Manpower Required in the Hotel

MINISTRY OF TOURISM DEPARTMENT OF TOURISM

GOVERNMENT OF INDIA

MANPOWER REQUIREMENT IN HOTEL INDUSTRY, TOUR OPERATORS & TRAVEL SECTOR

MANPOWER TRAINED BY DIFFERENT INSTITUTES & PLACEMENT SCENARIO

A MARKET PULSE Report February 05, 2004

Market Pulse: H-20, 1st Floor, Green Park Extension, New Delhi 110 016

Ph: 2618 7043/45, 2616 5305/10 Fax: 2618 9486, E-mail: [email protected]

TABLE OF CONTENTS Chapters Page Nos.

BACKGROUND 1

TERMS OF REFERENCE 2

1.0 PROJECT METHODOLOGY 03-06

2.1 TOURISM IN INDIA : A SNAPSHOT 07-9

3.0 HOTELS IN INDIA 10-18

4.0 EMPLOYMENT IN HOTELS 19-26

5.0 PROFILE OF HOTEL EMPLOYEES 27-34

6.0 RESTAURANTS IN INDIA 35-41

7.0 EMPLOYMENT IN RESTAURANTS 42-54

8.0 PROFILE OF RESTAURANT EMPLOYEES 55-59

9.0 PROJECTED DEMAND FOR TRAINED MANPOWER 60-68

10.0

11.0

TRAVEL & TOUR OPERATORS

HOTEL MANAGEMENT INSTITUTES

69-73

74-77

12.0 TRAVEL & TOUR INSTITUTES

APPENDIX 1

APPENDIX 2

APPENDIX 3

78-82

EXECUTIVE SUMMARY

Recent tourism statistics reveal that both domestic and foreign tourism are on a

robust growth path. This growth will need to be serviced by a substantial increase in

infrastructure, including air-road, rail connectivity as well as hotels and restaurants.

In this context, Department of Tourism (MR Division), Ministry of Tourism &

Culture, Government of India, commissioned our firm Market Pulse, to assess the

manpower requirement in the hotels and restaurants sector as well as tour & travel

operation.

This study is based on an extensive primary field survey in 27 important tourist

destinations. More than 900 questionnaire-based face-to-face interviews with

personnel in hotels, restaurants, tour & travel operators, hotel and travel/ tourism

management institutes, tourism offices and municipalities have been carried out by

our field research team.

In addition, physical scanning of cities and sections of highways has been done to

estimate the number of hotels, motels and restaurants in the unorganized sector

(refers to small businesses that are not members of any trade body). Analysis of

secondary data from municipal corporations, trade directories, hotel and restaurant

associations has also been used in this estimation.

Some of the key findings of this study are mentioned subsequently.

Hotels in India

There are an estimated 1.2 million hotel rooms in the country. However, the star category hotels account for a mere 7% (approximately 80000 rooms).

Our forecast is that there will be a total of 2.9 million and 6.6 million hotel rooms in 2010 and 2020 respectively.

The larger four & five star hotels (along with the heritage hotels) employ on an average 162 people per 100 rooms, compared to 122 in the One, Two & Three

Star Hotels and 58 in the unorganized sector.

There are almost 750,000 people working in hotels across India. In addition, there are more than 1 lakh employees working in motels on state & national highways.

Employment is forecast to increase to 3.5 million by the year 2020. A bulk of the employees (approximately 60%) are working in F&B service,

Kitchen and housekeeping.

Almost 80% of the employees in key hotel functions such as F&B, front office and housekeeping are young; they are less than 40 years old.

Most employees in the management/supervisory cadres in the front office, F&B service, kitchen and housekeeping function of the larger four & five star hotels

have a formal hotel management qualification.

Almost half the managers and supervisors of the one three star hotels have either a hotel management degree/diploma or a Food Crafts Institute Certificate.

Hotels in the unorganized sector employ largely untrained manpower. Restaurants in India

Our estimate is that there are at least 140,000 restaurants in urban India. Delhi and Mumbai account for nearly 15% of these restaurants. Conventional restaurants account for the largest population (30%), followed by

sweet shops (16%), fast food outlets (16%) and dhabas (13%).

While the number of conventional restaurants ranges between 10-20 numbers per lakh of population, the total number of eating places could be as high as 86 per

lakh of population (as in the North).

The total number of restaurants could touch 200,000 in year 2010 and 240,000 in year 2020.

There are almost 1.85 million people working in restaurants across India. Employment is forecast to increase to 2.73 million by the year 2020.

In addition, there are more than 1.3 million people employed in small restaurants and dhabas on the state and national highways.

Almost 70% of the employees in key functions of F& B service and kitchen are less than 30 years old.

Almost 20% of those employed in F & B of conventional restaurants, cafes and fast food outlets are diploma holders either from private hotel management

institutions or Food Craft Institutes. Dhabas, largely, employ untrained manpower.

Travel Trade Business in India There are approximately 6000 travel trade companies/ firms in the country. The population of these agencies could be growing at 7.5 - 10% annually. On an average, each of these travel trade agencies employ 14 15 people. This sector employs almost 83,500 people. Of them, a significant proportion are

in functions such as ticketing, tour operations and accounts/ administration. Our

forecast is that the employment in this sector will touch 242,000 by year 2020.

Almost 44% of the employees in ticketing have a formal IATA/ UTA certificate or a diploma in travel & tour management; 17% of those in administration also

have a formal education in travel & tour management. Overall, 17.5% of the

employees have formal training in tour and travel management.

Annual Demand for Trained Manpower: A Forecast

The annual demand for trained manpower in hotels and restaurants is likely to touch 29,000 by the year 2010; this is likely to increase to approximately 39,000 by

the year 2020.

The demand for trained manpower in hotels and restaurants is likely to be boosted by aggressive expansion of fast food restaurants/ cafe, an increase in 1

3 star budget hotels, golden quadrilateral of national highways as well as the

preference for youth in this sector.

The annual demand for trained manpower in the travel and tour sector is likely to be 1275 and 2075 in 2010 and 2020, respectively.

Training Institutes in Hotel Management/ Food Craft There are approximately 175 training institutes engaged in hotel management and

food craft; 50 of them are government sponsored/ owned. Of the 125 private

institutes, only 47 are registered with AICTE.

A total of 18000 students are graduating with a degree/ diploma in hotel management or food craft. Of them, only 20% are obtaining training in

government sponsored institutes.

Only 3800 students (21%) are completing diploma/ certificate courses; a majority of them are completing 3-year degree courses.

These institutes claim 100% placement for the graduating class. However, 35 40% of the graduates are joining other emerging sectors such as call centers

because of the following reasons:

Better salaries in alternative careers Poor perceived image of work in hotels Reluctance to take up job in the service function of hotels & restaurants

In this scenario, there is likely to be a shortage of trained manpower in this sector. Training Institutes in Travel & Tourism Management There are 172 training institutes engaged in travel and tour management

education; only 11 of them are government sponsored institutes, 78 are affiliated

to universities while the balance are privately owned ones.

Approximately, 17,500 students are completing IATA/ UFTA certified diploma courses, graduate and post-graduate degree courses.

Strategic Recommendations The present and new hotel management institutes have to train a substantially

larger number of students to cater to the increasing demand in hotels and

restaurants.

In our opinion, the student throughput of diploma and certificate courses needs to be increased substantially; this could be done by altering the mix of students in

favour of the short-term courses.

Since trained manpower is scarce in the smaller hotels, a training module in the form of audio and video CDs can be explored.

The existing training infrastructure for the travel and tour sector appears to be adequate.

A joint sector campaign has to be undertaken to generate pride in a hotel management career. This will help attract and retain trained manpower in this

sector.

KEY RESEARCH FINDINGS

HOTELS IN INDIA: Present Infrastructure There is an estimated 1.2 million hotel rooms in the country. However, the star

category hotels account for a mere 7% (approximately 80000 rooms); most of the

rooms are contributed by budget hotels, guesthouses and inns, that cater primarily to

domestic tourism.

The metropolitan cities of Delhi, Mumbai, Chennai, Hyderabad and Kolkata, along

with Goa account for 62% of the rooms in the five & four star category. The other

smaller hotels are more geographically dispersed; this results from a strong

correlation between hotels in the unorganized sector and domestic tourism statistics.

Places of pilgrimage such as Tirupati and Haridwar have significantly lower

availability of rooms 28 & 150 rooms per lakh of tourists, respectively.

Our forecast is that there will be a total of 2.5 million and 5.8 million hotel rooms in

2010 and 2020 respectively. This assumes that the infrastructure growth will keep

pace with the anticipated growth in tourism. The other assumption is that the mix of

hotels will remain the same; however, this might change in favour of the organized

sector, if government initiatives take shape. Geographical spread might also change

in favour of North-eastern states, J&K, West Bengal, Andhra Pradesh, Madhya

Pradesh & Uttar Pradesh.

HOTELS IN INDIA: Employment Pattern & Forecast Employment intensity increases with the size of hotel. The larger Four & Five star

hotels (along with the heritage hotels) employ on an average 174 people per 100

rooms, compared to 122 in the One, Two & Three Star Hotels and 58 in the

unorganized sector.

