AAHOA Leads Delegation to India for Investment Opportunities
ATLANTA, GA, March 13, 2007 – The Asian American Hotel Owners Association (AAHOA) led a delegation of over 50 people to India on February 11-18, 2007. The delegation included AAHOA officers, members, vendors, and representatives from leading franchise companies such as Accor North America, Inc.; Americas Best Franchising, Americas Best Value Inn; Carlson Hotels Worldwide; InterContinental Hotel Group; Hilton Hotels Corporation; and the Wyndham Hotel Group.
The delegation arrived in New Delhi and met with the Federation of Indian Chambers of Commerce and Industry (FICCI), where it networked with key figures in the Ministry of Tourism, the Department of Industrial Policy and Promotion, and local hospitality associations.
Habib Khorakiwala, President of FICCI, welcomed the AAHOA delegation and explained that with a 15% increase in tourism in India, and with only 100,000 hotel rooms across the country, “The estimated number of rooms required for the near future will be ten times what we have today.”
The scarcity of accommodations has enabled costs to reach up to $600 per night, so hoteliers interested in building mid-segment and economy brands can seize this chance to expand the hospitality industry within India and open up investment opportunities for themselves. Former AAHOA Chairman Mukesh Mowji recognized the enormous growth potential in India and said, “Lower room rates will help tourism and a potential goal to develop hotels.”
As domestic and international travel traffic to India continues to increase and with India’s burgeoning economy, companies and entrepreneurs are seeking foreign real estate investment. Indian officials and business owners recognize that the high room rates discourage the kind of sustainable growth the country seeks. Lawmakers in India are therefore re-evaluating regulations to make foreign investment in India easier. Currently, there are no caps on equity in the hospitality industry and numerous tax incentives help promote the economic transformation of this emerging giant. The AAHOA delegation learned that most states in India are planning to create, or as in the case of Rajasthan, have already created “land banks” to facilitate easier acquisition of land for hotel development.
From New Delhi, the delegation went to Jaipur and then to Mumbai, where Suresh Shetty, the Honorable Tourism Minister of Maharashtra, cited civil aviation, domestic traffic, and international traffic as promoting the need for budget hotels. He said that his office is prepared to give tax exemptions and offer concessions in land acquisitions to entice foreign investment, as his state alone needs 20,000 more hotel rooms.
The message received from subsequent meetings throughout India was similar: opportunities abound in India. According to Mowji, “It comes down to putting together projects to make room growth in this country a reality.”
The AAHOA delegation’s final stop was in Gujarat, the homeland of many AAHOA members. There Ahmedabad’s Mayor Amit Shah expressed optimism that the AAHOA delegation would come back to Gujarat with concrete proposals for hotel projects that would help transform the landscape and economy of Gujurat and other states across India.
AAHOA President Fred Schwartz commented, “The trip to India was a great success and AAHOA will continue to communicate with the government and business leaders we met during our visit. We all have the desire to build strong and lasting relations to benefit AAHOA members, the economy of India, and all travelers to this great country.”
Former Chairman Mukesh Mowji added, “This trip was so successful that I recommend this type of delegation to India each year. Our members and partners will see the benefits of as we continue to disseminate information.”
For more information, please contact:
Chris Carlson
AAHOA PR & Communications Manager
(404) 419-8987
chris@aahoa.com
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