Centre`s mega infrastructure push to bolster hospitality sector: Industry
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As road infrastructure and connectivity significantly improved in the last 10 years under the Prime Minister Narendra Modi’s vision, the global hospitality majors are strategically expanding their presence by developing hotels near major highways and key service stations, providing travellers with convenient and comfortable options for stays, industry leaders have said.
The government has enhanced its capital expenditure on infrastructure projects such as roads, railways and airports from Rs 1.97 lakh crore (1.6 per cent of GDP) in FY2014-15 to Rs 11.1 lakh crore (3.4 per cent of GDP) in FY2024-25.
The infrastructure development has seen unprecedented progress over the past decade, driven by substantial capital spending from both government and private sectors.
According to Dimitris Manikis, President EMEA, Wyndham Hotels and Resorts, the government's mega infrastructure push, particularly highway development, offers significant growth opportunities for the hotel industry.
Speaking to IANS, Manikis said that they can strategically expand presence by developing hotels near major highways and key service stations, providing travellers with convenient and comfortable options for overnight stays,” Manikis emphasised.
The future of the Indian hospitality industry looks promising, driven by rising occupancy rates and a strong pipeline of new projects across all segments, he added.
A latest report by credit rating agency Moody's mentioned that the transformation spans physical infrastructure projects in railways, roads, and airports as well as digital advancements, positioning India as a leader among emerging markets.
The increase in government investment has also encouraged private sector participation through public-private partnerships (PPPs). Recent developments have not only bolstered connectivity and logistics but also significantly improved the country's ranking on the World Bank’s Logistics Performance Index (LPI).
From being ranked 54 out of 160 countries a decade ago, India has now shot up to the 38th position out of 139 countries. India's infrastructure density, including road and railway network lengths per 1,000 kilometres, now surpasses that of countries like China.
