A MARKET PULSE Report February 05, 2004

Transcription

1 MINISTRY OF TOURISM DEPARTMENT OF TOURISM GOVERNMENT OF INDIA MANPOWER REQUIREMENT IN HOTEL INDUSTRY, TOUR OPERATORS & TRAVEL SECTOR MANPOWER TRAINED BY DIFFERENT INSTITUTES & PLACEMENT SCENARIO A MARKET PULSE Report February 05, 2004 Market Pulse: H-20, 1 st Floor, Green Park Extension, New Delhi Ph: /45, /10 Fax: , marketpulse@vsnl.com

2 TABLE OF CONTENTS Chapters Page Nos. BACKGROUND 1 TERMS OF REFERENCE PROJECT METHODOLOGY TOURISM IN INDIA : A SNAPSHOT HOTELS IN INDIA EMPLOYMENT IN HOTELS PROFILE OF HOTEL EMPLOYEES RESTAURANTS IN INDIA EMPLOYMENT IN RESTAURANTS PROFILE OF RESTAURANT EMPLOYEES PROJECTED DEMAND FOR TRAINED MANPOWER TRAVEL & TOUR OPERATORS HOTEL MANAGEMENT INSTITUTES TRAVEL & TOUR INSTITUTES APPENDIX 1 APPENDIX 2 APPENDIX 3

3 EXECUTIVE SUMMARY Recent tourism statistics reveal that both domestic and foreign tourism are on a robust growth path. This growth will need to be serviced by a substantial increase in infrastructure, including air-road, rail connectivity as well as hotels and restaurants. In this context, Department of Tourism (MR Division), Ministry of Tourism & Culture, Government of India, commissioned our firm Market Pulse, to assess the manpower requirement in the hotels and restaurants sector as well as tour & travel operation. This study is based on an extensive primary field survey in 27 important tourist destinations. More than 900 questionnaire-based face-to-face interviews with personnel in hotels, restaurants, tour & travel operators, hotel and travel/ tourism management institutes, tourism offices and municipalities have been carried out by our field research team. In addition, physical scanning of cities and sections of highways has been done to estimate the number of hotels, motels and restaurants in the unorganized sector (refers to small businesses that are not members of any trade body). Analysis of secondary data from municipal corporations, trade directories, hotel and restaurant associations has also been used in this estimation. Some of the key findings of this study are mentioned subsequently. Hotels in India There are an estimated 1.2 million hotel rooms in the country. However, the star category hotels account for a mere 7% (approximately rooms). Our forecast is that there will be a total of 2.9 million and 6.6 million hotel rooms in 2010 and 2020 respectively. The larger four & five star hotels (along with the heritage hotels) employ on an average 162 people per 100 rooms, compared to 122 in the One, Two & Three Star Hotels and 58 in the unorganized sector.

4 There are almost 750,000 people working in hotels across India. In addition, there are more than 1 lakh employees working in motels on state & national highways. Employment is forecast to increase to 3.5 million by the year A bulk of the employees (approximately 60%) are working in F&B service, Kitchen and housekeeping. Almost 80% of the employees in key hotel functions such as F&B, front office and housekeeping are young; they are less than 40 years old. Most employees in the management/supervisory cadres in the front office, F&B service, kitchen and housekeeping function of the larger four & five star hotels have a formal hotel management qualification. Almost half the managers and supervisors of the one three star hotels have either a hotel management degree/diploma or a Food Crafts Institute Certificate. Hotels in the unorganized sector employ largely untrained manpower. Restaurants in India Our estimate is that there are at least 140,000 restaurants in urban India. Delhi and Mumbai account for nearly 15% of these restaurants. Conventional restaurants account for the largest population (30%), followed by sweet shops (16%), fast food outlets (16%) and dhabas (13%). While the number of conventional restaurants ranges between numbers per lakh of population, the total number of eating places could be as high as 86 per lakh of population (as in the North). The total number of restaurants could touch 200,000 in year 2010 and 240,000 in year There are almost 1.85 million people working in restaurants across India. Employment is forecast to increase to 2.73 million by the year In addition, there are more than 1.3 million people employed in small restaurants and dhabas on the state and national highways.

5 Almost 70% of the employees in key functions of F& B service and kitchen are less than 30 years old. Almost 20% of those employed in F & B of conventional restaurants, cafes and fast food outlets are diploma holders either from private hotel management institutions or Food Craft Institutes. Dhabas, largely, employ untrained manpower. Travel Trade Business in India There are approximately 6000 travel trade companies/ firms in the country. The population of these agencies could be growing at % annually. On an average, each of these travel trade agencies employ people. This sector employs almost 83,500 people. Of them, a significant proportion are in functions such as ticketing, tour operations and accounts/ administration. Our forecast is that the employment in this sector will touch 242,000 by year Almost 44% of the employees in ticketing have a formal IATA/ UTA certificate or a diploma in travel & tour management; 17% of those in administration also have a formal education in travel & tour management. Overall, 17.5% of the employees have formal training in tour and travel management. Annual Demand for Trained Manpower: A Forecast The annual demand for trained manpower in hotels and restaurants is likely to touch 29,000 by the year 2010; this is likely to increase to approximately 39,000 by the year The demand for trained manpower in hotels and restaurants is likely to be boosted by aggressive expansion of fast food restaurants/ cafe, an increase in 1 3 star budget hotels, golden quadrilateral of national highways as well as the preference for youth in this sector. The annual demand for trained manpower in the travel and tour sector is likely to be 1275 and 2075 in 2010 and 2020, respectively.

