Scheduleforming part of the Balance Sheet - Domain-b

The Indian Hotels Company Limited
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in foreign tourist arrivals. According to the WTTC, Indian tourism demand is estimated to grow at an average of 8.8% between
2004 to 2013 making India the world’s third fastest growing tourist market.
The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratio and
average room rates. While occupancy ratio is 75-80%, the average increase in the room rates has been hovering around 22-25%
per annum. The Government’s move to declare the Tourism industry as a high priority sector with a provision for 100% FDI has
provided a further impetus in attracting investments to this industry. Government has also taken various initiatives for the
development in this sector.
� Launch of Incredible India campaign to promote tourism both in domestic and international markets.
� Recognition of spare rooms available with various house owners by classifying these facilities as “Incredible India Bed
and Breakfast Establishments”, under ‘Gold’ or ‘Silver’ category.
� A new category of visa, “Medical Visa” (‘M’-Visa), has been introduced which can be given for specific purpose to
foreign tourists coming into India.
� Guidelines have been formulated by Department of AYUSH prescribing minimum requirements for Ayurveda and
Panchkarma Centres.
� Ministry of tourism has tied up with United Nations Development Programme (UNDP) to promote rural tourism. India
has also received international accolades as a leading global tourist destination.
� India has been elected to head the UN World Tourism Organisation (UNWTO), the highest policy making world tourism
body represented by 150 countries.
� The world’s leading travel and tourism journal, “Conde Nast Traveller”, ranked India as the numero uno travel destination
in the world.
� The Association of British Travel Agents (ABTA) has ranked India as No.1 amongst the top 50 places for 2006.
� The “Incredible India” campaign has been ranked as the Highest Recall Advertisement worldwide by “Travel and Leisure”.
� India was adjudged Asia’s leading destination at the regional World Travel Awards (WTA).
� India’s Taj Mahal continues to figure in the Seven Wonders of the World.
Your Company would aggressively pursue its strategy both in the domestic and international market at different price points from
the smart basic hotels to the luxury segment. Against this backdrop, your Company expects to achieve sustainable and profitable
growth.
THE TAJ WAY
Your Company along with its Subsidiaries, Associates and Joint Venture companies operating under the brand “Taj Hotels
Resorts and Palaces” runs the hotels under the brands ‘Taj’, ‘Gateway’ and ‘Ginger’ hotels and has been able to leverage the
sources of competitive advantage in the present buoyant and growth oriented environment. The Company has taken several
initiatives during the year and a brief summary of the same is given below with details in the section- Management Discussion
and Analysis.
PRODUCT UPGRADATION
Your Company continues with its ongoing programme of investing in renovation and upgradation of its property. During the year
the following properties were renovated - Taj Mahal Palace and Tower, Mumbai, Taj Palace, Delhi, Taj Bengal , Kolkata, Fort
Aguada Beach Resort, Goa, Lake Palace, Udaipur, Taj Mahal, New Delhi, Taj West End , Bangalore, Gateway on Residency Road,
Bangalore. The Pierre in New York is closed down for refurbishment on January 1, 2008 and will reopen in first quarter of 2009. The
Company also over-saw and supported renovation in some of the key properties of Associate companies as part of its ongoing
programme of investing in renovation and product upgradation.
NEW PROPERTIES
During the year, the Company commenced operations under Management and Operating Contract at the “Gateway” a 100 room
Hotel in Vijaywada, Andhra Pradesh and a beautiful 66 room Hotel ‘Taj Tashi’ in the heart of Bhutan’s capital city Thimpu which