The Importance of Hotels in Tourism Industry

The Importance of Hotels in Tourism Industry


Hotels are definitely one of the fastest-growing sectors in the tourism sector and it is truly justified as accommodation is the key part in the development of any country or region's tourism. Tourism and Hotel Industry always go hand in hand and the presence of enough hotels also adds value and quite a lot of factors and punches it within the region's economy. The Existence of a Hotel isn't enough to single-handedly boost a region's tourism but they also give out a symptom of health tourism.   

Some Facts & Numbers

The growing tourism industry and hospitality industry has emerged as one of the prime growth factors and Hotel business adds much value to it. Its culture and heritage have also added much value to the Tourism sector in India. It has tremendous potential considering its rich variety in ecology, terrains and scenic wonders spread across the country. Tourism is also a potentially large employment opportunity and Hotels are a major part of this Hospitality Sector. During 2018, FEEs from tourism increased by 4.70 percent* year-on-year to US$ 28.59 billion. FEEs during January 2019 were US$ 2.55 billion.

A Significant source of foreign exchange for any Tourism

The Indian tourism and hotel industry are key drivers of growth and development. The Scope for Hotel Industry can be at stake due to the current outburst of cheap alternatives and other stay options available but hotels are still a big player in the tourism industry of any state or country. Both Tourism and hotel industry plays a key role in supporting each other, fulfilling their combined requirements. Their relationship in this Tourism industry is definitely vital and so both are incomplete and both of those two industries cannot become a success without each other.

Some Recent Hotels Sector Analysis

Let us explain to you some of the recent developments and emphasis of the Hotel Industry in the Tourism sector of India. It has not just enhanced the tourism sector but also created employment opportunities, foreign money transactions, making India the third-largest foreign exchange earner and the Industry with the help of hotels are just booming. Here is some new advancement in this business!!

  • Hotel and its efforts to Tourism have now created a significant boom in India. This growing economy has become an employment generator, a significant source of foreign exchange for the country. Tourism in India is the amazingly the third-largest foreign money exchange of the country. The booming tourism industry has had a cascading effect on the hospitality sector due to its increase in occupancy rates and average room prices
  • World travel and tourism Council declared that India as one of the hottest tourist destinations from the year 2009 and will continue to be one of the favorite tourist destinations. Further, the hotel industry has also flourished due to this and vice versa. Similarly, the Hotels also add some spark into the Tourism industry as well.
  • The tourism and hotel industry sector are among the top 10 sectors in India also attracting the highest Foreign Investment (FDI) and World Tourism from around the world. The hotel and tourism sector attracted around US$ 10.6 billion FDI from 2000 to 2017.
  • The Indian hotel industry has been actively contributing to the nation's economic growth. This trend is expected to grow gradually and in turn boost or add meaning to the tourism of any place.  Hotels and its Industry are clearly helping the domestic economy towards improving, the domestic travel volume.


In the long term, the demand-and-supply gap between the Hotelier and Tourism industry in India and there is an urgent need for more hotels as time goes by. The tourists are naturally falling shortage of available hotels and the need for standard budget hotels are a must. There is now an urgent need for budget and mid-market hotels in India that adds more budget stay options for all kinds of tourists and also add value to the countries Tourism sector.

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