30 minute interview

Eagle Eye On India

Koos Klien PRESIDENT, MIDDLE EAST & ASIA PACIFIC, HILTON CORPORATION

Hilton International is planning a two pronged approach to tap the Indian market and will open at least five hotels in the next three years.

In a brief interview with Savio Rodrigues, Klien outlines Hilton International's strategy and articulates about the growth potential of the hospitality industry in the country.

In Hilton's expansion plans in Asia, India has been identified as one of the key markets. What makes India a prospective area of interest?

India is one of the most magnificent tourist destinations in the world with a 'masala' of experiences to satisfy any domestic or international traveller. It has everything in one destination - heritage, culture, contemporary cities, amazing cuisine, great people, beaches and nature. The hotel industry in India is unusual and tends to polarise travel towards either the budget end or the five-star end, with very little available in between. However, there are a great number of Indian travellers who are tapping into the wonderful accommodation options that are independently operated by local entrepreneurs, but these are not promoted to overseas travellers in a streamlined and organised manner. Foreigners cannot tap into one website and seamlessly book a multi-destination holiday through a national tourism site or a mid-range hotel chain that offers international service standards. As a result, India tends to attract the upmarket, well-heeled European traveller who can afford to spend a couple of hundred US dollars a night on a pre-arranged guided tour, or at the other end of the scale, the backpacker. Complete choice is not yet available in the country.

What is the growth potential you envisage for the hospitality industry in India?

The growth potential is enormous and if India can resolve key infrastructural issues, tourism will quickly respond. Indian chains like the Oberoi group dominate the top end of the hotel industry and international companies are just starting to establish their presence. With the rapid growth in business and the phenomena of outsourcing, we are witnessing a shortage of rooms in many second-tier cities like Hyderabad and Bangalore. Opportunities exist for more internationally renowned hotel brands and for mid-market hotels in these destinations. Secondly, there is a big opportunity in the emerging middle class and therefore domestic tourism will grow significantly at the higher end of the Indian market.

What are Hilton's future expansion plans in India?

From a Hilton perspective, growth will come from a two-pronged approach: the upscale Hilton hotel and the mid-market Scandic by Hilton brand. We hope to have more of these in gateway cities that are hubs for MNCs, as well as in destinations with leading cultural sites and tourist attractions.

Hilton International is planning to open at least five hotels in India in the next three years.