Aviation, hospitality to create most jobs
Experts say the recent surge in investment in the aviation and hospitality business could eventually create as many, or more. Ruchi Hajela reports.business Updated: May 18, 2008 21:12 IST
Aviation and hospitality sectors are set to emerge as top job creators over the next two years, as Indians increasingly take to air travel and the capital city braces to host the 2010 Commonwealth games.
Experts say the recent surge in investment in the aviation and hospitality business could eventually create as many, or more, jobs than did the information technology sector on the back on a boom in outsourcing. "In the next two years, aviation and hospitality are expected to assume the role of the top job creating industries, leaving the IT sector behind," said Rajesh AR, Vice President of India’s leading temporary staffing company TeamLease Services.
According to industry estimates, more than five lakh new jobs may be created over the next years as airlines expand fleet and the country adds new airports, hotels and restaurants to cater to a spurt in tourism.
"According to our study, more than 4.3 lakh jobs are planned in 2008," said E Balaji, CEO, Ma Foi Management Consultants Limited.
A large part of this demand for new jobs stems from the fact that "the hospitality sector didn’t add enough capacity in the last decade," Balaji said. As a result, the hospitality sector is currently witnessing a lot of activity, he said.
According to Ma Foi, the hospitality business will see about $ 11.4 billion in investment over the next two years. India is likely to have around 40 international hotel brands by 2011.
"New hotels are in the pipeline, which will open up jobs although poaching would be a problem," said Rajendera Kumar, Vice President of Federation of Hotels and Restaurants Association of India.
The sector is expected to require a workforce of at least 95,000 trained personnel. The aviation sector, growing at about 25 per cent per annum, is also expected to create jobs on the fly. Over the next two years, airlines are expected to add at least 130 new planes to the existing fleet of 270. This, in turn, would call for more pilots, cabin crew, ground staff and all such service providers associated with the industry.
Teamlease’s Rajesh predicts the airline industry will add at least 2.5 lakh people in the next two years.
The upcoming Commonwealth Games in New Delhi are also expected to give a boost to short-term contractual jobs. "A lot of activity would begin about six to eight months before the Games start and this would definitely create more jobs," said Siddhant Sharma, CEO, SpiceJet. "The event will also help showcase India as a destination leading to more visitors in future," he said.