http://www.hospitalitynet.org/news/154000320/4022829.html

Full Of Promise - The Development Of India's Hotel Industry | Deloitte
Reports
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To put the size of India's gigantic domestic market into perspective, it
equates to over one third of total international arrivals received by all
markets globally

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As the domestic market continues to expand, the escalating economy provides
the rising middle classes with increased disposable income. The arrival of
low cost airlines and the associated price wars have given domestic tourists
more options than ever before
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Although the World Travel and Tourism Council rated India second in price
competitiveness (after Brazil) there are many factors which need to be dealt
with to encourage foreign visitors. Poor roads, overstretched railways and
old airports discourage international travellers. Add to that hotel taxes
higher than most Asian countries and a bureaucratic visa process - and you
start to get a clear picture of the challenges facing India
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