Employment

Intensity (Employees per

100 rooms)

Total Employment

2002

Total Employment

2010

Total Employment

2020

5/4 star Hotels 174 57,000 83,000 1,10,400

1-3 star Hotels 122 52,500 63,000 83,000

Smaller hotels 58 638,000 14,05,000 32,61,500

Total NA 7,47,500 15,51,000 34,54,900

In addition, there are more than one lakh employees working in motels on state and

national highways.

A bulk of the employees approximately 60% are working in F&B service, Kitchen

and housekeeping. Front offices of the larger hotels account for nearly 7% of the

employees.

Hotel Employee Profile Five/Four Star Hotels: Most employees in the management/supervisory cadres in

the front office, F&B service and housekeeping have hotel management

backgrounds. Almost 90% of the chefs are having a hotel management

degree/diploma or a certificate from a Food Crafts Institute.

Three, Two & One Star Hotels: Almost half the managers and supervisors have

either a hotel management degree/diploma or a Food Crafts Institute Certificate. A

majority of those at junior levels are just graduates or even SSC pass.

Unorganized Sector: Only a few of the managers have a hotel management

degree/diploma. Most of the employees consist of untrained manpower.

Almost 80% of the employees in key hotel functions such as F&B, front office and

housekeeping are young; they are less than 40 years old. In the smaller hotels, more

than 50% are less than 30 years old.

RESTAURANTS IN INDIA: Infrastructure The burgeoning middle class and evolving lifestyle is driving the demand for quality

restaurants both conventional ones as well as fast food outlets and cafes. Our

estimate is that there are at least 140,000 restaurants in urban India. Delhi and

Mumbai account for nearly 15% of the restaurants. Conventional restaurants account

for the largest population (30%), followed by sweet shops (16%), fast food outlets

(16%) and dhabas (13%). Northern region already has over 10000 fast food outlets

serving Chinese, Western and Indian food.

While the number of conventional restaurants ranges between 10-20 numbers per

lakh of population, the total number of eating places could be as high as 80 per lakh

of population (as in the North).

Employment Pattern & Forecast: The total number of restaurants could touch

200,000 in year 2010 and 240,000 in year 2020. The mix is likely to remain largely the

same; however, fast food outlets and cafes in the organized sector are likely to grow

much faster than the others if one goes by the stated expansion plan of large chains.

Employment Intens y it

(Employees per 100 chairs)

Total Employment

2002

Total Employment

2010

Total Employment

2020

Conventional

Restaurants

26 926000 1226000 1436000

Cafes/Coffee/ Tea Vendors

31 270000 406700 504500

Fast food Outlets 32 284000 401600 487800

Dhabas/Bhojanalays 26 179000 253900 306300

Total NA 1659000 2288200 2734600

In addition, there are more than 1.3 million people employed in small restaurants and

dhabas on the state and national highways. By 2020, even a 10% share for the

organized sector will generate nearly 130,000 jobs for trained manpower.

More than half the employees are in key functions of F& B service and kitchen and

are less than 30 years old.

Almost 60% of these employed in kitchens of conventional restaurants, cafes and fast

food outlets are diploma holders either from private hotel management institutions or

Food Craft Institutes. Only 20% of people in F&B Service are hotel management

degree/diploma holders. Restaurants, employ largely untrained manpower.

PROJECTED ANNUAL DEMAND FOR TRAINED MANPOWER Year 2010 Year 2020

Hotels 7000 10000

Restaurants 45000 45000

Total 52000 55,000

Key drivers of demand for trained manpower are likely to be the expansion of the

organized sector, golden quadrilateral and preference for youth in the hospitality

sector.

Presently, 16850 students are being trained in hotel management, annually. Only 22%

are graduating from the Government promoted institutes. Nearly 40% of them are

pursuing alternative careers in other emerging service sectors (such as call centres).

These statistics indicate that there could be a severe shortage for trained manpower

by the year 2010.

PROJECT TEAM Chief Technical Advisor: Ejaz Hoda (38 years) A graduate of IIT, Delhi and a post-graduate from IIM, Bangalore, has over 15 years

of experience in the area of market research. Brings to the team a marketing focus as

well as experience of diverse products and services. Specializes in consumer research,

statistics and market entry strategy.

Has pioneered the use of databases in marketing, spearheads the research and

development of new research methodologies and techniques such as

mpEVOLUTION & intelliPROBE, has co-authored iConsumer, a comprehensive

research publication on Indian consumer markets and MACCESS 2002 a unique

report on Indian Mens Accessories.

Has been the chief research advisor on important assignments for multinational

corporations such as Frito Lay (a PepsiCo), Hyundai Motor, Nestle India, Pillsbury

India and Spice Telecom.

Has also been on the Young Business Committee of Confederation of Indian

Industry (CII).

Chief of Project: Makarand Chaurey (40 years) A graduate of IIT, Kanpur and a post-graduate from IIM, Ahmedabad, has over 10

years of experience in the areas of industrial research, project appraisals and financial

services. Has established cutting edge quality systems and specializes in demand

forecasting and advanced statistical analysis for the industrial & automotive sectors.

Has co-authored iConsumer, a comprehensive research publication on Indian

consumer markets and worked on important assignments for Honda Cars, DCM

group and PVR.

Head of Data Processing & Analysis: Dominic Sebastian (33 years):

Heads the data processing team and specializes in computer-aided statistical analysis.

Has 8 years of hands-on experience with specialized software (SPSS, XLSTAT &

STATS) that enables statistical analyses such as correspondence analysis, multiple

discriminant analysis, significant testing and database management. He is assisted by a

team of 5 data processing executives.

Program Coordinator: Akhtar Siddiqui (28 years)

Heads the field function and is responsible for field briefing, accurate implementation

of sampling plans and quality control in relation to field research. Has played a key

role in mapping different cities and rural areas in terms of consumer demographics,

on an al-India basis. He is assisted by a team of 12 field officers and research

associates.

Research Executives/Associates: Qammar Naseem Ahmad, Prabhat

Kumar, Deepak Raj, Kaushal Kishore and Rajendra Prasad

Have been instrumental in collection of all primary data as well as compilation of

secondary data.

BACKGROUND

India offers diverse opportunities for tourism, be it for leisure or business. Over 2.5

million foreign tourists (including NRIs & PIOs) visit India every year. By

comparison, domestic tourism is significantly greater. Statistics reveal that we are

likely to witness a sharp increase in both domestic and international tourist traffic.

The rapid increase in tourism is being fuelled by a wide range of contributory factors

as outlined in the table below.

Tourism Segment Growth Drivers

Domestic tourism Rapidly increasing purchasing power of the middle class.

Better road connectivity

Evolving lifestyle

International tourism Development of internationally acclaimed destinations

such as Kerala & Rajasthan

Favourable perception of Brand India

Attractive market that motivates foreign business

travelers

The growth in tourism will have to be serviced by a substantial increase in

infrastructure, including air-road-rail connectivity, hotels and restaurants.

It is in this context that Department of Tourism, Ministry of Tourism & Culture,

Government of India, has decided to undertake a study to assess the manpower

requirement in the hotel and restaurant sector as well as the tour and travel operation

business.

Our firm Market Pulse has been commissioned to conduct this study. This document

presents the findings of the study.

1

TERMS OF REFERENCE

1. To analyze the job opportunities in the hotel sector by assessing :

Current manpower requirement and the requirement by 2010 & 2020 of different categories of personnel in star category, heritage hotels, un-approved hotels,

restaurants and cafeterias (both region-wise and state-wise)

The manpower available in the hotel industry and a comparison of the same with the total workforce.

2. To make an estimate of trained manpower by assessing the number of personnel

(category-wise) trained presently and in 2010 & 2020. The institutes to be

considered are as follows:

National Council for Hotel Management and Catering Technology (NCHMCT) Private sector and other agencies related to travel and tourism 3. To analyze the placement scenario (category-wise) of the students and quantify

the number of students passing out from various institutes, offering courses

related to travel and tourism. The institutes to be considered would be IHMs/

FCIs under NCHMCT as well as private institutions and other agencies related to

travel and tourism.

4. To assess the current manpower requirement as well as for 2010 & 2020, in the

tour operation and travel sector.

2

CHAPTER 1

PROJECT METHODOLOGY

3

This study is based on an extensive primary field survey, analysis of secondary data as

well as physical scanning of cities. The primary field survey has been carried out in 27

important tourist destinations. These have been selected from different destination

categories on the basis of their tourist traffic.

More than 900 interviews have been conducted by our field research team,

comprising 3 field officers, 2 research associates and a team of 5 field interviewers.

The sample composition is detailed in table 1.1. below.

The interviewee in each of the segments comprised of middle senior level managers

in the Human Resource departments of large organizations as well as the owners-

managers of smaller organizations. Secretaries and director level officials of state

tourism offices, municipal bodies and relevant hotel associations have also been

interviewed.

The sample has been randomly selected so as to be representative of a cross-section

of that segment.

1.1. Sample composition (Number of Interviews)

Region Cities Hotels Restaurants Travel &Tour

operators

Hotel Mgmt.

Institutes

Tourism offices &

Municipalities

Total

Delhi 42 59 2 11 3 117

Agra 14 18 2 0 3 37

Haridwar 3 10 0 0 3 16

Shimla 3 5 3 1 2 14

Varanasi 5 13 1 1 4 24

North

Amritsar 5 10 2 0 2 19

4

Region Cities Hotels Restaurants Travel

&Tour operators

Hotel Mgmt.

