FutureNet Technologies, has launched hospitalityindia.com to focus exclusively on the needs of the Indian Hospitality Industry. Hospitalityindia.com was founded to improve the way people conduct business in the Hospitality Industry. The site serves as an online portal, aggregating buyers and sellers from all over India & overseas and enables them to efficiently buy and sell products. The site was launched to help the largest service sector of the economy communicate amongst itself, exchange ideas and experience and thus achieve international operating standards of efficiency and excellence. Our biggest objective is to be an indispensable source of industry related news, events and technological breakthroughs, and a respected forum for path breaking ideas and exchange of views.

Our aim is to make the website, the most authorative and comprehensive supermarket for the hotel & food service industry. It would act as a platform for organizations to showcase their latest innovations and a common meeting ground for buyers and suppliers from all over the country and overseas. Our aim is to streamline and simplify the procurement process for the hospitality supplies industry. We have integrated the power of the Internet, supply chain management and customer care into a one-stop source to allow product selection, ordering, fulfillment and payment.

Facts and Figures of Indian Hospitality industry:

• Tourism is presently the most important civil industry in the world. The hospitality industry is second only to the global oil industry in terms of turnover, and is, by far, the largest employer around the world. Ten percent of the world's work force is in the tourism industry, and 10 percent of the world's GNP comes from tourism.
• Impact of Tourism on the Indian economy: Taffic increase: +45.5%, Value increase: +62.2% (in US$ million), Additional earnings from Tourism: +Rs.8274 crore.
  Foreign exchange earnings from tourist spending were pegged at around Rs.5,358 crore in the first two months of ’06, registering a growth of 14.7% over the same period in ’05. Foreign tourist flow has grown at around 13%, with 4.4 million visitors in 2006. Last financial year saw 4.01 million tourist arriving in the country, up by 11% over last year and is expected to maintain the same levels this year too.
  In calendar ’05, the country received 3.9m foreign tourists, a jump of 14% over ’04. In ’05, the country earned $6.9bn from inbound foreign tourists, which is more than twice the $3.1bn earned in ’02.
  The tourism ministry has set a target of 10 million tourists by 2010. The World Tourism Organisation has predicted that India will receive 25 million tourists by 2015.
• The World Travel and Trade Council, figures indicate that the Indian tourism demand is expected to grow at 8.8% from 2007-2016. According to the World Travel and Tourism Council, revenue from foreigners traveling to India is expected to grow to US424 billion by 2015. Indians traveling in India as well as abroad are expected to spend US$63 billion by 2015.
• The who's who of the world of international fund companies - Blackstone, Morgan Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, Westbridge Capital, Lehman Brother are looking to invest in the hospitality sector.
• Around 500 million domestic tourists are projected to travel across India by 2010 compared to around 325 million in 2006 and growing at over 10% annually.
• India's hospitality sector is expected to see an estimated investment of US$11.41 billion in the next two years, and around 40 international hotel brands making their presence in the country by 2011, according to a report by Ma Foi Management Consultants. Moreover, the sector is expected to provide over 400,000 jobs.
• In India, the industry supports 48 million jobs, directly or indirectly or 8.27 per cent of total employment and accounts for 5.83 percent of the GDP, according to Department of Tourism estimates.
• According to an HVS International report average employee to room ratio is 1:8 in Indian hotels across all markets and drops to 1:5 for three star category of hotels. The report also states that the hotel sector would need a fresh workforce of atleast 94,000 by 2010-11.
• In the FHRAI’s memorandum presented to the government recently, it is said that atleast 1,50,000 additional rooms are required to meet the target of 5 million foreign tourist arrivals. This entails an investment to the tune of over Rs.15,000 crore. Currently there are 1,05,000 hotel rooms in the three to five-star category in India. The annual growth rate of hotel rooms in India is 6%. Nearly 11 per cent of the hotel demand in the country is from long stay guests.
• To set up a 5-star deluxe hotel with 250-300 rooms will cost approximately Rs.300 crore, excluding the land cost. As per estimates by hospitality consultancy HVS International, around 150 hotel projects are in the works across the country, which are likely to add around 53,000 rooms over the next five years.