6 Training Institutes in Hotel Management/ Food Craft There are approximately 175 training institutes engaged in hotel management and food craft; 50 of them are government sponsored/ owned. Of the 125 private institutes, only 47 are registered with AICTE. A total of students are graduating with a degree/ diploma in hotel management or food craft. Of them, only 20% are obtaining training in government sponsored institutes. Only 3800 students (21%) are completing diploma/ certificate courses; a majority of them are completing 3-year degree courses. These institutes claim 100% placement for the graduating class. However, 35 40% of the graduates are joining other emerging sectors such as call centers because of the following reasons: Better salaries in alternative careers Poor perceived image of work in hotels Reluctance to take up job in the service function of hotels & restaurants In this scenario, there is likely to be a shortage of trained manpower in this sector. Training Institutes in Travel & Tourism Management There are 172 training institutes engaged in travel and tour management education; only 11 of them are government sponsored institutes, 78 are affiliated to universities while the balance are privately owned ones. Approximately, 17,500 students are completing IATA/ UFTA certified diploma courses, graduate and post-graduate degree courses.

7 Strategic Recommendations The present and new hotel management institutes have to train a substantially larger number of students to cater to the increasing demand in hotels and restaurants. In our opinion, the student throughput of diploma and certificate courses needs to be increased substantially; this could be done by altering the mix of students in favour of the short-term courses. Since trained manpower is scarce in the smaller hotels, a training module in the form of audio and video CDs can be explored. The existing training infrastructure for the travel and tour sector appears to be adequate. A joint sector campaign has to be undertaken to generate pride in a hotel management career. This will help attract and retain trained manpower in this sector.

8 KEY RESEARCH FINDINGS HOTELS IN INDIA: Present Infrastructure There is an estimated 1.2 million hotel rooms in the country. However, the star category hotels account for a mere 7% (approximately rooms); most of the rooms are contributed by budget hotels, guesthouses and inns, that cater primarily to domestic tourism. The metropolitan cities of Delhi, Mumbai, Chennai, Hyderabad and Kolkata, along with Goa account for 62% of the rooms in the five & four star category. The other smaller hotels are more geographically dispersed; this results from a strong correlation between hotels in the unorganized sector and domestic tourism statistics. Places of pilgrimage such as Tirupati and Haridwar have significantly lower availability of rooms 28 & 150 rooms per lakh of tourists, respectively. Our forecast is that there will be a total of 2.5 million and 5.8 million hotel rooms in 2010 and 2020 respectively. This assumes that the infrastructure growth will keep pace with the anticipated growth in tourism. The other assumption is that the mix of hotels will remain the same; however, this might change in favour of the organized sector, if government initiatives take shape. Geographical spread might also change in favour of North-eastern states, J&K, West Bengal, Andhra Pradesh, Madhya Pradesh & Uttar Pradesh.

9 HOTELS IN INDIA: Employment Pattern & Forecast Employment intensity increases with the size of hotel. The larger Four & Five star hotels (along with the heritage hotels) employ on an average 174 people per 100 rooms, compared to 122 in the One, Two & Three Star Hotels and 58 in the unorganized sector. Employment Intensity (Employees per 100 rooms) Total Employment 2002 Total Employment 2010 Total Employment /4 star Hotels ,000 83,000 1,10, star Hotels ,500 63,000 83,000 Smaller hotels ,000 14,05,000 32,61,500 Total NA 7,47,500 15,51,000 34,54,900 In addition, there are more than one lakh employees working in motels on state and national highways. A bulk of the employees approximately 60% are working in F&B service, Kitchen and housekeeping. Front offices of the larger hotels account for nearly 7% of the employees.

10 Hotel Employee Profile Five/Four Star Hotels: Most employees in the management/supervisory cadres in the front office, F&B service and housekeeping have hotel management backgrounds. Almost 90% of the chefs are having a hotel management degree/diploma or a certificate from a Food Crafts Institute. Three, Two & One Star Hotels: Almost half the managers and supervisors have either a hotel management degree/diploma or a Food Crafts Institute Certificate. A majority of those at junior levels are just graduates or even SSC pass. Unorganized Sector: Only a few of the managers have a hotel management degree/diploma. Most of the employees consist of untrained manpower. Almost 80% of the employees in key hotel functions such as F&B, front office and housekeeping are young; they are less than 40 years old. In the smaller hotels, more than 50% are less than 30 years old.