Institutes

Tourism offices &

Municipalities

Total

Trivandrum 11 21 2 1 4 39

Cochin 6 15 2 1 4 28

Ooty 6 14 1 1 0 22

Mysore 3 4 1 1 2 11

Bangalore 8 7 3 3 8 29

Chennai 8 6 1 3 4 22

Tirupati 2 5 2 0 1 10

South

Hyderabad 2 11 2 3 8 26

Kokata 17 33 4 2 7 63

Bhubanesh

war

8 11 2 1 6 28

East

Puri 3 1 1 0 2 7

Guwahati 5 12 1 1 9 28 North

East Shillong 3 9 0 0 2 14

Mumbai 31 77 7 11 7 133

Ahmedabad 10 24 2 2 6 44

Pune 9 20 3 3 3 38

Aurangabad 8 9 1 0 4 22

Goa 15 36 4 2 5 62

Udaipur 10 4 2 1 3 20

Jaipur 7 6 1 2 11 27

West &

Central

Khajuraho 5 6 1 0 2 14

All

India

249 446 53 51 115 914

5

Project Coverage

Hotels All star category & heritage hotels

Others registered with municipal bodies or hotel associations.

Various small hotels/ guest houses/ inns scattered in residential

areas or located in pockets near the railway station, inter-state bus

depots, etc.

Restaurants All conventional restaurants (AC /non AC) registered with

municipal bodies or listed in telephone/trade directories

Fast Food chains

Dhabas/hawkers/ juice corners

Cafeterias, etc.

Travel & Tour

Operators

Organized sector players registered with TAAI

Other small and medium sized travel agencies

Ticketing agents

Hotel

Management

and Travel &

Tour Institutes

Those registered with NCHMCT

Private sector institutes

The states of Jammu & Kashmir and Bihar have not been directly covered in addition

to some union territories such as Andaman & Nicobar, Pondicherry and

Lakshwadeep.

The states covered by our research account for 88% and 94% of domestic and

foreign tourist visits, respectively. Hence, for purposes of estimating national statistics

these contribution ratios have been used.

6

Information Areas

Structured questionnaires (refer Appendix 1) were developed for each of the

segments under study. The information areas addressed by the questionnaires are

briefly mentioned subsequently.

Hotel/ Restaurants/ Travel & Tour Operators

Employment pattern across functions Age profile of employees Business particulars Proportion of temporary employees across functions Institutes of Hotel Management (both private and NCHMCT)

Batch size, i.e number of students graduating annually Courses/ Subjects offered Tenure of the course

Interviews with the officials of municipal bodies and hotel associations were used to

estimate the number of hotels and restaurants in each of the cities under study.

Additionally, comprehensive physical scanning of each of the destinations under

study was carried out to estimate the proportion of hotels (guest houses, inns and

small hotels) and restaurants (including dhabas) in the unorganized sector.

A study of the local telephone and trade directories as well as registered Internet

websites was also used to estimate the number of travel and tour operators as well as

private institutes of hotel management and travel management institutes.

7

CHAPTER 2

TOURISM IN INDIA : A SNAPSHOT

8

Attractiveness of diverse destinations and increased levels of marketing are

transforming India into a thriving tourist centre of the world. Although, Indias shape

of world tourist arrivals is a mere 0.37%, recent statistics indicate a robust growth of

more than 15%.

In addition, growth in the disposable income of more than 200 million people

belonging to the middle class is changing the profile of domestic tourism. Statistics

from Ministry of Tourism and Culture reveal that domestic tourist visits have

increased from 191 million in 1999 to an estimated 272 million in 2002. This

represents a compounded annual growth rate of 17%.

Domestic tourism in both North and North-Eastern regions have registered high

growth rates (20% and 63% CAGR, respectively). While Southern India experienced

a 6% growth, West/ Central and Eastern regions experienced a marginal decline.

The growth rates point towards relative needs for infrastructure development in these

regions.

2.1 Geographic Contribution of Domestic Tourism

39%41%

6% 13%

1%

North South East West & Central North East

2.2 Geographic Contribution of Foreign Tourism

34%23%

8%

35%0%

North South East West & Central North East

9

2.3. Tourist Traffic in Important Destinations (covered by research)

State City Domestic Foreign Total

Hyderabad 7099871 475131 7575002 AP Tirupati 7967264 718325 8685589 Chennai 4635278 310198 4945476 Tamilnadu Ootty 1806969 67014 1873983 Bangalore 5181381 172880 5354261

Karnataka Mysore 1373637 45832 1419469 Cochin 961820 87357 1049177 Kerala Trivandrum 775225 65240 840465 Agra 1543988 682737 2226725 UP Varanasi 3027277 272938 3300215

HP Shimla 1227710 37860 1265570 Delhi Delhi 1228059 543036 1771095 Uttaranchal Haridwar 5316980 5859 5322839 Punjab Amritsar 172404 5057 177461

Bhubaneshwar 373122 9611 382733 Orissa Puri 1014449 9691 1024140

WB Kolkata 5280530 529366 5809896 Assam Guwahati 1953915 6409 1960324 Meghalaya Shillong 268609 3146 271755

Mumbai 8599938 749206 9349144 Pune

Maharashtra

Aurangabad 584874 50953 635827 Gujarat Ahmedabad 1077971 13179 1091150 Goa Goa 1325296 271645 1596941

Jaipur 589414 81451 670865 Rajasthan Udaipur 471576 101303 572879

MP Khajuraho 122616 24093 146709

10

2.4. State-Wise Tourist Traffic 2002 (covered by research)

Domestic Foreign Total

Andhra Pradesh 60487370 210310 60697680

Tamil Nadu 41274392 804641 42079033

Karnataka 8678170 59545 8737715

Kerala 5568256 232564 5800820

MP 6487773 111813 6599586

UP 73067000 109464 73176464

HP 4958917 144383 5103300

Orissa 3289205 23279 3312484

Assam 2833042 4262 2837304

Meghalaya 268609 3146 271755

Rajasthan 8300190 428437 8728627

WB 8503573 531335 9034908

Delhi 1228059 543036 1771095

Utranchal 11818221 55762 11873983

Maharashtra 10896408 949269 11845677

Gujarat 5735286 34187 5769473

Goa 1325296 271645 1596941

Punjab 305977 8975 314952

Total 237874638 4526231 242400869

Contribution % 88 94 88

All India 271840337 4828624 276668961

11

CHAPTER 3

HOTELS IN INDIA

12

One of the pillars of tourism infrastructure is made up of the places of lodging.

Given the disparate socio-economic profile of domestic tourists, hotels exist in both

the organized and the unorganized sector. In addition to the star category hotels,

there are smaller hotels, guesthouses and inns that cater largely to domestic tourists.

The pilgrimage destinations also have a large number of dharmashalas to support the

seasonal increase in the number of tourists.

In this study, we have carried out the required analyses for the following 3 segments:

5star, 4 star and heritage hotels Three, two & one star hotels Small budget hotels, guesthouses & inns in the unorganized sector. 3.1. A Hotel Map

There is an estimated 1171000 hotel rooms in the country in both the organized and

unorganized sectors combined. The star category and heritage hotels account for 7%

of the hotel rooms; the balance is contributed by other places of lodging such as

budget hotels, guesthouses and inns.

13

3.1 % Contribution of Hotel Segments to Total Rooms

3%

4%

93%

5star/4star/Heritage Hotels 1-3 star Hotels Others

3.1.1. Five & Four Star/ Heritage Hotels

These hotels have a total of almost 36000 rooms. The metropolitan cities of Delhi

(21%), Mumbai (17%), Chennai (7%), Hyderabad (5%) and Kolkata (5%) account for

55% of the rooms in this category. Goa accounts for 7% of the rooms.

3.1.2. Three, Two & One Star Hotels

These hotels have 43000 rooms and are more extensively spread than their larger

counterparts. They are not concentrated in the metropolitan cities. Both Mumbai and

Goa have a significantly higher presence of these hotels; they together account for

5939 rooms (14%).

The states of Andhra Pradesh (5045 rooms), Tamil Nadu (6213 rooms) and

Maharashtra (6588 rooms) together account for almost 42% of the rooms in this

category.

14

3.1.3. Other Hotels in the Unorganized Sector

These hotels are also well spread throughout India; their presence is correlated with

the number of domestic tourists visiting different tourist destinations. The 3 states of

U.P, Rajasthan and Tamil Nadu account for almost 45% of the total availability in the

country.

3.2. State-wise Rooms Availability 2002

State Total rooms

5 & 4 Star Hotel rooms

1, 2 & 3 Star Hotel

rooms

Other Hotels

Andhra Pradesh 58362 2007 5045 51310

Tamilnadu 89293 2431 6213 80649

Karnataka 71897 1875 1967 68055

Kerala 44049 1464 3694 38891

MP 39181 547 922 37712

UP 295436 2504 1739 291193

HP 53236 262 372 52602

Orissa 46683 389 703 45591

Assam 10900 160 414 10326

Meghalaya 2115 50 115 1950

Rajasthan 128823 3351 2798 122674

WB 17278 1797 1428 14053

Delhi 27272 7677 1507 18088

Uttaranchal 17846 323 1013 16510

Maharashtra 51893 7561 6588 37744

Gujarat 60468 712 1629 58127

Goa 11924 1819 1099 8952

Punjab 8975 499 1508 6968

All India 1171121 35574 42991 1092556

15

3.2. Total Rooms Availability per Lakh Tourists

Places of pilgrimage such as Tirupati and Haridwar have significantly lower

availability of rooms 28 and 150 rooms per lakh of tourists, respectively. Even

Agras availability of rooms is substantially lower (175) than the national average.

However, this could be attributed to the fact that a large number of Agra tourists stay

in Delhi.

By comparison, states such as Delhi, Karnataka, Himachal Pradesh, Orissa, Rajasthan

and Gujarat have substantially higher availability of rooms for tourists.

3.3. State-wise Availability of Rooms

State City Total Rooms Rooms per lakh Tourists

58362 96

Hyderabad 13183 174

Andhra

Pradesh

Tirupati 2452 28

89293 351

Chennai 17577 355

Tamilnadu

Ooty 6334 338

71897 823

Bangalore 51507 962

Karnataka

Mysore 4230 298

44049 759

Cochin 5861 559

Kerala

Trivandrum 8488 1010

39181 594 M.P

Khajuraho 871 594

16

State City Total Rooms Rooms per lakh

Tourists 295436 404

Agra 3891 175

U.P

Varanasi 18423 558 53236 1043 H.P

Shimla 13202 1043 46683 1409

Bhubaneshwar 3467 906 Orissa

Puri 16360 1597 10900 556 Assam

Guwahati 10900 556 2115 778 Meghalaya

Shillong 2115 778 128823 1476

Jaipur 12874 1919 Rajasthan

Udaipur 5482 957 17278 184 W.B

Kolkata 10709 184 Delhi 27272 1540

17846 150 Uttaranchal

Haridwar 8000 150 51893 438

Mumbai 28682 307 Pune 2935 NA

Maharashtra

Aurangabad 15060 2369 60468 1048 Gujarat

Ahmedabad 11436 1048 Goa Goa 11924 747

8975 2850 Punjab

Amritsar 5057 2850 All India 1171121 423

17

3.3. Growth in Tourist Traffic

2003-10 (Projected Growth)

20.0

10.0

5.0

5.0

5.0

10.0

5.0

5.0

5.0

10.0

5.0

10.0

5.0

5.0

5.0

5.0

5.0

20.0

Punjab

Goa

Gujarat

Maharashtra

Uttaranchal

Uttar Pradesh

Delhi

West Bengal

Rajasthan

Meghalaya

Assam

Orissa

Himachal Pradesh

Madhya Pradesh

Kerala

Karnataka

Tamilnadu

Andhra Pradesh

1999-2002

408.0

12.7

6.4

-18.5

4.5

14.7

4.7

6.8

6.4

24.2-14.1

16.3

10.0

11.4-20.7

8.7

9.7

18.9

Growth statistics pertaining to tourist traffic are based on statistics of Ministry of

Tourism. For the period 2003-10, we have assumed that growth in tourist traffic will

follow more or less the same trend as in the past. Thus, some (north-eastern state are

likely to experience very quick annual growth of approximately 20%, others like

Delhi, U.P, Tamul Nadu and Karnataka, where growth has already slowed down, will

experience a 5% growth annually. Still others like W.B, A.P and M.P are likely to

grow at 10% annually, since they have displayed robust statistics in the recent past.

18

3.4. Rooms Availability: A Forecast (2010 2020)

In order to arrive at an estimate of hotel rooms in different states, the following bases

have been assumed.

The growth in star category hotels will follow the same trend as in the last 4 years. This trend has been obtained from the projects approved by the Ministry of

Tourism in the last 4 years. If growth rate in tourism accelerates, this estimate can

be treated as a conservative estimate.

The growth in hotels in the unorganized sector will depend on the growth in tourism (domestic and foreign combined).

The other assumption is that the 18 important states covered in the primary research will continue to represent 88% of hotel rooms in the unorganized sector.

In 2010, there will be a total of 2.9 million hotel rooms, more than twice the numbers

in 2002. Star category hotels will have almost 100,000 hotel rooms, while the balance

will be present in the unorganized sector.

The states of Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Assam/Meghalaya

and West Bengal will register the quickest growth trends. The states of Delhi,

Karnataka and Gujarat might experience a stagnant phase. These are also those states

that already have a high availability of hotel rooms.

In the year 2020, there should be approximately 6.6 million hotel rooms, if the full

potential of tourism is tapped. We feel that the contribution of North-eastern states

as well as J&K, would be substantially higher than the present levels.

19

3.5. Rooms Availability in 2010 (A Forecast)

State Total rooms 4/5 star Hotels

1-3 star Hotels

Other

Andhra Pradesh 141312 1802 5973 133537

Tamilnadu 144250 3609 8327 132314

Karnataka 76034 2875 3159 70000

Kerala 64595 2396 7102 55097

Madhya Pradesh 114919 857 1360 112702

Uttar Pradesh 978216 3340 1779 973097

Himachal Pradesh 76769 342 372 76055

Orissa 78758 589 879 77290

Assam 45068 154 514 44400

Meghalaya 7950 50 115 7785

Rajasthan 209019 3815 3106 202098

West Bengal 83336 2421 1576 79339

Delhi 31528 9807 1721 20000

Uttaranchal 36727 323 1013 35391

Maharashtra 107952 10333 8324 89295

Gujarat 12281 732 2501 9048

Goa 21989 3035 1545 17409

Punjab 17372 975 1822 14575

All India 2877168 46690 54867 2775611

20

3.6. Rooms Availability in 2020 (A Forecast)

State Total rooms 4/5 star Hotels

1-3 star Hotels

Other

Andhra Pradesh 355296 1802 7133 346361

Tamilnadu 231577 5082 10970 215526

Karnataka 122797 4125 4649 114023

Kerala 104671 3561 11362 89748

Madhya Pradesh 295471 1245 1908 292319

Uttar Pradesh 2530177 4385 1829 2523963

Himachal Pradesh 124699 442 372 123885

Orissa 127836 839 1099 125898

Assam 275706 154 639 274913

Meghalaya 48369 50 115 48204

Rajasthan 337082 4395 3491 329196

West Bengal 210746 3201 1761 205784

Delhi 47036 12470 1989 32578

Uttaranchal 58984 323 1013 57648

Maharashtra 169744 13798 10494 145452

Gujarat 19087 757 3591 14739

Goa 35016 4555 2103 28358

Punjab 27526 1570 2215 23741

All India 6554019 49469 57836 6446714

21

CHAPTER 4

EMPLOYMENT IN HOTELS

22

4.1. Employment Pattern

4.1.1. Five, Four Star/Heritage Hotels: A single five star hotel could employ more

than 400 employees. A total of 57508 people are employed to service about 36000

rooms in this category. On an average, there are approximately 162 employees per

100 rooms in these hotels. The employment pattern is the across geographic regions.

The major employing functions are F&B Service, F&B Kitchen and Housekeeping.

They, together, account for 56% of the total employment in these hotels.

4.1. % Contribution of Key Functions to Employment

21%

20%15%

7%

8%

7%7%

15%

F&B service F&B kitchenHousekeeping Front officeManagement EngineeringPurchase/stores & accounts Others

23


A total of 52,577 employees are present in these hotels to service almost 42,991 rooms nationally. On an average, there are 122 employees per 100 rooms in this category. The key employing functions are F&B and housekeeping. They together account for 62% of the total employment in these hotels.

4.3. Regional Employment Intensity

To a large extent, the employment across geographic regions depends on the


8%

9%

22%22%

20%

7% 12%

Management Front officeF&B service F&B kitchenHousekeeping Purchase & accountsOthers

presence of hotels; however, there are some differences in the employment intensity

across regions.

122

77

170

123

149

Overall

West

East

South

North

24

4.1.3. Other Hotels in the Unorganized Sector : There are approximately 638,000

employees working in hotels in the unorganized sector. These almost 58 employees

for every 100 rooms in this sector, substantially less than in the star category hotels.


21%

14%23%

13%

6%23%

F&B service F&B kitchen HousekeepingManagement Purchase & accounts Others

Although employment pattern across geographic regions depends on the presence of

hotels, there are some minor differences in the employment intensity across regions.

