Tourism and hospitality sector has the potential create 50 million jobs: Hotels' Association of India

Hotels' Association of India (HAI) on Monday said the hospitality and tourism sector expects to create 50 million direct and indirect jobs in the next 5-7 years but government support is required for getting the full industry and infrastructure status in states to tap the employment potential.

The infrastructure status for the hospitality sector can push up investments not only to create accommodation, but also in the process boost income and employment generation, HAI President Puneet Chhatwal said while speaking here at the 6th HAI Hoteliers' Conclave.

Chhatwal, who is also the Managing Director and CEO of Indian Hotels Company Ltd, said while tourism is a pillar of development creating about 10 per cent of the total employment and contributing 8 per cent to GDP with a huge multiplier effect that can help inclusive growth, "there is often a gap between this realisation and the actual policy implementation".

Addressing a press conference, HAI Vice-President K B Kachru said in the last two years there has been "a rise of 271 per cent in hirings".

"That is how business is moving. Now we need to focus a lot on developing tourism, not only at higher levels but also at entry levels... This focus has to remain and if we don't do that we will not be able to service...

"We are focussing to create over 50 million jobs in the next 5-7 years," Kachru, who is also the Chairman Emeritus and Principal Advisor South Asia, Radisson Hotel Group, said.

Earlier in the day, India's G20 Sherpa Amitabh Kant had asked the hospitality and tourism sector players to tell politicians about the creation of 25 million jobs by 2030 while seeking their help for the demand of industry and infrastructure status.

He had stated that somehow the tourism industry failed to tell politicians that it is a big creator of jobs, while agreeing with their demand for industry status.

From the tourism sector, Kant had said that Thailand has created close to 20 million jobs, Malaysia about 15 million and India 7.8 million.

Chhatwal said while the government's focus on infrastructure -- such as construction of roads, rails and doubling of airports -- has had a "direct correlation with the success of the sector", granting a full infrastructure status will help it grow further in all aspects.

"We have that status, but there are a lot of limitations that were put into it 12 years ago," he said, adding that the industry status at the state level will also help in making the sector stay competitive.

On the granting of industry status by states, Kachru said while 11 states have done it, there has been a gap in execution.