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Domestic market will help tourism, hospitality to get back on track

“we need to focus more and more on domestic business, leisure or non-leisure. If we do that, this opportunity that has come because of COVID, will make India a 12-month destination”.

— Puneet Chhatwal

PRAVASISAMWAD.COM

The Taj Group believes that focusing on domestic business will help the tourism and hospitality sector recover from the havoc caused by the pandemic. Indian Hotels Company Ltd (IHCL) Managing Director and Chief Executive Officer Puneet Chhatwal was quoted saying that “we need to focus more and more on domestic business, leisure or non-leisure. If we do that, this opportunity that has come because of COVID, will make India a 12-month destination”.

Chhatwal was speaking at 4th edition of CII Real Estate Confluence. He went on to point out that the hospitality industry had operated on 40 per cent business in H1 and 60 per cent in H2 and “I think both this 40 per cent and 60 per cent can go up significantly and narrow the gap with the focus on domestic (business),” Chhatwal said.

 

“All the demand that is driven today is from the domestic market both leisure and non-leisure. When it comes to growth we can expect to see some consolidation activities happening in the industry… The domestic brands will become stronger and the emphasis and the focus will be more on domestic brands.”

 

He also mentioned that recovery was possible if the country’s GDP grew to 8-9 per cent as it would translate into better RevPar numbers for the industry, he said. Chhatwal said the industry should compare TrevPar (total revenue per available room) instead of RevPar (revenue per available room). “The total revenue per available room is not as bad because we have events, meetings, weddings and that helps us in driving our revenue,” he added.

He said that the industry was on track and in the current scenario, demand would outpace supply and in 2-3 years it will balance out and the rates should increase. “All the demand that is driven today is from the domestic market both leisure and non-leisure. When it comes to growth we can expect to see some consolidation activities happening in the industry… The domestic brands will become stronger and the emphasis and the focus will be more on domestic brands,” he said.

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