• There are about 1,285 approved budget hotels across the country with about 51,000 rooms apart from guesthouses, dharamshalas and devasthans in the unapproved sector. The footprints of the IT and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have played a role in driving the demand for budget hotels in these cities.
• The tourism ministry has proposed a cash subsidy of Rs.2 lakh per room for one-star category and Rs.3 lakh per room for two and three star category hotels to facilitate their growth. According to Federation of Hotel and Restaurant Association of India (FHRAI), the country is short of 65,000 budget category rooms.
• Their is a shortage of around 30,000 rooms in Delhi and the NCR for the 2010 Commonwealth Games. In the NCR 27 new hotels and service apartments are slated to come up over the next four years, with nearly twenty hotels in Gurgaon alone, adding about 5,000 rooms.
• Average Room Rate (ARR) of hotels in India is increasing at the rate of over 20%- almost equal to that of hotels in developed countries such as Europe and the US. The growth in ARRs is a direct fallout of the shortage of five-star accomodation in India and high demand generated by the booming economy. This shortage has stimulated investments in the hotel industry.
• Most of the five-sar hotels are witnessing an average room occupancy rate of over 80%.
• For every room constructed, 3-5 jobs are created. The World Travel and Tourism Council has estimated that by 2010, tourism can support 25 million jobs ( 1 in every 15 ) in India through 8% annual growth.
• For every rupee that goes into building a hotel, three more are spent on furnishing it. More than 27000 items go into a hotel including building material, chandeliers, glassware, furnishings, energy saving devices etc., and at present 90% of hotel accessories are indigenously produced in India. So the domestic accessories sector stands a good chance in the near future.
• The average duration of stay of a foreign tourist in India is one of the highest in the world. On an average, it exceeds 27 days in the case of non-package tourist & is 14 days in the case of package tourist.
• Wedding tourism is growing almost 100% on a year-on-year basis. Generally, the ratio of foreigners to Indians in an NRI wedding is 7:3. On an average, an NRI wedding organised in India costs Rs.50 lakh. On an average, 50-150 rooms are booked in a star category hotel.
• Cruise shipping is growing globally at the rate of 12-15% annually. In India the cruise market is in excess of 1,25,000 guests annually and will grow at over 10% annually. As per Mumbai Port Trust, 31 international cruise calls are expected in India during 2006-2007 against 21 during 2005-2006. For 2007-2008 up to 54 cruise companies have sought permissions to berth their ocean liners in India ports.
• 22 Institutes of Hotel Management being operated as Centres of Excellence for providing hospitality manpower. The government plans to set up four Indian Institutes of Hotel Management in Uttaranchal, Jharkhand, Chattisgarh and Haryana. To provide training in the area of tourism, the tourism ministry will also start 400 training programmes. Estimates indicate a need for about 15,000 more trained persons in the star category hotels, which includes about 2,700 managers, 2,500 supervisors and about 1,000 staff. Hotel companies have hiked salary levels on an average by 15-20% in the last one year (2005-2006).
• Online travel industry is growing at a CAGR of 125%. Generating revenues of around $300-500 million, the size of this industry is around 2% of the entire travel industry, which is estimated to be $42 billion. Growing at the current rate the online travel industry in India is expected to become a $2 billion industry by 2008.

International Recognition: India's booming tourism sector has not only witnessed international investments but also achieved international accolades with its increasing appeal as the leading global tourist destination. The government has been instrumental in making tourism a priority sector. Its efforts have borne fruits with a series of international recognition and awards.

• India has been elected to head the UN World Tourism Organisation (UNWTO), the highest policy making world tourism body represented by 150 countries.
• The world's leading travel and tourism journal, Conde Nast Traveller, has ranked India as the 'numero uno' travel destination in the world.
• India was adjudged Asia's leading destination at the regional World Travel Awards (WTA).
• India's Taj Mahal continues to figure in the Seven Wonders of the World.
• Bangalore-based Leela Palace Kempinski was voted the favourite business hotel in the world in a Readers' Choice Awards by Conde Nast Traveller in 2007.
• India bagged the World's leading Destination Marketing Award for the Incredible India campaign.

