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ARTICLE
Multidimensional Role of CMAs in Effective
Hospitality Management
Most of the people think of the hospitality
industry, they usually think of hotels and
restaurants. However, the true meaning of
hospitality is much broader in scope. According to
the Oxford English Dictionary, hospitality means “the
reception and entertainment of guests, visitors or
strangers with liberality and goodwill.” The word
hospitality is derived from hospice, the term for a
medieval house of rest for travelers and pilgrims.
Hospice - a word that is clearly related to hospital -
also referred to an early form of what we now call a
nursing home. Hospitality, then, not only includes
hotels and restaurants but also refers to other kinds
of institutions that offer shelter, food, or both to people
away from their homes. We can also expand this
definition, as many people have, to include those
institutions that provide other types of services to
people away from home. This might include private
clubs, casinos, resorts, attractions, and so on.
In India the tourism and hospitality industries are
witnessing a period of exponential growth. The world
leading travel and tourism journal “Condre Nast
traveler” ranked India as the top travel destination in
the world for 2007as against fourth position in2006,
for which hospitality industry having a lion share. The
year 2010 also marked the eighth consecutive year
during which India has witnessed double digit growth
in foreign tourist arrival. Along with the rise in the
foreign tourist arrival foreign exchange earnings have
witnessed an unbeatable growth in recent years.
Tourism now becomes a significant industry in India,
contributing around5.9 percent of the gross Domestic
Product (GDP) and providing employment about
41.8 million people. As per the World Travel and
Tourism Council the tourism industry in India is
likely to generate US$121.4billion by 2015 and
Hospitality sector has the potential to earn US$ 24
billion in foreign exchange by 2015. Additionally India
is also likely to become a major hub for medical
tourism with revenue from the industry estimated to
grow US$ 2.2 billion by 2012 according to
Confederation of India Industry.
It is very relevant to mention here that according
to a report by Mafoi Management Consultants, the
number of required hotel rooms is around 240,000,
Sachindra G R*
the current availability is just 90,000 rooms - leaving
a shortfall of 150,000 rooms to be provided. India’s
hospitality sector is expected to see an estimated US$
11.41 billion in the next two years, and around 40
international hotel brands by 2011. Moreover, the
sector is expected to provide over 400,000 jobs.
It is estimated that the hospitality sector is likely
to see a further US$11.41 billion investment over the
next two years. It is estimated that India will be the
4th fastest growing nation in the Travel and Tourism
sector over the next ten years. The number of medical
tourists is expected to reach 1.3 million by 2013.
Foreign Tourist Arrivals (FTAs) in India during 2010
touched 5.58 million with a growth rate of 9.3% as
compared to a growth rate of 3.3% during 2009.
According to the World Travel and Tourism
Council (WTTC) 2011 report, India is expected to
attract 6,179,000 international tourist (overnight
visitor) arrivals in 2011, generating US$ 15.05 billion
(INR678.6bn) in visitor exports (foreign visitor
spending, including spending on transportation). The
direct contribution of Travel & Tourism to GDP is
expected to be US$ 34.8 billion (INR1, 570.5bn) in 2011
which is about 1.9 per cent of the country’s GDP. This
reflects that the hospitality industry in India will have
to gear up to cater to such high demand. Companies
in India are investing their capital and industry reports
predict that the capital investment in India, in the
travel and tourism sector will grow at the rate of 8.8
per cent between 2010 and 2020.
Mandarin Oriental Group, which owns world’s
most luxurious hotels, resorts and residences, will be
adding 16 new properties in India in the next five
years. Another company in India that is Small Luxury
Hotels of the World (SLH), a marketing firm of luxury
hotels, is expecting to expand their foothold in India.
Currently, SLH has 13 hotels in India and hopes to
add 10 more hotels by the end of 2011.
Several global hospitality majors such as Hilton,
Accor, Marriott International, Bergguen Hotels,
Cabana Hotels and Inter Continental Hotels group
* M.Com., NET/JRF, Lecturer, Dept., of Post Graduate
Studies and Research in commerce, Kuvempu University
Shankaraghatta.
The Management Accountant |September 2011 745