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Hospitality: Challenges faced by the industry

india Updated: Mar 09, 2008 00:38 IST

Hindustan Times
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* In the hospitality industry competition is fierce. New eateries crop up almost every week and sustenance poses a major problem. There is no monopoly in this industry.

* In Mumbai, land costs as much as Rs 200 crore an acre. This is a big problem for the hotel industry. Land owners would rather sell to offices and malls than to hotels, which take longer to yield profits.

* A lack of funds, and the unwillingness of banks to lend to restaurants.

* Retaining trained staff is a major concern for big and small players in the industry. Hotels have become rampant poaching grounds.

* In the wine industry taxes and barriers to interstate commerce are hindrances to growth.