11 RESTAURANTS IN INDIA: Infrastructure The burgeoning middle class and evolving lifestyle is driving the demand for quality restaurants both conventional ones as well as fast food outlets and cafes. Our estimate is that there are at least 140,000 restaurants in urban India. Delhi and Mumbai account for nearly 15% of the restaurants. Conventional restaurants account for the largest population (30%), followed by sweet shops (16%), fast food outlets (16%) and dhabas (13%). Northern region already has over fast food outlets serving Chinese, Western and Indian food. While the number of conventional restaurants ranges between numbers per lakh of population, the total number of eating places could be as high as 80 per lakh of population (as in the North). Employment Pattern & Forecast: The total number of restaurants could touch 200,000 in year 2010 and 240,000 in year The mix is likely to remain largely the same; however, fast food outlets and cafes in the organized sector are likely to grow much faster than the others if one goes by the stated expansion plan of large chains. Conventional Restaurants Employment Intensity (Employees per 100 chairs) Total Employment 2002 Total Employment 2010 Total Employment Cafes/Coffee/ Tea Vendors Fast food Outlets Dhabas/Bhojanalays Total NA

12 In addition, there are more than 1.3 million people employed in small restaurants and dhabas on the state and national highways. By 2020, even a 10% share for the organized sector will generate nearly 130,000 jobs for trained manpower. More than half the employees are in key functions of F& B service and kitchen and are less than 30 years old. Almost 60% of these employed in kitchens of conventional restaurants, cafes and fast food outlets are diploma holders either from private hotel management institutions or Food Craft Institutes. Only 20% of people in F&B Service are hotel management degree/diploma holders. Restaurants, employ largely untrained manpower.

13 PROJECTED ANNUAL DEMAND FOR TRAINED MANPOWER Year 2010 Year 2020 Hotels Restaurants Total ,000 Key drivers of demand for trained manpower are likely to be the expansion of the organized sector, golden quadrilateral and preference for youth in the hospitality sector. Presently, students are being trained in hotel management, annually. Only 22% are graduating from the Government promoted institutes. Nearly 40% of them are pursuing alternative careers in other emerging service sectors (such as call centres). These statistics indicate that there could be a severe shortage for trained manpower by the year 2010.

14 PROJECT TEAM Chief Technical Advisor: Ejaz Hoda (38 years) A graduate of IIT, Delhi and a post-graduate from IIM, Bangalore, has over 15 years of experience in the area of market research. Brings to the team a marketing focus as well as experience of diverse products and services. Specializes in consumer research, statistics and market entry strategy. Has pioneered the use of databases in marketing, spearheads the research and development of new research methodologies and techniques such as mpevolution & intelliprobe, has co-authored iconsumer, a comprehensive research publication on Indian consumer markets and MACCESS 2002 a unique report on Indian Men s Accessories. Has been the chief research advisor on important assignments for multinational corporations such as Frito Lay (a PepsiCo), Hyundai Motor, Nestle India, Pillsbury India and Spice Telecom. Has also been on the Young Business Committee of Confederation of Indian Industry (CII). Chief of Project: Makarand Chaurey (40 years) A graduate of IIT, Kanpur and a post-graduate from IIM, Ahmedabad, has over 10 years of experience in the areas of industrial research, project appraisals and financial services. Has established cutting edge quality systems and specializes in demand forecasting and advanced statistical analysis for the industrial & automotive sectors. Has co-authored iconsumer, a comprehensive research publication on Indian consumer markets and worked on important assignments for Honda Cars, DCM group and PVR.

15 Head of Data Processing & Analysis: Dominic Sebastian (33 years): Heads the data processing team and specializes in computer-aided statistical analysis. Has 8 years of hands-on experience with specialized software (SPSS, XLSTAT & STATS) that enables statistical analyses such as correspondence analysis, multiple discriminant analysis, significant testing and database management. He is assisted by a team of 5 data processing executives. Program Coordinator: Akhtar Siddiqui (28 years) Heads the field function and is responsible for field briefing, accurate implementation of sampling plans and quality control in relation to field research. Has played a key role in mapping different cities and rural areas in terms of consumer demographics, on an al-india basis. He is assisted by a team of 12 field officers and research associates. Research Executives/Associates: Qammar Naseem Ahmad, Prabhat Kumar, Deepak Raj, Kaushal Kishore and Rajendra Prasad Have been instrumental in collection of all primary data as well as compilation of secondary data.

