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Hospitality: Challenges faced by the industry

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.Quirky facts: Hospitality
Hindustan Times | By HT Correspondent
UPDATED ON MAR 09, 2008 12:38 AM IST

* 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.

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