The G20 conference presents a revenue opportunity of Rs 850 crore for the hospitality industry

The G20 conference presents a revenue opportunity of Rs 850 crore for the hospitality industry
Hospitality players are looking to cash in on a Rs 850-crore revenue opportunity arising out of India's G20 Presidency through delegation-related travel and accommodation requirements, while also establishing the foundation for future growth. With the G20 spurring demand in cities where meetings are scheduled, room rates for five-star hotels in key business cities have increased by about 20 per cent since the last quarter of 2022, and the trend is anticipated to continue in the coming months, Hotel Association of India Vice President K B Kachru told.
"The event is expected to generate about Rs 850 crore in revenue towards delegation-related travel and accommodation requirements. So it is bound to have a positive impact on the growth of business," he said in an emailed response.
There is a visible impact in the increase in hotel occupancies and revenues as also in the employment prospects in the sector, said Kachru, who is also Chairman Emeritus and Principal Advisor, South Asia, Radisson Hotel Group, adding "The hospitality industry is expected to witness a 5.5 per cent CAGR. According to him, the sector's bullishness during the G20 presidency year stems from the fact that India will host over 200 meetings in 59 different locations across the country with over 1.5 lakh delegates from the Group of 20 countries expected to participate.
In a similar vein, Chalet Hotels Ltd Managing Director & CEO Sanjay Sethi said, "The G20 summit, hosted by India as part of its presidency, is set to provide a major boost to the country. The positive impact of the summit extends beyond the immediate year, encompassing increased international exposure, infrastructure development, and destination branding.
The benefits of India's G20 presidency will not be limited to just a single year, as the exposure the country is receiving will have long-term spin-off effects, he said adding a growth in travel to India is anticipated, driven by the signing of new business ventures and the expansion of existing relationships and businesses. "The G20 summit, combined with the rising demand for domestic business travel, will contribute significantly to the uptick in the performance of the hospitality industry," Sethi added.
Regenta & Royal Orchid Hotels Chairman & Managing Director Chander K Baljee said G20 presidency will also be a critical enabler of showcasing and promoting "India's rich heritage, landscape, tourist attractions and the diversity in a greater canvas and thereby attracting a larger influx of international tourism -something that is yet to come back at pre-covid levels".
"The Indian hospitality sector, known as a 'sunrise industry' is highly profitable and a major contributor to the economy and G20 presidency will play a significant catalyst in strengthening India's position as a promising nation in the global hospitality sector," he added. When asked about the increase in room tariffs, Kachru said, "Price is a factor of demand and supply. G20 has spurred demand especially in cities where the meetings are scheduled."
Citing a report, he said, "Room rates for five-star hotels in key business cities have increased by about 20 per cent since the last quarter of 2022. There has been a threefold growth in rates and occupancy. Rates also vary with seasonality and market mix."
He further said, "We expect this trend to continue in the coming months, supported by sporting events, weddings and the beginning of the tourist season". On the business outlook in terms of occupancy and room tariff, Kachru said industry estimates suggest that we will surpass pre-crisis levels in the coming quarters, driven by some key tail winds such as the wedding season, the G20 summit, the Cricket World Cup (ICC ODI) and the revival of foreign inbound travel.
"All tourism levers, such as MICE, inbound tourism, medical tourism, business and leisure travel are on the upswing. The outlook for the Indian hospitality industry remains favourable, as can be seen in the good start to 2023," he said.