“India is projected to generate Rs 850 crore in revenues just from G20 events, due to large delegations traveling for accommodation and tourism. Employment avenues and business opportunities in the sector will open up proportionally for the country,” he said.
“Jobs in the hospitality sector are estimated to grow at 5.5% CAGR. We are optimistic that the G20 presidency and its ripple effect will propel the growth of jobs in the hospitality sector in India,” he added.
Kachru said the G-20 presidency’s cascading effect should also lead to India emerging as a preferred MICE destination.
According to a recent report by HVS Anarock titled ‘India Hospitality Industry Overview 2022’ the sector concluded 2022 with occupancy in the 59-61% range, up 15-17 percentage points (pp) from the year before and only 5-7 pp lower than the entire year 2019.
However, average room rates (ARRs) fully recovered in 2022, surpassing 2019 levels by close to 1-3% and being 37–39% higher than 2021 levels.
Thus, revenue per available room (RevPAR) in 2022 climbed by 89–91% over the year before and was only 7-9% lower than in 2019.Kachru said the outlook for the Indian hospitality business is still favourable, and 2023 has gotten off to a strong start.
“Despite the uncertainty in the United States and parts of Europe, escalating global geopolitical difficulties, and a surge of Covid-19 cases in some nations, domestic demand will continue to be strong and foreign travel will ultimately rise. In addition, the demand for hotels in the cities hosting G20 events will rise. The country is also hosting a number of international events, including the ICC World Cup,” he added.
As per industry projections, it is anticipated that occupancy rates pan India will go up to 66% in 2023, accompanied by an increase in ARR of 16 to 17 %, causing RevPAR to reach Rs 4,690 during the year, over 18% more than the pre-pandemic RevPAR.
He said initiatives like e-visa on arrival, the first Global Tourism Investors’ Summit, Heal in India campaign and other initiatives will further grow tourism into the country.
“G-20 tourism related events have focused on adventure tourism and heritage tourism and it is expected that all segments of inbound will see an upward trajectory,” he added.