Challenges and Growth in India's Hospitality Sector: Insights from CII and EY Report
Challenges and Growth in India's Hospitality Sector
Insights from CII and EY Report
The Confederation of Indian Industry (CII), in collaboration with Ernst & Young India (EY), has released a report highlighting key challenges in India's hospitality sector. The report identifies data collection, regional disparities, investments, and capacity building as major hurdles.
Data Collection Issues
The report points out the limited availability of comprehensive data on employment trends, workforce dynamics, and skills requirements. This lack of data hampers effective policymaking and planning, leading to underreporting of the industry's contribution to national employment statistics.
Workforce Disparities
Significant skill gaps result in wage differences and varied career prospects. Skilled professionals like chefs and hotel managers earn more than unskilled workers such as housekeepers. The lack of soft skills like customer handling and communication further widens this gap.
Impact of COVID-19
The tourism and hospitality sector, which employed around 80 million people, saw a sharp decline during the COVID-19 pandemic, with employment dropping to 32 million in 2020-21.
Economic Contribution
According to the World Travel & Tourism Council (WTTC), India's travel and tourism sector contributed nearly Rs 21,15,000 crore to the economy in 2024, a 21.3% increase from 2019. This contribution is expected to double by 2034, driven by domestic tourism and increased domestic spending.
Doubts Revealed
CII
CII stands for the Confederation of Indian Industry. It is an organization in India that works to create a good environment for businesses to grow and succeed.
EY
EY stands for Ernst & Young, which is a big company that helps other businesses with things like taxes, finances, and consulting.
Hospitality Sector
The hospitality sector includes businesses like hotels, restaurants, and travel services that take care of people when they are away from home.
Data Collection Issues
Data collection issues mean that there are problems in gathering information needed to understand how well the hospitality sector is doing.
Regional Disparities
Regional disparities refer to differences in how well the hospitality sector is doing in different parts of India.
Skill Gaps
Skill gaps mean that some workers in the hospitality sector do not have the training or skills needed to do their jobs well.
Domestic Tourism
Domestic tourism is when people travel to different places within their own country for vacation or leisure.
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