India’s resort trade is predicted to clock revenue growth of 11-13% in the next fiscal after a robust 15-17% growth in the present fiscal, backed by regular home demand and ramp up in international traveller demand, Crisil Ratings wrote in a word. The robust demand dynamics together with modest new provide would preserve the working efficiency of the trade wholesome over the close to time period, it added.
“The healthy operating performance will augur well for the industry profitability where the earnings before interest, taxes and depreciation (EBITDA) will continue the strong momentum over the current and the next fiscal,” the score company stated.
“This, along with limited capital expenditure, will keep the credit profiles strong,” it added.
Anand Kulkarni, Director, CRISIL Ratings stated, “The domestic travel demand, which remained a key driver this fiscal, will sustain next fiscal as well. This momentum will be supported by healthy economic activity which drives business demand and continuing leisure travel demand which reinvigorated post the pandemic.”
“While the demand will remain strong, the growth rate is expected to taper off next fiscal due to high base. Consequently, the average room rates (ARRs) are expected to grow 5-7% next fiscal against 10-12% this fiscal and the occupancy is expected to remain healthy at current levels of 73-74%,” he added.
On the opposite hand, the international vacationer arrivals in India, regardless of a growth this fiscal, are estimated to stay 10% beneath pre-pandemic degree and pick-up in the identical is predicted present fillip to the resort demand next fiscal, the score company stated.