Government Initiatives: To unlock the huge potential in this sector, the government has taken various initiatives for the development of this sector.

• Launch of Incredible India campaign to promote tourism both in domestic and international markets.
• Guidelines issued for classification of Apartment Hotels / Timeshare Resorts / Guest Houses and Bed & Breakfast establishments. Railways have planned to set up 100 budget hotels at various stations along with private hospitality players. Recognition of spare rooms available with various house owners by classifying these facilities as "Incredible India Bed and Breakfast Establishments"', under 'Gold' or 'Silver' category.
• Other Initiatives by the Ministry of Tourism:- Paradigm shift towards Rural Tourism/Agri Tourism, Eco-Tourism; Medical Tourism launched as a new product.
• According to a report by FICCI and Ernst & Young, medical tourism industry, currently pegged at $450m, has the potential to grow into a $2.2bn (Rs.10,000 crore) industry by 2012. An estimated 1.75 lakh medical tourists visited India in 2005 for cardiac care, cosmetic surgery, joint replacements and dentistry, about 30% more than 2004. Inbound medical tourism is expected to contribute about 15% of corporate hospitals total earnings by 2009.
  Another initiative in the pipeline is industry body CII’s partnership with 29 hospitals across 16 states to work out a price band for speciality services in cardiology, orthopaedics, oncology and minimally invasive surgery. The healthcare industry is working closely with the tourism ministry, which will incorporate these packages under its ‘Incredible India’ campaign tp promote medical tourism in overseas markets.
  Currently 5 hospitals in the country have got National Accreditation Board for Hospitals and Healthcare Providers (NABH) accreditation. 15 more hospitals are expected to be accredited in one year. 32 hospitals have applied for the accreditation with the NABH and many are expected to follow. International Society for Quality in Healthcare (ISQua) - an international body that certifies quality of healthcare delivery, recognises the NABH accreditation is of the highest global standards.
  A new category of visa, "Medical Visa" ('M'-Visa), has been introduced which can be given to foreign tourists coming into India for medical tourism.
• Eco-tourism - The government is considering various fiscal and policy measures to promote ecological and adventure tourism in the country including formulating uniform ecological guidelines to conserve nature and waiver of service tax charged on adventure tours.
• Ministry of Tourism has tied up with United Nations Development Programme (UNDP) to promote rural tourism. 15 key tourist destinations/circuits being developed to world class standards and identified 50 villages for exposition of handicrafts and handloom.
• The United Nations Educational Social and Cultural Organization have declared 16 centrally protected monuments : Ajanta, Ellora, Elephanta Caves, Agra Fort, Taj Mahal, Fatehpur Sikri, the Sun Temple at Konark, the Churches and Convents of Goa, Khajuraho, the Buddhist monuments of Sanchi, Humayun's Tomb, Qutab Minar, Hampi monuments, Pattadakal monuments, Brihadisvara temple and the Mahabalipuram monuments as world heritage sites.
• 924 Infrastructure projects worth Rs.1440.86 crore sanctioned during the 10th Plan. The government has already okayed plans to substantially upgrade 28 regional airports in smaller towns. The upgradation of national highways connecting various parts of India has opened up the way for the development of budget hotels in India.
• Focus on Buddist Circuit through infrastructure upgradtion of Buddist Circuits and "Walk with the Buddha" Campaign. The Tourism Ministry has identified 62 centres of Buddhist interest for development.
• Tourism revival in J&K through a special tourism package. Focus on North East as India's tourism gateway to the East.
• Tourism ministry has proposed to declare a conditional 10-year tax holiday for all tourism projects in the country. Companies would enjoy full tax exemption up to 50% of the profits, but to enjoy tax benefits for balance amount they would be required to re-invest that part of the profits in tourism projects.
• The government has allowed 100 per cent FDI in the hospitality sector. And with the relaxation of FDI restrictions on the real estate sector the hospitality industry has registered an increase in investments.
• Social awareness among Service Providers and capacity building of Taxi Drivers and Guides through "Atithi Devo Bhavah" Campaign.
• Russian Greeting