16 BACKGROUND India offers diverse opportunities for tourism, be it for leisure or business. Over 2.5 million foreign tourists (including NRI s & PIO s) visit India every year. By comparison, domestic tourism is significantly greater. Statistics reveal that we are likely to witness a sharp increase in both domestic and international tourist traffic. The rapid increase in tourism is being fuelled by a wide range of contributory factors as outlined in the table below. Tourism Segment Domestic tourism International tourism Growth Drivers Rapidly increasing purchasing power of the middle class. Better road connectivity Evolving lifestyle Development of internationally acclaimed destinations such as Kerala & Rajasthan Favourable perception of Brand India Attractive market that motivates foreign business travelers The growth in tourism will have to be serviced by a substantial increase in infrastructure, including air-road-rail connectivity, hotels and restaurants. It is in this context that Department of Tourism, Ministry of Tourism & Culture, Government of India, has decided to undertake a study to assess the manpower requirement in the hotel and restaurant sector as well as the tour and travel operation business. Our firm Market Pulse has been commissioned to conduct this study. This document presents the findings of the study. 1

17 TERMS OF REFERENCE 1. To analyze the job opportunities in the hotel sector by assessing : Current manpower requirement and the requirement by 2010 & 2020 of different categories of personnel in star category, heritage hotels, un-approved hotels, restaurants and cafeterias (both region-wise and state-wise) The manpower available in the hotel industry and a comparison of the same with the total workforce. 2. To make an estimate of trained manpower by assessing the number of personnel (category-wise) trained presently and in 2010 & The institutes to be considered are as follows: National Council for Hotel Management and Catering Technology (NCHMCT) Private sector and other agencies related to travel and tourism 3. To analyze the placement scenario (category-wise) of the students and quantify the number of students passing out from various institutes, offering courses related to travel and tourism. The institutes to be considered would be IHMs/ FCIs under NCHMCT as well as private institutions and other agencies related to travel and tourism. 4. To assess the current manpower requirement as well as for 2010 & 2020, in the tour operation and travel sector. 2

18 CHAPTER 1 PROJECT METHODOLOGY 3

19 This study is based on an extensive primary field survey, analysis of secondary data as well as physical scanning of cities. The primary field survey has been carried out in 27 important tourist destinations. These have been selected from different destination categories on the basis of their tourist traffic. More than 900 interviews have been conducted by our field research team, comprising 3 field officers, 2 research associates and a team of 5 field interviewers. The sample composition is detailed in table 1.1. below. The interviewee in each of the segments comprised of middle senior level managers in the Human Resource departments of large organizations as well as the ownersmanagers of smaller organizations. Secretaries and director level officials of state tourism offices, municipal bodies and relevant hotel associations have also been interviewed. The sample has been randomly selected so as to be representative of a cross-section of that segment Sample composition (Number of Interviews) Region Cities Hotels Restaurants Travel &Tour operators North Hotel Mgmt. Institutes Tourism offices & Municipalities Total Delhi Agra Haridwar Shimla Varanasi Amritsar

20 Region Cities Hotels Restaurants Travel &Tour operators South East Hotel Mgmt. Institutes Tourism offices & Municipalities Trivandrum Cochin Ooty Mysore Bangalore Chennai Tirupati Hyderabad Kokata Bhubanesh war Total Puri North Guwahati East Shillong West & Central All India Mumbai Ahmedabad Pune Aurangabad Goa Udaipur Jaipur Khajuraho

21 Project Coverage Hotels All star category & heritage hotels Others registered with municipal bodies or hotel associations. Various small hotels/ guest houses/ inns scattered in residential areas or located in pockets near the railway station, inter-state bus depots, etc. Restaurants All conventional restaurants (AC /non AC) registered with municipal bodies or listed in telephone/trade directories Fast Food chains Dhabas/hawkers/ juice corners Cafeterias, etc. Travel & Tour Organized sector players registered with TAAI Operators Other small and medium sized travel agencies Ticketing agents Hotel Those registered with NCHMCT Management Private sector institutes and Travel & Tour Institutes The states of Jammu & Kashmir and Bihar have not been directly covered in addition to some union territories such as Andaman & Nicobar, Pondicherry and Lakshwadeep. The states covered by our research account for 88% and 94% of domestic and foreign tourist visits, respectively. Hence, for purposes of estimating national statistics these contribution ratios have been used. 6

22 Information Areas Structured questionnaires (refer Appendix 1) were developed for each of the segments under study. The information areas addressed by the questionnaires are briefly mentioned subsequently. Hotel/ Restaurants/ Travel & Tour Operators Employment pattern across functions Age profile of employees Business particulars Proportion of temporary employees across functions Institutes of Hotel Management (both private and NCHMCT) Batch size, i.e number of students graduating annually Courses/ Subjects offered Tenure of the course Interviews with the officials of municipal bodies and hotel associations were used to estimate the number of hotels and restaurants in each of the cities under study. Additionally, comprehensive physical scanning of each of the destinations under study was carried out to estimate the proportion of hotels (guest houses, inns and small hotels) and restaurants (including dhabas) in the unorganized sector. A study of the local telephone and trade directories as well as registered Internet websites was also used to estimate the number of travel and tour operators as well as private institutes of hotel management and travel management institutes. 7

