Conduct a Swot Analysis Essay

These range from one star to Five star rarified depending upon size and amenities. About 30% of the rooms fall under the 5-star terrific categories. To find out the present status of this industriousness a strength, impuissance opportunity and threat (SWOT) analysis is mental. This will help us in understanding this industry and withal identify the weak spots. S. W. O. T compendium OF HOTEL INDUSTRY Strengths ? A very wide variety of hotels is present in the country that can fulfill the demand of the tourists. ? There are planetary players in the market such as Taj and Oberoi & International Chains.Thus, the needs of the world(prenominal) tourists travellers are met while they are on a visit to India. ? custody costs in the Indian hotel industry is one of the lo watt in the world. This provides better margins for Indian hotel industry. ? India offers a readymade tourist destination with the resources it has. Thus the attracter to pull customers already exists and has potent ial grow. Weaknesses ? The cost of land in India is senior high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. ? The hotel industry in India is heavily staffed. This can be gauged from he facts that while Indian hotel companies stomach a staff to room ratio of 31, this ratio is 11 for international hotel companies. ? High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, sumptuosity tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%. ? Only 97,000 hotel rooms are lendable in India today, which is less than the Bangkok hotel capacity. ? The services currently offered by the hotels in India are only limited value added services.It is not comparable to the alive world standards. Opportunities ? Demand between the national and the inward tourists can be easily managed c ollectible to difference in the period of holidays. For international tourists the full point season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summertime months. ? In the long-term the hotel industry in India has latent potential for growth. This is because India is an model destination for tourists as it is the only country with the most diverse topography.For India, the inbound tourists are a mere 0. 49% of the global figures. This number is pass judgment to increase at a phenomenal rate thus energy up the demand for the hotel industry. ? Unique experience in heritage hotels. Threats ? thickening houses replace the hotels. This is a growing trend in the west and is in a flash catching up in India also, thus diverting the hotel traffic. ? Political turbulency in the area reduces tourist traffic and thus the business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war. ? Changing trends in the west demand imilar changes in India, which here are difficult to implement due to high project costs. ? The economic conditions of a country have a direct impact on the earnings in hotel industry. Lack of homework man power in the hotel industry. Transport Facilities A well entwine and coordinated system of transport plays an important role in the preserve economic growth of the country. The present transport system of the country comprises of some(prenominal) modes of transport including rail, road, air transport etc. Tourism industry is also affected by the performance of these services heavy road taxes are the great threat to the tourism industry.