‘Lack of budget hotels hindering tourism growth’

By IANS,

Kolkata: Non-availability of reasonable and average price accommodation is the main bottleneck in the growth of domestic tourism industry in India, said Hari Nair, founder of holiday planning company Holiday IQ.


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“The main problem in the growth of domestic tourism industry in India is the non-availability of reasonable and average price accommodations,” Nair said Tuesday on the sidelines of the launch of Travel Intelligence Report Summer 2011 – a travel trend finding report by Holiday IQ.

According to the survey, the largest demand from domestic tourism has been for budget and mid-range accommodation.

Nair said South East Asia was a threat to the growing domestic tourism industry of India because of availability of mid-range accommodation and cost effectiveness.

“In South East Asia, there is huge availability of mid-range accommodation which offers four star services,” Nair said.

“If you compare a trip to Goa with any other South East Asian countries such as Thailand, you will find Thailand is much more cost effective and there are also lot of low fare airlines services,” Nair said.

He said domestic tourism in India, irrespective of non-availability of mid-range accommodation, is growing by 15-20 percent per year.

The company plans to expand its business to South Asian countries like Indonesia, Philippines, Malaysia, Singapore and Thailand in the next three years to tap the domestic tourism market there.

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