The hospitality industry in South Asia, a region celebrated for its diverse landscapes from the tropical islands of Sri Lanka and Maldives to the Himalayan heights of Nepal and Bhutan, is witnessing unprecedented growth.
This burgeoning market, however, is not without its challenges, including legal, cultural, and environmental hurdles.
In a Forbes report, Shrikant Dash, deputy managing director of Corporate at Atmosphere Core, an international hospitality company, shares insights into navigating these waters for successful investment and growth.
India stands out as the region’s largest market, with a rapidly growing economy that promises to elevate its hospitality sector to the world’s third most powerful by 2032, as forecasted by the World Travel and Tourism Council (WTTC).
The sector’s growth is expected to outpace the country’s GDP, buoyed by a robust domestic market, political stability, and a business-friendly government. Yet, the diversity within India’s states presents unique challenges, necessitating a nuanced approach to investment.
Sri Lanka, on its path to recovery from the economic impacts of Covid-19, is regaining its footing in the tourism industry, supported by the International Monetary Fund (IMF). With tourist figures crossing 1.4 million in 2023, the market, though crowded, offers opportunities for those willing to conduct thorough market analyses.
Nepal, known for its adventure tourism, is seeing a resurgence in tourist arrivals after the pandemic’s blow, with figures rebounding to over 1 million in 2023. This indicates a market far from saturation, ripe for new entrants.
Bhutan, stepping into the luxury tourism market, faces infrastructural and healthcare challenges. However, the government’s commitment to policy changes and infrastructure investment signals growing opportunities in this exotic locale.
The Maldives, synonymous with luxury resorts, demonstrates the lucrative potential of well-managed properties despite the logistical challenges of construction in this island nation. The significant return on investment (ROI) here serves as a beacon for luxury hotel investors.
Dash emphasizes the importance of selecting partners who share core values such as transparency, fairness, and respect. This alignment facilitates smoother business processes and fosters enduring relationships, crucial for navigating the unique challenges of South Asia’s hospitality landscape.
Understanding the market is paramount. In regions like India, where land cost can dictate project viability, a comprehensive risk assessment is essential. Factors such as potential flooding, infrastructure development, and property disputes require diligent research and legal counsel.
Leveraging debt wisely is another key strategy highlighted by Dash. Working with lenders familiar with the hospitality industry’s nuances can provide flexibility in challenging times, a lesson underscored by the pandemic’s economic impacts.
Moreover, Dash advocates for responsible expansion, considering environmental and community impacts. Initiatives like solar energy infrastructure and waste-water treatment exemplify the sustainable practices at Atmosphere Core, underscoring the importance of green initiatives in the hospitality sector.
For outdoor hospitality operators, these insights offer valuable lessons in resilience, sustainability, and strategic planning. The success stories and strategies from South Asia’s diverse markets underscore the potential for growth and the importance of adaptability and responsible practices.
As the hospitality industry in South Asia continues to evolve, the insights from industry leaders like Shrikant Dash provide a roadmap for success. The region’s rich diversity, combined with strategic investment and sustainable practices, positions it as a vibrant landscape for the future of hospitality.
