African Journal of Hospitality, Tourism and Leisure (Jan 2017)
Foreign Direct Investment and its impact upon the Indian Hospitality Industry.
Abstract
Foreign direct investment (FDI) is a vital aspect for economic growth and development of the Indian hotel industry as it generally tends to strengthen the capital amounts available, enhances productivity and creates employment. FDI is also important in the upgrading of technology, skills and managerial capabilities in various sectors of the industry and also within the overall economy. The present study is an attempt to analyse the status, role and importance of FDI in growth and development within the Indian hotel industry. The hotel and tourism industries burgeoning development have effects on the economy of India which are considerable when viewed from an economic perspective. Viewed as a multidisciplinary activity involving several industries and drawing upon a variety of skills, the benefits of FDI are spread over a wider section of society compared to those from other sectors of the economy. FDI should thus play a significant role in developing the hotel industry in India and also in other developing countries, by providing the required capital and infrastructure which is needed, such as international airports, highways and related modern technologies which are all in any event, keystones to tourism development and critical to economic growth.
