012 Hra - 2008

`Confidential
Study to assess Hotel Rooms /Accommodation in 50 Major Tourist centers & Metro cities in India
Final Report Ministry of Tourism Government of India

By
ACNielsen ORG-MARG Pvt. Ltd

NEW DELHI
February 2008
ACNielsen ORG-MARG Pvt. Ltd.
CONTENTS
Chapter 1 - Introduction 1.1. Overview 1.2. The Need for the Study 1.3. Terms of Reference 1.4. Study Objective 1.5. Deliverables 1.6. Locations covered 1.7. Methodology adopted in conducting the study 1.7.1. Definitions Followed 1.7.2. Assessment of supply scenario of accommodation units across 54 locations 1.7.3. Parameters governing demand scenario collating feedback from domestic and foreign tourists 1.7.4. Methodology adopted for demand calculation (average and peak) at a particular location 1.7.5. Arrival at projection factors for 2007-2015 1.7.6. Estimating demand supply scenario at all India level 1.7.7 Estimation of Foreign Tourist Arrivals 2010 &2015 Chapter 2 - Current Supply Scenario in earmarked locations 2.1. Overview 2.2. Status of Accommodation Units India at a glance 2.2.1. No of Hotels in different categories 2.2.2. No. of Rooms by category of Hotels 2.2.3. Average Tariff / Hotel Category 2.3. Status of Accommodation Units North Zone at a glance 2.3.1. No of Hotels in different categories North Zone 2.3.2. No. of Rooms by category of Hotels - North Zone 2.3.3. Average Tariff / Hotel Category North Zone 2.4. Status of Accommodation Units East Zone at a glance 2.4.1. No of Hotels in different categories East Zone 2.4.2. No. of Rooms by category of Hotels - East Zone 2.4.3. Average Tariff / Hotel Category East Zone 2.5. Status of Accommodation Units West Zone at a glance 2.5.1. No of Hotels in different categories West Zone 2.5.2. No. of Rooms by category of Hotels - West Zone 2.5.3. Average Tariff / Hotel Category West Zone 2.6. Status of Accommodation Units South Zone at a glance 2.6.1. No of Hotels in different categories South Zone 2.6.2. No. of Rooms by category of Hotels - South Zone 2.6.3. Average Tariff / Hotel Category South Zone 2.7. Planned Expansion Plan 1 1 1 1 2 2 3 4 4 7 9 13 24 28 29 31 31 31 31 32 32 33 33 34 35 35 36 36 36 37 38 38 39 39 40 40 41 42
2.8.
Issues & Bottlenecks
Chapter 3 - Current Demand Trends for Accommodation Units 3.1. Overview 3.2. Average demand scenario across 54 locations in 2006 3.3. Average demand for Accommodation unit from domestic and foreign tourists across 54 locations in the year 2006 3.4. Peak demand scenario across 54 locations for the year 2006 3.5. All India Scenario in 2006 Chapter 4 Future Trends in Demand 4.1. Overview 4.2. Projected tourist traffic arrivals to 54 locations in the year 2010 considering current growth rate 4.3. Projected demand of rooms in 54 locations in the year 2010 considering current growth rate Scenario 1 4.4. Projected tourist traffic arrivals to 54 locations in the year 2015 considering current growth rate 4.5. Projected demand of rooms in 54 locations in the year 2015 - considering current growth rate Scenario 1 4.6. Projected demand of rooms in 54 locations in the year 2010 - considering target foreign tourist arrivals Scenario 2 4.7 Projected demand of rooms in 54 locations in the year 2015 - considering target foreign tourist arrivals Scenario -2 Chapter 5 - Trends in Asia Pacific Countries 5.1. Overview 5.2. Available Accommodation facilities 5.3. Tariffs offered by categories in different countries Chapter 6 - Conclusions 6.1 Overview 6.2. Conclusions
45 48 48 48 50 53 55 56 56 56 58 60 61 63 65 69 69 69 70 72 72 72
LIST OF ANNEXURES
A1 A2 A3 A4 No of tourists Interviewed during Primary Survey Sample Check of Licensed Units State Growth rate on YOY basis Projected demand considering 10 mn Foreign Tourists in 2010 74 76 78 81
LIST OF TABLES
Table 1.1: Locations covered during primary survey Table 1.2: Findings from the primary survey Domestic Tourists Table 1.3: Findings from the primary survey Foreign Tourists Table 1.4: Domestic and Foreign tourist visits to identified locations Table 1.5: Domestic and Foreign tourist visits to different States 2002-06 Table 1.6: Cumulative Annual Growth Rate 2002 - 05/2002 06 Table 1.7: Growth rate used for 2006 projections Table 1.8: Visitors to locations 2006 Table 1.9: Calculation Methodology adopted in arriving at Demand An example for Pune Table 1.10: Centre wise refusal rates in different category of Hotels Table 1.11: Projection factors used for forecasting foreign tourist visits for 2007-2015 period Table 1.12: Moderation of Projection factors Steps taken Table 1.13: Arriving at Blowing up factor Table 1.14: Estimating Foreign Tourist Arrivals Table 2.1: Category wise no. of Hotels in 54 Locations Table 2.2: Category wise no. of Hotels in North Zone Table 2.3: Category wise no. of Hotels in North Zone Table 2.4 : Category wise break-up of rooms in north zone Table 2.5: Category wise no. of Hotels in East Zone Table 2.6: Category wise no. of Hotels in East Zone Table 2.7: Category wise break-up of rooms in East zone Table 2.8: Category wise no. of Hotels in West Zone Table 2.9: Category wise no. of Hotels in West Zone Table 2.10: Category wise no. of Rooms in West Zone Table 2.11: Category wise no. of Hotels in South Zone Table 2.12: Category wise no. of Hotels in South Zone Table 2.13: Category wise break-up of rooms in south zone Table 2.14: Major Up coming Projects Table 3.1: Average Demand in 54 Locations Table 3.2: Average Demand in 54 Locations from domestic tourists Table 3.3: Average Demand in 54 Locations from Foreign tourists Table 3.4: Peak Demand in 54 locations Table 3.5: 54 Locations and All India At a glance Table 4.1: Visits in 54 Locations At a glance Table 4.2: Projected demand in 2010 Scenario 1 Table 4.3 : Visits to 54 Locations 2015 At a glance Table 4.4: Projected demand of rooms in 2015 Scenario 1 Table 4.5: Projected demand of rooms in 2010 Scenario 2 Table 4.6: Projected demand of rooms in 2015 Scenario 2 Table 4.7: Projected demand of rooms in 2010 and 2015 Table 4.8: Projected demand of rooms in 2010 and 2015 Scenario 2 Table 5.1: Tariffs offered by Asia Pacific Countries in different category of Hotels 3 10 11 13 15 17 18 19 21 22 25 26 27 29 31 33 33 34 35 36 36 37 38 38 39 39 40 43 48 50 52 53 55 56 58 60 61 63 65 67 68 70
LIST OF FIGURES
Fig. 2.1: No. of Rooms in different categories of Hotels Fig. 2.2: Category wise tariff across Hotels Fig. 2.3: Category wise tariff across Hotels North Zone Fig. 2.4: Category wise tariff across Hotels East Zone Fig. 2.5: Category wise tariff across Hotels West Zone Fig. 2.6: Category wise tariff across Hotels South Zone Fig. 5.1: Inventory of rooms Asia Pacific Vis a vis India Fig. 5.2: Tariffs Asia Pacific Vis a vis India 32 32 35 37 38 41 70 71
Chapter 1 Introduction
1.1. Overview This chapter presents an overview on the background on which the study was conducted. The need that had for conducting the study, the objective, scope of work and deliverables for which the study was conducted. In simpler words, this chapter presents the background for the study The Need for the Study The year 2004-05 saw tourism emerging as one of the major sectors for growth of Indian economy, with the total earnings from the tourism sector reaching US$4810 Mn. As per WTTC estimates, the contribution of tourism in GDP reached 4.9%. Similarly during the last year, tourism industry registered a growth rate of 24% in foreign tourist arrivals, which has been the highest in last 10 years. This was achieved against a worldwide trend of decline for the period under consideration. Witnessing the ensuing boom in the foreign as well as domestic tourist arrivals, the Ministry of Tourism in particular as well as different State Tourism Departments have started realizing the potential and have started investing in tourism projects as well as products. Secondly and most importantly for India is to gear itself up for the upcoming Commonwealth games to be hosted by India in 2010 by which time the country has to be prepared in terms of additional and good surfaced road lengths, transport infrastructure, required airports and air strips, hygienic and clean environment, water and sanitation arrangements, security , hygienic and fresh food & beverages and at the same time the most crucial being required number of rooms for the purpose of accommodation to the domestic as well as international tourists. As an essential pre-requisite, focus has primarily shifted to improvement of tourist infrastructure at important destinations/ circuits, particularly with regard to improvement of hotel infrastructure. Keeping this in mind Ministry of Tourism, Government of India, had entrusted ACNielsen ORG-MARG to assess the demand supply gap of rooms in the major Metro cities and 50 prime tourist destinations of India. 1.3. Terms of Reference The broad terms of reference as laid down by the Ministry of Tourism are as indicated below:Adequacy of hotel room accommodation in India, existing and under development, both in the public and private sector for dealing with the current levels of tourist traffic with an estimation of oversupply/ shortfall in hotel room capacity in Metro cities and in 50 major tourism centres Estimated future requirements of hotel accommodation, category wise and destination wise, commensurate with the future needs of foreign and domestic tourists in 2010 and 2015, considering two scenarios i.e. one based on the existing growth of tourist traffic trends and second with a target of 15 million foreign tourists by 2010 and 25 million foreign tourists by 2015 1
1.2.
Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India
Identification of constraints and bottlenecks impeding the growth of hotel accommodation with specific reference to the Central, State and local laws, rules and regulations hampering such development and making suitable recommendations for augmenting the inventory of hotel rooms in key destinations in the country and also pro active policies in the area of allotment of land, changes in land use etc. Comparative analysis of availability of approved hotel accommodation in India vis a vis the hotel accommodation of comparable standards in competing tourism destination countries in the region viz. Indonesia, Malaysia, Thailand, Philippines, Singapore and China Review of tariff structures of hotel accommodation of comparable categories in India and competing tourism destination countries Emerging tourism trends in the Asia Pacific region and its impact on demand for rooms in India 1.4. Study Objective The objective of the aforesaid study was to assess the requirement of hotel rooms/ accommodation in the Metro Cities and 50 major tourist centers in India, identify constraints / impediments (if any) and suggest recommendations to enable Indian inventory of hotels one of the best in the Asia pacific region. Deliverables To attain the aforesaid objective, the deliverables were as indicated below:Earmarking and freezing top 50 tourist destinations based on the domestic as well as foreign tourist arrivals for the last 3 years. Preparation of list of hotels of different categories (approved & unapproved) as well as other accommodation units available in that particular destination / center across different identified centers. Thus arrive at the existing accommodation capacities currently available. Assessment of proposed / likely new projects (announced or under construction) of various groups/chains, public / private as well as other accommodation units in the earmarked locations and its proposed date of completion. Estimation of future capacity requirement in accommodation - destination wise as well as category wise based on :Existing growth of tourist traffic trends With a target of 15 million foreign tourists by 2010 and 25 million by 2015 Demand supply gap of accommodation units of different categories in the earmarked locations, keeping in mind the considerations as indicated above Identification of constraints and bottlenecks hindering growth of hotel accommodation/other accommodation units and how to solve the same in specific locations with particular reference to Central policy State rules and regulations 2
1.5.
Land availability & allotment Land use patterns Local laws & bylaws Preparation of suitable recommendations for augmenting inventory of hotel rooms in key destinations in the country with focus on pro active policies and framework. Comparative review of tariff rates across different categories and approved hotel accommodation as well as unapproved in India vis a vis other Asia pacific countries like Indonesia, Malaysia, Thailand, Philippines, Singapore as well as China from available sources. Comparative depiction of emerging tourism trends in the Asia pacific countries vis a vis India Comparative accommodation capacities in different categories in the Asia pacific countries 1.6. Locations covered The locations covered during the study have been indicated in the Table below:Table 1.1: Locations covered during primary survey
North Allahabad Manali Dehradun Mussourie Nainital Mathura Haridwar- Rishikesh Amritsar East Kolkata Puri - Bhubaneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/ Bodhgaya
Delhi Jammu- Katra Srinagar Varanasi Agra Shimla Lucknow
South Chennai Madurai Bangalore Hampi Hyderabad Calicut Mysore Ponndicherry Cochin Vizag Ooty Vijaywada Trichy Kanyakumari Thiruvanathapuram/ Kovalam
Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar
West Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Jaipur
1.7.
Methodology adopted in conducting the study The methodology adopted at various stages in conducting the study has been elaborated in the ensuing paragraphs. The study was carried out combining data from secondary (wherein information was procured from various published information) as well as primary sources (wherein face to face interview as well as e mail communications were carried out with the identified respondent categories). In the secondary research, review of published information (from articles, online sources, books) was undertaken. The aim was to find out information about prime chain hotels in India and in the Asia Pacific Region. Additionally, Ministry of Tourism, Tourism Department of the State Governments (in which 54 locations fell) as well as in house studies (carried out for Ministry of Tourism titled Collection of Domestic Tourism Statistics for the State of Rajasthan, Uttaranchal, Uttar Pradesh, Orissa and Karnataka for the year 2005) were tapped to churn requisite information (elaborated below) In primary research, 4157 accommodation units, 54 civic bodies, Federation of Hotel and Restaurants Association of India, 5 Tourism Boards of Asia Pacific Countries (Indonesia, Phillipines, Thailand, Singapore and Malaysia) and 32525 Tourists (Both Domestic as well as Foreign). The location wise no. of tourists interviewed has been provided in the Annexure. In addition to this, Ministry of Tourism officials at the Centre and at the regional level were also contacted. The primary survey was carried out in between September 2006 and November 2006.
1.7.1.
Definitions Followed The Hotel industry in India can be classified into 3 major types:Starred - Hotels which have acquired classification from Ministry of Tourism under the different star categories viz. 1 Star, 2 Star, 3 Star, 4 Star, 5 Star, 5 Star Deluxe, Heritage, Heritage Classic, Heritage Grand. Approved (Awaiting Classification) Hotels - Hotels which have acquired approval from Ministry of Tourism but not classified into any star categories Licensed Units - Hotels/Establishments which have acquired approval/license from local municipal authorities/police license to conduct boarding and lodging facilities NOT including Paying Guest Accommodation, Dharmashalas, Lodges, Dormitories
The definitions that have been followed in this report are elucidated below and illustrated in the next page:Luxury - Hotels having Heritage classification and those which have classification of 4 Star, 5 Star and 5 Star Deluxe has been defined as a Luxury accommodation unit Budget - Hotels having classification between 1 Star 3 Star has been defined as a Budget accommodation unit. Others Includes approved (awaiting classification) as well as licensed units indicated above. The aforesaid definitions have been followed in describing current and future demand supply scenario.
Hotel Industry in India Starred Hotels

Heritage Hotels Heritage Star Hotels 1 Star
Approved (Awaiting Classification) Hotels
Licensed Hotels
Heritage Classic
2 Star
Heritage Grand
3 Star
Luxury
4 Star
Budget Others
5 Star
5 Star Deluxe
1.7.2.
Assessment of supply scenario of accommodation units across 54 locations A dual approach was taken in order to arrive at the total supply in the 54 locations. For the Classified Units List of 4 Star, 5 Star and 5 Star Deluxe as well as Heritage Hotels were collected from Ministry of Tourism. Following this, The Regional Directors of each zone were contacted to generate comprehensive list of 1 star, 2 star as well as 3 star hotels in the respective zones. The data so collected was then cross checked from FHRAI, Regional Association, Local Association (in a particular town) and in case of non- functional unit, the same was deleted from the list. A pictorial depiction of the entire process has been indicated below. Each of the classified units were covered in the primary survey.
Approach for Classified Units
Ministry of Tourism For 4 Star, 5 Star, 5Star Deluxe, Heritage
Regional Directors - MOT North, East, West, South For 1 Star to 3 Star Hotels
Local Association in a town
Regional Association
FHRAI
Cross Check the data collected incorporate deletions (if any)
For the Approved/ Licensed Units A separate approach was taken for the Approved as well as the Licensed units. The Department of Health of respective Municipalities/ Municipal Board/ Corporation was approached to begin with. Following this, different zones of Municipality, Municipal Board was approached and no. of accommodation units and no. of rooms in each unit was collected from them. This formed the first level of stratification of the town. This was followed by visit to the Zonal Police Stations from where a list of lodging units within the zone was procured. This was followed by a 2nd Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India 7
level of stratification, in which the units were stratified on the basis of no. of rooms. A sample survey was carried out next to check whether the unit was in running condition or not. This was done for each strata. The total no. of sample checks carried out in each town has been provided in the Annexure. While carrying out sample checks, nearby business establishments were tapped to ascertain the status of the unit (whether operational / non operational) and get an idea whether any other accommodation unit was operating in the locality or not. Accordingly the requisite additions and deletions were carried out. No. of units in which sample checks have been carried out has been provided in Annexure. A pictorial depiction of the entire process has been indicated below
Approach for Approved Licensed Units
Department of Health of respective Municipalities in each town Total No. of licensed Lodging Units in Town
Different Zones of Municipality/ Municipal Board/ Corporation 1st TIER of Stratification in the Town
Zonal Police Stations List of Lodging Units in each Zone 2

nd
TIER Stratification based on no. of rooms in the unit Carry out sample survey in each category
Discuss with nearby establishments regarding status of the unit as well as any other unit that may be operational in the area and carry out necessary additions/ deletions
1.7.3.
Parameters governing demand scenario collating feedback from domestic and foreign tourists The feedback from domestic and foreign tourists interviewed at different identified locations (Pls. refer Table A1 in Annexure for location wise no. of tourist interviews) were helpful in arriving at location wise demand figures. The interviews were carried out at the prime tourist destinations in the earmarked locations. The major parameters gathered from the tourists were as follows:Percentage of Tourists requiring accommodation in Hotels This parameter was gauged from the response received from the query put forward to the tourist, asking him/ her as to where he is staying in the town:- Whether in an accommodation unit or along with friends & relatives. The tourists availing accommodation in an accommodation unit was further queried to get know-how of the preferences and behavior, while the interview of the respondents revealing that they were staying with friends and relatives were terminated. This indicator gave a fair idea of the total demand of rooms in the particular location. Preference of Accommodation Units The tourists were asked about the accommodation type (viz. Luxury, Budget Others) they preferred staying in (irrespective of where they had put up) at the location interviewed. The same indicator was of utmost importance in determining the demand of different category of rooms. Average No. of persons per room The tourists availing accommodation in a Hotel were asked as to how many members of their family/ group were staying in a particular room. The response was vital in calculating the actual demand of rooms. Response from all the tourists (separately for domestic & foreign) were collated and an average value was worked out for a particular location. (please refer table below for details) Average No. of bed nights per visitor at the location The tourists availing accommodation in a Hotel were asked about the no. of bed nights they are willing to spend at the accommodation unit they were staying in. This indicator was helpful in determining the demand of rooms. Usage of the aforesaid parameters in arriving at the demand in a particular location has been elaborated in 1.7.4. Location wise findings in relation to the aforesaid parameters from domestic as well as foreign tourists have been depicted in the Tables 1.2 and 1.3 respectively:-
Table 1.2: Findings from the primary survey Domestic Tourists

