Swot Analysis
SWOT ANALYSIS
STRENGTHS:
1. Dynamism in the Tourism and Hospitality industries.
2. Continuous inflow of Tourists in the country.
3. India’s rich cultural heritage.
4. Low labour costs as against the world standards.
WEAKNESSES:
1. Regional imbalance of hotels.
2. Capital intensive
3. Labour intensive.
4. High taxes and tariffs for every service.
5. Disparity in taxes charged by various States.
6. Lack of aggressive and effective marketing and promotional strategies.
7. Land availability is a major hurdle for any hotel project. Release of land at prime locations is difficult because large tracts of land in such locations come under the Government’s control.
8. The prohibitive cost of power in India.
9. High government duty on power tariffs.
OPPORTUNITIES:
1. Influx of MNCs in the country after liberalization. This has led to a flurry of industrial activity in the country and thus an increased demand for the hotel.
2. Declaration of the Hotel Industry as a “High Priority Industry”.
3. Government policy of positioning hotel and other tourism related activities in the private sector.
4. Various incentives/concessions extended by the Government.
5. Approval of the hotel by the Department of Tourism. This approval constitutes a certificate of suitability of the hotel for occupancy by tourists, both foreign and domestic.
6. Higher interest subsidy for hotel projects that are set up in special areas and specified destinations as per the Government.
7. Introduction of the Capital Subsidy scheme for the Heritage class of hotels.
8. Declaration of the hotel and tourism industry as a high priority industry for foreign investment.
9. Liberalization of imports and concessional customs duty.
THREATS:
1. Significant over capacity in places like Madras and Goa.
2. Dual pricing is a major deterrent (Indian and Foreign tourists).
3. The continuous change of Governments over the past years has led to a slowdown in both foreign investment...
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