25


67

61

48

59

63

North East

West

East

South

North

4.2.1 Employment in Five, Four Star/ Heritage Hotels

State Management team

Front office

F&B service

F&B kitchen

House keeping

Accounts Total

Andhra Pradesh 284 237 727 683 520 259 3493

Tamilnadu 343 287 880 827 630 314 4231

Karnataka 265 221 679 638 486 242 3263

Kerala 206 173 530 498 379 189 2548

M.P 78 64 198 186 142 71 952

U.P 353 295 907 852 648 323 4358

H.P 37 31 95 89 68 34 456

Orissa 55 46 141 132 101 50 677

Assam 22 19 58 54 41 21 278

Meghalaya 6 6 18 17 13 7 87

Rajasthan 473 395 1213 1141 868 432 5832

W.B 254 212 651 612 465 232 3127

Delhi 1083 905 2780 2613 1988 991 13361

Uttaranchal 45 38 117 110 84 42 562

Maharashtra 1067 891 2738 2573 1958 976 13159

Gujarat 99 84 258 242 184 92 1239

Goa 257 214 659 619 471 234 3166

Punjab 70 59 181 170 129 64 868

All India 4661 3896 11965 11247 8557 4267 57508

26

4.2.2 Employment in Three, Two & One Star Hotels

State Management team

Front office

F&B service

F&B kitchen

House keeping

Accounts Total

Andhra Pradesh 252 397 1346 1685 1607 522 6188

Tamilnadu 311 489 1658 2075 1980 644 7620

Karnataka 99 155 525 657 627 204 2413

Kerala 184 291 986 1234 1177 383 4531

M.P 137 91 156 189 134 78 710

U.P 191 251 584 416 399 120 2591

H.P 42 54 125 89 85 25 554

Orissa 35 70 316 328 246 71 1195

Assam 21 41 186 193 145 42 704

Meghalaya 6 12 52 54 40 12 196

Rajasthan 413 275 474 573 405 237 2156

W.B 72 143 643 666 500 143 2428

Delhi 167 217 506 360 345 104 2246

Uttaranchal 112 146 340 242 232 70 1509

Maharashtra 972 648 1116 1350 954 558 5076

Gujarat 240 160 276 334 236 138 1255

Goa 162 108 186 225 159 93 847

Punjab 167 218 507 361 346 105 2247

All India 4114 4616 11776 11776 10533 3728 52577

27

4.2.3 Employment in Hotels in Unorganized Sector

State Manage

ment

team

Front

office

F&B

service

F&B

kitchen

House

keeping

Accounts Total

Andhra Pradesh 1779 2386 2022 1941 5499 1011 30446

Tamilnadu 2797 3750 3178 3051 8643 1589 47856

Karnataka 2360 3164 2681 2574 7294 1341 40383

Kerala 1349 1808 1532 1471 4168 766 23077

M.P 2788 3307 4452 2896 5360 1491 23016

U.P 18864 22980 36356 25381 43902 10633 184182

H.P 3408 4151 6568 4585 7931 1921 33271

Orissa 4115 863 5509 2987 5045 1128 21904

Assam 500 318 1638 1365 1410 454 6869

Meghalaya 94 60 309 258 266 86 1297

Rajasthan 9070 10756 14482 9420 17434 4850 74870

W.B 1266 266 1695 919 1552 347 6741

Delhi 1171 1427 2258 1577 2727 660 11441

Uttaranchal 1069 1303 2061 1439 2489 603 10443

Maharashtra 2790 3309 4456 2898 5364 1492 23036

Gujarat 4298 5097 6862 4464 8261 2299 35476

Goa 665 790 1063 692 1280 356 5496

Punjab 451 550 870 607 1051 254 4407

All India 84309 66866 135847 86688 147740 38058 637739

28

4.3. Employment Forecast (2010 2020)

The employment forecast has been computed on the basis of the forecast of hotel

rooms in different categories. Employment intensity per room has been assumed to

be the same as the present level. The employment potential in different states is in

direct proportion to the number of hotel rooms in future.

In the years 2010 and 2020, there will be more than 1.5 million and 3.4 million people

employed in hotels, respectively. However, given the trend in the growth of star

category hotels and the higher employment intensity in these hotels, we expect a

substantially higher numbers of employees in the five & four star/heritage hotels.

29

4.6. Employment Forecast

110434 83044

15513331405080

6317683077

34551443261666

5star/4star/Heritage 1-3 stars Others Total

2010 2020


110434 83044

15513331405080

6317683077

34551443261666

5star/4star/Heritage 1-3 stars Others Total

2010 2020

4.4. Employment in Motels The national and state highways have a substantial number of motels along their

length. In this study, we have estimated the number of motels for every 100 km of

road covered, via physical counting on a sample of highways. The results of this scan

are mentioned in the table below.

National Highway Road Length # Motels # Motel RoomsDelhi-Agra 203 21 315

Delhi-Jaipur 258 58 870

Mumbai-Pune 163 63 945

Agra-Fathepur Sikri 42 3 45

Fathepur-Bharatpur 22 17 255

Cochin-Trivandrum 220 60 900

Total 908 222 3330

State Highway Road Length # Motels # Motel RoomsBangalore-Mysore 139 10 100

Mysore-Ooty 140 2 20

Total 279 12 120

The average number of rooms in the motels on national highways and state highway

have been assumed as 15 and 10, respectively.

Total

Length # Rooms Employment

Intensity per Room

Total Employment

National highway 34508 126644 0.575 72820

State highway 135187 59482 0.575 34202

Total 169695 186126 0.575 107022

The highways have more than 107,000 employees working in motels throughout the country.

30

CHAPTER 5

PROFILE OF HOTEL EMPLOYEES

31

5.1. Educational Background of Personnel in Key Functions 5.1.1. Front Office

Five, Four Star/ Heritage Hotels: Our survey reveals that the pre-requisite for the

managerial and supervisory positions is a hotel management degree; a few of the

office assistants in the front office are graduates from other disciplines.

Three, Two & One Star Hotels: 44% of the positions are occupied by graduates

without training in hotel management. A majority of the office associates (more than

60%) are either graduates from other fields or SSC pass-outs.

Hotels in the Unorganized Sector: Only one in every eight managers is having a

hotel management degree or an MBA. A majority of them are graduates while almost

35% have just completed their SSC level school education. On the other hand, almost

72% of the office assistants have a school level certificate only.

5.1.2. F&B Service

Five, Four Star/ Heritage Hotels: Most managers and captains are having a hotel

management degree. A few captains (30%) are having a certificate in cookery from

the food craft institutes. The stewards and waiters have either a hotel management

degree or a Food Craft Institute Certificate.

Three, Two & One Star Hotels: Almost half the managers and captains have a

hotel management degree/diploma or a Food Craft Institute Certificate. Most

stewards and waiters possess an SSC level school certificate only.

Hotels in the Unorganized Sector: While one-third of the managers are hotel

management students, the rest are either plain graduates or SSC pass. The stewards

and particularly the waiters predominantly have a SSC level school certificate only.

32

5.1.3. F&B Kitchen Five, Four Star/ Heritage Hotels: Almost 90% of the chefs are hotel management

graduates, while 80% of the cooks are either hotel management graduates or food

craft diploma certificate holders. While most helpers in the kitchen possess an SSC

level school education, a few (20%) have a cookery certificate as well.

Three, Two & One Star Hotels: While of the chefs are hotel management

graduates, 1/6 of them and half of the cooks are merely SSC pass. Most helpers are

school pass and are not expected to have any special qualification.

Hotels in the Unorganized Sector: A majority of those presently employed in the

kitchens are SSC pass; only 1/3 of them are either hotel management graduates or

food craft certificate holders.

5.1.4. Housekeeping Five, Four Star/ Heritage Hotels: Almost 80-90% of the managers and

supervisors are hotel management graduates. Half the room attendants are hotel

management graduates while the balance are mostly SSC pass.

Three, Two & One Star Hotels: While 60% of the managers are hotel management

graduates, the balance are equally either graduates or SSC pass. Approx. of the

supervisors are either college graduates or SSC pass; 30% of them are hotel

management graduates. Most room attendants are just SSC pass.

Hotels in the Unorganized Sector: A majority of the supervisors and room

attendants are SSC pass; 1/3 of the managers are hotel management graduates.

33

5.1.5. Other Functions Purchase, HRD and Sales & Marketing in both 1-3 star and small hotels have

graduates while the bigger hotels prefer MBAs. The engineering functions have

employees with an engineering degree or an ITI diploma. The proportion of degree

holders increases with the size of the hotel.

Function-wise summary of Educational Qualification

Functions 5/4 star

Hotels/Heritage 1-3 Star Hotels Unorganized sector

Front Office All are Hotel Management Degree

A number of managers & supervisors have a hotel management degree

1/8 managers are post-graduates in hotel management

F&B Service All are Hotel Management Degree/ Food Certificate holders

50% have a Hotel Management Degree or Food Craft certificate

1/3 managers are Hotel Management degree holders

F&B Kitchen Most are Hotel Management degree or Food craft certificate holders

Chefs are Hotel Management degree holders

Largely trained on the job

Housekeeping Most supervisors/ managers are Hotel Management degree holders

Managers & supervisors are Hotel management graduates

A few managers are Hotel Management graduates, largely SSC

Purchase, HR

and Sales &

Marketing

MBAs Graduates Graduates

34

5.2. Age Profile of Employees 5.2.1. Five, Four Star/ Heritage Hotels: None of the employees are more than

50 years old. Bulk of them are less than 40 years of age; particularly in the key

functions of front office, F&B and housekeeping. A majority of them are less

than 30 year of age.

35

5.1. % Contribution of Age Segments to Employment

15%

27%

37%

21%0%

18-25 years 25-30 years 31-40 years41-50 years >50 years

5.2. % Age Profile of Workforce in Key Functions

68

56

67

27

31

21

13

12

59 23

5

19Front office

F&B service

F&B kitchen

Housekeeping

50 years

5.2.2. Three, Two & One Star Hotels: A majority of the people (52%)

employed in these hotels are less than 30 years of age. A negligible proportion is

more than 50 years of age. More than 60% of the workforce employed in the

front office, F&B service and housekeeping are less than 30 years of age.


26%

26%

31%

15%2%


36

5.2.3. Hotels in the Unorganized Sector: By comparison to hotels in the star

category, a significantly higher proportion (59%) of employees in these hotels are

less than 30 years of age. Only 8% of the workforce is more than 50 years of age.