Locations Percentage of Domestic tourists requiring accommodation (All figures in Percentages) 51 80 90 70 75 90 70 60 95 95 95 80 70 80 70 90 80 70 90 70 70 75 70 90 80 70 75 80 70 100 95 100 70 80 70 70 70 85 90 70 85 80 70 Average Bed nights/ visitor 2.51 2.89 2.01 1.98 1.45 2.25 1.35 1.82 2.32 2.12 2.11 2.31 2.10 1.22 2.10 2.23 2.36 2.14 2.24 1.49 1.14 1.21 1.12 2.05 1.11 2.11 2.01 1.11 2.12 2.89 1.15 2.13 2.21 2.21 1.12 1.24 1.56 2.16 1.06 1.25 1.12 2.11 1.98 Average No. of persons/ room 2.01 4.12 2.11 2.75 2.55 3.21 2.10 2.75 3.31 2.62 3.15 2.49 2.78 2.25 2.25 3.55 3.25 2.30 1.50 1.80 3.12 2.78 2.09 2.60 3.48 3.22 3.00 3.28 3.17 3.62 2.70 3.36 3.18 2.70 3.40 2.40 2.26 2.46 2.05 2.78 3.81 3.41 2.81 Percentage distribution of preference of accommodation Luxury 44.45 0.00 1.22 5.87 6.85 0.00 7.21 0.00 0.00 2.12 0.00 0.00 0.00 5.15 5.06 2.12 3.25 0.00 0.00 2.35 2.04 3.11 2.16 4.01 0.00 15.20 3.02 8.16 16.10 31.21 9.14 0.00 15.87 9.18 5.23 2.39 3.15 0.00 1.05 22.01 2.06 2.05 0.00 Budget 21.35 44.87 43.62 40.12 40.23 37.85 28.65 37.79 36.87 44.15 23.84 36.15 54.21 40.31 40.25 26.15 49.85 40.25 0.00 55.71 46.23 37.15 30.23 65.15 35.12 44.21 12.14 15.21 46.12 45.12 64.12 36.94 39.15 36.02 34.95 48.91 44.87 44.26 65.12 65.32 55.81 34.65 45.78 Others 34.20 55.13 55.16 54.01 52.92 62.15 64.14 62.21 63.13 53.73 76.16 63.85 45.79 54.54 54.69 71.73 46.90 59.75 100.00 41.94 51.73 59.74 67.61 30.84 64.88 40.59 84.84 76.63 37.78 23.67 26.74 63.06 44.98 54.80 59.82 48.70 51.98 55.74 33.83 12.67 42.13 63.30 54.22 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Chennai Bangalore Hyderabad Mysore
10
Table 1.2 (Contd.): Findings from the primary survey Domestic Tourists
Locations Percentage of Domestic tourists requiring accommodation (All figures in Percentages) 70 95 85 75 74 100 100 70 70 70 70 Average Bed nights/ visitor 2.32 2.11 2.01 1.15 1.23 1.12 1.14 1.16 1.26 1.22 1.30 Average No. of persons/ room 2.71 3.62 2.38 2.60 3.02 2.01 1.61 1.21 2.14 1.65 1.21 Percentage distribution of preference of accommodation Luxury 6.12 2.97 0.00 35.84 0.00 0.00 0.00 3.90 0.00 0.00 0.00 Budget 47.85 41.25 44.75 36.84 25.78 42.81 0.00 18.12 44.64 35.12 34.78 Others 46.03 55.78 55.25 27.32 74.22 57.19 100.00 77.98 55.36 64.88 65.22 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada
The findings from the foreign tourists have been indicated below Table 1.3: Findings from the primary survey Foreign Tourists
Locations Percentage of Foreign tourists requiring accommodation (All figures in Percentages) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Average Bed nights/ visitor 3.12 2.11 1.33 2.87 3.12 3.21 2.12 2.01 3.21 2.19 1.45 3.15 1.22 1.12 2.45 3.12 2.24 1.35 1.25 1.01 1.12 1.35 1.36 2.16 2.12 Average No. of persons/ room 1.72 1.00 1.21 1.23 1.52 1.25 1.51 1.03 1.15 1.76 1.38 1.76 1.55 1.38 1.11 1.24 1.00 1.00 1.00 1.20 1.04 1.15 1.15 1.20 1.15 Percentage distribution of preference of accommodation Luxury 77.07 4.15 20.85 64.25 68.12 24.57 44.87 0.00 0.00 15.12 0.00 0.00 0.00 55.14 50.21 55.12 0.00 0.00 0.00 12.15 50.05 40.15 65.23 65.15 0.00 Budget 21.05 50.62 64.87 21.22 20.05 61.12 29.22 73.15 55.15 48.23 60.21 49.23 75.12 21.12 15.23 35.27 44.85 42.36 0.00 64.75 47.69 44.81 24.32 31.15 64.15 Others 1.88 45.23 14.28 14.53 11.83 14.31 25.91 26.85 44.85 36.65 39.79 50.77 24.88 23.74 34.56 9.61 55.15 57.64 100.00 23.10 2.26 15.04 10.45 3.70 35.85 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya
11
Table 1.3 (Contd.): Findings from the primary survey Foreign Tourists
Locations Percentage of Foreign tourists requiring accommodation (All figures in Percentages) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Average Bed nights/ visitor 2.23 1.04 1.52 1.46 3.89 1.24 3.12 3.01 3.12 3.21 3.26 1.72 1.35 2.31 2.13 2.14 2.45 2.31 3.12 3.06 3.12 2.15 2.31 2.31 2.31 2.06 2.34 2.14 2.31 Average No. of persons/ room 1.50 1.85 1.15 1.36 1.40 2.01 1.22 1.50 1.82 1.00 2.10 1.20 1.00 1.30 1.50 1.35 2.10 1.50 1.75 1.14 1.12 1.75 1.62 1.41 1.06 1.05 1.12 1.20 1.04 Percentage distribution of preference of accommodation Luxury 89.75 18.24 62.23 42.15 76.22 40.15 26.28 83.14 54.12 55.29 37.65 44.85 42.81 39.12 82.22 71.06 42.15 30.23 65.15 25.05 50.15 80.23 0.00 0.00 0.00 63.95 14.85 86.85 0.00 Budget 2.15 36.93 22.14 32.05 8.15 35.19 38.21 7.07 36.15 32.04 29.16 32.19 28.14 43.22 15.06 15.04 26.15 34.77 25.18 25.23 25.15 18.15 78.26 75.21 0.00 26.78 39.26 11.24 75.24 Others 8.10 44.83 15.63 25.80 15.63 24.66 35.51 9.79 9.73 12.67 33.19 22.96 29.05 17.66 2.72 13.90 31.70 35.00 9.67 49.72 24.70 1.62 21.74 24.79 100.00 9.27 45.89 1.91 24.76 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada
12
1.7.4.
Methodology adopted for demand calculation (average and peak) at a particular location Calculation of average demand at a particular location The sequential steps have been indicated in the ensuing paragraphs Step 1:- The no. visitors to the particular location in the year 2005 was sourced from various sources as indicated in the Table below. Table 1.4: Domestic and Foreign tourist visits to identified locations
Locations Delhi * Jammu / Katra * Srinagar # Varanasi ** Agra # Shimla # Lucknow # Allahabad ** Manali Dehradun/Mussourie ** Nainital # Mathura # Haridwar/ Rishikesh ** Amritsar # Kolkata # Puri /Bhubneshwar ** Darjeeling # Siliguri # Digha # Guwahati # Patna # Ranchi # Shillong # Gangtok # Gaya/Bodhgaya # Mumbai # Pune # Aurangabad # Ahmedabad/ Baroda # Goa Khajuraho # Ajmer/ Pushkar # Jaipur # Udaipur # Jodhpur # Jaisalmer # Indore # Visitors 2005 Domestic Foreign 2061782 1511893 7239481 44345 1679079 17606 603930 97455 1342820 117737 1757307 64752 219522 16367 413343 1897 1641007 67933 1050245 2210 530854 6666 82466 9913 7886593 19160 154202 2750 2825799 479251 2207667 27389 416395 17957 1578417 76926 2264550 79188 1157380 22450 1487940 1856 145779 3915 325428 4591 222044 9520 297155 37001 3131099 1918382 2348324 248446 313110 30460 2250901 18849 1965343 336803 145987 67211 1523600 63312 1198000 387295 566076 173804 385109 90201 177236 99439 227554 3366 Total 3573675 7283826 1696685 701385 1460557 1822059 235889 415240 1708940 1052455 537520 92379 7905753 156952 3305050 2235056 434352 1655343 2343738 1179830 1489796 149694 330019 231564 334156 5049481 2596770 343569 2269750 2302146 213198 1586912 1585295 739880 475310 276675 230920
13
Table 1.4 (Contd.): Domestic and Foreign tourist visits to identified locations
Locations Bhopal # Raipur # Chennai # Bangalore ** Hyderabad # Mysore ** Cochin # Ooty # Trichy # Thiruvananthpuram / Kovalam # Kanyakumari # Madurai # Hampi ** Calicut # Pondicherry # Vizag # Vijaywada # Total Domestic 1706658 324495 2098551 1426416 1398215 1400367 1021944 2198552 1099276 96227 1923733 1374095 118547 1546795 483441 1631391 978834 74651060 Visitors 2005 Foreign 31348 912 291354 680215 678911 39206 108773 60676 24271 6813 42474 30338 13085 12636 35519 138578 15431 8388836 Total 1738006 325407 2389905 2106631 2077126 1439573 1130717 2259228 1123547 103040 1966207 1404433 131632 1559431 518960 1769969 994265 83039896
* - Implies compilation from Statistical data of MOT # - Implies compilation from State Tourism Departments ** - Implies usage of ACNielsen ORG-MARG Study data commissioned by Ministry of Tourism titled "Collection of Domestic Tourism Statistics for the State of Uttaranchal, Rajasthan, Karnataka, Uttar Pradesh and Orissa Step 2:- From statistical compilations of Ministry of Tourism, the cumulative annual growth rates for the respective states were calculated for the period 2002 05 and 2002 06 respectively. Year on year growth rates were also calculated (Refer Tables A3 and A4 in the Annexure) to get an idea of the trends in domestic tourist visits in the States.
14
Table 1.5: Domestic and Foreign tourist visits to different States 2002-06
STATE/ U.T. Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh Chattisgarh Jharkhand West Bengal Andaman & Nicobar 2002 Domestic 60487370 4372 1953915 6860207 1325296 5735286 6426763 4958917 4570583 8678670 5568256 4903242 9802527 89633 268609 29417 14263 3289205 317904 8300190 159342 39873160 260586 10606504 71490000 1058565 313134 8844232 90629 Foreign 210310 187 6409 112873 271645 34187 85281 144383 7821 59545 232564 67319 768935 221 3146 259 657 23279 7558 428437 8566 804041 2602 45070 710000 993 2244 529366 5101 2003 Domestic 74138729 2195 2156675 6044710 1725140 7640479 5903196 5543414 5748846 11175292 5871228 5968719 11272906 92923 371953 35129 5605 3701245 1150015 12545135 179661 40213060 257331 10835241 80020000 1256407 398342 11300763 85826 Foreign 479318 123 6610 60820 314357 37534 84981 167902 24330 249908 294621 92278 986544 257 6304 279 743 25020 4589 628560 11966 901504 3196 55228 817000 1150 3223 705457 4142 2004 Domestic 89440272 4740 2288093 8097456 2085729 7748371 5399099 6345069 6881473 27194178 5972182 8619486 13392212 93476 433495 38598 10056 4125536 361568 16033896 230719 42279838 260907 11720570 88360000 1897200 461486 12380389 105004 Foreign 501019 269 7285 38118 363230 21179 66153 204344 40242 530225 345546 145335 1218382 249 12407 326 1084 28817 7312 971772 14646 1058012 3171 62885 974000 3000 4375 775694 4578 2005 Domestic 93529554 3005 2467652 8687220 1965343 8076102 5913394 6936840 7239481 30470316 5946423 7090952 14276097 94299 375901 44715 17470 4632976 431036 18787298 251744 43213128 216330 14215570 95440947 324495 2042723 13566911 30225 Foreign 560024 289 10782 63321 336803 47107 59353 207790 44345 545225 346499 160832 1448656 316 5099 273 883 33310 4353 1131164 16523 1179316 2677 75995 1174597 912 6035 895639 2147 2006 (Provisional) Domestic 111715376 16729 2768824 7774732 2035154 11543156 6019927 7671902 7646274 36195907 6271724 11002640 16645929 116984 401529 50987 15030 5239896 353907 23483287 292486 58340008 230645 16666525 105549478 363759 2091188 15808371 118480 Foreign 669617 607 10374 84942 380414 87739 67854 281569 46087 505524 428534 186587 1654367 295 4287 436 1002 39141 193933 1220164 18026 1036732 3245 85284 1328974 1094 4368 998029 9051
15
Table 1.5 (Contd.): Domestic and Foreign tourist visits to different States 2002-06
STATE/ U.T. Chandigarh Daman & Diu Delhi* Dadra & Nagar Haveli Lakshadweep Pondichery Grand Total 2002 Domestic 554948 595449 1228059 452100 6173 480522 269598028 Foreign 13706 6569 543036 202 912 20094 5157518 2003 Domestic 567259 447825 1430546 447825 4604 500111 309038335 Foreign 17057 3274 693827 136 682 25559 6708479 2004 Domestic 599448 399800 1866552 532016 3889 558445 366221248 Foreign 16137 4111 839574 168 1285 32053 8296983 2005 Domestic 614176 394914 2061782 526142 6908 574099 390466168 Foreign 23284 6164 1511893 1226 941 36009 9939782 2006 (Provisional) Domestic 704531 411364 2237130 478000 22941 652735 460937535 Foreign 25217 5832 1974836 1400 2142 46273 11403976
Source: Statistical compilation of Ministry of Tourism
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Table 1.6: Cumulative Annual Growth Rate 2002 - 05/2002 - 06

STATE/ U.T. Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh Chattisgarh Jharkhand West Bengal Andaman & Nicobar Chandigarh Daman & Diu Delhi* Dadra & Nagar Haveli Lakshadweep Pondichery All India CAGR 2002-05 Domestic 15.64% -11.75% 8.09% 8.19% 14.04% 12.09% -2.74% 11.84% 16.57% 51.99% 2.21% 13.09% 13.35% 1.71% 11.85% 14.98% 6.99% 12.10% 10.68% 31.30% 16.47% 2.72% -6.02% 10.25% 10.11% -32.57% 86.85% 15.33% -30.65% 3.44% -12.79% 18.85% 5.19% 3.82% 6.11% 13.14% Foreign 38.61% 15.62% 18.93% -17.53% 7.43% 11.28% -11.38% 12.90% 78.32% 109.21% 14.21% 33.68% 23.51% 12.66% 17.47% 1.77% 10.36% 12.69% -16.80% 38.21% 24.48% 13.62% 0.95% 19.02% 18.27% -2.80% 39.07% 19.16% -25.06% 19.32% -2.10% 40.68% 82.41% 1.05% 21.46% 24.45% Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh Chattisgarh Jharkhand West Bengal Andaman & Nicobar Chandigarh Daman & Diu Delhi* Dadra & Nagar Haveli Lakshadweep Pondichery All India STATE/ U.T. CAGR 2002-06 Domestic 16.58% 39.86% 9.11% 3.18% 11.32% 19.11% -1.62% 11.53% 13.73% 42.91% 3.02% 22.39% 14.15% 6.88% 10.57% 14.74% 1.32% 12.35% 2.72% 29.69% 16.40% 9.98% -3.01% 11.96% 10.23% -23.44% 60.76% 15.63% 6.93% 6.15% -8.83% 16.18% 1.40% 38.84% 7.96% 14.35% Foreign 33.58% 34.23% 12.79% -6.86% 8.78% 26.57% -5.55% 18.17% 55.80% 70.70% 16.51% 29.03% 21.11% 7.49% 8.04% 13.91% 11.13% 13.87% 125.07% 29.91% 20.44% 6.56% 5.68% 17.29% 16.97% 2.45% 18.12% 17.18% 15.41% 16.47% -2.93% 38.09% 62.25% 23.80% 23.19% 21.94%
17
Step 3:- Growth rates of tourist visits at the earmarked locations were arrived at drawing nuances from the calculated Cumulative Annual Growth Rates as indicated in the previous step. The growth rates taken for arriving at the 2006 figures at the earmarked locations (except for Delhi and Goa, for which actual tourist visits in the year 2006 was available) have been indicated in the Table below. Table 1.7: Growth rate used for 2006 projections
STATE/ U.T. Andhra Pradesh Arunachal Pradesh Assam Bihar Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh Chattisgarh Jharkhand West Bengal Andaman & Nicobar Chandigarh Daman & Diu Dadra & Nagar Haveli Lakshadweep Pondichery Growth Rates used for 2006 projections Domestic 16.18% 13.73% 13.73% 10.23% 11.53% 10.23% 10.23% 13.73% 11.96% 11.96% 10.23% 11.96% 10.00% 15.63% 12.35% 15.63% 15.63% 15.63% 9.11% 8.00% 14.35% 10.57% 16.40% 3.18% 14.15% 14.15% 14.15% 19.11% 11.32% 22.39% 29.69% 29.69% 29.69% Foreign 38.09% 21.94% 21.94% 16.97% 18.17% 16.97% 16.97% 21.94% 17.29% 17.29% 16.97% 17.29% 21.94% 17.18% 13.87% 17.18% 17.18% 17.18% 12.79% 10.00% 18.12% 8.04% 20.44% 10.00% 21.11% 21.11% 21.11% 26.57% 8.78% 29.03% 29.91% 29.91% 29.91%
Step 4:-Applying the aforesaid growth rates (State growth rate was applied on the destinations) to tourist visits in the year 2005, tourist visits to each earmarked location for the year 2006 was arrived at. The figures have been indicated below.
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Table 1.8: Visitors to locations - 2006

Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur West Zone Visitors to Locations 2006 Domestic Foreign Total 2237130 1974836 4211966 8233462 54074 8287536 1909617 21469 1931086 665712 113993 779705 1480190 137717 1617907 1959924 76517 2036442 241979 19144 261124 455628 2219 457847 1830215 80276 1910492 1175854 2592 1178446 594344 7819 602163 90902 11595 102498 8829830 22473 8852302 169622 3353 172976 29874410 2528078 32402489 3267471 561586 3829058 2480314 31188 2511502 481478 21042 502520 1825124 90142 1915265 2618499 92792 2711292 1262817 25321 1288139 1606975 2042 1609017 166698 4624 171323 359826 4960 364786 258459 11466 269925 320927 40701 361629 14648589 885865 15534454 3574150 2323352 5897502 2680612 300893 2981505 357415 36890 394305 2681048 23857 2704905 2035154 380414 2415568 178673 86722 265396 1975957 82249 2058205 1553686 503135 2056821 734144 225789 959933 499448 117180 616628 229857 129181 359039 278503 4343 282846 2088779 40448 2129227 371060 934 371994 19238487 4255388 23493875
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Table 1.8 (Contd.) : Visitors to locations - 2006

Locations Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada South Zone Total Total 54 locations Visitors to Locations 2006 Domestic Foreign Total 2307986 320489 2628476 1925662 1020323 2945984 1630039 822229 2452268 1890495 58809 1949304 1052807 126731 1179538 2398180 66744 2464924 1199090 26698 1225788 99133 7938 107071 2098408 46721 2145129 1498863 33372 1532235 160038 19628 179666 1593508 14722 1608231 521923 43756 565679 1901875 168982 2070857 1141125 18817 1159941 21419132 2795959 24215091 85180618 10465290 95645908
Step 5:- After arriving at no. of visitors for a particular location, the parameters collected from the primary survey of domestic as well as foreign tourists were utilized in arriving at the demand for a particular town. The formulae used for arriving at the demand figures were as indicated below No. of visitors per annum proportion of visitors requiring accommodation = No. of visitors requiring accommodation per annum No. of visitors requiring accommodation per annum Average bed nights per visitor during the year = No. of Bed nights required/ annum No. of Bed nights required per annum/ No. of persons in a room/ 365 = Average No. of rooms required per day Average No. of rooms required per day Preference of Accommodation Unit = Demand for no. of rooms in an accommodation unit of a particular type The detailed workings along with example for a particular centre viz. Pune, has been presented in the Table below. Similar methodology was adopted for other centres.
20
Table 1.9: Calculation Methodology adopted in arriving at Demand An example for Pune
Sl. No. 1 2 3 4 No. of visitors during the year Proportion of visitors during the year requiring accommodation Average bed nights per visitor during the year Average no. of persons per room Parameter (a) (b) (a) (b) (a) (b) (a) (b) (a) 5 Proportion of preferences for Luxury, budget or others (b) No. of visitors requiring accommodation per year No. of bed nights required per year Average No. of rooms required per day (a) (b) (a) (b) (a) (b) (a) Foreign Domestic Foreign Domestic Foreign Domestic Foreign Domestic (i) (ii) (iii) (i) (ii) (iii) (i) (ii) (iii) (iv) (v) Luxury Budget Others Luxury Budget Others Luxury Budget Others Classified Total Domestic Foreign Domestic Foreign Domestic Foreign Domestic Foreign Domestic (i) (ii) (iii) (i) (ii) (iii) Luxury Budget Others Luxury Budget Others (1)(a) x (2)(a) (1)(b) x (2)(b) (6)(a) x (3)(a) (6)(b) x (3)(b) (7)(a) / (4)(a) / 365 (7)(b) / (4)(b) / 365 (8)(a) x (5)(a)(i) (8)(a) x (5)(a)(ii) (8)(a) x (5)(a)(iii) (8)(b) x (5)(b)(i) (8)(b) x (5)(b)(ii) (8)(b) x (5)(b)(iii) (9)(a)(i) + (9)(b)(i) (9)(a)(ii) + (9)(b)(ii) (9)(a)(iii) + (9)(b)(iii) (9)( c ) [(i)+(ii)] (9)( c ) [(i)+(ii) + (iii)] Formula Pune 2680612 300893 0.75 1.00 2.00 1.00 3.00 1.85 0.03 0.12 0.85 0.18 0.37 0.45 2010459 300893 4020918 300893 3672 446 110 441 3121 80 165 201 190 606 3322 796 4118
6 7 8
(b) 9 Average No. of rooms required per day by type of hotel (c)
Foreign
Dom + For
Step 6:- After arriving the average demand of rooms by different categories, it was the turn for Peak demand calculation. For this, a major output from the primary survey i.e. peak season of tourist arrival at a centre and refusal of accommodation requests by different category of hotels was taken into consideration. For this, the verbatim response received from the front office of the concerned hotels regarding no. of refusals made in the peak season was collated for all hotels belonging to a particular category and the mean value of refusal rates were taken to arrive at the refusal rate for a particular location. The location wise refusal rate has been provided in the Table below.
21
Table 1.10: Centre wise refusal rates in different category of Hotels

Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Chennai Bangalore Hyderabad Mysore Luxury 36.12 24.22 6.23 10.15 45.31 4.01 4.29 0.00 0.00 8.97 0.00 0.00 0.00 6.22 26.85 11.24 20.15 0.00 0.00 7.24 7.23 5.00 5.21 10.11 0.00 45.22 46.12 50.32 10.12 55.24 25.14 4.06 43.22 47.12 48.16 41.05 46.22 44.21 43.33 65.15 72.14 75.21 68.44 Budget 29.31 10.24 11.32 12.06 35.21 10.24 25.31 10.25 10.11 5.17 10.31 6.03 7.21 8.15 10.21 12.24 10.24 5.21 0.00 5.15 5.22 4.19 4.21 5.16 5.23 16.22 20.12 11.06 12.18 55.23 30.23 25.41 10.24 30.22 50.15 50.23 48.44 44.26 42.16 45.26 52.16 50.22 52.16 Others 9.15 4.12 3.15 5.23 5.04 6.21 20.18 4.16 15.23 10.22 15.40 16.25 15.26 5.23 5.24 8.21 5.16 5.35 5.11 5.12 5.22 4.21 9.32 5.36 5.12 35.34 10.24 5.16 5.11 65.23 60.22 20.24 55.54 70.12 55.24 60.15 48.26 46.29 47.25 52.16 32.22 30.19 5.33
22
Table 1.10 (Contd.): Centre wise refusal rates in different category of Hotels
Locations Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Luxury 58.40 65.29 70.23 51.05 0.00 0.00 0.00 55.22 58.34 50.12 0.00 Budget 11.03 45.22 25.27 55.43 10.33 5.06 0.00 45.15 45.31 40.11 50.06 Others 5.21 6.24 20.15 4.16 15.22 10.19 0.00 55.19 55.24 55.18 70.12
Step 7:- Applying these refusal rates on the supply the peak demand was calculated. E.g.:Peak demand for Pune Luxury = Supply for Pune Luxury refusal rate in Luxury = 512 * 1.4612 = 748 Peak demand for Pune Budget = Supply for Pune Budget refusal rate in Budget = 326 * 1.2012 = 392 In certain instances, wherein the average demand was way higher than the supply, the peak demand was coming lower than average. In such cases, the average demand was considered as the Peak demand.
23
1.7.5.
Arrival at projection factors for 2007-2015 As indicated in Table 1.7, the projection factors (for forecasting future trends of foreign tourist visits at the earmarked locations) was worked out separately for domestic and foreign tourists till the year 2015. The 2002-06 CAGR figures were considered the base figures and in the same certain adjustments were done for too high or too low growth figures. Reference was drawn from y-o y growth figures for a particular state (Pls. refer Annexure). The projection factors used for the year 2007-10 and 2011 2015 and the adjustments made in the same have been indicated in Tables 1.10 and 1.11 below.
24
Table 1.11: Projection factors used for forecasting foreign tourist visits for 20072015 period
Locations Delhi Jammu / Katra * Srinagar * Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar ** Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna ** Ranchi Shillong Gangtok Gaya/Bodhgaya * Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur ## Chennai * Bangalore # Hyderabad Mysore # Projection factor 2007-10 Domestic Foreign 16.18% 38.09% 13.73% 21.94% 13.73% 21.94% 10.23% 16.97% 10.23% 16.97% 11.53% 18.17% 10.23% 16.97% 10.23% 16.97% 11.53% 18.17% 11.96% 17.29% 11.96% 17.29% 10.23% 16.97% 11.96% 17.29% 10.00% 21.94% 15.63% 17.18% 12.35% 13.87% 15.63% 17.18% 15.63% 17.18% 15.63% 17.18% 9.11% 12.79% 8.00% 10.00% 14.35% 18.12% 10.57% 8.04% 16.40% 20.44% 3.18% 10.00% 14.15% 21.11% 14.15% 21.11% 14.15% 21.11% 19.11% 26.57% 11.32% 8.78% 22.39% 29.03% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 22.39% 29.03% 22.39% 29.03% 14.35% 2.45% 9.98% 10.00% 35.00% 50.00% 16.58% 21.94% 35.00% 50.00% Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Chennai Bangalore Hyderabad Mysore Projection factor 2011- 2015 Domestic Foreign 16.18% 30.00% 13.73% 21.94% 13.73% 21.94% 10.23% 16.97% 10.23% 16.97% 11.53% 18.17% 10.23% 16.97% 10.23% 16.97% 11.53% 18.17% 11.96% 17.29% 11.96% 17.29% 10.23% 16.97% 11.96% 17.29% 2.72% 21.94% 15.63% 17.18% 12.35% 13.87% 15.63% 17.18% 15.63% 17.18% 15.63% 17.18% 9.11% 12.79% 3.18% 10.00% 14.35% 18.12% 10.57% 8.04% 16.40% 20.44% 3.18% 10.00% 14.15% 21.11% 14.15% 21.11% 14.15% 21.11% 19.11% 26.57% 11.32% 8.78% 22.39% 29.03% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 29.69% 29.91% 22.39% 29.03% 22.39% 29.03% 14.35% 2.45% 9.98% 6.56% 14.35% 21.94% 16.58% 18.00% 14.35% 15.00%
25
Table 1.11 (Contd.): Projection factors used for forecasting foreign tourist visits for 2007-2015 period
Locations Cochin Ooty * Trichy * Thiruvananthpuram / Kovalam Kanyakumari * Madurai * Hampi # Calicut Pondicherry Vizag * Vijaywada * Projection factor 2007-10 Domestic Foreign 3.02% 16.51% 9.98% 10.00% 9.98% 10.00% 3.02% 16.51% 9.98% 10.00% 9.98% 10.00% 35.00% 50.00% 3.02% 16.51% 7.96% 23.19% 16.58% 21.94% 16.58% 21.94% Locations Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Projection factor 2011- 2015 Domestic Foreign 3.02% 16.51% 9.98% 6.56% 9.98% 6.56% 3.02% 16.51% 9.98% 6.56% 9.98% 6.56% 14.35% 16.00% 9.98% 6.56% 7.96% 23.19% 16.58% 12.00% 16.58% 12.00%
* indicates growth rates of foreign tourists were moderated since growth rates were very high ** indicates growth rates of both domestic and foreign tourists were moderated using YOY growth rates # indicates moderation of growth rates for both domestic and foreign tourists, using YOY rates, which were very high ## indicates moderation of negative / very low growth rates for domestic tourists Table 1.12: Moderation of Projection factors Steps taken Situations Locations for Steps Taken which taken (Original CAGR figures for the State) Moderated using Calculated Jammu All India CAGR growth Katra/ figures (21.94%) rate of Srinagar for 2002-06 foreign (55.80%), tourists Hyderabad were too Vizag, high or Vijaywada too low (33.58%) Chennai, Ooty, Trichy (6.56%) Growth Patna Moderated using rate of (Domestic : YOY growth rates both 3.18%, Patna ( Domestic domestic Foreign : 9.11%, Foreign : and 6.86%) 12.79%) foreign Amritsar Amritsar tourists (Domestic : (Domestic 10%, were 2.72%, Foreign 21.94%) Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India 26
Extremely low or very high High growth rates for both domestic and foreign tourist arrivals Growth rates for domestic tourists were very low/ negative
Foreign 125.07%)
Bangalore, Mysore, Hampi (Domestic 42.91% and Foreign 70.70%)
Moderated using YOY Growth rates Domestic 35% Foreign 50%
Raipur (Domestic: 23.45%)
Moderated with all India figures (14.35%)
27
1.7.6. Estimating demand supply scenario at all India level For estimating the All India Demand, an blow up factor from 54 location to represent an All India estimate has been worked out keeping in mind the availability of hotel and hotel rooms in the classified category as per the Ministry of Tourism statistics. To arrive at the blow up factor the following secondary database is considered. Table 1.13: Arriving at the Blowing up factor
City/ Centre Agra Ahmedabad/ Baroda Ajmer/ Pushkar Allahabad Amritsar Aurangabad Bangalore Bhopal Calicut Chennai Cochin Darjeeling Dehradun/ Mussoorie Delhi Digha Gangtok Gaya/ Bodhgaya Goa Guwahati Hampi/ Hospet Haridwar/ Rishikesh Hyderabad Indore Jaipur Jaisalmer Jammu/ Katra Jodhpur Kanyakumari Khajuraho Kolkata Lucknow Madurai Manali Mathura Mumbai No. of hotels - classified 2004 22 31 3 4 9 7 34 11 15 83 46 15 19 82 2 5 5 96 9 0 2 50 8 34 6 6 13 4 5 30 6 8 4 2 126 2005 7 15 3 2 5 2 12 4 8 51 24 4 5 41 1 1 2 49 3 0 1 29 8 28 1 1 6 3 4 14 3 5 4 2 63 No. of rooms in hotels classified 2004 2061 1462 126 119 356 317 2641 470 528 6099 2046 388 761 9803 67 161 235 7426 440 0 124 3878 418 2104 272 296 599 233 294 2751 972 368 107 49 10778 2005 966 1215 120 47 178 186 1353 199 323 4125 1057 98 199 5216 40 28 105 4248 130 0 56 3279 515 1969 67 44 230 160 358 1880 220 225 95 68 7215
28
Table 1.13 (Contd.): Arriving at the Blowing up factor

