This year has not been good for any of the Industry, except I guess for Medical Industry in India (Thanks to Swine Flu, recession related diseases :)).
The tourism in India has seen a steep decline over last 12 months and the effects of that have seen Hospitality Industry in India cut to half.
ASSOCHAM recently released the report on the performance of Hospitality Industry. Mumbai terrorist attack combined with the global slowdown, have severely impacted the bottom line to the extent of 64 per cent of the Indian hospitality sector, as per the analysis carried out by the Associated Chamber of Commerce and Industry of India (ASSOCHAM).
Here are some of the key findings of the report:
- The average net profit of 10 hotels has declined by 65 per cent in Q4 FY ’09 as compared to the Q3 FY ’09.
- Out of these 10 hotels, in Q4 FY ’09, 8 hotels have registered decline in net profit on sequential basis.
- The interest cost of 10 hotels went up by 51.65 per cent in the fourth quarter of FY ’09.
- The fall in total income was about 4.47 per cent as compared to the third quarter of FY ’09.
- The total expenditure in fourth quarter of FY ’09 rose by 7.47 as compared to the third quarter of FY ’09.
I think that we now have seen the worst (atleast I hope so), and the coming quarters will see a turnaround. Hoping for a much better 2010
Here is the complete report by ASSOCHAM: