Indian Hospitality and catering industry
The hotels, catering and tourism sector is one of the fastest growing sectors of the global economy. Tourism is becoming a significant industry in India ranking as third largest foreign exchange earner of the country. The tourism industry has had a cascading effect on the hospitality sector thereby increasing the occupancy ratios and average room rates.
The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct Investment (FDI). The hotel industry in India thrives largely due to the growth in tourism and travel. Uneven increase in both domestic and foreign tourists not been supported with equal number of rooms is a latent source of opportunity for growth.
The sector’s total GDP contribution is expected to rise from Rs. 28,491.8 billion (US$ 424.5 billion) to 10% in 2027. International hotel chains are increasing their presence in the country, as estimated to account for about 47% share in the Tourism & Hospitality sector of India by 2020 & 50% by 2022. This has made the competition intense in metros, slowly picking up in tier-2 and tier-3 cities.
During the period April 2000-June 2018, the hotel and tourism sector attracted around US$ 11.39 billion of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP).
The Indian hospitality industry has been instrumental in contributing to economic growth. The growth rate in room demand (about 6%) has been consistently outpacing the supply (about 3%) growth in India for the past few years. The Union Cabinet has approved a MoU between India and South Africa, aimed at expanding bilateral cooperation in the tourism sector, establishing exchange programmes and increasing investments in the tourism and hospitality sector.
The net worth of Indian restaurant industry is estimated as Rs.75,000 crore. The unorganized segment’s share in the Food Services market is projected to fall to 57% in 2022 while the organized market is projected to grow, at a CAGR of 16%, to reach INR 2,37,000 crore by 2022 gaining a share of 40%. QSR is operational with a growth rate of 14% CAGR (FY2017-2022).
As per the urgent need for budget and mid-market hotels in the country, various domestic and international brands have made significant inroads into this space and more are expected to follow as the potential for this segment of hotels becomes more obvious. As per a report by ICRA, the revenue growth for the Indian hotel industry is expected to improve to 6-7% in FY18.
Indian Food Industry
India's food processing industry growing 8.4% annually ranks fifth in world of exports, production and consumption. The Value addition of the food processing sector as a share of GDP manufacturing was 9.8% in the last financial year. Investment in food processing sector had grown by 20.1%. The Indian food industry accounts for 32% of the country's total food market, one of the largest industries in India.
Revenue for the restaurant industry was estimated at $799 billion at the end of 2017, up by 4.3%. The Indian Food processing Industry has grown by 11% in the last decade and is expected to reach $480 billion by 2020.
Several initiatives have been planned by the Government of India to give a boost to the tourism and hospitality sector of India. The Govt. is functioning to achieve 1% share in world's international tourist arrivals by 2020 and 2% share by 2025. Realizing the country's potential several steps have been launched to make India a global tourism hub. Programmes such as “Make in India” and the “Smart Cities” initiative have highlighted the support the skill development and investments in Hospitality and Tourism.
Bangalore - A Booming Capital for the Hospitality & Catering
Knowing the fact that Bangalore is emerging as the fastest growing metropolis and is turning out as a major economic hub, Karnataka state is able to attract long term investments from multinationals. The moderate climate of Bangalore throughout the year keeps on attracting tourism and hospitality prospects while increasing its contribution in the economy.
Bangalore is among the 10 largest hospitality markets with 14,380 rooms followed by Mumbai with 13,700 rooms. As stated, it is expected that the IT capital will see an inventory increase in the occupancy in the city and also in the catering industry.
Considering the scenario and receiving the overwhelming response from food and hospitality sector, Media today group is glad to announce the 2nd edition of 'Hotel, Restaurant & Catering Expo' (HRC Expo 2019), an International exhibition on Hotel, Restaurant and Catering products, services, Bakery equipments and technology from 30th Aug - 1st Sep 2019 at BIEC, Bangalore.
To add more value, we are also organizing concurrent event - 11th edition of 'India Foodex 2019' - International Exhibition on Food Products, Retailing, Processing & Packaging Machinery and Allied Industries along with India Foodex Culinary Challenge as was done last year.
The previous edition of Foodex India 2018 attracted participation from 30 countries, influencing more than 31,000 trade visitors and also acquired tremendous support from all the verticals of the food industry. This initiative was a grand success. Therefore, we will continue this exercise during HRC Expo 2019 and contestants will be suitable rewarded.
Media Today Group welcomes all the delegates of the trade associations to HRC Expo 2019.