City/ Centre Mysore Nainital Ooty Patna Pondicherry Pune Puri/ Bhubaneswar Raipur Ranchi Shillong Shimla Siliguri Srinagar Thiruvananthapuram Trichy Udaipur Varanasi Vijaywada Vizag Total of 54 cities All India Ratio of 54 cities and all-India No. of hotels - classified 2004 10 9 10 7 4 51 18 1 8 4 7 6 8 23 6 19 12 12 11 1028 1892 0.54 2005 3 1 5 3 4 20 4 1 2 1 6 2 1 18 0 12 6 11 11 522 1190 0.44 No. of rooms in hotels classified 2004 579 305 579 417 217 2548 893 13 266 165 256 244 750 1140 285 698 816 678 753 70351 97770 0.72 2005 140 28 318 216 217 1405 270 13 61 50 350 79 125 736 0 977 390 533 695 42817 67613 0.63
Source: MOT Statistics 2005 For the calculation purposes the consultant has taken 2005 figures into account i.e. the multiplier factor is 0.63 for estimating the All India figures. 1.7.7. Estimating Foreign Tourist arrivals 2010 and 2015 In estimating the foreign tourist arrivals for the year 2010 and 2015 the published figures of Ministry of Tourism was taken into consideration. Foreign tourist arrivals and visits were considered and its ratio (Arrivals/ Visit) was calculated separately for the year 2005 and 2006. The total foreign tourist arrivals to 54 locations (As per Table 1.4 and using projection factor to arrive at 2006 figures) was calculated next. It was coming 84% for the year 2005 and 91% for the year 2006. The total foreign tourist visits for the year 2010 and 2015 was summed up and using the average ratio for the year 2005-06, All India visit figures were arrived at. Using ratio of visits (54 / All India), the foreign Tourist arrivals for the year 2010 (9.8 Mn) and 2015 (28 Mn) was arrived at. Table 1.14: Estimating foreign tourist arrivals in the year 2010 and 2015
Sl 1 2 3 4 5 6 Year Foreign Tourists Arrivals - All India (Source Ministry of Tourism) Foreign Tourist Visits (Source Ministry of Tourism) Ratio (Arrivals/ Visits) Total Foreign Tourist visits 54 Locations Ratio of Visits (54 Locations/ All India) Derived Foreign Tourist Arrivals (54 Locations) Steps 2005 3920000 9939782 0.3944 8388836 0.844 3308346 2006 4430000 11403976 0.3885 10465290 0.918 4065357
1/2 Refer Table 1.4 4/2 1*5
29
Table 1.14: Estimating All Indian foreign tourist arrivals in the year 2010 and 2015
Sl 1 2 3 4 5 Year Estimated Tourist Visits Ratio (Arrivals/ Visits) All India Visits Ratio of visits (54/ All India) Total All India Foreign Tourist Arrivals Steps Average of Step 3 of Table 1.14 7*8 Average of Step 5 of Table 1.14 9*10 2010 28438179 0.3914 11130703 0.881 9806150 2015 82782339 0.3914 32401007 0.881 28545288
30
Chapter 2 Current Supply Scenario in earmarked locations 2.1. Overview The Chapter attempts to present an in depth analysis of the current status of accommodation units in selected locations across the country Status of Accommodation Units India at a glance Presently there are around 8701 hotels (which includes the Starred, Approved/ Awaiting Classification as well as the Licensed Units) spread all across the 54 locations in which the primary survey was carried out.. The total room strength in theses hotels is 173987. 2.2.1. No of Hotels in different categories Category wise break up of hotels across different zones has been indicated below. Table 2.1: Category wise no. of Hotels in 54 Locations
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total Total 54 81 79 102 290 163 48 369 7515 8701
2.2.
There is wide variation in the number of hotels in different categories. The maximum number of hotels is in the Licensed category comprising 55% of the total share of accommodation units in the surveyed 54 locations. This is followed by approved/ unclassified hotels which comprise 27% of the total accommodation units in those locations. The mid-segment hotels (Budget Hotels) i.e. 3 star, 2 star and 1 star comprise 14% of the total share. The heritage, 5 star deluxe, 5 star and 4 star hotels (Premium Segment) together comprise only 5% of the total share. It is evident from the percentage break up of accommodation units that at present the luxury category of hotels comprise only a minor share in the hospitality industry with middle and lower segment of hotels comprising the majority of available accommodation units for the tourists
31
2.2.2.
No. of Rooms by category of Hotels The no. of rooms available in the 54 locations in different categories are as follows:Fig. 2.1: No. of Rooms in different categories of Hotels
41543 34979 36195
19859 10491 2222 9282
16211
2816
Source: ACNielsen ORG-MARG Primary Survey It is evident from the chart that there is wide disparity in the number of rooms in the various categories of hotels. The maximum number of rooms is in the licensed category of hotels (41543) followed by Approved category (36195). The least number of rooms are available in the heritage category hotels (2222), which is not surprising since they are marketed as exclusive establishments for luxury travelers. Amongst the starred category of Hotels, maximum no. of rooms are available in 3 star categories. 2.2.3. Average Tariff / Hotel Category The tariff in the different category of hotels varies widely according to the type of rooms. The tariff varies on the basis of size of rooms (whether single, double or suite), bed capacity and services rendered. The average tariff in the various categories of hotels are as indicated below:Fig. 2.2: Category wise tariff across Hotels
Licensed Approved 1 Star 2 Star 3 Star 4 Star 5 Star 5 Star Deluxe Heritage 7894 1850 5500 7500 10500 11500 564 1100 1250
St
On an average, the 5 star deluxe hotels charge the maximum tariff (with average tariff being Rs. 10475/-) followed by heritage (average tariff: Rs. 7894/-) and 5 star hotels (average tariff: Rs. 7450/-). The average tariff in licensed hotels is lowest (with average tariff being around Rs.564/-). Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India 32
er it ar age D el ux e 5 St ar 4 St ar 3 St ar 2 St ar 1 St a A pp r ro v Li ed ce ns ed
Source: ACNielsen ORG-MARG Primary Survey
2.3.
Status of Accommodation Units North Zone at a glance The northern zone of the country has a number of locations which are prime tourist attractions. Moreover, the administrative centre (i.e. New Delhi) of the country is also located in the north zone. At present there are around 2787 hotels in north zone with a total capacity of 40742 rooms. The status of accommodation units across identified locations in the north zone is given in table below: Table 2.2: Category wise no. of Hotels in North Zone
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total North 7 26 20 17 45 27 10 222 2413 2787
In the north zone, the maximum number of hotels/accommodation units can be found in Delhi (21%) followed by Manali and Dehradun/Mussorie (20%) while Srinagar has the least number of hotels/accommodation units (2%). 2.3.1. No of Hotels in different categories North Zone The category wise break-up of hotels in north zone is given in table below: Table 2.3: Category wise no. of Hotels in North Zone
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Heritage 0 1 1 1 0 2 0 0 0 0 1 0 5 Star Deluxe 21 0 0 2 2 0 0 0 0 1 0 0 Category of Hotels/Accommodation Units 5 Star 4 Star 3 Star 2 Star 1 Star Approved 9 0 2 2 4 0 3 0 0 0 0 0 8 2 0 0 1 2 0 0 0 1 0 0 9 1 0 6 4 2 6 2 2 4 2 4 7 2 1 2 1 1 1 1 1 4 4 0 8 0 0 1 0 1 0 0 0 0 0 0 42 3 1 25 7 14 16 7 70 10 5 11 Licensed 482 96 45 215 132 127 96 65 216 247 194 59 Total 586 105 50 254 151 149 122 75 289 267 206 74
33
Table 2.3 (Contd.): Category wise no. of Hotels in North Zone

Locations Haridwar/ Rishikesh Amritsar Total Heritage 1 0 7 5 Star Deluxe 0 0 26 Category of Hotels/Accommodation Units 5 Star 4 Star 3 Star 2 Star 1 Star Approved 0 0 20 0 1 15 1 2 45 1 3 29 0 0 10 6 5 222 Licensed 373 66 2413 Total 382 77 2787
Source: ACNielsen ORG-MARG Primary Survey The maximum number of hotels in north zone is of approved category but (around 2413) followed by unstarred hotels (222). The lowest number of hotels is of heritage category (7). 2.3.2. No. of Rooms by category of Hotels - North Zone The break up of number rooms in the different category of hotels in north zone is shown in table below Table 2.4 : Category wise break-up of rooms in north zone
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total Heritage 0 40 125 24 0 26 0 0 0 0 28 0 19 0 262 5 Star Deluxe 6068 0 0 244 635 0 0 0 0 90 0 0 0 0 7037 5 Star 1112 0 143 191 530 0 238 0 0 0 0 0 0 0 2214 Category wise Number of rooms 4 Star 3 Star 2 Star 1 Star 614 364 231 195 122 58 57 0 0 0 50 0 0 163 47 40 124 320 15 0 70 60 17 30 0 261 16 0 0 55 20 0 0 21 35 0 60 112 107 0 0 98 56 0 0 108 0 0 0 47 26 0 41 56 65 0 1031 1723 742 265 Approved 108 58 24 78 87 67 67 89 75 69 78 43 45 56 944 Licensed 11092 768 360 1720 1056 1016 752 520 1728 1976 1552 472 2984 528 26556 Total 19784 1103 702 2507 2767 1286 1350 684 1859 2414 1812 623 3121 746 40742
Source: ACNielsen ORG-MARG Primary Survey The total number of rooms in the identified locations is 40742, out of which, Delhi has the maximum share of rooms (19784). The approved hotels have the highest number of rooms across all destinations followed by 5 star deluxe, 5 star hotels and 3 star hotels
34
2.3.3.
Average Tariff / Hotel Category North Zone The average tariff per room for different category of hotels is depicted in figure below: Fig. 2.3: Category wise tariff across Hotels North Zone
Licensed App 1 Star 2 Star 3 Star 4 Star 5 Star 5 Star Deluxe Heritage 3053 1800 6500 8500 11000 12500 454 1100 1600
Source: ACNielsen ORG-MARG Primary Survey On an average, 5 star deluxe hotels (with average tariff being Rs. 6668/-) charge the highest tariff per room followed by 5 star and heritage hotels 2.4. Status of Accommodation Units East Zone at a glance The east zone of the country has a number of destinations of immense natural beauty. At present there are around 734 hotels in east zone with a total capacity of 9928 rooms. The status of accommodation units across identified locations in the east zone is given in table below: Table 2.5: Category wise no. of Hotels in East Zone
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total East 5 4 4 12 33 14 4 52 606 734
35
2.4.1.
No of Hotels in different categories East Zone The category wise break-up of hotels in east zone is given in table below Table 2.6: Category wise no. of Hotels in East Zone
5 Star Deluxe 4 0 0 0 0 0 0 0 0 0 0 4 Category of Hotels/Accommodation Units 5 Star 4 Star 3 Star 2 Star 1 Star Approved 2 2 5 8 4 12 1 4 6 1 0 1 0 0 4 2 0 2 0 0 2 1 0 3 0 0 0 0 0 9 0 2 3 0 0 2 1 1 2 1 0 1 0 1 4 1 0 3 0 1 2 0 0 8 0 1 2 0 0 7 0 0 3 0 0 4 4 12 33 14 4 52 Licensed 135 130 89 14 12 58 56 27 34 30 21 606 Total 173 144 99 20 21 65 62 36 45 41 28 734
Locations Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total
Heritage 1 1 2 0 0 0 0 0 0 1 0 5
The maximum number of hotels in east zone are approved hotels (around 606) followed by unstarred hotels (52). Some of the locations in the eastern zone such as Digha are lacking any type of starred accommodations 2.4.2. No. of Rooms by category of Hotels - East Zone The break up of number rooms in the different category of hotels in east zone is shown in table below Table 2.7: Category wise break-up of rooms in East zone
5 Star Deluxe 852 0 0 0 0 0 0 0 0 0 0 852 5 Star 332 59 0 0 0 0 75 0 0 0 0 466 Category wise Number of rooms 4 Star 3 Star 2 Star 1 Star 176 263 246 110 285 327 32 0 0 133 26 0 0 76 36 0 0 0 0 0 144 134 0 0 39 102 32 0 25 106 35 0 40 49 0 0 46 63 0 0 0 169 0 0 755 1422 407 110 Approved 45 12 23 45 56 56 12 27 45 87 34 442 Licensed 1080 1040 712 112 96 464 448 433 272 240 168 5065 Total 3373 1789 975 269 152 798 708 626 406 461 371 9928
Locations Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total
Heritage 269 34 81 0 0 0 0 0 0 25 0 409
The total number of rooms in the identified locations is around 9928 (approx.), out of which, Kolkata has the maximum share of rooms (around 3373). The Licensed have the highest number of rooms across all destinations followed by 3 star, 5 star deluxe and 4 star hotels.
36
2.4.3.
Average Tariff / Hotel Category East Zone The average tariff per room for different category of hotels is depicted in figure below: Fig. 2.4: Category wise tariff across Hotels East Zone
Source: ACNielsen ORG-MARG Primary Survey On an average, 5 star deluxe hotels (with average tariff being Rs. 9300/-) charge the highest tariff per room followed by 5 star and heritage hotels 2.5. Status of Accommodation Units West Zone at a glance The west zone of the country includes destinations which are important commercial centers and also are major tourist attractions for both domestic and foreign travelers. At present there are around 2848 hotels (starred and approved) in west zone with a total capacity of 66489 rooms. The status of accommodation units across identified locations in the west zone is given in table below. Table 2.8: Category wise no. of Hotels in West Zone
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total West 35 36 34 39 106 69 18 20 2491 2848
37
2.5.1.
No of Hotels in different categories West Zone The No. of Hotels in different categories in the West Zone is as indicated below:Table 2.9: Category wise no. of Hotels in West Zone
5 Star Deluxe 19 2 0 0 11 1 0 3 0 0 0 0 0 0 36 Category of Hotels/Accommodation Units 5 Star 4 Star 3 Star 2 Star 1 Star Approved 6 12 27 32 5 9 3 7 3 3 6 0 3 0 2 0 0 0 3 5 18 3 4 0 4 5 16 16 2 0 1 0 3 0 0 0 0 0 3 1 0 0 11 3 10 5 0 0 1 0 5 3 0 0 2 3 3 4 0 0 0 1 6 0 0 1 0 1 2 0 0 6 0 1 4 1 0 2 0 1 4 1 1 2 34 39 106 69 18 20 Licensed 520 178 0 122 367 56 231 305 181 211 110 98 67 45 2491 Total 630 203 5 155 421 61 236 347 202 228 122 107 77 54 2848
Locations Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total Heritage 0 1 0 0 0 0 1 10 12 5 4 0 2 0 35
2.5.2.
Source: ACNielsen ORG-MARG Primary Survey The maximum number of hotels in west zone is of licensed category (around 2491) followed by 3 star hotels (around 106) No. of Rooms by category of Hotels - West Zone The break up of number rooms in the different category of hotels in west zone is shown in table below Table 2.10: Category wise no. of Rooms in West Zone
5 Star Deluxe 7123 134 0 0 2587 94 0 406 0 0 0 0 0 0 10344 5 Star 1598 129 220 892 1298 94 0 1154 143 184 0 0 0 0 5712 Category wise Number of rooms 4 Star 3 Star 2 Star 1 Star 1233 1987 2169 756 214 113 104 109 0 108 0 0 236 456 93 54 678 1267 378 48 0 218 0 0 0 152 26 0 227 559 243 0 0 257 192 0 174 126 134 0 40 266 0 0 87 412 0 0 47 161 18 0 55 110 20 41 2991 6192 3377 1008 Approved 47 0 0 0 0 0 0 0 0 0 9 78 56 43 233 Licensed 7777 1424 0 1263 10536 448 1848 2440 1448 1688 1609 1609 1591 1609 35290 Total 22690 2262 328 2994 16792 854 2079 5379 2503 2527 2031 2186 1986 1878 66489
Locations Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total
Heritage 0 35 0 0 0 0 53 350 463 221 107 0 113 0 1342
The maximum number of rooms is in the licensed category of hotels. Across the various destinations, Mumbai has the maximum number of rooms (all categories included) in the west zone.
38
2.5.3.
Average Tariff / Hotel Category West Zone The average tariff per room for different category of hotels is depicted in figure below Fig. 2.5: Category wise tariff across Hotels West Zone
Source: ACNielsen ORG-MARG Primary Survey On an average, 5 star deluxe hotels (with average tariff being Rs. 20350/-) charge the highest tariff per room followed by heritage hotels and 5 star hotels. There is wide gap between the tariffs charged by luxury hotels and budget hotels (3 star, 2 star and 1 star). 2.6. Status of Accommodation Units South Zone at a glance The south zone of the country includes destinations which are important business centers especially for the IT industry. The status of accommodation units across identified locations in the south zone is given in table below Table 2.11: Category wise no. of Hotels in South Zone
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total West 7 15 21 34 106 53 16 75 2005 2332
Source: ACNielsen ORG-MARG Primary Survey There are a total of 2332 hotels across 15 locations in the south zone. The highest number of hotels is in Bangalore followed by Chennai, and Hyderabad. Hampi, which is a world heritage site, lacks any kind of accommodation facilities.
39
2.6.1.
No of Hotels in different categories South Zone The category wise break-up of hotels in south zone is given in table below Table 2.12: Category wise no. of Hotels in South Zone
5 Star Deluxe 4 5 2 0 1 2 0 0 0 0 0 0 0 1 0 15 Category of Hotels/Accommodation Units 5 Star 4 Star 3 Star 2 Star 1 Star Approved 4 9 20 4 1 23 2 3 12 17 1 2 4 2 12 2 0 3 0 0 2 1 0 6 3 4 17 4 0 2 3 5 8 1 2 8 0 3 6 2 2 2 1 0 0 0 1 0 3 0 21 3 0 0 0 4 0 1 0 34 5 1 2 0 3 3 6 9 106 3 0 0 0 5 2 4 8 53 0 0 0 0 6 0 1 3 16 1 2 1 0 12 2 2 9 75 Licensed 286 678 219 76 95 67 45 87 68 65 0 56 104 92 67 2005 Total 352 720 245 86 127 96 60 100 71 68 0 89 111 111 96 2332
Locations Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi* Calicut Pondicherry Vizag Vijaywada Total Heritage 1 0 1 1 1 0 0 0 0 0 0 2 0 1 0 5
Source: ACNielsen ORG-MARG Primary Survey The maximum number of hotels in south zone is of Licensed hotels (around 2005) followed by 3 star hotels (106). 2.6.2. No. of Rooms by category of Hotels - South Zone The break up of number rooms in the different category of hotels in south zone is shown in table below Table 2.13: Category wise break-up of rooms in south zone
Category wise Number of rooms Locations Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Heritage 25 0 20 54 17 0 0 0 0 0 5 Star Deluxe 1678 982 448 0 96 120 0 0 0 0 5 Star 627 486 674 0 325 200 0 57 0 0 4 Star 928 456 232 0 214 160 86 200 0 0 3 Star 6347 2137 2478 98 816 20 180 241 76 134 2 Star 467 3145 189 40 164 45 45 169 0 0 1 Star 83 61 0 0 0 34 62 0 0 0 Approved 567 78 145 74 93 98 30 22 27 14 Licensed 4290 10170 6570 608 760 502 360 696 544 520 Total 15012 17515 10756 874 2485 1179 763 1385 647 668
40
Table 2.13: Category wise break-up of rooms in south zone