23 CHAPTER 2 TOURISM IN INDIA : A SNAPSHOT 8

24 Attractiveness of diverse destinations and increased levels of marketing are transforming India into a thriving tourist centre of the world. Although, India s shape of world tourist arrivals is a mere 0.37%, recent statistics indicate a robust growth of more than 15%. In addition, growth in the disposable income of more than 200 million people belonging to the middle class is changing the profile of domestic tourism. Statistics from Ministry of Tourism and Culture reveal that domestic tourist visits have increased from 191 million in 1999 to an estimated 272 million in This represents a compounded annual growth rate of 17%. Domestic tourism in both North and North-Eastern regions have registered high growth rates (20% and 63% CAGR, respectively). While Southern India experienced a 6% growth, West/ Central and Eastern regions experienced a marginal decline. The growth rates point towards relative needs for infrastructure development in these regions. 2.1 Geographic Contribution of Domestic Tourism 2.2 Geographic Contribution of Foreign Tourism 6% 13% 1% 35% 0% 41% 39% 8% 23% 34% North South East West & Central North East North South East West & Central North East 9

25 2.3. Tourist Traffic in Important Destinations (covered by research) State City Domestic Foreign Total AP Tamilnadu Hyderabad Tirupati Chennai Ootty Bangalore Karnataka Mysore Kerala Cochin Trivandrum UP Agra Varanasi HP Shimla Delhi Delhi Uttaranchal Haridwar Punjab Amritsar Orissa Bhubaneshwar Puri WB Kolkata Assam Guwahati Meghalaya Shillong Maharashtra Mumbai Pune Aurangabad Gujarat Ahmedabad Goa Goa Rajasthan Jaipur Udaipur MP Khajuraho

26 2.4. State-Wise Tourist Traffic 2002 (covered by research) Domestic Foreign Total Andhra Pradesh Tamil Nadu Karnataka Kerala MP UP HP Orissa Assam Meghalaya Rajasthan WB Delhi Utranchal Maharashtra Gujarat Goa Punjab Total Contribution % All India

27 CHAPTER 3 HOTELS IN INDIA 12

28 One of the pillars of tourism infrastructure is made up of the places of lodging. Given the disparate socio-economic profile of domestic tourists, hotels exist in both the organized and the unorganized sector. In addition to the star category hotels, there are smaller hotels, guesthouses and inns that cater largely to domestic tourists. The pilgrimage destinations also have a large number of dharmashalas to support the seasonal increase in the number of tourists. In this study, we have carried out the required analyses for the following 3 segments: 5star, 4 star and heritage hotels Three, two & one star hotels Small budget hotels, guesthouses & inns in the unorganized sector A Hotel Map There is an estimated hotel rooms in the country in both the organized and unorganized sectors combined. The star category and heritage hotels account for 7% of the hotel rooms; the balance is contributed by other places of lodging such as budget hotels, guesthouses and inns. 13

29 3.1 % Contribution of Hotel Segments to Total Rooms 3% 4% 93% 5star/4star/Heritage Hotels 1-3 star Hotels Others Five & Four Star/ Heritage Hotels These hotels have a total of almost rooms. The metropolitan cities of Delhi (21%), Mumbai (17%), Chennai (7%), Hyderabad (5%) and Kolkata (5%) account for 55% of the rooms in this category. Goa accounts for 7% of the rooms Three, Two & One Star Hotels These hotels have rooms and are more extensively spread than their larger counterparts. They are not concentrated in the metropolitan cities. Both Mumbai and Goa have a significantly higher presence of these hotels; they together account for 5939 rooms (14%). The states of Andhra Pradesh (5045 rooms), Tamil Nadu (6213 rooms) and Maharashtra (6588 rooms) together account for almost 42% of the rooms in this category. 14

30 Other Hotels in the Unorganized Sector These hotels are also well spread throughout India; their presence is correlated with the number of domestic tourists visiting different tourist destinations. The 3 states of U.P, Rajasthan and Tamil Nadu account for almost 45% of the total availability in the country. State 3.2. State-wise Rooms Availability 2002 Total rooms 5 & 4 Star Hotel rooms 1, 2 & 3 Star Hotel rooms Other Hotels Andhra Pradesh Tamilnadu Karnataka Kerala MP UP HP Orissa Assam Meghalaya Rajasthan WB Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

31 3.2. Total Rooms Availability per Lakh Tourists Places of pilgrimage such as Tirupati and Haridwar have significantly lower availability of rooms 28 and 150 rooms per lakh of tourists, respectively. Even Agra s availability of rooms is substantially lower (175) than the national average. However, this could be attributed to the fact that a large number of Agra tourists stay in Delhi. By comparison, states such as Delhi, Karnataka, Himachal Pradesh, Orissa, Rajasthan and Gujarat have substantially higher availability of rooms for tourists State-wise Availability of Rooms State City Total Rooms Rooms per lakh Tourists Andhra Pradesh Hyderabad Tamilnadu Karnataka Kerala M.P Tirupati Chennai Ooty Bangalore Mysore Cochin Trivandrum Khajuraho