The age profile of the workforce in these hotels is young. More than 80% of

those employed in the key hotel functions are less than 40 years of age.

5.6. % Age Profile of Workforce in Key Functions

84

71

86

15

24

10

1

6

31

64 16 13 8Front office

F&B service

F&B kitchen

Housekeeping

50 years


22%

37%

20%

13%8%


37

5.3. Organizational Structure in Key Hotel Functions 5.3.1. Front Office : The principal tiers in the front office comprise of managers,

supervisors and office assistants. Bulk of the employees in the front office of star

category hotel are office assistants. In smaller hotels, the front office has a larger

proportion of managers; there are fewer supervisors.

5.7 % Contribution of Organizational Tiers to Employment

23

23

30

24 54

40 16

47

44Other Hotels

1-3 Stars Hotels

5Star/4Star/Heritage Hotels

Managers Supervisors Office Assistants

5.3.2. F&B Service: In the unorganized sector, most of the workforce consists of

waiters/stewards. The proportion of managers, captains and stewards increases

with the size of the hotel.

38

5.8. % Contribution of Organizational Tiers to Employment

7

8

14

24 49

42

19

4 6

37

21 68Other Hotels

1-3 Stars Hotels


Managers Captains Stewards Waiters


6

15

33

52 33

5 51

60

44Other Hotels

1-3Stars Hotels


Chefs Cooks Helpers

5.3.3. F&B Kitchen : In the larger hotels, almost 15% of the workforce

comprises of chefs. However, a bulk of the employees are cooks.

5.3.4. Housekeeping : Managers and supervisors account for 10-20% of the workforce in housekeeping. A bulk of the employees are room attendants.

39


5

3

14

11 51

26

35

2 8

54

68 22Other Hotels

1-3Star Hotels


Manager Supervisors Room Attendants House-men

CHAPTER 6

RESTAURANTS IN INDIA

40

The burgeoning middle class and evolving lifestyle is driving the demand for quality

restaurants - both conventional ones as well as new ones such as fast food outlets,

cafs and pubs. These restaurants will cater to both the foreign and domestic tourists

travelling to key tourist destinations. The low cost mobile food vans, sweet shops,

dhabas and juice corner cater primarily to the lower and middle-income population

segment.

Since the presence of restaurants is largely dependent on the resident population, the

computations are based on sample statistics and population data obtained form the

Census of India.

6.1. A Map of Restaurants On this basis, our estimate is that there are more than 140, 000 restaurants in urban

India. The 18 states covered by our primary research have 124,000 restaurants. These

states account for 88% of the urban Indian population.

Conventional restaurants account for the largest population (30%) followed by sweet

shops (16%), fast food outlets (16%) and dhabas (13%). Northern region has over

and Indian food.

10,000 fast food outlets, serving Chinese, Western

41

6.1. Estimated Number of Restaurants

42261

21940

8433

14102215446

12329

18162

22451

Total

Others

Juice Corner

Dhaba

Sweet shop

Fast food

Caf

Conventional Restaurant

6.2. % Contribution of Restaurant Categories to Total

30%

11%6%16%

16%13% 8%

Restaurant Pubs/Bars CafFast food Sweet shop DhabaCorner

42

6.2. Geographic Spread The northern region accounts for 34% of the outlets followed by the west (26%).

The metropolitan cities of Delhi & Mumbai account for almost 15% of the

restaurants. Almost 35% of the caf/ tea & coffee vendors are in South India;

however sweet shops are fewer.

Mobile food vans are few in numbers and are located in the larger cities of North and

South India only.

6.3. % Contribution of Regions to Total Restaurants

16%

32%

13%

1%

12%

26%

North East North EastWest & Central Others State total

6.3. Restaurant Penetration While the number of conventional restaurants ranges between 10-20 per lakh of

population, the total number of eating places could be as high as 86 per lakh of

population (as in the Northern Region). This is on account of higher penetration of

fast food outlets, sweet shops, dhabas and juice corners.

43

6.4. Restaurants Penetration (Numbers per Lakh Population)

Region Conventional ones

Pubs/Bars

Caf Fast food

Sweet shop

Dhaba Corner All Outlets

South 12 1 3 4 2 5 3 31

North 13 8 7 19 15 12 11 86

East 19 6 1 8 15 4 5 59

North

East

15 2 1 3 0 3 1 25

West

&

Central

17 8 0 4 6 5 1 41

44

6.5. State-wise Estimate of Restaurants

State Conven tional

Caf Fast food

Sweet shop

Dhaba Juice Corner

All Outlets

ones

Andhra

Pradesh

2552 714 726 491 962 678 6319

Tamilnadu 3386 948 963 651 1276 899 8384

Karnataka 2228 624 634 428 840 592 5518

Kerala 1033 289 294 199 389 274 2558

Uttar

Pradesh

4468 2508 6548 5152 4226 3772 29349

Himachal

Pradesh

78 44 114 90 73 66 510

Delhi 1657 930 2428 1910 1567 1399 10881

Punjab 1062 596 1556 1224 1004 897 6976

Orissa 1067 65 450 822 220 296 3251

West

Bengal

4367 267 1841 3361 899 1211 13299

Assam 526 29 102 0 102 44 862

Maharashtra 6924 197 1699 2459 2050 348 16779

Gujarat 3192 91 783 1133 945 160 7735

Goa 227 6 56 81 67 11 550

Rajasthan 2229 64 547 792 660 112 5402

Madhya

Pradesh

2719 77 667 965 805 136 6589

All India 42261 8433 21940 22451 18162 12329 141022

45

6.4. Restaurants Forecast : 2010 - 2020 We estimate that there would be almost 196,000 restaurants in 2010 and then 237,000

in 2020. The increase is based on expected population growth and does not take into

account new developments and evolution of restaurants. The mix of restaurants is

definitely going to change; however, the future mix is difficult to forecast.

The shares of the north and east are likely to increase in future, because of expected

differential in population growth rates. The penetration of restaurants in terms of

numbers per lakh of population has been assumed as the same as the present one.

6.6. Estimated Number of Restaurants (2010)

5678111985

31510

1964562150117621

2551631542

Total

Juice Corner

Sweet shop

Caf

46

6.7. Estimated Number of Restaurants (2020)

6766114552

38477

23729726016

21450

3091538226

Total

Others

Juice Corner

Dhaba

Sweet shop

Fast food

Caf

Restaurant

47

CHAPTER 7

EMPLOYMENT IN RESTAURANTS

48

7.1.1. Conventional Restaurants There is an average of 26 people employed (both permanent and temporary) for

every 100 chairs in restaurants. Almost 80% are employed in the kitchen and service

functions, while the balance are almost equally distributed between management,

store, security, maintenance and delivery.

There are some geographic differences in the employment intensity of restaurants.

While the restaurants in the east have 31 employees per 100 chairs, in the north east,

there are only 19 per 100 chairs.

49


26

26

28

19

31

22

Overall

West

North east

East

South

North


2%

38%

42%

18%

Management Kitchen Service Others

7.1.2. Caf/Coffee Tea Shops There are an average of 31 people employed for every 100 chairs in cafes. The employment pattern is the same as in traditional restaurants, with 74% of the employees in the kitchen/service functions.

There is some geographic difference in the employment intensity of restaurants. While the restaurants in the north have 56 employees per 100 chairs, in the south, there are only 16 per 100 chairs.

50


31

23

23

16

56

Overall

West

East/North east

South

North


10%

39%

35%

16%

Management Kitchen Service Others

7.1.3. Fast Food restaurants

There are an average of 32 employees for every 100 chairs. This is on account of the

higher number of employees in the delivery function, which is a recent trend. fast

food restaurants have more people for management of outlets.

There is one significant difference across the various geographic regions. While fast food restaurants generally have 24-28 employees per 100 chairs, in the West, there are 36 for every 100 chairs.

51


32

36

24

26

28

Overall

West

East

South

North


13%

31%

28%

16% 12%

Management Kitchen ServiceDelivery Others

7.1.4. Dhabas/Bhojanalaya

Even Dhabas employ 26 people for every 100 chairs. However, the functions are

limited to management and predominantly kitchen and service.

There is not much geographical difference in the employment intensity. Only the north east has significantly less number of employees (18 per 100 chairs).

52


29

26

27

18

31

22

Overall

West

North east

East

South

North


12%

42%

46%

Management Kitchen Service

7.2. Employment Potential 7.2.1. Employment Potential of Conventional Restaurants There are almost 926,000 people employed in conventional restaurants across the

country. The employment potential of different regions is different from the spread

of restaurants because of the difference in employment intensity.

7.2.2. Employment Potential of Fast Food Outlets There are already more than 280,000 people employed in fast food restaurants across the country. Almost 47% of them are in the North which has the highest member of fast food outlets as well as a high employment intensity. The West accounts for 21% of employees in fast food outlets.

7.9. Employment Potential926073

383663 352543

76957

Total Service Kitchen Management

53


27439

85059 103684

36524

Total Delivery Service Kitchen Management

7.2.3 Employment Potential of Cafes

There are more than 270,000 people employed in cafes across the country. Almost

72% of them are in the north, which has the highest employment intensity.

54


106034125645

15042


7.2.4. Employment Potential of Dhabas/Bhojanalayas

There are almost 1.8 lakh people employed in Dhabas and Bhojanalayas.

