Academic journal article Political Economy Journal of India

Employment Trends in Hospitality Industry

Academic journal article Political Economy Journal of India

Employment Trends in Hospitality Industry

Article excerpt


Over the last decade and a half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific. The Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fueled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry.

The increase in the need for accommodation has hugely increased the demands for hotels which in turn has boosted the growth of the hospitality sector in India especially that of hotel industry. Due to such a huge potential available in this segment, several global hotel chains like the Hilton, Accor, Marriott International, Berggren Hotels, Cabana Hotels, Premier Travel Inn (PTI), Inter Continental Hotels group and Hampshire among others have all announced major investment plans for the country.

Hotels and Restaurants is one of the important sectors in the unorganized segments of non-agricultural economy in India. The Hotel Industry as a whole had 43675 crore (1.5 Percent) of the contribution in the gross domestic product at constant prices (1999-2000) during 2006-07. Hotel sector form one of the important segments of tourism industry with highest potential for employment generation and foreign exchange earnings. Foreign Exchange Earning (FEE) from tourism in India was Rs 44360 and Rs.50730 crore in 2007 and 2008 respectively. FEE from tourism grew by 14.4 percent in 2008 as compared to 2007. The Government's move to declare hotel and tourism industry as a high priority sector with a provision for 100 per cent foreign direct investment (FDI) has also provided a further impetus in attracting investments in to this industry. As a follow up of Economic Censuses, Enterprise surveys are being conducted to get important information about the structure of this industry in the un-organized sector. An attempt has been made to analyze the trends in the number of enterprises and employment in the Hotels and Restaurants in the un-organized sector of economy during the period from 1983-84 to 2006-07. We attempt to make projection of employment during the period 2009-10 to 2014-015. Besides this, it is proposed to study some financial aspects like fixed assets, outstanding loan, interest, emoluments and gross value added at constant price 1999-2000.

Data: This paper is based on the data collected through the schedule (Sch.2.42) pertaining to hotels and restaurants sector of Enterprise Surveys 1983-84 and 1993-94 which were conducted as a follow up of Economic Censuses 1980 and 1990 respectively and schedule (such 2.345) belonging to survey on the unorganized enterprises service sector conducted during 2001-02 and 2006-07 as a follow up of Economic Census 1998.

All the four the Surveys were envisaged to collect the detailed information on the nature of Activities, Employment, Emoluments, Expenditure, Receipts, Inventory of Fixed assets, Outstanding loan, Change in stocks, Interest, Rent on fixed assets, etc. The Scope of the surveys included both the Establishments (i.e. those Enterprises which engaged at least one hired worker on fairly regular basis) and Own Account Enterprises (OAEs) (i. e those enterprises which are run without engaging any hired worker on regular basis). It may be worth mentioning that for international comparison, establishment are synonymous to OAEs and establishment with hired worker in place of establishment.

National Sample Survey Organization is an apex body of the govt. …

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