32 State City Total Rooms Rooms per lakh Tourists U.P H.P Orissa Assam Meghalaya Rajasthan W.B Agra Varanasi Shimla Bhubaneshwar Puri Guwahati Shillong Jaipur Udaipur Kolkata Delhi Uttaranchal Maharashtra Haridwar Mumbai Pune 2935 NA Aurangabad Gujarat Ahmedabad Goa Goa Punjab Amritsar All India

33 3.3. Growth in Tourist Traffic (Projected Growth) Andhra Pradesh Tamilnadu Karnataka Kerala Madhya Pradesh Himachal Pradesh Orissa Assam Meghalaya Rajasthan West Bengal Delhi Uttar Pradesh Uttaranchal Maharashtra Gujarat Goa Punjab Growth statistics pertaining to tourist traffic are based on statistics of Ministry of Tourism. For the period , we have assumed that growth in tourist traffic will follow more or less the same trend as in the past. Thus, some (north-eastern state are likely to experience very quick annual growth of approximately 20%, others like Delhi, U.P, Tamul Nadu and Karnataka, where growth has already slowed down, will experience a 5% growth annually. Still others like W.B, A.P and M.P are likely to grow at 10% annually, since they have displayed robust statistics in the recent past. 18

34 3.4. Rooms Availability: A Forecast ( ) In order to arrive at an estimate of hotel rooms in different states, the following bases have been assumed. The growth in star category hotels will follow the same trend as in the last 4 years. This trend has been obtained from the projects approved by the Ministry of Tourism in the last 4 years. If growth rate in tourism accelerates, this estimate can be treated as a conservative estimate. The growth in hotels in the unorganized sector will depend on the growth in tourism (domestic and foreign combined). The other assumption is that the 18 important states covered in the primary research will continue to represent 88% of hotel rooms in the unorganized sector. In 2010, there will be a total of 2.9 million hotel rooms, more than twice the numbers in Star category hotels will have almost 100,000 hotel rooms, while the balance will be present in the unorganized sector. The states of Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Assam/Meghalaya and West Bengal will register the quickest growth trends. The states of Delhi, Karnataka and Gujarat might experience a stagnant phase. These are also those states that already have a high availability of hotel rooms. In the year 2020, there should be approximately 6.6 million hotel rooms, if the full potential of tourism is tapped. We feel that the contribution of North-eastern states as well as J&K, would be substantially higher than the present levels. 19

35 3.5. Rooms Availability in 2010 (A Forecast) State Total rooms 4/5 star 1-3 star Other Hotels Hotels Andhra Pradesh Tamilnadu Karnataka Kerala Madhya Pradesh Uttar Pradesh Himachal Pradesh Orissa Assam Meghalaya Rajasthan West Bengal Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

36 3.6. Rooms Availability in 2020 (A Forecast) State Total rooms 4/5 star 1-3 star Other Hotels Hotels Andhra Pradesh Tamilnadu Karnataka Kerala Madhya Pradesh Uttar Pradesh Himachal Pradesh Orissa Assam Meghalaya Rajasthan West Bengal Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

37 CHAPTER 4 EMPLOYMENT IN HOTELS 22

38 4.1. Employment Pattern Five, Four Star/Heritage Hotels: A single five star hotel could employ more than 400 employees. A total of people are employed to service about rooms in this category. On an average, there are approximately 162 employees per 100 rooms in these hotels. The employment pattern is the across geographic regions. The major employing functions are F&B Service, F&B Kitchen and Housekeeping. They, together, account for 56% of the total employment in these hotels % Contribution of Key Functions to Employment 8% 7% 7% 15% 21% 7% 15% 20% F&B service Housekeeping Management Purchase/stores & accounts F&B kitchen Front office Engineering Others 23

39 Three, Two & One Star Hotels A total of 52,577 employees are present in these hotels to service almost 42,991 rooms nationally. On an average, there are 122 employees per 100 rooms in this category. The key employing functions are F&B and housekeeping. They together account for 62% of the total employment in these hotels. To a large extent, the employment across geographic regions depends on the 4.2. % Contribution of Key Functions to Employment 7% 12% 8% 20% 9% 22% 22% Management F&B service Housekeeping Others Front office F&B kitchen Purchase & accounts presence of hotels; however, there are some differences in the employment intensity across regions Regional Employment Intensity North 149 South 123 East 170 West 77 Overall

40 Other Hotels in the Unorganized Sector : There are approximately 638,000 employees working in hotels in the unorganized sector. These almost 58 employees for every 100 rooms in this sector, substantially less than in the star category hotels % Contribution of Key Functions to Employment 6% 23% 13% 21% 23% 14% F&B service F&B kitchen Housekeeping Management Purchase & accounts Others Although employment pattern across geographic regions depends on the presence of hotels, there are some minor differences in the employment intensity across regions Regional Employment Intensity North 63 South 59 East 48 West 61 North East 67 25

