The Indian government is planning to add a number of budget hotels by 2016 in a hope to offer stimulus to the country’s hospitality sector and offer no dearth of options for tourists booking flights to India.

In an attempt aimed at triggering growth in country’s hospitality sector, the Government of India is planning to add budget hotels throughout the nation. The country’s tourism ministry hopes to set up these hotels on public private partnership (PPP) basis.

Around 100 hotels, in one-, two- and three-star categories, are likely to be established by 2016. An additional 3,440 rooms would be added by the end of the 12th plan period (2012-17) of the country.

It sure comes as good news for budget travellers who wish to save on their holidays to India. In addition to tickets aboard airlines offering cheap flights to India, these budget travellers have higher scope to land up with affordable accommodation deals in the country. India is a top holiday destination and the country remains highly popular among travel buffs.

Land for the planned hotels would be identified through the union and state government groups in possession of vacant lots, as per reports. The tourism ministry is likely to appeal to government bodies like state tourism corporations, Indian railways, airport authorities, urban local bodies and state road transport corporations to mark suitable land for constructing budget hotels.

India has seen a significant surge in the hospitality sector with a number of international hotel chains entering the market. However, such international firms are focussing more on premium category in India, catering primarily to luxury travellers booking tickets on flights to India. Experts feel that it makes sense for international chains to opt for a higher star category, as establishing budget hotels is not commercially feasible given the high land costs.

The availability of branded budget hotels can, thus, fill in the void and can trigger a massive growth in the country’s hospitality market.

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