A profile of India’s hotel sector: Is a giant finally awakening?

With close to a billion inhabitants, India is the world’s second most populous country. Its fast growing middle class is estimated at between 200-250 million. Official reports indicate that the economy has been expanding by nearly 6 per cent per annum and the demand for both leisure and business related travel may be expected to increase accordingly. In 1991 the Union Government set aside decades of protectionism and restrictive practices in a bid to encourage foreign investment. Yet according to an international hotel consulting firm India remains a ’sleeping giant’ (Thadani 1998:3). Despite its large size and vast population leading analysts still class India as a "secondary" Asian destination (Muqbil 1995). This article examines the recent performance of India’s hotel sector and its prospects for the future.