Category wise Number of rooms Locations Hampi Calicut Pondicherry Vizag Vijaywada Total Heritage 0 74 0 19 0 209 5 Star Deluxe 0 0 0 93 0 3417 5 Star 0 112 0 263 0 2744 4 Star 0 167 0 110 0 2553 3 Star 0 128 201 498 370 13724 2 Star 0 120 78 206 228 4856 1 Star 0 101 0 26 66 433 Approved 0 117 30 34 78 1407 Licensed 0 347 832 710 536 27445 Total 0 1166 1141 1959 1278 56828
Source: ACNielsen ORG-MARG Primary Survey The maximum number of rooms is in approved category of hotels. Across the various destinations, Bangalore has the maximum number of rooms (all categories included) in the south zone 2.6.3. Average Tariff / Hotel Category South Zone The average tariff per room for different category of hotels is depicted in figure below Fig. 2.6: Category wise tariff across Hotels South Zone
576 850 1400 2200 3800 6500 10500 12000 2801
Licensed Approved 1 Star 2 Star 3 Star 4 Star 5 Star 5 Star Deluxe Heritage
Source: ACNielsen ORG-MARG Primary Survey On an average, 5 star deluxe hotels (with average tariff being Rs. 6881/-) charge the highest tariff per room followed by 5 star and heritage hotels.
41
2.7
Planned expansion plan overall at a glance The hotel industry is presently undergoing rapid growth particularly in the luxury category. International hotel chains such as Six Continents, Carlson Hospitality and Marriott are looking to increase their capacity in India, one of the fastest growing hospitality markets across the globe. A host of mid-market and budget hotel brands like Accor are also chalking entry plans for the market. After a 30-year exclusive association with ITC, Sheraton, the top brand of global hotelier Star wood Hotels & Resorts, is coming out on its own. Star wood has begun talks with other hotel developers to lend the well-established Sheraton and its sub-brands. Star wood is planning to introduce four points by Sheraton (a moderately priced hotel chain) and its luxury hotel brands-St Regis and the luxury collection in India. Its other brands that have a presence in the country include Le Meridien and Westin.The US hotelier is in advanced negotiations with Royal Palms to manage its 283-room, Rs 160 crore properties under the four points by Sheraton brand. The hotel in Mumbais Goregaon suburb is expected to roll out the red carpet to guests in December. Royal Palms are setting up a 100 room villa hotel in the Goregaon complex and also plan to build hotels in Hyderabad and Kolkata. Aiming to ride the boom in demand for hotel rooms in India, US based Perot group company Hill wood is setting up a joint venture with the Gupta group of Asian Hotels to establish a chain of up market hotels under the Clarion brand. The new joint venture company Inovoa Hotels & Resorts, plans to invest Rs 450 crore in India to set up four-star Clarion hotels across the country. Three Clarion hotels in Delhi (NCR), Bangalore and Pune are proposed to come up by 2009. It is alongside scouting for sites in other cities, and additional investments would be made for more Clarion hotels across the country. It is proposed to add more rooms in Chennai, Mumbai and Jaipur in the next five years. In Noida Delhi NCR has earmarked 14 sites to set up 5 star hotels, three 4 star hotels and five 3 star hotels in Noida. All the 5 star hotels will be located in the new sectors along the Noida-Greater Noida expressway. There will be three of these hotels in Sector 96, one in sector 97 and two in sector 98. The 4 star hotels will be located in sectors 62 and 63 and, the 3 star hotels will come up in sectors 72,124,101,105 and 135. All these hotels are expected to be operational by 2009. The Oberoi Group under its Oberoi Hotels & Resorts brand is planning 5 new projects in Goa, Bangalore, Khajuraho and Gurgaon. Moreover, it is also planning 2 new hotels in Mumbai and Hyderabad uder its Triden Hilton brands. All these hotels are expected to be operational by 2008/2009. Some of the Major Projects have been listed in the table below:
42
Location Mumbai
Table 2.14 Location wise Major up coming projects and expansions New Projects Expansions Four 3 star hotels with total room strength of 366 within 2007/2008 Four 5 star hotels with an room capacity of 1323 rooms Two 5 star hotels within 2007 Five new 5 star hotels by Radisson, Lela Group, ITC, Le Meridien and Oberoi Two new 4 star hotels (Inder Residency and Goverdhan Villa) 100 rooms expansion within 2007 Laxmi Vilas Palaxce Grand is increasing 88 rooms by 2008 Hotel Lake End (Alka Group) planning to add 50 rooms by 2008 Hotel Lake Pichola increasing 80 rooms by 2007 Four existing hotels planning to add more rooms by 2008 ( total capacity addition would be 114 200 room expansion by existing hotels by 2009 Three existing Hotels planning to add a total of 76 rooms by 2007/2008 3 hotels planning for room expansion
Pune Udaipur
Jaipur
Five new hotels in 5 star category by 2008 (Hotel Raddison, Hyatt Regency, Shiv Vilas, Quality & Comfort) Trident Hilton to start new hotel by 2009 ( with 137 room capacity) Clark International to open new hotel by 2008 (36 rooms) Park Plaza to open new hotel by 2008 (50 rooms) ITC Group to open new hotel by 2008 (88 rooms) Venture Resorts to open new hotel by 2008 (45 rooms) Fortune Park Hotel to open by 2007 (129 rooms) Quality & Comfort to open new hotel by 2007 (84 rooms) Leela Group planning to open new hotels within 2 years time. Fortune Park Hotels to open new hotel by 2007 (86 rooms) Hilton to open new hotel (300 rooms)
Jaisalmer
Jodhpur
Chennai
Bangalore
Leela Hotels to add 144 rooms
43
Location
New Projects Shangri La to open new hotel (370 rooms) Radisson to open new hotel (350 rooms) Carlson to open new hotel (156 rooms) Marriot Courtyard Hotels to open new hotel by 2009 (256 rooms) Intercontinental Hotels to open new hotel by 2008 (264 rooms) Hilton Group to open new hotel (2106 rooms) Bengal Ambuja to open new hotel by 2008 (140 rooms) Marriot Curtyard Hotels to open new hotel by 2009 (150 rooms) Oberoi Hotels is planning open new hotel Leela Group to open new hotel (300 rooms) Sarovar Park in planning to construct 3 star hotel within 2008 2 new hotels (4 star) within 2008
Expansions
Kolkata
Hyderabad
Park Hotels to add 49 rooms by 2008
Ahmedabad/Baroda
100 room expansions by 3 existing 4 star hotels within 2007 200 room expansions by 2 hotels within 2008 Retreat Hotel 25 rooms Crown Plaza 80 rooms
Puri/Bhubaneshwar
Delhi (NCR)
Eight 5 star hotels with an room capacity of 2000 rooms by 2009 Three 4 star hotels with an room capacity of 342 rooms Seven 3 star hotels with an room capacity of 524 rooms Service Appts Tri star and Hilton with 240 rooms
In Faridabad & Ghaziabad land for 7 hotels has been auctioned Source: Primary and Secondary Research
44
2.8
Rules, Regulations & Bye Laws Issues &Constraints During the field study and interactions with different officials it was observed that the land laws as well as the rules and regulations were different across different locations metros, mini metros and tourist destinations also. At the business centers, metros ,entry points the real estate prices are very high which creates a major bottleneck for any group/chain of hotelier to think of setting up an property . In such cases its necessary for the different governing departments state / central to provide some tax reliefs as well as land on lease basis. Certain tourist destinations Kerala, Rajasthan, M.P.,U.P. etc should look into the local bye laws w.r.t. the setting up /allotment of hotel plots , increase of FAR for hotel plots. As per discussions with local authorities eg in Chennai the following is the situation Minimum Plot Frontage---4.5-7.0 meters Maximum FSI- 1.50 Maximum plot Coverage-65 percent In case of Hyderabad, following was the situation
Plot area in Sq.mtrs. (a) Below 500 (b) 500 & below 2000 (c) 2000 & above a.
Maximum permissible coverage As per minimum building setbacks as at item 4 below. 50% 1000 sq.mtrs. or 40% of the plot area whichever is higher.
Minimum setbacks on remaining sides: Plot size in Sq.mtrs. Rear Minimum setback in Mtrs. Sides 0.50 1.00 1.25 1.25 1.50
Up to 50 50 and upto 100 100 and upto 150 150 and upto 200 200 and up to 300
1.00 2.00 2.00 2.00 2.00
In Mumbai the maximum permissible FSI in RTD Zone shall be 0.2. The FSI shall be calculated on the gross area of the plot. Where the owner surrenders to the Planning Authority, or an agency nominated by it, Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India 45
free of cost, any land for arterial roads, access roads, social facilities and amenities, public utilities and services an additional incentive FSI of 0.2 of the land so surrendered shall be permissible. In case of Rajasthan JDA/UITs/Municipal Bodies /Gram Panchayats and Collectors of each district shall identify and reserve adequate land (create land bank for hotels) for setting up of hotels. Within this land Bank of hotels there shall be separate hotel land identified and reserved for the following categories of hotels namely (i) Budget hotels, 1/2/3 Star Hotels (ii) Mid-Market hotels (4 Star Hotels) (iii) Luxury hotels 5 Star / 5 Star deluxe & above. The maximum land areas that can be provided to various categories of hotels shall be as follows:HOTEL CATEGORY MAXIMUM LAND AREA (i) Budget hotels (1/2/3 star) 1200 Sq. Mtr. (ii) 4 Star Hotels 6000 Sq. Mtr. (iii) 5 Star / 5 Star Deluxe Hotels and above categories. Upto 18000 Sq. Mtr.
New Hotels in Existing areas :- Higher FAR within the scheme area upto twice vis--vis what may be presently admissible under Building Bye laws may be permitted subject to condition that over all FAR of the scheme area shall not exceed 1 (One) New Hotels in New Areas :- Higher FAR for hotel Buildings within the area identified for township development under New Township Policy up to twice vis--vis what may be presently admissible under Building Byelaws may be permitted subject to condition that overall FAR of the Township area shall not exceed 1
A number of approvals/ clearances are required for any new set up, as per discussions with existing as well as potential groups interested in setting up property are looking for an single window clearance system, currently there are more than 10/15 clearances involved Besides the availability of land, viable locations within a city the running cost for an establishment is also a major concern high power tariffs, water charges, taxes are very high. In case of an hotel the land cost is the major bottleneck for a new property as it constitutes app. 35-45% in the total project cost, hence FSI provided to the hotels is a major concern. So the price of the plot as well as its location is a major constraint for setting up new properties as the cost per room otherwise shall be very high which shall not be viable for the owner. This law states that individuals or companies cannot hold more than 500 sq. metre of land in one city. Companies skirt it by buying land under different ventures. But it's a major deterrent for several foreign investors In many states, stamp duty rates for land and development activity are as high as 13-14.5 per cent. This has, for a long time, induced people to disclose lower property values on paper. Developers in Delhi need more than 30 clearances for a residential project. In Pune, the next six months' demand for office space is at 4 million sq. ft, but only 2 million sq. ft has been found.
46
Meanwhile, land prices have increased, forcing some companies like Cognizant to drop plans to set up shop in the city. Tamil Nadu is one state that has speeded up clearances. Two new cells will now clear projects of up to Rs 100 crore and beyond. The only way to ease land supply in the capital and also in other metros is to reclassify plots of more than one acre in the vicinity of the airport as hotel plots, wherever appropriate. Another solution to the land price problem for hotels would be to allow hoteliers to buy and aggregate smaller commercial plots into larger hotel-worthy plots. Floor-space indices in India should be reviewed in the light of the modern construction designs and technology. Then, varied construction rules across states are also a problem for hoteliers looking to standardise their product. In Delhi and Gurgaon, the fire departments insist that a corridor should be five-feet wide, whereas the Chennai fire department wants it to be eight-feet wide. Hence, the variation in cost of each room in different states. Also, high costs spoil the economics of a hotel. A high-cost hotel has to charge very high rates over a long period to generate a return for investors. That hurts the hotels competitiveness. The government should also make available to hoteliers, the government land available in the central business district (CBD) in cities across India to promote quality hotels. While the government is also interested in promoting tourism and offering various incentives to different sectors, the hotel industry alone has not been given the real impetus for growth. For example, in air-conditioning, which is an absolute necessity for a hot country like India, the government should extend the benefit of lower electricity tariff, which they extend to other industries
47
Chapter 3 Current Demand Trends for Accommodation Units 3.1. Overview The Chapter attempts to present the current and future demand considering the tourist flow at the 54 identified locations. The future demand has been presented on two scenarios (i) considering growth at current rate and (ii) considering target of 25 Million foreign tourist arrivals by the year 2015. Details of the calculation methodology adopted has been depicted in Chapter 1. Average demand scenario across 54 locations in 2006 In the 54 identified locations, 181596 rooms are required per annum out of which 99140 are in the classified category. Table 3.1: Average Demand in 54 Locations
No. of Rooms required currently considering average demand Total Luxury Budget Others Classified 9110 2826 1519 11936 12 5883 7136 5895 58 2024 2488 2082 546 529 611 1075 1011 651 848 1499 135 1619 2182 1754 210 54 108 162 0 206 324 206 0 1577 2386 1577 50 1092 1338 1142 0 261 793 261 0 93 145 93 0 6893 5854 6893 14 81 111 95 10630 24040 34670 26108 2005 3731 3538 5736 198 1076 2788 1274 23 441 431 464 0 1443 2147 1443 0 0 9960 0 47 1161 855 1208 26 521 586 547 10 62 91 72 17 114 252 131 57 345 158 402 0 207 217 207 2383 9101 11484 21023 9195 2178 2610 11373 190 606 3322 796 104 68 222 172 Grand Total 13455 13031 4570 1686 2510 3936 372 530 3963 2480 1054 238 12747 206 60778 9274 4062 895 3590 9960 2063 1133 163 383 560 424 32507 13983 4118 394
3.2.
Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Zone Mumbai Pune Aurangabad
48
Table 3.1(Contd.): Average Demand in 54 Locations

Locations Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Total 54 Locations No. of Rooms required currently considering average demand Total Luxury Budget Others Classified 569 1574 1300 2143 1541 3593 2253 5846 77 179 90 256 152 1493 2373 1645 2625 997 1203 3622 831 698 860 1558 582 438 320 1020 293 214 271 485 19 171 196 190 64 1921 2435 1985 7 317 166 324 18089 13326 31415 16902 1457 1471 294 2928 3172 1405 1175 4577 1148 1455 2231 2603 74 1266 1471 1340 505 981 853 1486 236 1620 2293 1856 104 1104 1338 1208 53 0 0 0 171 38 718 0 7676 38778 38 598 1102 0 554 363 1019 919 13895 60362 91 598 1102 0 725 401 1737 919 21571 99140 25 1332 1349 0 2311 439 1741 1571 18423 82456 Grand Total 3443 7387 346 4018 4825 2389 1340 778 386 4420 490 48317 3222 5752 4834 2811 2339 4149 2546 116 1930 2451 0 3036 840 3478 2490 39994 181596
Major demand seems to be in the Budget category of Hotels, which is about 60.9% of the total classified demand
49
3.3.
Average demand for Accommodation unit from domestic and foreign tourists across 54 locations in the year 2006 The average demand from the domestic tourists have been elaborated in the Table below Table 3.2: Average Demand in 54 Locations from domestic tourists
Average Demand Per Day - Domestic Luxury Budget Total Classified Others 1758 821 1328 2579 0 5724 6996 5724 45 1983 2479 2028 55 368 496 423 917 121 692 813 0 1291 2107 1291 21 87 191 108 0 197 321 197 0 1239 2110 1239 49 1088 1335 1137 784 0 248 248 0 66 117 66 0 6858 5842 6858 10 79 109 89 2059 20741 22800 25132 2339 292 3217 3509 77 999 2766 1076 23 383 360 406 0 1303 1954 1303 0 0 9642 0 842 40 1123 1163 23 518 586 541 89 4 55 59 7 110 250 117 20 327 156 347 0 77 144 77 486 8112 8598 19128 678 1989 1853 2667 110 441 3121 551 201 21 39 60 540 1552 1282 2092 1392 2021 1078 3413 18 127 53 145 0 1270 2162 1270 329 803 926 1132 119 474 724 593 15 108 186 123 5 112 112 117 11 166 192 177 0 1879 2392 1879 5 315 165 320 3243 11296 14539 14447 Grand Total 3907 12720 4507 919 1730 3398 299 518 3349 2472 1032 183 12700 198 47932 5848 3842 766 3257 9642 2005 1127 148 367 503 221 27726 4520 3672 261 3374 4491 198 3432 2058 1317 309 229 369 4271 485 28986
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West
50
Table 3.2 (Contd.): Average Demand in 54 Locations from domestic tourists

Locations Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Average Demand Per Day - Domestic Luxury Budget Total Classified Others 435 1284 257 1719 26 740 555 766 1390 44 772 816 0 1179 1384 1179 791 103 826 929 109 1493 2039 1602 0 1052 1286 1052 32 0 0 0 118 0 0 0 867 6655 33 454 989 0 532 265 928 830 11377 51526 65 454 989 0 650 265 928 830 12244 58181 24 1291 1311 312 2304 324 1724 1541 16533 75240 Grand Total 1976 1321 2206 2563 1720 3641 2338 89 1745 2300 312 2954 589 2652 2371 28777 133421
58.7% of total classified demand is coming from the domestic tourists and approximately 88.6% of the demand is in the Budget category
51
Table 3.3: Average Demand in 54 Locations from Foreign tourists

Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Average Demand Per Day Foreign Luxury Budget Total Classified Others 7352 2005 191 9357 140 12 159 171 13 41 9 54 115 491 161 652 530 156 94 686 75 135 328 463 33 21 19 54 3 0 9 9 0 338 276 338 1 4 3 5 0 13 9 13 0 27 28 27 0 35 12 35 2 4 2 6 8571 3299 11870 976 1199 1713 514 2227 121 77 22 198 0 58 71 58 0 140 193 140 318 0 0 0 7 38 13 45 0 3 3 6 6 7 2 13 10 4 2 14 37 18 2 55 73 0 130 130 1897 989 2886 1895 757 8517 189 8706 80 165 201 245 83 29 21 112 29 22 18 51 2201 232 463 2433 59 52 37 111 152 223 211 375 2296 194 277 2490 579 386 107 965 567 330 134 897 209 159 181 368 8 5 4 13 64 42 43 106 2 2 1 4 14846 2030 16876 2455 Grand Total 9548 311 63 767 780 538 73 12 614 8 22 55 47 8 12846 3426 220 129 333 318 58 6 15 16 57 203 4781 9463 446 133 69 2896 148 586 2767 1072 1031 549 17 149 5 19331
52
Table 3.3(Contd.) : Average Demand in 54 Locations from Foreign tourists

