Gridlock of dying infrastructure and hotels shortage
The NY times reports a brilliant article on the shortage of hotel rooms in India and its affect on the inflow of tourists and deal makers.
India offers only 1,10,000 hotel rooms. China has 10 times as many, and the United States 40 times as many. The New York metropolitan region alone has about as many rooms as all of India.
Compare India, a country of 1.1 billion people, to New York, a city of 8 million: New York attracted 6.8 million foreign tourists in 2005; India attracted 3.9 million.
In Bangalore, rooms are so costly that traveling salespeople and other professionals often commute by air from as far as Mumbai, 620 miles away.
Infosys, an Indian software giant with 66,000 employees worldwide, has built its own 500-room hotel next to its headquarters in Bangalore. By June, it expects to have 15,000 company-owned rooms across India — nearly an eighth as many rooms as the entire country has, and more than any Indian hotel chain.
Putting an employee up for a night at its Bangalore campus hotel costs Infosys $15, and the guest gets three-star treatment that would normally cost $150, by the company’s estimate.
To me it looks like there is nothing that can be done to improve this situation. Long sightedness is something which our government lacks. Tier II cities which are looking at going the IT way can probably learn from these mistakes and set their house in order before opening their doors to the rest of the world. At this point, I am quite urged to think aloud my plan for a Tier II city which intends to go the IT way. OK.. this plan does not merely talk about the hotels but it’s more concentrated on the infrastrucure issue (another favourite topic of mine)
- Spruce up the airport so that it can scale up to an increasing traffic inflow (domestic and international). The farther the airport is from the city limits, the better.. so that the entire stretch leading to and out of the airport can be looked for upcoming hotels. It will be really good if some kind of a “hotel zone” be created near the airports to encourage hoteliers to set up business around the airports. If all the hotels are concentrated in one zone, the stiff competition among them will also ensure that the prices are within the limits. Btw, (with no reference to this article) the US has about 19,300 airports and India has about 92.
- Identify IT Parks / Zones out of the city limits and IT companies should be allowed to set up shops only in the IT Zones and nowhere else within the city limits.
- Set up a mass transport system like metro railways which connects the airport and the adjoining hotel zone to the IT Parks. This can also be a part of Phase II developments since it is a capital intensive project. According to the Delhi Metro Rail Corporation, the cost of setting up metro in Delhi is about Rs. 10,500 crores. It also states that a city in a developed country considers adopting a mode of mass transport once its population crosses the million people mark. The population of Bangalore is 6 million, It should ideally have had atleast 50 kms of metro rail by this time.
- Set up ring roads which circle outside the city and exit points lead traffic into the specific areas.
- The government can look at introducing congestion fees (similar to London) to prevent people from driving to offices unless really needed and use the mass transport instead. Also, if the metros are intoduced as a Phase 2 activity, this will also encourage people to switch over to the metros. Today, though Delhi has a metro rail, the commuter traffic in metros is a mere 2%.
Any more you can think of, so that we can keep this list going?


KFC has created a huge 87,500 sq. ft. logo in