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Origin, growth and development of Hotel Sector in India (history of hotel industry)

IHM NOTES

The history of hotel industry - The development of hotels and the catering industry in India can be traced back to the 19th century when major cities began to develop, sea travel became easier, and railways were introduced. During the Mogul rule, forts and their surroundings provided accommodation and catering services to travelers in exchange for stories of their adventures or news from other towns and villages. Resting houses called serais/sarais and dharamshallas were established on highways by ancient and medieval kings and emperors to cater to the needs of political and pilgrimage movements.

The British played a significant role in shaping the modern catering industry in India. They introduced hotels and restaurants similar to those found in Europe. Many of the early hotels were managed by European families, such as the Bombay hotel opened in 1799 and the Oldest John Spence's Hotel in Kolkata, which opened to the public in 1830. Pallonjee Pestonjee opened the first Western-style hotel, the British Hotel, in Bombay in 1840, which offered a la carte and table de hôte menus. Other notable hotels included the Auckland Hotel in Calcutta (now The Great Eastern Hotel) and the Connemara Hotel in Madras (now owned by the Taj group).

In 1966, the India Tourism Development Corporation (ITDC) was established to provide a complete range of tourism services, including accommodation, catering, entertainment, shopping, hotel consultancy, duty-free shops, and a travel agency. The ITDC merged with Janpath Hotel India Ltd. to expand its services.

The Taj group of hotels played a significant role in the development of luxury hotels in India. They linked the Taj Lake Palace in Udaipur and the Rambagh Palace in Jaipur to their chain. The Taj Mahal Hotel in Bombay, built in 1903, became an iconic landmark with its exquisite architecture and 220 rooms. Mohan Singh Oberoi, another prominent figure in the hotel industry, took over the Carlton Hotel in Shimla in 1927, renaming it Clarks Hotel. He also built the Grand Hotel in Calcutta in 1933.

The Welcome Group of hotels, inspired by the slogan "Be Indian, Buy Indian," emerged in the 1970s. Initially, they operated independently but later adopted the Sheraton system in 1978 to upgrade staff training and operating systems. The group played a significant role in hosting major events like the Asian Games in 1982 and the Commonwealth Games in 2010, which further boosted the growth of the hotel industry in India.

In recent years, the tourism and hospitality industry in India has shown significant growth. Foreign exchange earnings in December 2014 were Rs 12,875 crore (US$ 2.03 billion), compared to Rs 11,994 crore (US$1.9 billion) in December 2013. Foreign tourist arrivals in 2014 reached 7.46 million, representing a 7.1% growth over the previous year.

Despite the challenges posed by the COVID-19 pandemic, the tourism industry in India is gradually recovering. Foreign tourist arrivals are projected to reach 10 million in 2023, and occupancy rates in hotels are expected to surpass 70%. Domestic travel has already surpassed pre-pandemic levels, and online travel bookings have seen significant growth.

The tourism sector's contribution to India's GDP was 9.2% in 2022, and it is expected to rise to 10% by 2024. The country has over 100,000 registered hotels, with a growing number of boutique and luxury establishments. The foreign exchange earnings from tourism reached US$ 20.5 billion in 2022 and are projected to reach US$ 30 billion by 2024.

Overall, the hotel and catering industry in India has come a long way since its early beginnings, and it continues to play a vital role in the country's tourism and economic growth.

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