Locations Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Average Demand Per Day Foreign Luxury Budget Total Classified Others 1022 187 37 1209 620 3146 665 3811 1104 683 841 1787 87 74 87 161 402 155 62 557 127 127 254 254 104 52 52 156 21 5 1 26 0 0 0 53 38 718 0 6809 32123 144 113 0 22 98 91 89 2518 8836 144 113 0 75 136 809 89 9327 40959 41 38 124 7 115 17 30 2326 7652 Grand Total 1246 4431 2628 248 619 508 208 27 185 151 124 82 251 826 119 11653 48611
41.3% of total classified demand is coming from the domestic tourists and approximately 78.4% of the demand is in the Luxury category 3.4. Peak demand scenario across 54 locations for the year 2006 The calculated peak demand across 54 locations have been indicated in the Table below:Table 3.4: Peak Demand in 54 Locations
Luxury 10609 201 285 546 1873 135 248 0 0 163 0 0 0 44 14104 Peak Demand Per Day Budget Total Classified 14263 3654 6084 5883 2309 2024 1075 529 848 2721 1619 1754 327 575 206 206 1577 1577 1092 1255 261 261 115 115 6893 6893 131 174 25158 39263 Others 1658 7136 2488 1892 1201 2182 1004 634 2386 2254 1881 599 5854 615 31784 Grand Total 15921 13220 4797 2967 3922 3936 1579 840 3963 3509 2142 714 12747 789 71047
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North
53
Table 3.4 (Contd.): Peak Demand in 54 Locations

Locations Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Average Demand Per Day - Domestic Luxury Budget Total Classified 2066 3731 5797 420 1076 1496 97 441 538 0 1443 1443 0 0 0 154 1161 1315 122 521 643 254 147 401 42 114 156 78 345 423 0 207 207 3235 9186 12421 14455 5709 20164 1354 748 606 331 120 451 1242 1574 2816 21509 7084 14426 235 284 519 1645 152 1493 3061 997 4058 1752 892 860 1296 858 438 614 214 400 739 127 612 2152 231 1921 396 79 317 29708 29755 59463 5381 10019 15399 11442 3312 8130 2407 4006 6414 1357 91 1266 1033 1088 2121 793 1620 2413 146 1104 1250 388 637 1025 0 0 0 548 38 728 0 14866 61913 598 1102 0 554 405 1019 996 32545 96644 598 1102 0 1102 443 1747 996 47411 158558 Others 3538 2788 773 2147 9960 855 586 253 347 345 217 21808 10589 3322 222 1328 4851 718 2373 3795 2463 2620 2591 2501 2436 2433 42242 7390 13550 8742 1471 897 2293 1338 748 1332 1349 0 2311 1338 1741 1571 46072 141906 Grand Total 9335 4284 1311 3590 9960 2170 1229 654 503 768 424 34229 30753 4676 673 4144 26360 1237 4018 7853 4215 3916 3205 3240 4587 2828 101705 22790 24992 15156 2828 3018 4706 2588 1773 1930 2451 0 3413 1782 3488 2567 93483 300464
54
The table indicates a more or less similar scenario with approx. 53% of the total demand coming from the classified category, 61% of the aforesaid classified demand is from the Budget category of Hotels. 3.5. All India Scenario in 2006 The All India scenario indicates that the total supply in the classified category is in tune of 1Lakh 33 Thousand rooms. Considering average demand the gap seems to be in the tune of 20000 in this category , which increases to 1,18, 000 considering the peak demand. Table 3.5: 54 Locations and All India At a glance
Sl. No. 1 2 Calculations Classified Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 - based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand - All India (5X4) 133744 142425 276170 84259 Present Supply Others Total 89728 173987 Current Demand - 2006 Classified Others Total 99140 82456 181596 158558 141906 300464
3 4 5 6
0.63 1.5993 157365 251679 1.7210 130883 225248 288248 476927
55
Chapter 4 Future Trends in Demand 4.1. Overview This chapter highlights the future trends in demand across 54 locations in the year 2010 and 2015 respectively. The projected demand for 2010 & 2015 has been based on two scenarios. The first scenario is on the existing growth rate for the years 2010 & 2015 The second scenario is based on target foreign tourist arrivals of 15 million by 2010 & 25 million by 2015. Projected tourist traffic arrivals to 54 locations in the year 2010 considering current growth rate Applying growth rates and adjusted growth rates (elaborated in Chapter 1) to the tourist visit figures in the year 2006, the following figures were derived for the identified locations. Table 4.1: Visits in 54 Locations At a glance
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Tourist Arrivals Domestic Foreign 4075836 7180918 13774715 119557 3194820 47467 982846 213391 2185329 257801 3032537 149207 357254 35838 672682 4154 2831842 156537 1847588 4906 933877 14797 134207 21706 13874070 42530 248344 7414 48145946 8256223 5841090 1058840 3951836 52435 860713 39674 3262679 169958 4680956 174955 1789776 40980 2186272 2989 285020 9002 537826 6758 474465 24126 436618 59590 24307251 1639308 Total 11256754 13894272 3242287 1196238 2443131 3181744 393092 676835 2988379 1852493 948674 155913 13916600 255758 56402170 6899930 4004272 900386 3432637 4855911 1830756 2189261 294023 544584 498591 496208 25946559
4.2.
56
Table 4.1(Contd.) : Visits to 54 Locations At a glance

Locations Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Domestic 6068430 4551323 606843 5396318 3125288 400907 5589892 4395308 2076860 1412915 650256 624905 4686798 634438 40220481 3376666 6396097 3010885 6279292 1185864 3395176 1697588 111662 2970779 2121985 531569 1794901 709119 3513001 2107800 39202384 151876062 Foreign 4998447 647339 79364 61227 532663 240378 234260 1433028 643091 333752 367934 12038 112115 1029 9696667 469229 5165383 1768939 297721 233527 97719 39089 14627 68405 48860 99364 27128 100772 373616 41603 8845981 28438179 Total 11066878 5198662 686207 5457545 3657951 641285 5824152 5828336 2719951 1746668 1018190 636944 4798913 635467 49917148 3845895 11561480 4779824 6577013 1419391 3492895 1736677 126289 3039184 2170845 630933 1822029 809891 3886617 2149403 48048365 180314241
57
4.3.
Projected demand of rooms in 54 locations in the year 2010 considering current growth rate In 2010, 59% of the total demand would be in the classified category and 53% of the total classified demand would be in the Budget category. The Table below elucidates the location wise scenario. Table 4.2: Projected demand in 2010 Scenario 1
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Average Demand Per Day Year 2010 at current growth rate Luxury Budget Total Classified Others 29937 8786 3115 38722 12014 28 9927 9955 105 3409 4167 3514 948 1001 845 1846 1171 1313 1528 2485 262 2638 3407 2901 93 168 318 261 0 307 480 307 0 2576 3803 2576 2103 80 1717 1797 0 414 1248 414 225 0 148 148 0 10842 9202 10842 163 23 119 142 32701 43208 75909 42722 6444 3753 6720 10473 327 1721 4444 2048 778 41 795 836 0 2593 3858 2593 0 0 17835 0 68 1653 1215 1721 797 35 709 744 19 107 156 126 376 25 170 196 114 636 291 751 0 296 303 296 4383 15399 19782 36497 19474 3784 4775 23258 360 1103 5731 1462 214 130 387 343 1162 3182 2628 4344 5220 3428 2304 8648 203 427 222 631 434 4226 6717 4660 7471 2822 3408 10292 1984 2441 2355 4425 1658 1246 908 2904 Grand Total 41837 21969 7681 2794 4013 6307 579 787 6379 3900 1662 373 20043 305 118631 16916 6492 1613 6451 17835 2936 1541 282 572 1041 599 56279 28033 7193 731 6972 10952 853 11377 13700 6780 3812
58
Table 4.2 (Contd.) : Table 4.2: Projected demand in 2010

Locations Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Average Demand Per Day -2010 Luxury Budget Total Classified 608 770 1377 46 387 433 178 4333 4511 10 541 551 39022 28819 67842 2133 2153 4286 16015 5823 21838 2456 2897 5353 377 4357 4734 858 1215 2073 341 2300 2641 152 1566 1718 76 46 122 0 0 0 231 87 1588 0 24314 100419 853 1566 0 640 585 1916 1730 27647 115074 853 1566 0 871 672 3504 1730 51961 215493 Others 832 441 5487 283 36477 431 4984 4377 5038 1005 3259 1897 28 1887 1911 1667 2609 706 3221 2912 35933 151629 Grand Total 2209 875 9998 834 104319 4717 26822 9730 9772 3078 5900 3615 151 2740 3477 1667 3480 1378 6725 4642 87894 367122
59
4.4.
Projected tourist traffic arrivals to 54 locations in the year 2015 - considering current growth rate The tourist arrivals in the year 2015 at the 54 locations considering current rate of growth has been indicated in the Table below. Table 4.3 : Visits to 54 Locations 2015 At a glance
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Tourist Arrivals Domestic Foreign 8627274 26662245 26209445 322334 6078853 127974 1599502 467250 3556443 564492 5233168 343816 581401 78472 1094734 9095 4886833 360706 3250271 10889 1642873 32845 218410 47528 24407221 94407 284007 19989 87670433 29142043 12073871 2339365 7073988 100385 1779143 87653 6744147 375498 9675806 386540 2767716 74804 2556712 4814 557258 20700 888849 9948 1013839 61143 641535 95971 45772864 3556821 11761317 13023722 8820988 1686677 1176132 206787 12937151 198882 5342642 811331 1100965 859701 20508593 866786 16125817 5302342 7619731 2379499 5183804 1234915 2385706 1361390 Total 35289519 26531779 6206827 2066751 4120935 5576983 659873 1103829 5247538 3261160 1675718 265938 24501628 303996 116812476 14413236 7174373 1866796 7119645 10062346 2842520 2561526 577958 898797 1074981 737506 49329685 24785040 10507666 1382919 13136033 6153973 1960666 21375379 21428159 9999230 6418719 3747096
60
Table 4.3 (Contd.): Visits to 54 Locations 2015 At a glance

Locations Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Tourist Arrivals Domestic Foreign 1716105 43055 12870811 400975 1240423 1162 108790183 28377225 5433212 644697 12505351 13926226 6483574 4046904 12276980 802675 1376076 501364 5243098 157378 2621549 62953 129572 31403 4587710 3276936 1039298 2082803 1039854 7564818 4538889 70199722 312433202 110167 78690 267893 58243 285901 658439 73319 21706250 82782339 Total 1759160 13271785 1241584 137167408 6077909 26431578 10530478 13079655 1877440 5400476 2684502 160975 4697877 3355626 1307191 2141046 1325754 8223256 4612208 91905972 395215541
4.5.
Projected demand of rooms in 54 locations in the year 2015 - considering current growth rate In 2010, 62% of the total demand would be in the classified category and 53% of the total classified demand would be in the Luxury category. The Table below elucidates the location wise scenario. Table 4.4: Projected demand of rooms in 2015 Scenario -1
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Average Demand Per Day - 2015 Luxury Budget Total Classified Others 105780 30164 7695 135945 74 19167 23105 19241 223 6559 7944 6783 2147 1544 1665 3691 2464 2301 2586 4766 605 4923 5964 5528 187 296 538 483 0 509 784 509 0 4826 6875 4826 3703 142 3024 3166 0 740 2204 740 Grand Total 143639 42346 14726 5356 7352 11492 1021 1293 11700 6869 2944
61
Table 4.4(Contd.): Projected demand of rooms in 2015

Locations Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Luxury Average Demand Per Day - 2015 Budget Total Classified Others 0 268 396 268 16197 0 19103 19103 40 142 193 182 111663 93568 205230 79848 8218 14028 13641 22246 610 3097 7960 3707 85 1658 1627 1743 8026 0 5397 5397 0 0 36952 0 1885 109 2573 2681 43 831 932 874 307 41 213 255 39 280 622 320 623 275 1375 1649 0 462 460 462 9420 29914 39334 73035 49973 7605 10342 57578 11395 812 2374 3186 533 294 781 827 2851 7677 6339 10528 8349 5800 3818 14149 694 1292 695 1986 1605 15525 24663 17131 12526 27612 10370 37983 7332 8989 8648 16321 3342 6134 4601 10735 2248 2837 3069 5085 1220 144 1076 1221 638 11995 15168 12633 18 1056 552 1075 108944 81493 190437 102559 3080 3400 680 6480 43113 13879 12072 56992 5608 6435 9669 12044 982 8804 10136 9786 1727 1691 1279 3418 457 3564 5058 4021 245 2423 2934 2668 34 127 63 190 0 0 1331 2429 1331 2429 2918 2955 Grand Total 665 35300 375 285078 35887 11667 3370 13423 36952 4566 1806 561 941 2273 922 112368 67919 14581 1608 16867 17967 2681 41793 50509 24970 14077 8154 2441 27801 1627 292996 7160 69064 21712 19922 4697 9079 5602 223 4249 5384
62
Table 4.4(Contd.): Projected demand of rooms in 2015

Locations Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Luxury Average Demand Per Day - 2015 Budget Total Classified Others 0 0 3724 0 3041 365 784 1149 245 1167 1399 1412 6923 2799 4047 6846 0 3649 6246 3649 58748 53666 112414 69068 258641 547415 324510 Grand Total 3724 4190 2811 13769 9895 181482 871925
288775
4.6.
Projected demand of rooms in 54 locations in the year 2010 - considering target foreign tourist arrivals In 2010, considering a target of 15 mn foreign tourist arrivals, 65% of the total demand would be in the classified category and 57% of the total classified demand would be in the Luxury category. The Table below elucidates the location wise scenario. Table 4.5: Projected demand of rooms in 2010 Scenario 2
Average Demand - 2010 considering target foreign tourist arrivals ( No. of Rooms ) Luxury Budget Total Classified Others 3730 53613 15243 68856 12288 52 10238 10290 131 3490 4184 3621 1816 1112 1139 2928 2050 1572 1684 3622 495 3205 3537 3700 350 149 204 353 0 322 485 322 4280 0 3159 3159 2109 82 1724 1806 0 436 1263 436 0 192 272 192 9221 0 10900 10900 31 122 167 153 58419 51919 110338 44709 8446 6615 7578 14193 507 1836 4477 2344 41 892 896 933 0 2827 4181 2827 18366 0 78 1707 1234 1785 39 713 797 752 29 118 160 148 38 175 379 213 Grand Total 72586 22578 7805 4067 5306 7237 703 807 7439 3915 1699 464 20121 320 155047 22639 6821 1829 7008 18366 3019 1549 308 592
Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong
63
Table 4.5 (Contd.): Projected demand of rooms in 2010 Scenario 2

Locations Gangtok Gaya/Bodhgaya Total East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Total 54 Locations Average Demand - 2010 considering target foreign tourist arrivals ( No. of Rooms ) Luxury Budget Total Classified Others 183 669 295 852 0 465 398 465 7530 16980 24510 39629 35702 4144 6218 39847 512 1417 6113 1929 371 186 428 557 1229 3233 2669 4462 7949 3716 2879 11665 348 554 312 902 7249 818 4788 5606 13262 3310 4105 16572 3445 3414 2625 6860 3088 2078 1246 5166 1289 1134 1171 2306 65 401 451 466 5593 336 4436 4772 12 543 284 555 68273 33391 101664 41461 3459 2395 479 5854 7766 30122 8804 38926 5980 4559 4199 8758 711 4746 5428 5457 1514 1468 1106 2982 506 2465 3589 2970 286 1633 1964 1919 111 0 0 318 163 2995 44744 178966 54 1040 1712 677 784 2094 1905 33976 136265 165 1040 1712 0 995 947 5089 1905 78720 315232 29 1940 1960 2223 2621 941 3254 2971 42251 168050 Grand Total 1147 863 64139 46065 8042 985 7131 14544 1214 12855 20677 9485 6412 3595 917 10365 839 143125 6333 46692 14738 10885 4088 6559 3883 194 2980 3672 2223 3616 1888 8343 4876 120971 483282
64
4.7.
Projected demand of rooms in 54 locations in the year 2015 - considering target foreign tourist arrivals of 25 Mn In 2015, 60% of the total demand would be in the classified category and 48% of the total classified demand would be in the Luxury category. The Table below elucidates the location wise scenario. Table 4.6: Projected demand of rooms in 2015 Scenario 2
Average Demand - 2015 ( No. of Rooms ) Luxury Budget Total Classified 77639 22489 100129 73 19151 19224 222 6555 6777 2571 1683 4254 2922 2436 5358 696 5145 5841 216 315 530 0 517 517 0 5054 5054 143 3027 3170 0 751 751 0 292 292 0 19131 19131 40 142 182 84521 86688 171208 9320 14358 23679 740 3180 3920 85 1695 1780 0 5487 5487 0 0 0 117 2617 2734 47 835 882 44 216 261 54 286 341 276 1375 1651 0 641 641 10684 30692 41376 48727 7577 56305 800 2350 3151 521 289 810 2797 7636 10433 11475 6129 17605 524 1144 1668 1101 14788 15889 20011 9729 29740 5415 7711 13126 4257 3509 7767 1556 2310 3866 122 1061 1183
Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore
Others 6964 23091 7943 1764 2667 6015 554 787 7061 3706 2211 420 16207 193 79583 14413 7984 1672 8150 37156 1901 932 308 624 623 561 74325 10231 11366 778 6306 4476 589 23964 11610 8293 2898 2469 1209
Grand Total 107092 42315 14720 6018 8024 11855 1085 1304 12115 6876 2962 712 35338 374 250791 38091 11904 3453 13638 37156 4635 1814 569 965 2275 1202 115701 66535 14516 1589 16739 22081 2257 39854 41350 21420 10665 6335 2392
65
Locations Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Total 54 Locations
Average Demand - 2015 ( No. of Rooms ) Luxury Budget Total Classified 452 11874 12327 21 1059 1080 97782 77168 174949 4717 3699 8417 39477 13111 52588 6036 6700 12736 930 8744 9674 1965 1783 3747 698 3723 4422 375 2488 2863 140 65 205 0 1512 1512 0 2571 2571 0 0 0 396 797 1193 214 1084 1297 3919 4188 8108 0 3788 3788 58866 54253 113119 251853 248800 500653
Others 15043 553 99787 740 11355 9995 10076 1316 5377 3000 34 2969 3002 3581 3046 1301 6948 6292 69030 322724
Grand Total 27370 1634 274736 9157 63943 22730 19749 5063 9798 5863 239 4481 5573 3581 4239 2598 15056 10080 182149 823377
66
Table 4.7: Projected demand of rooms in 2010 and 2015 Scenario 1

