STR Predicts Upward Trend in India’s Hotel Industry

The health of India’s hotel industry is returning as data from STR Global, the leading provider of market information to the global hotel industry, shows a concerted upward trend and recent positive year-on-year growth in revenue per available room.

Such improvement in international tourism arrivals has come as fears about the spread of the H1N1 flu epidemic have begun to fade. The impact of terrorism also is lessening despite the recent bombing in Pune in mid-February in which at least nine people died.

However, several countries, including the U.K., the U.S. and Australia, still have issued strong warnings to their citizens, urging them to observe high vigilance and to keep a low profile if visiting India.

Factors working in favor of India’s hotel market include forecasted economic growth, the Commonwealth Games hosted by Delhi during October, and the trial-run of a “visa on arrival” scheme for visitors from Singapore, Finland, New Zealand, Luxembourg and Japan who plan trips on short notice. The growth prediction is based on data from STR Global’s Indian database of 240 hotels representing more than 35,000 hotel rooms.