Domestic travelers constitute a significant majority of the Indian Hospitality sector. With the buoyant growth in the Indian economy, the Indian middle class has higher disposable income. This would lead to increase in domestic travel and eventually contribute to the growth in the hospitality sector.
The e-Tourist Visa facility has been made available for citizens of 150 countries arriving at 16 airports in India. During 2015, more than 4,45,000 Visas on Arrival were issued as compared to 39,046 Visas on Arrival during 2014, which amounts to a growth of more than 1000%.
However, issues like poor infrastructure, high cost of land procurement and multiple licenses as well as levies accentuates the challenge of development. Talent management is a major challenge for the sector. Inadequate supply of quality talent and increased competition for talent within the sector and from competing service sectors has made attrition a significant issue for the industry.
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