INDIAN HOSPITALITY SCENARIO

TOURISM

As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.

CONTRIBUTION TO THE ECONOMY

Combining unparalleled growth prospects and unlimited business potential, the industry is certainly on the foyer towards being a key player in the nation's changing face. Furthermore, banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the tourism and hospitality industry is bound to get a bounce in its growth.
The hotel and tourism industry’s contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.1 billion from April 2000 to March 2010, according to the Department of Industrial Policy and Promotion (DIPP).

According to the Travel & Tourism Competitiveness Report 2009 brought out by the World Economic Forum, the contribution of travel and tourism to gross domestic product (GDP) is expected to be at US$ 187.3 billion by 2019. The report also states that real GDP growth for travel and tourism economy is expected to achieve an average of 7.7 per cent per annum over the next 10 years. Export earnings from international visitors and tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2019. Furthermore, the sector which accounted for 6.4 per cent of total employment in 2009 is estimated to rise to 7.2 per cent of total employment by 2019.

Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector.

FOREIGN TOURIST ARRIVALS

As per the press release by Press Information Bureau dated 4th March, 2010, the monthly estimates for February 2010, compiled by the Ministry of Tourism on two important indicators of tourism sector, foreign tourist arrivals (FTAs) and foreign exchange earnings (FEEs) were as follows

FTAs during the Month of February 2010 were 601,000 as compared to FTAs of 547,000 during the month of February 2009. A growth of 9.9 per cent was registered in February 2010 over February 2009.  
FTAs during the period January-February 2010 were 1,092,000 with a growth rate of 12.7 per cent, as compared to the FTAs of 968,000 during January-February 2009.  
FEE during the month of February 2010 were US$ 1.4 billion as compared to US$ 923 million during the month of February 2009.  
The growth rate in US$ terms in FEE touched in February 2010 over February 2009 was 55.4 per cent.  

MEDICAL TOURISM

Medical tourism (also called medical travel, health tourism or global healthcare) is a term initially coined by travel agencies and the mass media to describe the rapidly-growing practice of traveling across international borders to obtain health care. It also refers pejoratively to the practice of healthcare providers traveling internationally to deliver healthcare.

Services typically sought by travelers include elective procedures as well as complex specialized surgeries such as joint replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries. However, virtually every type of health care, including psychiatry, alternative treatments, convalescent care and even burial services are available. As a practical matter, providers and customers commonly use informal channels of communication-connection-contract, and in such cases this tends to mean less regulatory or legal oversight to assure quality and less formal recourse to reimbursement or redress, if needed.

Over 50 countries have identified medical tourism as a national industry. However, accreditation and other measures of quality vary widely across the globe, and there are risks and ethical issues that make this method of accessing medical care controversial. Also, some destinations may become hazardous or even dangerous for medical tourists to contemplate.

In the context of global health, "medical tourism" is a pejorative because during such trips health care providers often practice outside of their areas of expertise or hold different (i.e., lower) standards of care. Greater numbers than ever before of student volunteers, health professions trainees, and researchers from resource-rich countries are working temporarily and anticipating future work in resource-starved areas. This emphasizes the importance of understanding this other definition.

Medical Tourism is a developing concept whereby people from world over visit India for their medical and relaxation needs. Most common treatments are heart surgery, knee transplant, cosmetic surgery and dental care. The reason India is a favourable destination is because of it's infrastructure and technology in which is in par with those in USA, UK and Europe. India has some of the best hospitals and treatment centers in the world with the best facilities. Since it is also one of the most favourable tourist destinations in the world, Medication combines with tourism has come into effect, from which the concept of Medical Tourism is derived. India is promoting the "high-tech healing" of its private healthcare sector as a tourist attraction.

The government hopes to encourage a budding trade in medical tourism, selling foreigners the idea of traveling to India for low-cost but world-class medical treatment. Naresh Trehan, executive director of Escorts Heart Institute and Research Centre, a leading private healthcare provider, says India has established world-class expertise in practices such as cardiac care, cosmetic surgery, joint replacements and dentistry.

Many countries have developed links for speedy treatments in India for their nationals on account of the fact that in these countries one has to wait for extended periods of time to undergo operations.

In India, medical treatment is not only fast but also costs a fraction of what it costs in USA or Europe. Even tele-consultancy is available for expert opinion and transmission facilities. Some of the states have already established themselves as destinations for health care and medical tourism. The growing need is for high level specialised treatments like transplantation of vital organs, cancer treatment, neuro-surgery, cardiac surgery and many more.

Indian Tobacco Company (ITC) Group opened India's first branded hotel, the Fortune Park Lake City, which shares its premises with a hospital in Thane. This 58-room business hotel, owned by Jupiter LifeLine Hospitals, is built to service medical tourists.

According to a report by RNCOS, medical tourism will grow at a CAGR of over 27 per cent in the period 2009–12 to generate revenues worth US$ 2.4 billion by 2012. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent to reach 1.1 million by 2012. The report adds that India’s share in the global medical tourism industry will climb to around 2.4 per cent by the end of 2012.

THE ROAD AHEAD

The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi devo bhava'- touch of tenderness, a helping hand and a welcoming visage.

According to the World Travel and Tourism Council (WTTC), the growth in the hospitality industry is pegged at 15 per cent every year, with 200,000 rooms needed, the hotel segment of India is on the brink of an astounding growth.

According to the Tourism Satellite Accounting (TSA) research, released by WTTC and its strategic partner Oxford Economics in March 2009

The demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world.  
India's travel and tourism sector is expected to be the second largest employer in the world, employing 40,037,000 persons by 2019.  
Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019.  
The report forecasts India to get capital investment worth US$ 94.5 billion in the travel and tourism sector in 2019.  
India is projected to become the fifth fastest growing business travel destination from 2010-2019 with an estimated real growth rate of 7.6 per cent.