Sl. No. Calculations Present Supply Classified 1 2 Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels - 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand - All India (5X4) Shortage in classified category considering current supply 84259 Others 89728 Total 173987 Current Demand Classified 99140 158558 Others 82456 141906 Total 181596 300464 Demand in 2010 (Considering current growth rate of domestic & foreign tourists) Classified Others Total 215493 151629 367122 Demand in 2015 (Considering current growth rate of domestic & foreign tourists) Classified Others Total 547415 324510 871925
0.63
4 5 6
1.5993 133744 142425 276170 157365 251679
1.7210 130883 225248 288248 476927 342053 240680 582733 868913 515095 1384008
208309
735169
67
Table 4.8: Projected demand of rooms in 2010 and 2015 Scenario 2
Sl. No. 1 2
Calculations Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels - 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 - based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand All India (5X4) Shortage in classified category considering current supply
Present Supply Classified 84259 Others 89728 Total 173987
Current Demand Classified 99140 158558 Others 82456 141906 Total 181596 300464
Demand in 2010 (Considering 15 Million Foreign Tourist Arrivals) Classified Others Total 315232 168050 483282
Demand in 2015 (Considering 25 million Foreign Tourists arrivals) Classified Others Total 500653 322724 823377
0.63
4 5 6
1.5993 133744 142425 276170 157365 251679
1.7210 130883 225248 288248 476927 500368 266746 767114 794687 512260 1306948
366624
660943
68
Chapter 5 Trends in Asia Pacific Countries 5.1. Overview The Asia Pacific countries, especially Malaysia, Singapore, Thailand, Indonesia and Phillipines have seen rapid growth in the tourism sector, with increasing inflow of foreign tourists in the recent times. This has been due to the recognition of the importance of tourism industry to the economy by these countries which has resulted in aggressive marketing campaigns and swift tourism infrastructure development to be adopted by them. The hospitality industry in these countries has been one of the direct beneficiaries of the growth in tourism sector and has also contributed to the tourism industry in terms of support facilities and services. The Chapter attempts a qualitative assessment of the trends in hospitality industry in selected Asia Pacific countries (Malaysia, Singapore, Thailand, Philippines and Indonesia). Available Accommodation facilities The countries have developed a wide range of facilities which include starred hotels, serviced apartments and boutiques. The luxury category of hotels (5 star deluxe, 5 star and 4 star) in these countries particularly in Malaysia and Singapore have developed in significant numbers. Moreover, one of the innovative segments in the hospitality sector of these countries (particularly Malaysia, Philippines and Singapore) is the serviced apartments and boutiques
1 Star 14 0 0 0 0 276 290 2 Star 97 45 0 0 3 1339 1484 3 Star 153 40 655 94 12 895 1849 4 Star 167 96 199 18 117 157 754 5 Star 598 73 119 68 143 67 1068 Others 849 5 0 40 0 2466 3360 TOTAL 1878 259 973 220 275 5200 8805
5.2.
Country Malaysia Singapore Thailand Philippines Indonesia China Total
(Source: Secondary Data)
Country Malaysia Singapore Thailand Philippines Indonesia China Total
1 Star 1400 0 0 0 0 41400 42800
2 Star 9700 4500 0 0 300 200850 215350
3 Star 22950 6000 98250 14100 1800 179000 322100
4 Star 28390 16320 33830 3060 19890 31400 132890
5 Star 149500 18250 29750 17000 35750 23450 273700
Others 42450 375 0 3000 0 221940 267765
TOTAL 254390 45445 161830 37160 57740 698040 1254605
(Source: Secondary Data)
69
Fig. 5.1: Inventory of Rooms India vis a vis Asian Countries
India China Indonesia Philippines Thailand Singapore Malaysia 0% Malaysia 5 Star 4 Star 3 Star 2 Star 1 Star 70.54 13.4 10.83 4.58 0.66 20% Singapore 40.49 36.21 13.31 9.98 0 40% Thailand 18.38 20.9 60.71 0 0 Philippines 49.77 8.96 41.28 0 0 60% Indonesia 61.92 34.45 3.12 0.52 0 80% China 4.93 6.6 37.6 42.19 8.7 India 41.81 8.7 27.37 17.38 4.74 100%
5.3.
Tariffs offered by categories in different countries The average tariff structure per room for various categories of hotels in different countries is as follows: Table 5.1: Tariffs offered by Asia Pacific Countries in different category of Hotels
Average Tariff Structure (in INR) 5 Star Deluxe 5 Star 4089 7755 7109 5062 9891 4 Star 2731 5736 3618 2576 6241 3 Star 2000 3596 1961 2028 4462 2 Star 1481 2220 370 1481 2632 Serviced Apartments 3245 NA NA 3773 NA Boutique NA 5512 NA NA NA 5279 8675 7955 5655 9745
Country Malaysia Singapore Thailand Phillipines Indonesia
The tariff structure varies widely in the different countries. On an average, Malaysia, Singapore and Thailand, the three major countries which attract the bulk of tourists in Asia Pacific region have very competitive tariffs in the 5 star deluxe, 5 star and 4 star hotel segments. Comparing the three countries it is seen that Malaysia has the lowest rates in the luxury segment. Moreover, the hotel industry in these countries offer customized economic packages to the various categories of travelers. A comparison of hotel tariffs 5 star, 4 star, 3 star and 2 star category of hotels) with Indian hotels is depicted below: Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major Tourist Centres in India 70
Fig. 5.2: Tariffs Asia Pacific Vis a vis India

Asia Pacific 12500 10500 8500 7461 6781 6500 India
4180 2809 1636 2400
5 Star Deluxe
5 Star
4 Star
3 Star
2 Star
There is wide difference in the tariff structure of India and Asia Pacific countries. The tariffs in all categories in the Asia Pacific countries are comparatively lower than Indian tariffs. There is wide gap in the tariff structure of 5 star deluxe and 5 star hotels with Asia Pacific hotels charging lower tariffs. The Asia Pacific countries are luring away potential tourists to India with highly competitive prices and attractive packages
71
Chapter 6 Conclusions 6.1 Overview The conclusion and recommendation based on the study findings have been presented in the Chapter. It intends to provide certain strategic insights that might be taken in order to help the Indian Hotel Industry achieve new heights of success. Conclusions The Tourist flow for domestic and international traffic is seasonal in nature except for certain locations like Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Indore and Ahmedabad, where Business tourists are substantial in the overall tourist traffic flow, thus creating a need for availability of rooms throughout the year across different types. With the introduction and addition of new low cost carriers linking metros with Tier I and Tier II cities, the frequency of travel has increased but the duration of stay has reduced significantly, thus creating a need for budget rooms. Out of the 3 types of accommodation units viz. premium and Luxury, Budget and Others, which includes unstarred and approved Hotels, different locations across zones have different set ups, tariffs as well as occupancy levels. From the study it is evident that the budget hotels are more in demand compared to the approved category of hotels i.e. licensed Lodging and Boarding which are existing in different room capacities in all the locations and are being preffered by the domestic tourists to a great extent as well as the foreign tourists and religious as well as hill stations. Business / Trade Cities i.e. Mumbai, Pune, Bangalore, Hyderabad, Chennai, Vizag, Indore, Ahmedabad as well as entry points i.e. Delhi and Mumbai are the major locations, wherein new projects as well as expansion of existing properties are coming up. Goa, which was earlier a seasonal destination an All year destination as the tourist flow due to increase in no. of flights as well as different kinds of tourists like package tours, corporates, etc. is increasing keeping in mind the growing fringe benefits being offered. In cities such as Bangalore, Pune, umbai, Hyderabad,, with booming IT, Biotech and outsourcing business alongwith SEZs, the ARR are souring at $132 to $232, which is expected to touch $275, clearly indicates the scarcity of rooms are driving the prices, which is not so in similar destinations in Asia Pacific. 6.3. Recommendations The study findings indicates certain areas of concern which needs to be addressed amicably to make India a leading nation in terms of available accommodation facility. These are as follows:Introduction of Budget Hotels rather than addition of capacities in premium and luxury hotels Rationalisation of Tariffs in line with the Tariffs being offered by the Hotels of similar categories in Asia- Pacific 72
6.2.
Currently each location has a different Landlaws and Bye laws (FSI and FAR are different), which impacts the Hotelier in terms of Room Configuration and thus has a bearing on the project cost, which is translated into different tariffs for the same category. Though this is a State subject, the Centre as well as Ministry of Tourism, which is the approving body, should come out with certain legislation to solve/ standardize the issue. Renewal of classification should incorporate certain incentives (based on certain norms) to lure the disinterested lot of hoteliers back to renew their categories on a regular basis.
73
Annexure Table A 1: No. of Tourists interviewed during primary survey

Location Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/ Bodhgaya Total East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur No. of Tourists interviewed Domestic 910 450 700 284 631 825 103 125 771 421 155 39 374 52 5840 902 350 196 741 464 544 659 58 135 78 115 4242 1471 435 147 356 922 69 715 563 266 Foreign 768 21 97 46 55 30 8 70 32 73 97 5 173 22 1497 650 26 8 36 37 11 41 12 20 31 42 914 901 350 14 155 158 31 30 182 82
74
Location Jodhpur Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Trivandrum / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Grand Total
No. of Tourists interviewed Domestic 181 83 78 682 122 6090 987 740 657 458 480 433 313 558 603 445 243 426 227 466 282 7318 23490 Foreign 42 47 30 134 31 2187 835 649 319 218 51 28 215 423 320 215 291 306 17 365 185 4437 9035
75
Table A 2: Sample Check of Licensed Units in different Towns

Location Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/ Bodhgaya Total East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Sample Check of Licensed/ Approved Accommodation Units 222 77 36 138 106 61 38 52 86 99 78 47 60 26 1126 11 4 4 14 11 6 4 5 9 10 8 86 311 57 51 59 9 37 49 72 311
76
Table A 2 (Contd.): Sample Check of Licensed Units in different Towns

Location Jodhpur Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Trivandrum / Kovalam Kanyakumari Madurai Calicut Pondicherry Vizag Vijaywada Total South Zone Grand Total Sample Check of Licensed/ Approved Accommodation Units 84 80 80 80 80 1049 86 203 131 61 76 54 36 70 54 52 45 83 74 54 1079 3340
77
Table A 3: State wise growth rate on a Y-O-Y basis 2002 03, 2003-04
Growth percentage 2002-03 Domestic 22.57 -49.79 10.38 -11.89 30.17 33.22 -8.15 11.79 25.78 28.77 5.44 21.73 15.00 3.67 38.47 19.42 -60.70 12.53 261.75 51.14 12.75 0.85 -1.25 2.16 11.93 18.69 27.21 27.78 -5.30 2.22 -24.79 16.49 -0.95 -25.42 4.08 Foreign 127.91 -34.22 3.14 -46.12 15.72 9.79 -0.35 16.29 211.09 319.70 26.68 37.08 28.30 16.29 100.38 7.72 13.09 7.48 -39.28 46.71 39.69 12.12 22.83 22.54 15.07 15.81 43.63 33.26 -18.80 24.45 -50.16 27.77 -32.67 -25.22 27.20 Growth percentage 2003-04 Domestic 20.64 115.95 6.09 33.96 20.90 1.41 -8.54 14.46 19.70 143.34 1.72 44.41 18.80 0.60 16.55 9.88 79.41 11.46 -68.56 27.81 28.42 5.14 1.39 8.17 10.42 51.00 15.85 9.55 22.35 5.67 -10.72 30.48 18.80 -15.53 11.66 Foreign 4.53 118.70 10.21 -37.33 15.55 -43.57 -22.16 21.70 65.40 112.17 17.28 57.50 23.50 -3.11 96.81 16.85 45.90 15.18 59.34 54.60 22.40 17.36 -0.78 13.86 19.22 160.87 35.74 9.96 10.53 -5.39 25.57 21.01 23.53 88.42 25.41
STATE/ U.T. Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh Chattisgarh Jharkhand West Bengal Andaman & Nicobar Chandigarh Daman & Diu Delhi* Dadra & Nagar Haveli Lakshadweep Pondichery
78
Table A 3: State wise growth rate on a Y-O-Y basis 2004 05, 2005-06
Growth percentage 2004-05 Domestic 4.57 -36.60 7.85 7.28 -5.77 4.23 9.53 9.33 5.20 12.05 -0.43 -17.73 6.60 0.88 -13.29 15.85 73.73 12.30 19.21 17.17 9.11 2.21 -17.09 21.29 8.01 -82.90 342.64 9.58 -71.22 2.46 -1.22 10.46 -1.10 77.63 2.80 Foreign 11.78 7.43 48.00 66.12 -7.28 122.42 -10.28 1.69 10.20 2.83 0.28 10.66 18.90 26.91 -58.90 -16.26 -18.54 15.59 -40.47 16.40 12.82 11.47 -15.58 20.85 20.60 -69.60 37.94 15.46 -53.10 44.29 49.94 80.08 629.76 -26.77 12.34 Growth percentage 2005-06 Domestic 19.44 456.71 12.20 -10.50 3.55 42.93 1.80 10.60 5.62 18.79 5.47 55.16 16.60 24.06 6.82 14.03 -13.97 13.10 -17.89 25.00 16.18 35.01 6.62 17.24 10.59 12.10 2.37 16.52 291.99 14.71 4.17 8.50 -9.15 232.09 13.70 Foreign 19.57 110.03 -3.78 34.15 12.95 86.25 14.32 35.51 3.93 -7.28 23.68 16.01 14.20 -6.65 -15.92 59.71 13.48 17.51 4355.16 7.87 9.10 -12.09 21.22 12.22 13.14 19.96 -27.62 11.43 321.56 8.30 -5.39 30.62 14.19 127.63 28.50
79
Annexure A-4 Projected Demand of rooms in 2010 considering 10mn FTA

