APresentationofResearch Proposalon

“PERFORMANCE ANALYSIS OF HOTEL INDUSTRY IN SOUTH GUJARAT

REGION”

Presented By

DARSHANA S. SHIROYA

Table of Contents

Introduction Statement of the Problem Objectives of the Study Scope of the Study Hypotheses Review of Literature Sources of Data Sample Design Method of Analysis Limitation of the Study Scheme of the Study Bibliography

INTRODUCTION

Hotel industry providing a luxury service valuable to the economy only as a foreign exchange earner.

The industry contributes directly to employment.

The industry indirectly facilitates tourism and commerce.

The hotel industry comprises a major part of the Tourism industry.

Important Facts about Tourism,2010

WORLD

1. No. of International Tourist Arrivals 940 Million Annual Growth Rate 6.6%

2. International Tourism Receipts US$ 919 Billion Annual Growth Rate 8.0%

(Source: India Tourism Statistics 2010 at a Glance)

INDIA

1. No. of Foreign Tourist Arrivals in India 5.58 Million Annual Growth Rate 8.1%

2. No. of Domestic Tourist visits to all States/UTs 740.21Million Annual Growth Rate 10.7%

3. Foreign Exchange Earning from Tourism In US$ terms 14.19 Billion Annual Growth Rate 24.6% In US$ terms (as per RBI) 14.16 Billion

(Source: India Tourism Statistics 2010 at a Glance)

India’s Position in World

Share of India in International Tourist Arrivals

0.59%

India’s rank in World Tourist Arrivals 40

Share of India in International Tourism Receipts 1.54%

India’s rank in World Tourism Receipts 16

(Source: India Tourism Statistics 2010 at a Glance)

Number of Approved Hotels in India & Their Room Capacity in August, 2011

(Source: India Tourism Statistics August,2011)

Category of Hotels No. of Hotels No. of Rooms Available

5 Star Deluxe 79 17,131

5 Star 82 9,609

4 Star 69 6,141

3 Star 657 27,404

2 Star 208 5,923

1 Star 141 3,717

Heritage 55 1,491

Others 251 3,100

Total 1,542 74,516

Leading Brands of Indian Hotel Industry

Leading Indian Brands

Leading International Brands in India

GUJARAT

Gujarat is a land of festivities and celebration.

It is the only state in India that has combination of deserts, forests, coastline, cultural heritage and this aspect of the state makes it a fascinating tourist spot.

There are 23 major tourist centers in Gujarat, big and small, each offering different tourist products.

Major Travel Circuits of Gujarat

The South Gujarat The Saurastra

The Central Gujarat

The Kachchha The North Gujarat

SOUTH GUJARAT REGION

The South Gujarat Circuit is known as a South Gujarat Region.

This region is divided into two parts: Kantha vistar- It is Western part of South

Gujarat. Dungar vistar- It is Eastern part of South Gujarat.

Travel Circuits in South Gujarat Region

There are four Core Centre1. Surat with 13 major & 7 minor centers

2. Saputara Hill Statio with 3 major & 4 minor centers

3. Vansda National Park with 4 major & 1 minor centers

4. Purna Wildlife Sanctuary with 3 major & 1 minor centers

Overall Key Tourism Drivers

Business- 55%

Leisure- 7%

Religion- 34%

Other- 4%

(Source: Tourism Sector Profile 12-13 Jan,2011)

STATEMENT OF THE PROBLEM

1. The slow growth of tourism in Gujarat in terms of percentage increase in the number of foreign tourist & domestic tourist

arrivals is indicative of the fact that we have not succeeded in promoting tourism to the desired level. (Source: Tourist Flow in Gujarat, TCGL)

Year Within Gujarat

(%)

Other Indian State(%)

Foreigner/NRI (%)

2006-07

78.0 20.4 1.6

2007-08

79.0 19.4 1.6

2008-09

77.8 20.4 1.8

2009-10

76.2 22.0 1.8

2010-11

76.0 22.0 2.0

STATEMENT OF THE PROBLEM

2.Major tour operators were reported to have expressed reservation about tourism infrastructure over the lack of enough luxury

hotels in South Gujarat Region. (Source: Southern Gujarat Hotel & Restaurant Tourist Guide line)

Category of

Hotels

No. of Hotels

in Surat

No. of Hotels in Saputara

No. of Hotels in Valsad

5 Star 02 00 00

4 Star 01 00 01

3 Star 06 03 00

2 Star 20 06 00

1 Star 30 01 00

Other 25 06 03

STATEMENT OF THE PROBLEM

3.We have to pay attention to other types of hotel too, in view of the domestic tourist.

4.It is dangerous to depend only on export oriented tourism.

STATEMENT OF THE PROBLEM

5.Travel trade will suffer in the absence of continuous stream of foreign tourist.

6.It needs to create a well balanced accommodation structure to maintain uniform flow of tourists.