7.3. Total Employment in Restaurants

55

7.13. Total Employment

926073

284296

1852859

24658 168382179342

270108

Tota

l

Juice

cor

ner

Swee

t sho

ps

Dha

bas

Caf

Fast

food

Conv

entio

nal

Rest

aura

nts


76822 76980

17635


7.4. State-wise Employment in Different Restaurant Categories 7.4.1. Conventional Restaurants

States Management Kitchen Service Total

AP 3757 21972 24774 55980

Tamil Nadu 4985 29152 32870 74275

Karnataka 3280 19182 21629 48873

Kerala 1521 8894 10028 22660

UP 7428 41814 39838 98066

HP 130 730 695 1712

Delhi 2755 15507 14774 36369

Punjab 2253 12681 12081 29740

Orissa 1349 5735 5510 14337

WB 5523 23472 22552 58680

Maharashtra 15448 57771 67706 165733

Rajasthan 4973 18598 21796 53353

MP 6066 22686 26588 65082

Gujarat 7121 26633 31213 76404

Goa 506 1894 2220 5433

Assam 625 3516 3350 8246

All India 76957 352543 383663 926073

56

7.4.2. Cafe States Management Kitchen Service Total

U.P 5852 56848 47652 120384

Delhi 2170 21080 17670 44640

Punjab 1391 13509 11324 28608

H.P 103 997 836 2112

Assam 0 116 58 174

A.P 714 4284 3570 9282

Tamilnadu 948 5688 4740 12324

Karnataka 624 3744 3120 8112

Kerala 289 1734 1445 3757

Maharashtra 519 1163 1311 3760

Rajasthan 169 378 426 1221

M.P 203 454 512 1470

Gujarat 240 537 606 1737

Goa 16 35 40 115

All India 15042 125645 106034 270108

57

7.4.3. Fast Food States Management Kitchen Service Total

Orissa 446 893 2381 4465

West Bengal 1827 3653 9741 18265

Uttar Pradesh 9957 28210 19913 68036

Delhi 3692 10460 7384 25228

Punjab 2366 6704 4732 16167

H.P 173 491 347 1185

A.P 1089 5082 2904 10346

Tamilnadu 1445 6741 3852 13723

Karnataka 951 4438 2536 9035

Kerala 441 2058 1176 4190

Maharashtra 4417 10194 9005 36019

Rajasthan 1422 3282 2899 11596

M.P 1734 4002 3535 14140

Gujarat 2036 4698 4150 16600

Goa 146 336 297 1187

All India 36524 103684 85059 284296

58

7.4.4. Dhaba/Bhojanalayas States Management Kitchen Service Total

AP 556 3751 3751 8127

Tamilnadu 1025 6917 6917 14986

Karnataka 675 4553 4553 9865

Kerala 312 2109 2109 4569

U.P 3210 15513 14978 36376

Delhi 1190 5752 5554 13488

Punjab 763 3686 3558 8642

HP 55 268 259 628

Orissa 283 585 777 1685

WB 1155 2392 3175 6887

Maharashtra 2828 9899 9742 23412

Rajasthan 911 3187 3136 7538

M.P 1111 3887 3826 9194

Gujarat 1304 4563 4491 10793

Goa 92 324 318 765

Assam 51 357 459 867

All India 17635 76980 76822 179342

59

7.5 All India Employment Forecast

2010 2020

Conventional Restaurants

1226307 1436196

Kitchen 467249 546542

Service 507467 594100

Dhabas 253947 306377

Kitchen 109037 131475

Service 108504 130688

Cafe 406768 504563

Kitchen 189566 235289

Service 159872 198390

Fast Food 401608 487809

Kitchen 147692 179824

Service 119581 144927

7.6. All India Restaurant Employment Forecast for Key Functions

60

2288630

913594 895424 1068105

2734945

1093130

Total Kitchen Service

2010 2020

7.7. Employment in Highway Restaurants

The national and state highways have a substantial number of eating places, to cater

to both the commercial as well as leisure road travelers. These eating-places comprise

mainly of conventional restaurants, fast food outlets, tea/ coffee vendors and dhabas.

Physical scanning of the highways revealed the following penetration of restaurants

and dhabas.

Outlet Type Numbers per 100 km

Highways (NH)

100 # per km on State Highways

(SH)

Restaurants 39 16

Dhabas 80 29

Outlet Type Employment

Intensity per

100 chairs

Employment

on NH

Employment

on SH

Total

Restaurants 26 175,000 280,000 455,000

Dhabas 26 360,000 510,000 870,000

Total 535,000 790,000 1,325,000

There are more than 1.3 million people already employed on the national and state highways. Presently, these restaurants and dhabas employ untrained people in their kitchens and

service functions.

By 2020, progressively higher proportions will belong to the organized sector. Even a 10% share for the organized sector, at present levels of employment intensity, could create almost 130,000 jobs for trained manpower.

61

CHAPTER 8

PROFILE OF RESTAURANT EMPLOYEES

62

8.1. Structure of Different Departments 8.1.1 F&B Kitchen Conventional Restaurants: While 9% of the employees are chefs, the balance are

either cooks or helpers in almost equal proportion.


22

1

9

57

48

29

43

43

11

49

44 46Caf

Fast food

Dhaba


Chefs Cooks Helpers

Dhaba: The proportion of helpers is comparatively small (43%); bulk of the employees are cooks (57%). Fast Food Outlets: The fast food restaurants have a sizeable proportion of chefs (22%), thereby indicating a preference for qualified and trained manpower. Caf: These outlets have an employment structure similar to that of restaurants.

63

8.1.2. F&B Service A bulk of the people (more than 80%) employed in the service function are either stewards or waiters. The definition of different designations is flexible and varies across outlet category. Both conventional restaurants and cafes have a sizeable proportion of captains (approx. 12%). Dhabas have waiters only.


14

1

4 12 2

86

82

99

83

2 12

4

Caf

Fast food

Dhaba

ConventionalRestaurants

Hall incharge Captains Butlers Stewards & Waiters

64

8.1.3. Store A bulk of the employees in the stores of restaurants are designated store keepers. A

majority of those in the store of fast food restaurants are helpers.


19

54

13

46

66

56

20

25

71 29Caf

Fast food

Dhaba


Store managers Store keepers Helpers

65

8.2. Age Profile of Employees A majority of those employed in the kitchen, service, maintenance and home delivery functions are less than 30 years of age. Only the store and restaurant management have a majority of people aged more than 30 years.

8.5. % Contribution of Age Segments to Employment in Key Functions

42%22%

27% 8%1%


8.4. % Contribution of Age Segments to Employment in Key Functions

71

68

34

21

26

39

5

22

1

5

35 60

7

41Store

Service

Kitchen

Management

50 years

66

8.3. Educational Background of Restaurant Employees

8.3.1. Management

Every fourth person in restaurant management is a graduate of a hotel management institute. However, a bulk of them (44%) are graduates from other courses. A majority (53%) of those involved in the management of fast food restaurants are

hotel management graduates. A number of those running dhabas are graduates.

8.3.2. Kitchen

Almost 60% of those employed in restaurant kitchens are diploma holders,

predominantly from private hotel management institutes. Almost 10% of them have

attended certificate courses at the Food Craft Institutes.

While the cooks in kitchens of fast food restaurants are either hotel management

degree/ diploma holders or SSC pass, the helpers in these kitchens are mostly SSC

pass.

Caf kitchens also have predominantly hotel management degree/diploma holders.

Dhaba kitchens have cooks and helpers who are either SSC pass or school drop-outs.

8.3.3. Service Only 20% of those employed in the service function of restaurants, cafes and fast

food outlets are hotel management degree/diploma holders. Approximately 75% of

them are either SSC pass or school dropouts.

All those in Dhabas service function are SSC pass or school dropouts.

8.3.4. Other Functions Approx 83% of people employed in other functional areas of restaurants (such as

store, delivery, security and maintenance) are SSC pass or school dropouts.

67

CHAPTER 9

PROJECTED DEMAND FOR TRAINED MANPOWER

68

9.1. Demand for Trained Manpower in Hotels (From 2003 to 2010) Trained manpower includes those who have received a hotel management degree or

have completed food craft certificate/ diploma course.