41 4.2.1 Employment in Five, Four Star/ Heritage Hotels State Manage ment team Front office F&B service F&B kitchen House keeping Accounts Total Andhra Pradesh Tamilnadu Karnataka Kerala M.P U.P H.P Orissa Assam Meghalaya Rajasthan W.B Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

42 4.2.2 Employment in Three, Two & One Star Hotels State Manage ment team Front office F&B service F&B kitchen House keeping Accounts Total Andhra Pradesh Tamilnadu Karnataka Kerala M.P U.P H.P Orissa Assam Meghalaya Rajasthan W.B Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

43 4.2.3 Employment in Hotels in Unorganized Sector State Manage Front F&B F&B House Accounts Total ment team office service kitchen keeping Andhra Pradesh Tamilnadu Karnataka Kerala M.P U.P H.P Orissa Assam Meghalaya Rajasthan W.B Delhi Uttaranchal Maharashtra Gujarat Goa Punjab All India

44 4.3. Employment Forecast ( ) The employment forecast has been computed on the basis of the forecast of hotel rooms in different categories. Employment intensity per room has been assumed to be the same as the present level. The employment potential in different states is in direct proportion to the number of hotel rooms in future Employment Forecast star/4star/Heritage 1-3 stars Others Total In the years 2010 and 2020, there will be more than 1.5 million and 3.4 million people employed in hotels, respectively. However, given the trend in the growth of star category hotels and the higher employment intensity in these hotels, we expect a substantially higher numbers of employees in the five & four star/heritage hotels. 29

45 4.4. Employment in Motels The national and state highways have a substantial number of motels along their length. In this study, we have estimated the number of motels for every 100 km of road covered, via physical counting on a sample of highways. The results of this scan are mentioned in the table below. National Highway Road Length # Motels # Motel Rooms Delhi-Agra Delhi-Jaipur Mumbai-Pune Agra-Fathepur Sikri Fathepur-Bharatpur Cochin-Trivandrum Total State Highway Road Length # Motels # Motel Rooms Bangalore-Mysore Mysore-Ooty Total The average number of rooms in the motels on national highways and state highway have been assumed as 15 and 10, respectively. Total Length # Rooms Employment Intensity per Room Total Employment National highway State highway Total The highways have more than 107,000 employees working in motels throughout the country. 30

46 CHAPTER 5 PROFILE OF HOTEL EMPLOYEES 31

47 5.1. Educational Background of Personnel in Key Functions Front Office Five, Four Star/ Heritage Hotels: Our survey reveals that the pre-requisite for the managerial and supervisory positions is a hotel management degree; a few of the office assistants in the front office are graduates from other disciplines. Three, Two & One Star Hotels: 44% of the positions are occupied by graduates without training in hotel management. A majority of the office associates (more than 60%) are either graduates from other fields or SSC pass-outs. Hotels in the Unorganized Sector: Only one in every eight managers is having a hotel management degree or an MBA. A majority of them are graduates while almost 35% have just completed their SSC level school education. On the other hand, almost 72% of the office assistants have a school level certificate only F&B Service Five, Four Star/ Heritage Hotels: Most managers and captains are having a hotel management degree. A few captains (30%) are having a certificate in cookery from the food craft institutes. The stewards and waiters have either a hotel management degree or a Food Craft Institute Certificate. Three, Two & One Star Hotels: Almost half the managers and captains have a hotel management degree/diploma or a Food Craft Institute Certificate. Most stewards and waiters possess an SSC level school certificate only. Hotels in the Unorganized Sector: While one-third of the managers are hotel management students, the rest are either plain graduates or SSC pass. The stewards and particularly the waiters predominantly have a SSC level school certificate only. 32

48 F&B Kitchen Five, Four Star/ Heritage Hotels: Almost 90% of the chefs are hotel management graduates, while 80% of the cooks are either hotel management graduates or food craft diploma certificate holders. While most helpers in the kitchen possess an SSC level school education, a few (20%) have a cookery certificate as well. Three, Two & One Star Hotels: While ¾ of the chefs are hotel management graduates, 1/6 of them and half of the cooks are merely SSC pass. Most helpers are school pass and are not expected to have any special qualification. Hotels in the Unorganized Sector: A majority of those presently employed in the kitchens are SSC pass; only 1/3 of them are either hotel management graduates or food craft certificate holders Housekeeping Five, Four Star/ Heritage Hotels: Almost 80-90% of the managers and supervisors are hotel management graduates. Half the room attendants are hotel management graduates while the balance are mostly SSC pass. Three, Two & One Star Hotels: While 60% of the managers are hotel management graduates, the balance are equally either graduates or SSC pass. Approx. ¾ of the supervisors are either college graduates or SSC pass; 30% of them are hotel management graduates. Most room attendants are just SSC pass. Hotels in the Unorganized Sector: A majority of the supervisors and room attendants are SSC pass; 1/3 of the managers are hotel management graduates. 33

