, along with domestic business travellers as they nearly offer all the services as of reward hotels under low cost than the premium as the tax dower for this sector is less than that of luxury and premium segments. This segment contributes 30% of the total number of rooms in Chennai, Coimbatore, and Madurai major cities in Tamilnadu (HVS International, 2009).Budget SegmentThis segment has emerged due to liberalisation in economy and is been mainly catered to sum class people with higher disposable income. This class comprises of 1 star and 2 star hotel. This type of hotels holds the major percentage of existence in the state of Tamilnadu. This segment caters for domestic travellers who prefer reasonably priced accommodation with check luxury, and offers special seasonal discounts for domestic tourist packages. Low cost and right(a) service is the main forefront of this hotel segment.Heritage SegmentThis segment is classified in the recent years to denote the ho tels in palaces, castles, forts, and other buildings which were constructed in advance 1950. These traditional structures symbolise the ambience and luxury lifestyle of the past booming era (Ghosh, 2005). They have come to limelight with their lesser initial capital and for mirroring the traditional lifestyle of the past. These values have proved to be a major point of attraction and business for these hotels. While considering the context of Tamilnadu there are more than 10 hotels in existence (HHIMT, 2006).Unclassified or Other SegmentsThis segment of hotels and motels are spread out throughout the country. If taken into account these contribute 50% of rooms occupancy in India. Their main point of sales income is low pricing policy. However some of them came into intumescence on account due to increase in tourist congestion in major cities and tourist spots. These hotels officially now contribute 19% of the Industry.Performance measures in hotel managementThe performance of h otel property and chains can be measured in several ways. The simple method would be evaluating room rates and occupancy ratios. Another important measure with regards to occupancy rates is the Average Daily Room Rate (ARR). This is manipulated by dividing the revenue enhancement with the total number of rooms occupied. This occupancy ratio is also comparatively important as that of ARR because it is an important indicator of profitability. The rate of occupancy is manipulated with number of rooms occupied by number of rooms available (Sola et.al, 1997, p.85).Market concept of HotelsAs mentioned by many authors, Hotel is an commercial hospitality initiation which offers services and loads of facilities to its customers on mixed cost factors aspects (Ghosh, 2005).FacilitiesService placementPriceImage(Source Ghosh, 2005, p.131)All the five factors denoted in the factor are the terms related to hotel marketing concept. The term Location refers the geographic stead of the hotel wheth er is the hotel is present in a city, rural area, or a tourist spot etc. It denotes to attractive features of the form, accessibility to the hotel, convenience factor, along with the surroundings. The term facilities refers to classy rooms, restaurants, leisure features, bars, banquet halls and recreation facilities (Weissinger, 2000).. The term Service refers to the quality of the facilities offered and the extent to which it reaches to the consumers, availability of that service offered (Hoque, 2002).Price factor implies the value prone to its facilities and services offered to customers. The Image is a vital marketing factor as it portrays the hotel in the market and to the customers. This image is obtained from the above mentioned factors. For to maintain this factor all other factor have to be streamlined (Ghosh, 2005).Performance of Hotels in TamilnaduThe main focus the occupancy patterns of hotels two major metropolitan cities and two major tourist spots of Tamilnadu.The two major cities to be discussed are Chennai and Coimbatore and the two major tourist spots are Ootacamund and Kodaikanal.The percentage of occupancy rate in Chennai has risen by 12% in the current 2009 -2010 financial year after a decline in 2008 09 by 13% due to global recession. While in the case of Coimbatore, though the industry was also affected by recession in 2009, it dropped only by 5 % considering its growth ratio for the past decade with an average rise of 6% per year. The industry has also risen in current 2009 10 financial year by 10%. Both the cities are expected to have 16 new hotels, commercial serviced apartments for MNCs over the coterminous 5 years. Both the cities have become an IT hub in the southern part o India. Chennai is amongst the seven major metropolitan cities, while Coimbatore and Ootacamund has become one amongst the twelve other major cities in the Hospitality and Industrial growth list (HVSFHRAI survey, 2009).The performance of Hotel Industry in Chen nai city saw a decline in first half of 2009 as there was cost cutting activities taken by IT ITeS sectors and other business sectors along with decline in travel and entertainment. Though there was decline the city had the inception of two new star hotel property Taj Mount road gamboge Tree. The industry by the end of 2009 saw a rise in occupancies as the businesses boomed again and many new projects associated with travel and occupancy was announced. As mentioned earlier Chennai has always had a steady rise in Hotel Industry (HVSFHRAI survey, 2009).The performance of Hotel Industry in Coimbatore has been growing with steady Growth phase and Demand. Coimbatore is popularly known as Manchester of the south. The city itself is based on diversify economy consisting auto ancillary sector, textile sector, textile manufacturing and majorly in the past 6 years service sector has boomed in the city. The lower cost business operations have raised the city to prominence as a business p olish in Tamilnadu and now across India. The occupancy rate has risen