As vaccination exercise picks up, Indian hospitality industry hopes for a healthy recovery

<p>
After a slump in 2020, this year will be a crucial year for the hospitality sector as it emerges from the disruptions and embarks on the path to gradual recovery, HVS Anarock Annual Hotels & Hospitality Report 2020 said.</p>
<p>
Due to the evolving nature of the pandemic, travel and tourism norms within the country as well as outside are being re-chartered. Several states in India are now reintroducing travel restrictions and lockdowns. At the same time, the gradual rollout of the Covid 19 vaccine across the globe and in India is expected to restore consumer confidence and help ease these restrictions during the year ahead. “We expect demand to improve considerably in 2021, driven by strong economic growth, corporate performance, and people making up for the lost time by giving in to their pent-up desire to travel,” the report said.</p>
<p>
Domestic leisure travel, particularly to motorable destinations, will continue to show a steady increase in 2021. However, corporate demand will remain subdued at least in the short term, as the convenience of virtual meetings overshadows travel. “We expect India-wide occupancy to improve to 56-59 per cent in 2021.. rate pick-up for luxury business hotels is likely to be the slowest, and for luxury leisure to be the fastest,” the report said.</p>
<p>
Though the 2021 Union Budget failed to provide any direct and immediate support to the Indian hospitality sector, the fillip given to other sectors such as healthcare and infrastructure will indirectly help in the tourism and hospitality sector’s growth in the long-term, the report added.</p>