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The World Tourism Organization (WTO) expects the Indian tourism industry to grow by 8.8% in the next 10 years. This will need the creation of even larger number of hotel rooms. As there is already a shortage of hotel rooms and this 9% shortfall is likely to be met only by the 1st half of 2009, the sector players will benefit in near term with higher profits. The importance of the sector has already made the GOI increase the allocation to the tourism ministry significantly.
A large middle class of 300 million people with increasing disposable income, cheaper air fares and better connectivity will also increase travel within the country spurring the demand for economy and budget hotels...
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