9.1.1. Five, Four & Heritage Hotels

Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

Front Office 5628 58 59 1926

F&B Service 17285 70 68 8228

F&B Kitchen 16247 60 56 5459

Housekeeping 12361 36 67 2981

TOTAL 51521 NA NA 18594


Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

Front Office 5546 34 62 1169

F&B Service 14150 26 75 2759

F&B Kitchen 14150 24 39 1324


TOTAL 46502 NA NA 5854

9.1.3. Hotels in Unorganized Sector

Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

Front Office 147321 5 64 4714 F&B Service 299300 3 84 7542 F&B Kitchen 190993 10 71 13560 Housekeeping 325504 3 86 8398 TOTAL 963118 NA NA 34214

69

9.2. Demand for Trained Manpower in Hotels (From 2011 to 2020) Trained manpower includes those who have received a hotel management degree or


9.2.1. Five, Four & Heritage Hotels

Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

Front Office 7481 58 59 2560

F&B Service 22977 70 68 10937

F&B Kitchen 21597 60 56 7257


TOTAL 68487 NA NA 24717


Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

Front Office 7290 34 62 1537

F&B Service 18600 26 75 3627

F&B Kitchen 18600 24 39 1741


TOTAL 61127 NA NA 7696

9.2.3. Hotels in Unorganized Sector

Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

Front Office 341982 5 64 10943 F&B Service 694777 3 84 17508 F&B Kitchen 443359 10 71 31478 Housekeeping 755603 3 86 19495 TOTAL NA NA 79424

70

9.3. Demand for Trained Manpower in Restaurants (From 2003 to 2010) Trained manpower includes those who have received a hotel management degree or


9.3.1. Conventional Restaurants

Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

F&B Kitchen 467249 19 68 60375

F&B Service 507467 23 71 82869

TOTAL 974716 NA NA 143244

9.3.2. Cafe

Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

F&B Kitchen 189566 19 70 25212

F&B Service 159872 22 70 24620

TOTAL 349438 NA NA 49832

9.3.3. Fast Food Restaurants

Employment 2010

% Trained Manpower

% Fresh Recruits

Demand 2003 - 2010

F&B Kitchen 147692 26 70 26879

F&B Service 119581 18 70 15067

TOTAL 267273 NA NA 41946

71

9.4. Demand for Trained Manpower in Restaurants (From 2011to 2020) Trained manpower includes those who have received a hotel management degree or


9.4.1. Conventional Restaurants

Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

F&B Kitchen 546542 19 68 70613

F&B Service 594100 23 71 97016

TOTAL 1140642 NA NA 167629

9.4.2. Cafe

Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

F&B Kitchen 235289 19 70 31293

F&B Service 198390 22 70 30552

TOTAL 433679 NA NA 61845

9.4.3. Fast Food Restaurants

Employment 2020

% Trained Manpower

% Fresh Recruits

Demand 2010 - 2020

F&B Kitchen 179824 26 70 32727

F&B Service 144927 18 70 18260

TOTAL 324751 NA NA 50987

72

9.5.1 Annual Demand for Trained Manpower in Hotels Year Front

Office F&B

Service F&B

Kitchen House-keeping

TOTAL DEMAND

2003 781 1853 2034 1198 5866 2004 781 1853 2034 1198 5866 2005 781 1853 2034 1198 5866 2006 781 1853 2034 1198 5866 2007 781 1853 2034 1198 5866 2008 781 1853 2034 1198 5866 2009 781 1853 2034 1198 5866 2010 781 1853 2034 1198 5866 2011 1504 3207 4048 2425 11184 2012 1504 3207 4048 2425 11184 2013 1504 3207 4048 2425 11184 2014 1504 3207 4048 2425 11184 2015 1504 3207 4048 2425 11184 2016 1504 3207 4048 2425 11184 2017 1504 3207 4048 2425 11184 2018 1504 3207 4048 2425 11184 2019 1504 3207 4048 2425 11184 2020 1504 3207 4048 2425 11184 All the hotels including the star category, heritage and the smaller organized sector

ones have been included in the above forecast.

Contribution of employees with a food craft diploma/ certificate to total demand for

trained manpower is mentioned below.

Function % Employees with Food Craft Diploma/

Certificate

Front Office 16

F & B Service 33

F & B Kitchen 31

Housekeeping 31

73

Overall 30

74

9.5.2 Annual Demand for Trained Manpower in Restaurants

Year F&B

Kitchen F&B

Service TOTAL

DEMAND 2003 11,246 12,256 23,502 2004 11,246 12,256 23,502 2005 11,246 12,256 23,502 2006 11,246 12,256 23,502 2007 11,246 12,256 23,502 2008 11,246 12,256 23,502 2009 11,246 12,256 23,502 2010 11,246 12,256 23,502 2011 13,463 14,583 28,046 2012 13,463 14,583 28,046 2013 13,463 14,583 28,046 2014 13,463 14,583 28,046 2015 13,463 14,583 28,046 2016 13,463 14,583 28,046 2017 13,463 14,583 28,046 2018 13,463 14,583 28,046 2019 13,463 14,583 28,046 2020 13,463 14,583 28,046 Conventional restaurants, fast-food outlets and cafes have been included in the above

forecast.

Function % Employees with Food Craft Diploma/

Certificate

F & B Service 11

F & B Kitchen 6

Overall 7

75

9.5.3 Projected Annual Demand vs. Supply for Trained Manpower Year Total

Demand Supply Shortage

2003 29,368 11,700 17,668 2004 29,368 11,700 17,668 2005 29,368 11,700 17,668 2006 29,368 11,700 17,668 2007 29,368 11,700 17,668 2008 29,368 11,700 17,668 2009 29,368 11,700 17,668 2010 29,368 11,700 17,668 2011 39,230 11,700 27,530 2012 39,230 11,700 27,530 2013 39,230 11,700 27,530 2014 39,230 11,700 27,530 2015 39,230 11,700 27,530 2016 39,230 11,700 27,530 2017 39,230 11,700 27,530 2018 39,230 11,700 27,530 2019 39,230 11,700 27,530 2020 39,230 11,700 27,530 The supply of trained manpower is based on the statistic that only 65% of the

students obtaining formal training are joining the hotels and restaurants. The above

computation reveals that there is a shortage of trained manpower in the hotels and

restaurants.

76

9.6. Key Drivers of Demand for Employment The hospitality sector, particularly hotels and restaurants, has entered a phase of

transformation. We expect that the entire landscape will change in the next decade.

9.6.1. Entry of Fast Food Chains The transformation began in the 1990s with the entry of multinational fast food

chains. The real revolution has just begun. Not only are the multinationals serving the

lower-middle income population segments, but Indian restaurants are also drawing

up rapid expansion plans. Barista, Caf Coffee Day, Nirulas and Haldiram are

expected to open up a large number of outlets in the near future. An indication of the

pace of expansion is provided in the table below.

Planned Expansion

# Outlets Expansion Period

McDonalds 150 2003 - 06

Caf Coffee Day 60 2003 04

Subway 200 2003 07

Amoretto 25 2004 05

Nirulas 100 2004 10

Modern shopping malls with multiplex theatres attract more than one million visitors

every year. Their emergence is likely to drive demand for fast food restaurants.

77

9.6.2. Golden Quadrilateral The creation of the golden quadrilateral of highways is likely to change the mix of

motels and restaurants in favour of the organized sector. For example, Reliance

Industries is planning to open up cafetarias with every petrol pump on the highways.

Presently, there are more than 1.4 million untrained people employed in the motels

and dhabas on highways. Even 5% of this workforce translates into a demand for

70,000 trained people.

We expect the golden quadrilateral to open up new avenues for employment in the

hotels and restaurants sector.

9.6.3. Preference for Youth in Hospitality Sector Our research reveals that both hotels and restaurants prefer to employ younger

people, particularly in F&B service. Hence, in future, this age preference will drive

demand for fresh recruits every year.

78

CHAPTER 10

TRAVEL & TOUR OPERATORS

79

Our estimate is that there are nearly 6000 travel trade companies and firms

comprising of tour operators, travel agents and tourist transporters. Approximately,

1500 are members of representative trade bodies, i.e. associations.

Trade Body Number of Members

Travel Agents Association of India TAAI 1000

Indian Association of Tour Operators IATO 855

Adventure Tour Operators Association ATOA 75

Indian Tourist Transporters Association ITTA 100

Our data reveals that the number of travel trade businesses could be increasing at an

average of 7.5% per annum.

The 27 cities covered by our primary research should account for more than 95% of

all travel trade businesses. In fact, all the TAAI members are present in these cities.

80

5840

620

17501470

2000

Total East South West North

Geographical Spread of Travel Trade Businesses

Region City # Businesses Regional Total 2001

Jaipur 750 Udaipur 150 Shimla 186 Delhi 555

North

Others 360 Regional Total 1469

Pune 230 Ahmedabad 569 Goa 98 Mumbai 453

West


Bangalore 407 Hyderabad 379 Tirupati 50 Mysore 33 Trivandrum 39 Chennai 618

South


Guwahati 91 Shillong 2 Kolkata 309 Bhubaneswar 206

East

Others 6

81

10.1. Employment Pattern On an average, a travel trade business employs 14 15 people. The key functions

among travel agencies and tour operators are those of group tours, ticketing,

administration and accounts. These account for 55% of all the employees in this

sector. The tour section employees a substantial numbers of causal workers (to the

extent of 20%).

The employment intensity varies across different types of travel trade businesses, as indicated in the table below. Type of Travel Trade Business # Employees per 100 Companies/ Firms Travel agency that provides all services 1660 Travel agency 730 Tourist Transporter 1600 Tour Operator 1180 Overall 1430

357178208

1430

16353 81

220

Total

Opera

tions

Forei

gn ex

chan

ge

Sales

& ma

rketin

gTo

ur

Acco

unts

Admi

nistra

tion

Ticket

ing

Employment Intensity (# Employees per 100 businesses)

82

10.2. Employment Potential There are close to 83500 people working in travel trade related businesses. As indicated earlier, bulk of them are employed in the functional areas of ticketing, administration accounts, tours and operations.

Functional Area Number of Employees

Ticketing 20,850

Accounts 12,150

Tours 12,850

Administration 10,400

Operations 9,500

Sales & Marketing 4,750

Foreign Exchange 3,100 Others 9,900

Total 83,500


The travel agencies interviewed by our research staff indicated that the number of

customers in 2003 had increased by more than 15% over 2002. This represents a

robust growth in the travel agents business.

However, w

Manpower Required in the Hotel

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