ECPC Aviation Academy, Industry news on Hospitality, Manpower requirement in hospitality industry

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It is party time for hotel companies in India! Domestic companies are aggressively adding rooms and setting up greenfield projects. Foreign hotel companies are making full use of the relaxed norms for foreign direct investment in India. In the next five years, we should expect to see around 40 different hotel brands dotting the Indian landscape.

The addition of many new hospitality products, and a much larger and more sophisticated hotel industry in India will bring with it a new set of pressures.

Today, however, hotels are vying with each other to capture the best talent. Most of the time, it simply a matter of numbers: as more rooms and more properties are added, a larger number of people are needed - to lead, to manage and to execute the various functions involved in operating a hotel.

The following table presents the manpower requirement (across all hotels segments) by the new supply and its growth in 2006-2011.

Manpower Requirement
Key Cities	Luxury	First Class	Mid - Market	Budget	Base Year Estimates* 2005/06	Additional Employee Requirements by 2011/12	Projection Year Estimates 2011/12	Percent Growth
Delhi/ NCR	4408	4786	7675	2226	12303	19096	31398	155%
Mumbai	5159	4855	4473	1905	13954	16391	29345	127%
Kolkata	495	1305	2205	360	2370	4365	6735	184%
Chennai	2223	3015	1831	720	3631	7789	11420	214%
Bangalore	4505	2340	5189	1662	3336	13697	17032	411%
Hyderabad	3393	4588	2842	2093	2524	12916	15439	512%
Pune	846	3181	2617	1391	893	8034	8927	900%
Goa	585	2065	1215	728	3941	4592	8533	117%
Cochin	-	720	603	495	620	1818	2438	293%
Jaipur	583	1809	1296	1082	2272	4770	7041	210%
Total	22198	28663	29947	12660	44840	93467	138308	208%
*Assuming Employee to Room Ratio of an average 1.75

As indicated by the above table, branded hotels in the ten selected hotel markets would require approximately 94,000 fresh employees in the next five years, more than twice the existing requirement.

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	“Aviation is a true integrator of the economy, bringing high investments and facilitating trade as well as tourism. Growth in aviation could also create jobs for millions of young men and women, especially as it is a service industry involving deployment of vast human resources. The civil aviation sector can clock 25 percent compounded growth in the next ten years. Our estimate is that the sector would need investment to the tune of Rs. 1,50,000 crore spread over ten years.” – by Mr. Praful Patel ( present Civil Aviation Minister) in Economic Times