DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^87)
Highlights :-Indian tourism and hospitality sector
✓ International tourist arrivals in India are expected to reach
30.5 million by 2028. Medical tourism of India expected to
touch USD 9 billion
✓ India offers geographical diversity, attractive beaches, 30
World Heritage sites and 25 bio-geographic zones.
✓ Under Swadesh Darshan Scheme, 13 thematic circuits in
the country have been selected for development of tourism
infrastructure.
Performance
To analyse the hospitality sector performance, we tracked the
performance of top 19 companies in the hospitality sector in
India.
The net sales for the 19 companies de-grew by 8 per cent in
FY19 when compared to FY18. The net sales grew by nearly 3
per cent in FY18 as compared to FY17.
The operating profit for these 19 companies was down by nearly
4 per cent for FY19 when compared to FY18 even as the
operating profit grew by 5 per cent in FY18 over FY17.
Within the hospitality sector, The Indian Hotels Company and
Lemon Tree Hotels reported growth in net sales, operating
profits and net profits as well.
Overall, the sector struggled to report growth in sales. Thomos
Cook (India) was one of the biggest disappointments in the
sector in terms of net sales, even as Chalet Hotels, Speciality
Restaurants, Cox & Kings (India) and EIH reported above
average growth in net sales.
India’s travel and tourism sector's contribution
to India’s GDP is expected to reach 32.05 trillion in 2028. India has been ranked 7th among 184 countries in terms of travel and tourism’s total contribution to GDP in 2017. Government Initiatives Recognising the importance of tourism sector in India, the Government of India (GoI) has taken several steps to boost the sector. The government’s focus on infrastructure development and improving accessibility is widely believed to boost the Indian economy. The GoI’s plan to develop 17 sites into world class tourist destinations is also expected to boost the travel and tourism sector in India. Various steps taken by the GoI to boost infrastructure, undertake labour reforms, provide easy access to capital and talent for start-ups and MSMEs alike is expected to stimulate demand in the economy, which in turn is expected to facilitate growth for travel and tourism industry in India. The GoI aims to gain one per cent share in world’s international tourist arrivals by 2020 and two per cent share by 2025. 2.41 0.85 -0.64 9.95 23.78 286.83 184.35 5.74 1.89 -3.26 118.93 118.93 98.93 3.14 1.80 2.29 13.26 35.79 -23.64 73.79 6.56 4.19 5.00 114.31 114.31 114.31 161.21 1.18 -2.13 -41.30 -77.89 -99.41 13515.36 120.77 6.35 -4.62 37.07 37.02 36.68 -0.43 -5.43 8.70 21.04 20.56 NA NA -0.53 -18.74 24.43 205.02 171.10 152.14 0.67 0.18 -0.08 13.47 23.92 297.57 272.22 6.04 1.74 -0.76 789.30 786.39 781.21 5.03 2.28 -2.06 12.58 -7.27 23.13 120.68 2.17 0.37 -7.65 211.25 211.25 206.00 9.97 16.84 9.86 -3.36 -52.07 -55.26 -40.79 20.32 26.37 17.06 132.90 132.76 88.24 2.07 0.87 2.08 2.94 NA 45.25 138.15 6.61 2.81 5.84 85.77 85.77 85.77 4.34 3.25 0.67 9.93 -3.39 15.81 33.37 6.39 5.83 2.96 12.54 12.54 12.54 0.34 0.28 -0.69 -3.12 -8.31 NA 22.92 -0.16 -0.83 -5.27 17.86 17.86 17.86 -0.37 -0.33 -3.86 11.97 NA NA NA -9.01 0.00 0.00 126.11 126.11 93.32 21.33 8.32 2.99 14.90 -12.65 475.69 156.26 16.01 8.97 -0.32 88.28 88.28 88.28 -2.30 -1.42 6.64 13.25 14.90 NA NA -4.27 -7.41 6.19 17.52 17.52 17.52 16.64 22.38 26.47 8.17 17.76 102.14 -25.66 7.53 10.79 13.94 13.10 13.10 13.10 -7.53 -22.20 -44.13 12.20 21.65 NA NA -8.67 -20.13 -30.47 11.65 11.46 11.46 -11.37 -4.65 0.06 16.70 1731.58 NA NA -21.00 -7.42 0.09 46.96 46.96 46.96 1.23 -1.27 -0.48 7.59 14.47 443.57 NA 1.51 -2.86 -2.26 27.41 27.30 27.23 -1.91 -8.32 0.82 -0.33 -15.13 NA NA -0.63 -2.90 0.28 19.45 19.45 19.45 -4.97 -3.03 5.62 6.71 8.72 NA NA -0.74 -0.45 -0.92 11.53 11.53 11.53 EPS () YoY Growth FY19 (%) RoNW (%) Equity (` in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1