49 Other Functions Purchase, HRD and Sales & Marketing in both 1-3 star and small hotels have graduates while the bigger hotels prefer MBAs. The engineering functions have employees with an engineering degree or an ITI diploma. The proportion of degree holders increases with the size of the hotel. Function-wise summary of Educational Qualification Functions 5/4 star Hotels/Heritage Front Office All are Hotel Management Degree F&B Service All are Hotel Management Degree/ Food Certificate holders F&B Kitchen Most are Hotel Management degree or Food craft certificate holders Housekeeping Most supervisors/ managers are Hotel Management degree holders Purchase, HR and Sales & Marketing 1-3 Star Hotels Unorganized sector A number of managers & supervisors have a hotel management degree 50% have a Hotel Management Degree or Food Craft certificate Chefs are Hotel Management degree holders 1/8 managers are post-graduates in hotel management 1/3 managers are Hotel Management degree holders Largely trained on the job A few managers are Hotel Management graduates, largely SSC Managers & supervisors are Hotel management graduates MBAs Graduates Graduates 34

50 5.2. Age Profile of Employees Five, Four Star/ Heritage Hotels: None of the employees are more than 50 years old. Bulk of them are less than 40 years of age; particularly in the key functions of front office, F&B and housekeeping. A majority of them are less than 30 year of age % Contribution of Age Segments to Employment 21% 0% 15% 37% 27% years years years years >50 years 5.2. % Age Profile of Workforce in Key Functions Housekeeping F&B kitchen F&B service Front office <30 years years years >50 years 35

51 Three, Two & One Star Hotels: A majority of the people (52%) employed in these hotels are less than 30 years of age. A negligible proportion is more than 50 years of age. More than 60% of the workforce employed in the front office, F&B service and housekeeping are less than 30 years of age % Contribution of Age Segments to Employment 15% 31% 2% 26% 26% years years years years >50 years 36

52 Hotels in the Unorganized Sector: By comparison to hotels in the star category, a significantly higher proportion (59%) of employees in these hotels are less than 30 years of age. Only 8% of the workforce is more than 50 years of age. The age profile of the workforce in these hotels is young. More than 80% of those employed in the key hotel functions are less than 40 years of age % Contribution of Age Segments to Employment 20% 13% 8% 22% 37% years years years years >50 years 5.6. % Age Profile of Workforce in Key Functions Housekeeping F&B kitchen F&B service Front office <30 years years years >50 years 37

53 5.3. Organizational Structure in Key Hotel Functions Front Office : The principal tiers in the front office comprise of managers, supervisors and office assistants. Bulk of the employees in the front office of star category hotel are office assistants. In smaller hotels, the front office has a larger proportion of managers; there are fewer supervisors. 5.7 % Contribution of Organizational Tiers to Employment 5Star/4Star/Heritage Hotels Stars Hotels Other Hotels Managers Supervisors Office Assistants F&B Service: In the unorganized sector, most of the workforce consists of waiters/stewards. The proportion of managers, captains and stewards increases with the size of the hotel % Contribution of Organizational Tiers to Employment 5Star/4Star/Heritage Hotels Stars Hotels Other Hotels Managers Captains Stewards Waiters 38

54 F&B Kitchen : In the larger hotels, almost 15% of the workforce comprises of chefs. However, a bulk of the employees are cooks % Contribution of Organizational Tiers to Employment 5Star/4Star/Heritage Hotels Stars Hotels Other Hotels Chefs Cooks Helpers Housekeeping : Managers and supervisors account for 10-20% of the workforce in housekeeping. A bulk of the employees are room attendants % Contribution of Organizational Tiers to Employment 5Star/4Star/Heritage Hotels Star Hotels Other Hotels Manager Supervisors Room Attendants House-men 39

55 CHAPTER 6 RESTAURANTS IN INDIA 40

56 The burgeoning middle class and evolving lifestyle is driving the demand for quality restaurants - both conventional ones as well as new ones such as fast food outlets, cafés and pubs. These restaurants will cater to both the foreign and domestic tourists travelling to key tourist destinations. The low cost mobile food vans, sweet shops, dhabas and juice corner cater primarily to the lower and middle-income population segment. Since the presence of restaurants is largely dependent on the resident population, the computations are based on sample statistics and population data obtained form the Census of India A Map of Restaurants On this basis, our estimate is that there are more than 140, 000 restaurants in urban India. The 18 states covered by our primary research have 124,000 restaurants. These states account for 88% of the urban Indian population. Conventional restaurants account for the largest population (30%) followed by sweet shops (16%), fast food outlets (16%) and dhabas (13%). Northern region has over 10,000 fast food outlets, serving Chinese, Western and Indian food Estimated Number of Restaurants Conventional Restaurant Café Fast food Sweet shop Dhaba Juice Corner Others Total