The hotel sector anticipates long-term growth beyond G20 Summit-driven occupancy and rate increases

The expected 100% occupancy rates during the upcoming G20 Summit, according to leaders in the tourism and hospitality industries, are only expected to be a short-term benefit compared to the longer-term effects of the government’s decision to hold 200+ meetings across India in the lead-up to the major two-day gathering beginning on September 9.

According to K.B. Kachru, Chairman Emeritus, South Asia, Radisson Hotel Group, what the lead-up to the G20 Summit has done for India is exposed the globe to the range of our tourist offerings and positions the country as a legitimate MICE (Meetings Incentives Conventions Exhibitions) destination.

India has always been seen as China’s less developed Asian relative in comparison to the Pacific Rim and ASEAN nations in the $876.42 billion global MICE market.

India can now legitimately expect a larger share of the global MICE pie with the opening of the Bharat Mandapam at Pragati Maidan in New Delhi and by showcasing the cutting-edge convention centers in Hyderabad and Gandhinagar, according to Navin Berry, the founder-editor of “Destination India” and a longtime industry expert.

Satyajeet Krishnan, Area Director (Operations) and General Manager, The Taj Mahal Hotel, New Delhi, elaborated on this subject, stating that unlike the Olympics, when interest in a location ceases with the Games, the G20 Summit would have a cascading impact since it is really a business summit. I anticipate that in the months and years to come, there will be several corporate delegations visiting India. The Bharat Mandapam, he said, is in reality a “brilliant showcase” of what India has to offer the rest of the world.

Krishnan noted that the B20, the summit of the G20 business leaders, will be held in New Delhi starting on Tuesday, August 22, even as the world gets ready for the G20 Summit, which, incidentally, attracts more than 40 delegations from the member countries, associations, and multilateral organizations such as the World Bank and IMF.

Krishnan emphasized that interactions like this will continue beyond the G20 Summit, stating that throughout the previous year, corporate executives had been exposed to parts of India they had never visited.

In the months leading up to the G20 Summit, 200 ministerial and track meetings were conducted in 60 places, and attendees included not only the 19 G20 countries but also nine invitee countries and 14 international organizations.

A hotel industry consultant named Mandeep Lamba described this as “a unique opportunity for the Indian travel and tourism industry.”

He said: “Industry watchers noted that thousands of delegates from 110 different countries visited India and were exposed to the nation beyond the ‘gateway’ cities of Delhi, Mumbai, Chennai, Bengaluru, and Kolkata because the meetings were held in a variety of locations, including Kumakom and Srinagar, Shillong and Gandhinagar, Varanasi and Goa.

According to Lamba, who was elaborating on the significance of these gatherings, “We have been able to showcase our country’s rich heritage, cultural diversity, and unique tourism experiences not only to the international delegates of these meetings, but also to the entire world, thanks to the global media coverage these events received.”

The typical accommodation prices and occupancy rates in the host cities have dramatically risen in the days leading up to the Summit, he said.

Even Kachru anticipated an increase in leisure and business travel to these locations, which is excellent news for the gateway cities as well as everyone travelling into India must first land and spend the first night in one of these towns.

Beyond the Golden Triangle, India is becoming more well-known, according to Kachru.

To add a personal touch, Krishnan said he had been speaking with a few ambassadors recently, and they couldn’t stop raving about Hampi, the former Vijayanagara empire capital, and its potential for business and tourism.

Similar to this, Krishnan said, a conference before to the G20 Summit was conducted in Diu, a tourist spot just waiting to be promoted to the globe.

According to Lamba, these gatherings have also aided in promoting some of the nation’s lesser-known tourist locations and historical landmarks, including Guwahati, Bhubaneswar, Indore, Siliguri, Hampi, Khajuraho, and Mahabalipuram.

In an attempt to make the most of the occasion, the Ministry of tourist and state organizations “have made every effort to maximize the returns from this opportunity, putting their best foot forward to make these events memorable for the delegates, and in the process, raising awareness about India as a global tourism and MICE destination,” Lamba said.

Closer to home, in New Delhi, hoteliers like Vikram Aditya Singh, Managing Director and Chief Executive Officer at Claridges Collection, anticipate that luxury hotel room rates will finally stabilize at Rs 15,000-18,000, with notable spikes during the busiest winter months, though they will still be well below those in New York City or London.

Singh anticipates that Delhi’s “long overdue” facelift would boost visitor trust in the area. At the moment, leisure travelers seldom stay more than a day in Delhi before departing.

According to Singh, this change in attitude would allow five-star hotels to seek and get greater charges. He acknowledged, however, that the record-breaking prices that five-star hotels are anticipated to demand during the first two weeks of September will see a course correction.

Industry insiders also anticipate a decline in hotel rates in the first half of 2024 as a result of the general elections, when government-driven business—the factor that raises hotel rates during the G20 Summit season—hits an all-time low due to the Model Code of Conduct’s suspension of all new projects.
On the other hand, everyone agrees that beautifying has advantages. Even Himmat Anand, founder of Tree of Life Resorts & Hotels and an industry veteran who thinks the G20 Summit would not significantly advance the causes of travel, tourism, and hospitality, said that the city beautification programs will make the cities more “presentable to the world.”