from 64 % in 2005 to 79% in 2009 though had a drop to 72% in the start of 2009 due to global recession. Coimbatore also has close proximity to Nligiris which implies that the demand for the Leisure segment will rise in the next few years. The current Star rated occupancy of 350 rooms is expected to rise to nearly 875 rooms which add blackjack to the need of upgrade with the performance of hotels in a short term (Times, 2009).The existence of Ootacamund or in short term called Ooty, one of the major tourist destinations in India and has clearly marked as one amongst the other twelve major cities in India with its tourism Industrial growth. It is one of the primary hills station in South India. It is easily accessible via road and railways from Coimbatore, Chennai Bangalore. Ooty has contain its name as a Hills station tourist destination and hence many innovative and eco friendly hotels have come up near to the wildlife destinations. It is surrounded by natural sceneries, lakes, wildlife sanctuaries and many others. Domestic travel to this destination is being increase at a higher pace (Kumar, 2010). The hotel occupancy has increased from 44% in 2005 to 59% in 2009 (HVSFHRAI survey, 2009).Kodaikanal is another major hill station in Tamilnadu. Tough Kodaikanal is categorised under developing urban areas, it still remains untouched by urban development and dense population as that of Ooty. It has got access from all the major cities in Tamilnadu and from Kerala as well. Though the number of Hotels in Kodaikanal is less than that of Ooty, they offer iunparelled experience in terms of comfort and services. It is surrounded by hills, huge lake, and number of parks, museums, and heritage places. There are two five star hotels, three four star hotels, more than 10 three star hotels in Kodaikanal. It is an intense developing tourist spot in India (Agarwal, 2007)Principle factors for growth of Hot els in India (Tamilnadu)The factors which influence the occupancy rate of Hotels , and their average room cost across the country are Domestic travel, International Arrivals, Health and aesculapian checkup tourism, Business travel, MICE Meetings. Incentives. Conferences. Exhibitons.The Domestic travel is the vast growing market in India. Domestic Guests market is considered to be the most important segment for Indian hotel Industry, which accounted to 71.7 % of all guests in 2004- 05 (HVS, 2006).The effective guidance role for domestic travel is played by Budget airline, or low cost carriers. These have played a vital role in short business trips, short visits etc. Due to this a person from Chennai can go to Delhi in the morning, do his work over there and come back in the same day evening. This has made peoples work more at rest and easier than before, initially the cost factor played a vital role in choosing airlines. They were only used by higher business people as the ticket fare was costlier but then after the opening budget airlines in the market the frequency of air travel and the number of domestic travellers has been increasing from the initial entry period. The number of destinations has increased due to rising air trafiic. So connectivity to various destinations from one single destination is now very much possible. Now all the major mystical carriers, government carriers, and other small players in the market deal with budget airlines. They are Jetlite, Jetkonnect, Spice Jet, Simplifly deccan, Air India Domestic formerly Indian Airlines, Go air, Paramount, Indigo and other new players which are in the queue for rear (Goyal, 2009).Tourists Statistics Tamil NaduYearDomestic Tourists200442279838200543213228200658340008Source Ministry of tourism, Govt. of India (ITOPC, 2008)International arrivals have been increasing steadily as the Business travels due to MNCs, leisure trips, and other trips have increased. Many Private and Government Indian c arriers are now been operated to various destinations in the world which plays a vital role for the rise in International arrivals. Governments tourism scheme Incredible India is the most successful plan implemented by tourism ministry. This campaign has brought in many foreigners. This particular scheme has offered many advantages for tour packages. Hence the tour operators are doing truculent marketing and attractive package offers to attract foreign tourists to India. The table below suggest that year 2008 has attracted around 5.4 million tourists from around the world, which is 5.6% more than previous year. The estimated foreign exchange earnings generated in the year 2008 was 50730 crores which are 14.4 % more than that of the previous year. The foreign exchange earning in terms of US dollars was 11747 US million$ which is 9.3% rise than the previous year. Hence the rate of tourists arrival and the income has increased which in turn has resulted in growth of Indian hotel indu stry. In conformation to an official review the impressive inflow is one of the main reason for the rise in airline passengers, which in turn as the result of intensive advertising campaign done by the Ministry of tourism (Travel Tourism, 2005).YearForeignTouristsArrivals(in nos.)PercentageChange Over introductory YearEstimated Foreign Exchange Earnings (Rs. In Crore)Percentage of Change Over Previous YearEstimated ForeignExchange(in Million US$)Percentage Over Previous Year1999248192812951-3009200026493786.71562620.6346015.020012537282-4.215083-3.53198-7.620022384364-6.015064-0.13103-3.02003272621414.32072937.6446343.82004345747726.82794434.8617038.22005391861013.33312318.5749321.42006444716713.53902517.8863415.22007508150414.34436013.71072924.3200853669665.65073014.4117479.3Source Ministry Of Tourism India (2009).Medical tourism has now become one of the developing concepts whereby people from foreign countries come to India for medical treatment and relaxation. Major surgery t reatments include Heart surgery, Plastic surgery, reassign surgery, Cosmetic surgery and Dental care. Patients from all