Sl. No. 1 2 Calculations Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels - 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 - based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand All India (5X4) Shortage in classified category considering current supply Present Supply Classified 84259 Others 89728 Total 173987 Current Demand Classified 99140 158558 Others 82456 141906 Total 181596 300464 Demand in 2010 (Considering 10 Million Foreign Tourist Arrivals) Classified Others Total 217720 151996 369716 Demand in 2015 (Considering 28 million Foreign Tourists arrivals) Classified Others Total 547415 324510 871925
0.63
4 5 6
1.5993 133744 142425 276170 157365 251679
1.7210 130883 225248 288248 476927 345587 241263 586851 868913 515095 1384008
211843
735169
81
Projected demand of rooms in 54 locations in the year 2010 - considering target foreign tourist arrivals of 10 mn foreign tourist In 2010, considering a target of 10 mn foreign tourist arrivals, 58% of the total demand would be in the classified category and 45% of the total classified demand would be in the Luxury category. The Table below elucidates the location wise scenario. Projected demand of rooms in 2010 Average Demand - 2010 ( No. of Rooms ) Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Zone Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Luxury 30465 28 106 1019 1191 268 95 0 0 80 0 0 0 23 33275 3817 331 41 0 0 68 35 19 26 116 0 4453 19836 363 217 1164 5281 207 442 7600 2017 1690 Budget 8930 9934 3411 851 1319 2651 169 307 2589 1717 415 149 10843 120 43403 6739 1724 797 2598 0 1654 709 107 170 637 300 15435 3792 1110 131 3183 3435 430 4239 2833 2462 1265 Total Classified 39395 9962 3517 1870 2510 2919 263 307 2589 1797 415 149 10843 143 76678 10556 2054 838 2598 0 1722 744 126 196 753 300 19888 23628 1473 348 4347 8716 637 4681 10433 4480 2955 Others 3128 12020 4167 953 1532 3410 319 480 3814 2104 1249 226 9202 164 42767 6488 4445 780 3865 17847 1216 797 156 377 291 305 36567 4807 5739 388 2629 2317 224 6729 3423 2361 915 Grand Total 42523 21983 7684 2823 4042 6328 582 787 6402 3901 1663 375 20045 307 119445 17044 6499 1618 6463 17847 2938 1541 283 572 1044 605 56454 28435 7212 736 6975 11033 861 11410 13856 6840 3870 82
Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Total 54 Locations
619 47 182 10 39675 2163 16330 2503 384 872 345 155 77 0 0 0 233 88 1620 0 24769 102172
778 388 4335 541 28921 2158 5890 2926 4366 1221 2303 1567 47 857 1569 0 641 590 1920 1734 27788 115548
1398 434 4517 551 68597 4321 22220 5429 4750 2093 2648 1722 123 857 1569 0 874 678 3539 1734 52558 217720
842 441 5489 283 36588 432 5047 4413 5047 1007 3266 1898 28 1888 1912 1679 2610 711 3222 2914 36074 151996
2240 875 10006 834 105185 4753 27267 9842 9797 3101 5914 3621 152 2745 3481 1679 3484 1389 6761 4648 88632 369715
83
ACNielsen ORG-MARG
Executive Summary
E1. Objective of the Study The objective of the aforesaid study was to assess the requirement of hotel rooms/ accommodation in the Metro Cities and 50 major tourist centers in India, identify constraints / impediments (if any).
E2. Deliverables
To attain the aforesaid objective, the deliverables were as indicated below:Earmarking and freezing top 50 tourist destinations based on the domestic as well as foreign tourist arrivals for the last 3 years. Preparation of list of hotels of different categories (approved & unapproved) as well as other accommodation units available in that particular destination / center across different identified centers. Thus arrive at the existing accommodation capacities currently available. Assessment of proposed / likely new projects (announced or under construction) of various groups/chains, public / private as well as other accommodation units in the earmarked locations and its proposed date of completion. Estimation of future capacity requirement in accommodation - destination wise as well as category wise based on Existing growth of tourist traffic trends With a target of 15 million foreign tourists by 2010 and 25 million by 2015
E3.
Methodology adopted in conducting the study The methodology adopted at various stages in conducting the study has been elaborated in the ensuing paragraphs. The study was carried out combining data from secondary (wherein information was procured from various published information) as well as primary sources (wherein face to face interview as well as e mail communications were carried out with the identified respondent categories). In the secondary research, review of published information (from articles, online sources, books) was undertaken. The aim was to find out information about prime chain hotels in India and in the Asia Pacific Region. Additionally, Ministry of Tourism, Tourism Department of the State Governments (in which 54 locations fell) as well as in house studies (carried out for Ministry of Tourism titled Collection of Domestic Tourism Statistics for the State of Rajasthan, Uttaranchal, Uttar Pradesh, Orissa and Karnataka for the year 2005) were tapped to churn requisite information (elaborated below) In primary research, 4157 accommodation units, 54 civic bodies, Federation of Hotel and Restaurants Association of India, 5 Tourism Boards of Asia Pacific Countries (Indonesia, Phillipines, Thailand, Singapore and Malaysia) and 32525 Tourists (Both Domestic as well as Foreign). The location wise no. of tourists interviewed has been provided in the Annexure. In addition to this, Ministry of Tourism officials at the Centre and at the regional level were also contacted. The primary survey was carried out in between September 2006 and November 2006. Definitions Followed The Hotel industry in India can be classified into 3 major types:-
Executive Summary
E1
ACNielsen ORG-MARG Starred - Hotels which have acquired classification from Ministry of Tourism under the different star categories viz. 1 Star, 2 Star, 3 Star, 4 Star, 5 Star, 5 Star Deluxe, Heritage, Heritage Classic, Heritage Grand. Approved (Awaiting Classification) Hotels - Hotels which have acquired approval from Ministry of Tourism but not classified into any star categories Licensed Units - Hotels/Establishments which have acquired approval/license from local municipal authorities/police license to conduct boarding and lodging facilities NOT including Paying Guest Accommodation, Dharmashalas, Lodges, Dormitories The definitions that have been followed in this report are elucidated below and illustrated in the next page:Luxury - Hotels having Heritage classification and those which have classification of 4 Star, 5 Star and 5 Star Deluxe has been defined as a Luxury accommodation unit Budget - Hotels having classification between 1 Star 3 Star has been defined as a Budget accommodation unit. Others Includes approved (awaiting classification) as well as licensed units indicated above.
E4.
Findings
No of Hotels in different categories Category wise break up of hotels across different zones has been indicated below. Table E1 Category wise no. of Hotels in 54 Locations
Type Heritage 5 Star Deluxe 5 Star 4 Star 3 Star 2 Star 1 Star Unclassified/ Approved Licensed Total Total 54 81 79 102 290 163 48 369 7515 8701
Executive Summary
E2
ACNielsen ORG-MARG No. of Rooms by category of Hotels The no. of rooms available in the 54 locations in different categories are as follows:-
No. of Rooms in different categories of Hotels

41543 34979 36195
19859 10491 2222 9282
16211
2816
St
Table E2 Average Demand in 54 Locations

No. of Rooms required currently considering average demand Total Luxury Budget Others Classified 9110 2826 1519 11936 12 5883 7136 5895 58 2024 2488 2082 546 529 611 1075 1011 651 848 1499 135 1619 2182 1754 54 108 210 162 0 206 324 206 0 1577 2386 1577 50 1092 1338 1142 0 261 793 261 0 93 145 93 0 6893 5854 6893 14 81 111 95 10630 24040 34670 26108 3538 2005 3731 5736 198 1076 2788 1274 23 441 464 431 0 1443 2147 1443 0 0 9960 0 47 1161 855 1208 26 521 586 547 10 62 91 72 17 114 252 131 57 345 158 402 0 207 217 207 2383 9101 11484 21023
Locations Delhi Jammu/ Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/ Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Zone Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Zone
er it ar age D el ux e 5 St ar 4 St ar 3 St ar 2 St ar 1 St a A pp r ro v Li ed ce ns ed
Grand Total 13455 13031 4570 1686 2510 3936 372 530 3963 2480 1054 238 12747 206 60778 9274 4062 895 3590 9960 2063 1133 163 383 560 424 32507
Executive Summary
E3
ACNielsen ORG-MARG
Locations Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Zone Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Zone Total 54 Locations
No. of Rooms required currently considering average demand Total Luxury Budget Others Classified 9195 2178 2610 11373 3322 190 606 796 104 68 222 172 1300 569 1574 2143 1541 3593 2253 5846 77 179 90 256 152 1493 2373 1645 2625 997 1203 3622 698 860 831 1558 582 438 320 1020 214 271 293 485 19 171 196 190 64 1921 2435 1985 7 317 166 324 18089 13326 31415 16902 1457 1471 294 2928 1175 3172 1405 4577 2231 1148 1455 2603 74 1266 1471 1340 505 981 853 1486 236 1620 1856 2293 104 1104 1338 1208 53 0 0 0 171 38 718 0 7676 38778 38 598 1102 0 554 363 1019 919 13895 60362 91 598 1102 0 725 401 1737 919 21571 99140 25 1332 1349 0 2311 439 1741 1571 18423 82456
Grand Total 13983 4118 394 3443 7387 346 4018 4825 2389 1340 778 386 4420 490 48317 3222 5752 4834 2811 2339 4149 2546 116 1930 2451 0 3036 840 3478 2490 39994 181596
Major demand seems to be in the Budget category of Hotels, which is about 60.9% of the total classified demand
Executive Summary
E4
ACNielsen ORG-MARG
All India Scenario in 2006 The All India scenario indicates that the total supply in the classified category is in tune of 1Lakh 33 Thousand rooms. Considering average demand the gap seems to be in the tune of 20000 in this category , which increases to 1,18, 000 considering the peak demand. Table E3. 54 Locations and All India At a glance
Sl. No. 1 2 Calculations Classified Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 - based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand - All India (5X4) 133744 142425 276170 84259 89728 173987 Present Supply Others Total Current Demand - 2006 Classified Others Total 99140 82456 181596 158558 141906 300464
3 4 5 6
0.63 1.5993 157365 251679 1.7210 130883 225248 288248 476927
E5. Demand Scenario Projected tourist traffic arrivals to 54 locations in the year 2010 considering current growth rate Applying growth rates and adjusted growth rates (elaborated in Chapter 1) to the tourist visit figures in the year 2006, the following figures were derived for the identified locations. Visits in 54 Locations At a glance
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Tourist Arrivals Domestic Foreign 4075836 7180918 13774715 119557 3194820 47467 982846 213391 2185329 257801 3032537 149207 357254 35838 672682 4154 2831842 156537 1847588 4906 933877 14797 134207 21706 13874070 42530 248344 7414 48145946 8256223 5841090 1058840 3951836 52435 860713 39674 3262679 169958 4680956 174955 1789776 40980 Total 11256754 13894272 3242287 1196238 2443131 3181744 393092 676835 2988379 1852493 948674 155913 13916600 255758 56402170 6899930 4004272 900386 3432637 4855911 1830756
Executive Summary
E5
ACNielsen ORG-MARG
Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Locations Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations 2186272 285020 537826 474465 436618 24307251 Domestic 6068430 4551323 606843 5396318 3125288 400907 5589892 4395308 2076860 1412915 650256 624905 4686798 634438 40220481 3376666 6396097 3010885 6279292 1185864 3395176 1697588 111662 2970779 2121985 531569 1794901 709119 3513001 2107800 39202384 151876062 2989 9002 6758 24126 59590 1639308 Foreign 4998447 647339 79364 61227 532663 240378 234260 1433028 643091 333752 367934 12038 112115 1029 9696667 469229 5165383 1768939 297721 233527 97719 39089 14627 68405 48860 99364 27128 100772 373616 41603 8845981 28438179 2189261 294023 544584 498591 496208 25946559 Total 11066878 5198662 686207 5457545 3657951 641285 5824152 5828336 2719951 1746668 1018190 636944 4798913 635467 49917148 3845895 11561480 4779824 6577013 1419391 3492895 1736677 126289 3039184 2170845 630933 1822029 809891 3886617 2149403 48048365 180314241
Projected demand of rooms in 54 locations in the year 2010 considering current growth rate (Scenario 1 ) In 2010, 59% of the total demand would be in the classified category and 53% of the total classified demand would be in the Budget category. The Table below elucidates the location wise scenario.
Executive Summary
E6
ACNielsen ORG-MARG Table E4: Projected demand in 2010

Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Average Demand Per Day Year 2010 at current growth rate Luxury Budget Total Classified Others 3115 29937 8786 38722 28 9927 12014 9955 105 3409 4167 3514 948 1001 845 1846 1528 1171 1313 2485 262 2638 3407 2901 93 168 318 261 0 307 480 307 0 2576 3803 2576 80 1717 1797 2103 0 414 1248 414 0 148 225 148 0 10842 9202 10842 23 119 163 142 32701 43208 75909 42722 3753 6720 6444 10473 327 1721 4444 2048 778 41 795 836 0 2593 3858 2593 17835 0 0 0 1215 68 1653 1721 797 35 709 744 156 19 107 126 25 170 376 196 291 114 636 751 0 296 303 296 4383 19474 360 214 1162 5220 203 434 7471 1984 1658 15399 3784 1103 130 3182 3428 427 4226 2822 2441 1246 19782 23258 1462 343 4344 8648 631 4660 10292 4425 2904 36497 4775 5731 387 2628 2304 222 6717 3408 2355 908 Grand Total 41837 21969 7681 2794 4013 6307 579 787 6379 3900 1662 373 20043 305 118631 16916 6492 1613 6451 17835 2936 1541 282 572 1041 599 56279 28033 7193 731 6972 10952 853 11377 13700 6780 3812
Executive Summary
E7
ACNielsen ORG-MARG
Projected demand in 2010

Locations Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram Kovalam Kanyakumari Madurai Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Average Demand Per Day -2010 Luxury Budget Total Classified 608 770 1377 46 387 433 178 4333 4511 10 541 551 39022 28819 67842 2133 2153 4286 16015 5823 21838 2456 2897 5353 377 4357 4734 858 1215 2073 341 2300 2641 152 1566 1718 76 46 122 0 0 0 231 87 1588 0 24314 100419 853 1566 0 640 585 1916 1730 27647 115074 853 1566 0 871 672 3504 1730 51961 215493 Others 832 441 5487 283 36477 431 4984 4377 5038 1005 3259 1897 28 1887 1911 1667 2609 706 3221 2912 35933 151629 Grand Total 2209 875 9998 834 104319 4717 26822 9730 9772 3078 5900 3615 151 2740 3477 1667 3480 1378 6725 4642 87894 367122
Projected demand of rooms in 54 locations in the year 2015 - considering current growth rate (Scenario 1) In 2010, 62% of the total demand would be in the classified category and 53% of the total classified demand would be in the Luxury category. The Table below elucidates the location wise scenario. Table E5: Projected demand of rooms in 2015
Locations Delhi Jammu / Katra Srinagar Varanasi Agra Shimla Lucknow Allahabad Manali Dehradun/Mussourie Nainital Average Demand Per Day - 2015 Luxury Budget Total Classified 105780 30164 135945 74 19167 19241 223 6559 6783 2147 1544 3691 2464 2301 4766 605 4923 5528 187 296 483 0 509 509 0 4826 4826 142 3024 3166 0 740 740 Others 7695 23105 7944 1665 2586 5964 538 784 6875 3703 2204 Grand Total 143639 42346 14726 5356 7352 11492 1021 1293 11700 6869 2944
Executive Summary
E8
ACNielsen ORG-MARG
(Contd.): Projected demand of rooms in 2015

Locations Mathura Haridwar/ Rishikesh Amritsar Total North Kolkata Puri /Bhubneshwar Darjeeling Siliguri Digha Guwahati Patna Ranchi Shillong Gangtok Gaya/Bodhgaya Total East Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar Jaipur Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Total West Chennai Bangalore Hyderabad Mysore Cochin Ooty Trichy Thiruvananthpuram / Kovalam Kanyakumari Madurai Luxury Average Demand Per Day - 2015 Budget Total Classified Others 396 0 268 268 16197 0 19103 19103 40 142 193 182 111663 93568 205230 79848 13641 8218 14028 22246 7960 610 3097 3707 85 1658 1627 1743 0 5397 5397 8026 0 0 36952 0 109 2573 1885 2681 43 831 932 874 41 213 307 255 39 280 622 320 623 275 1375 1649 0 462 462 460 9420 29914 39334 73035 49973 7605 10342 57578 812 2374 11395 3186 781 533 294 827 6339 2851 7677 10528 3818 8349 5800 14149 694 1292 695 1986 24663 1605 15525 17131 27612 10370 37983 12526 8648 7332 8989 16321 6134 4601 3342 10735 2248 2837 3069 5085 144 1076 1220 1221 15168 638 11995 12633 18 1056 552 1075 108944 81493 190437 102559 3080 3400 680 6480 43113 13879 56992 12072 5608 6435 9669 12044 982 8804 10136 9786 1727 1691 1279 3418 457 3564 5058 4021 245 2423 2934 2668 127 63 34 190 0 0 1331 2429 1331 2429 2918 2955 Grand Total 665 35300 375 285078 35887 11667 3370 13423 36952 4566 1806 561 941 2273 922 112368 67919 14581 1608 16867 17967 2681 41793 50509 24970 14077 8154 2441 27801 1627 292996 7160 69064 21712 19922 4697 9079 5602 223 4249 5384
Executive Summary
E9
ACNielsen ORG-MARG
(Contd.): Projected demand of rooms in 2015

Locations Hampi Calicut Pondicherry Vizag Vijaywada Total South Total 54 Locations Luxury Average Demand Per Day - 2015 Budget Total Classified Others 3724 0 0 0 3041 365 784 1149 245 1167 1399 1412 2799 4047 6923 6846 6246 0 3649 3649 58748 53666 112414 69068 258641 547415 324510 Grand Total 3724 4190 2811 13769 9895 181482 871925
288775
Executive Summary
E10
ACNielsen ORG-MARG
Executive Summary
E11
ACNielsen ORG-MARG Table E6: Projected demand of rooms in 2010 and 2015 Scenario 1
Sl. No. Calculations Present Supply Classified Others Total 1 2 Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels - 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand - All India (5X4) Shortage in classified category considering current supply 84259 89728 173987 Current Demand Classified Others Total 99140 158558 82456 141906 181596 300464 Demand in 2010 (Considering current growth rate of domestic & foreign tourists) Classified Others Total 215493 151629 367122 Demand in 2015 (Considering current growth rate of domestic & foreign tourists) Classified Others Total 547415 324510 871925
0.63
4 5 6
1.5993 133744 142425 276170 157365 251679
1.7210 130883 225248 288248 476927 342053 240680 582733 868913 515095 1384008
208309
735169
Executive Summary
E12
ACNielsen ORG-MARG Projected demand of rooms in 2010 and 2015 Scenario 2

Sl. No. Calculations Present Supply Classified Others Total Average in 54 locations Peak in 54 locations Ratio of no. of rooms in classified hotels - 54 locations vis a vis All India ( Avg of estimates for 2004 and 2005 - based on Tourism Statistics published by Ministry of Tourism in 2005 Ratio of peak demand and average demand (2/1) Average Demand - All India (1/3) Peak Demand - All India (5X4) Shortage in classified category considering current supply 84259 89728 173987 Current Demand Classified Others Total 99140 158558 82456 141906 181596 300464 Demand in 2010 (Considering 15 Million foreign tourist arrivals) Classified Others Total Demand in 2015 (Considering 25 Million foreign tourists) Classified Others Total 500653 322724 823377
1 2
315232
168050
483282
0.63
4 5 6
1.5993 133744 142425 276170 157365 251679
1.7210 130883 225248 288248 476927
500368
266746
767114
794687
512260
1306948
366624
660943
Executive Summary
E13

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`Confidential

Final Report Ministry of Tourism Government of India

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Issues & Bottlenecks

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Delhi Jammu- Katra Srinagar Varanasi Agra Shimla Lucknow

Mumbai Pune Aurangabad Ahmedabad/ Baroda Goa Khajuraho Ajmer/ Pushkar

West Udaipur Jodhpur Jaisalmer Indore Bhopal Raipur Jaipur

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Hotel Industry in India Starred Hotels

Approved (Awaiting Classification) Hotels

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Ministry of Tourism For 4 Star, 5 Star, 5Star Deluxe, Heritage

Local Association in a town

Cross Check the data collected incorporate deletions (if any)

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Approach for Approved Licensed Units

Zonal Police Stations List of Lodging Units in each Zone 2

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Table 1.2: Findings from the primary survey Domestic Tourists

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Source: Statistical compilation of Ministry of Tourism

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Table 1.6: Cumulative Annual Growth Rate 2002 - 05/2002 - 06

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Table 1.8: Visitors to locations - 2006

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Table 1.8 (Contd.) : Visitors to locations - 2006

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Table 1.10: Centre wise refusal rates in different category of Hotels

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Bangalore, Mysore, Hampi (Domestic 42.91% and Foreign 70.70%)

Moderated using YOY Growth rates Domestic 35% Foreign 50%

Raipur (Domestic: 23.45%)

Moderated with all India figures (14.35%)

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Table 1.13 (Contd.): Arriving at the Blowing up factor

1/2 Refer Table 1.4 4/2 1*5

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19859 10491 2222 9282

Source: ACNielsen ORG-MARG Primary Survey

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