As the Indian economy continues to move rapidly ahead, it is also becoming more integrated with the global economy. The initiatives taken by the government to improve infrastructural and transportation facilities and the easing of foreign investment have increased the demand for hotels across star categories in many Indian cities.

India, with its unique combination of snowy mountains, landscapes, historical sites, golden beaches, colorful people, rich culture, and festivals, was able to attract 4.42 million international tourists in 2006. The recent promotional efforts of the Indian government have also contributed to this increase. Domestic travel has also been growing at a brisk rate of 14%, touching the 500 million mark in 2006. Meetings, Incentives, Conventions and Exhibitions (MICE) is the fastest growing segment which rapidly boosts the growth of hotel management. Budget hotels are another emerging segment that is growing very fast.

However, considering India's size and diversity, the number of tourist arrivals is paltry. According to Madrid-based World Tourism Organization, a total of 842 million international tourist arrivals world over were recorded during 2006. India's share has been a miniscule 0.52% of the global pie. Despite the low share, India faces an acute shortage of around 110,000 rooms. Due to the massive gap between demand and supply, hotels have increased their average room rates by almost 18-22% annually. The high rents are also responsible for many tourists not wanting to visit India. Therefore, the supply shortage would have to be addressed immediately if India wants to attract more tourists. Quite expectedly, almost all the top Indian hotel chains like the Indian Hotel Company, East India Hotels, Leela Palace Kempinski, and the ITC Welcomgroup have aggressive plans up their sleeves. MNC players like Hilton, Accor, and Dubai-based Kingdom Hotels are also entering into India in a big way. The government has approved about 300 hotel projects. Many of these are likely to be completed in the next three years and are expected to increase capacity by about 75,000 rooms.

There have been challenges in terms of infrastructure, rising real estate costs, and above all, an acute shortage of professionally trained managers to address industry needs in planning, branding, pricing, promotion, and event management. Also, steps would have to be taken to develop cultural and heritage tourism, rural tourism, adventure tourism, and health and healing tourism, all of which show tremendous potential for growth over the next decade and beyond.

The Master's in Hotel Management introduces students to the opportunities and challenges in this burgeoning sector.