The hospitality sector in the country is going to boom. CRISIL Ratings has revealed in its report that the hospitality sector’s revenue will grow by 11 to 13 percent in 2024–25. It explained that the demand for domestic tourism will continue to be stable and that the number of foreign tourists will also increase. As a result, the income will also increase. It is also estimated that the income of the tourism sector in the current financial year will be at the level of 15–17 percent. So the impact of this will be positive on the real sector as well. It has been determined that the demand for hotels and senior citizens’ homes will also increase.
Room rental rates (ARR) may increase by an average of 10–12 percent this fiscal year and 5-7 percent next fiscal year, it said. It is also stated that the occupancy will be at the level of 73–74 percent. Nitin Kansal, director of CRISIL Ratings, said that although the demand for the hospitality sector has picked up, investors will act cautiously in the case of hotels and other real sectors. “Due to factors such as high land acquisition costs, rising construction costs, and the cyclical nature of the industry, it takes a long time to return to profitability, making new investment costs difficult,” it said.
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