SWOT Analysis of Hotel Industry in South Gujarat Region

Strength 1. Rich Culture 2. Demand-Supply gap3. Government Support4. Increase in the Market

share

Weaknesses1. Poor Support

infrastructure2. Slow implementation3. Seasonal income

Opportunities1. Rising income2. Open sky benefits3. New business

opportunities

Threats1. Fluctuations in

international tourist arrivals

2. Increasing competition

OBJECTIVE OF THE STUDY

To study the trends in the hotel industry of South Gujarat Region.

To study in terms of the financial performance with reference to the aspects of the customers and employees of the hotel industry in South Gujarat Region.

To study the contribution of the hotel industry in employment generation and income generation.

SCOPE OF THE STUDY

A number of studies made earlier on tourism promotion unanimously agree that hotels have a significant role in tourism development.

No academic study is known to have been made in South Gujarat Region regarding the hotel industry in relation to tourism development.

The present study will suggest various measures to provide hotel facilities of the right type in this region.

HYPOTHESE

The number of hotels available is inadequate in relation to the flow of tourists.

The right type of accommodation and facilities demanded by the tourists is not available.

The management of hotels needs to be streamlined to cater to the needs of tourists.

REVIEW OF LITERATURE

Anand M.M., “Tourism and Hotel industry in India”, 1976

In his study examines the reason for the poor tourist traffic in India. He says that hotels and other supplementary accommodations are the core of tourism industry.

Negi J.M.,” Hotel for Tourism Development”, 1984

He deals with all kinds of demands and problems faced by hotel industry. He predicts that hotel industry has a big scope for expansion in future.

Seth P.N., “Successful Tourism Management”,1987

His opinion is that there should be close connection between growth of accommodation facilities and developments in the modes of transport.

Thaker M.D., “Problems and Prospects of Tourism Industry in Gujarat”, 2004

She also suggests in her study that there is a need for developing a sound policy of tourism based on scientific principles of hotel management both at the national and state levels.

SOURCE OF DATA

Primary Data1. Hotel establishments2. Employees of hotels3. Tourists

SOURCE OF DATA

Secondary Data1. Information and Statistics from publication of

department of Tourism Govt. of India, T.C.G.L.,F.H.R.A.I.

2. South Gujarat Hotel & Restaurant Tourist Guide

3. Tourist Desk4. Annual Report of Hotel sector5. Tourism and Hotel Magazines6. Periodicals7. News papers and Books on Hotel and Tourism

industry

SAMPLE DESIGN

Fifty hotels are going to be survey. These are consisting of approved hotels, classified hotels and unapproved hotels.

Structured questionnaires will have been used for the survey of the 100 employees, 100 foreign tourists and 150 domestics tourists from the respondent hotels.

METHOD OF ANALYSIS

Appropriate accounting methods like ratios, percentages, indices graphs etc. and Statistical analysis tools like SPSS etc. will be used, to be decided at a later stage.

LIMITATION OF THE STUDY

The study will be restricted to the South Gujarat Region only so conclusions cannot be drawn for infernal analysis.

Since personal interview with the employees of hotel will be not permitted, the questionnaires will have to be supplied to them and received back through the managers. Hence it is doubted if free opinions of the employees will have been expressed or not.

Most of the hotelier will not ready to divulge the information relating to their foreign exchange earnings. For the financial analysis of hotel industry, we have to depend on annual reports.

SCHEME OF THE STUDY

The study is to be divided into six chapters. Chapter1. Introduction2. Theoretical frame work of the study3. Literature Review4. Research methodology and profile of the study5. Data analysis6. Findings and ConclusionsI. AppendicesII. Bibliography

BIBLIOGRAPHY

Books

1. Andrews Sudhir, “Introduction to Tourism & Hospitality Industry”, 2007

2. Bhatt Harish, “Hospitality and Tourism Management”, 20063. Kannan s, “Hotel Industry in India”, 20054. Mohanty Pragati, “Hotel industry and Tourism in India”, 20085. Negi Dr. Jagmohan, “Hotels for Tourism Development”, New

Delhi, 19846. Rues Eberharat H., “Eco-Hotel Management Guide book”, 19937. Sharma Sunil, “Planning and Development of Tourism and

Hospitality”, 20078. Sajnani Dr. Monohar, “Indian Tourism Business”, 20089. Sharma K.K., “Tourism and Travel Industry”, 200610. Zulfikar Mohammed, “Tourism and Hotel Industry”, new Delhi,

2007

E-Sources and Others

1. CRISIL, “Review of Blueprint for Infrastructure in Gujarat, Final Report”,2010

2. F.H.R.A.I., “Indian Hotel Industry Survey”,2009-103. G.I.D.B., “Report on Project Opportunity in Gujarat”4. iDEXTb, “Tourism Policy of Gujarat”,20115. Industrial Commissionerate, Government of Gujarat, “Industrial

Policy”, 20096. Wikipedia, “Tourism”7. www.emeraldinsight.com8. www.gujarattourism.com9. www.hotelmub.com10. www.slideshare.com