The hospitality sector is one of the industry which well handled the storm of Goods and services tax as well as demonetisation. The report is according to the results of a better-than-expected number of hotel management, franchise and lease agreements signed in 2017.
One of the prominent hospitality group said that, “Coming on the back of demonetisation at the end of 2016 and GST (Goods and Services Tax) implementation in 2017, new hotel brand signings were expected to slow down, but the sector has weathered the storm well, With no significant policy changes expected to come in 2018, we except the pace of brand signings to increase from levels recorded in 2017.”
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According to the India Hospitality Report 2017, the previous year was in fact much more fruitful in comparison with the year before that i.e. 2016 as there was a total of 173 hotel agreements that were signed in comparison with 170 agreements which were signed in 2016.
The report also stated that the performance of hospitality business flourished due to the increased overseas tourist to the tune of 1 crore alone in 2017 which brought an overall revenue of 27 billion dollars. Also, the hospitality sector made a 15.6 percent growth on the basis of tourist arrival.
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There was another factor which can be understood that the tier 2 cities like Jaipur and Kochi topped against the tier 1 cities in the field of hotel signings and had almost come double of the signings which were seen in the earlier 2016.