Hotel charges rise 7% in India; rooms in Goa get 20% costlier

Last Updated: Sun, Mar 10, 2013 05:36 hrs

Owing to stability in demand, coupled with higher domestic tourism, India saw an average rise of seven per cent for a night's stay at hotels last year, according to a recent report. The national average for one night's hotel stay was Rs 6,141 in 2012.

Goa saw it jumping 20 per cent to Rs 5,499, compared to the previous year, while Bombay and Delhi witnessed a jump of five per cent and 10 per cent, respectively, to Rs 8,088 and Rs 6,871, said the latest global Hotel Price Index.

The fall in the value of the rupee in 2012 helped increase domestic tourism numbers as holidaymakers preferred to stay at home rather than visit more expensive destinations abroad.

In addition, the extension of the visa-on-arrival policy had a positive impact and there was an influx of foreign visitors, with the majority coming from the US and the UK. As a result, occupancy rates rose.

According to Sudhir Sinha, chief operating officer of Best Western, a global giant in hotel management services, a marginal rise in prices was the need of the hour to survive in the industry. "Demand has gone up in some places, but overall, it has stabilised which is a good indication. To keep the momentum going, this kind of rise was needed."

Mumbai came at the top of the price table with Rs 8,088 after a five per cent rise, followed by Udaipur (Rs 7,683). Delhi came third. Kolkata, the city of Joy known for being a tourism stunner, witnessed a fall in the average price by three per cent at Rs 6,168.

Among other Asian destinations, Hong Kong had both the highest average rate at Rs 11,456 and the highest increase of 39 per cent. China was another strong performer, growing 30 per cent to Rs 5,306, while Vietnam gained 28 per cent to Rs 5,624 and Sri Lanka saw a 20 per cent growth to Rs 10,128. Malaysia rose 15 per cent to Rs 5,966 and Cambodia reached Rs 4,910 after a 13 per cent increase. Only Nepal was down two per cent to Rs 3,430, becoming the country for which Indian travellers paid the least.

Globally, there were sharp rises in several European destinations. With its strong economy, Germany experienced the strongest 25 per cent growth, reaching Rs 9,166 and neighbouring Austria was up 20 per cent to Rs 7,869. In the second place in the price table, Switzerland, was the country in the region where Indian travellers paid the most at Rs 10,819 after a four per cent rise. Charges in the UK rose 12 per cent to Rs 10,112.

More from Sify: