Growing hospitality sector in Union Territory throws up challenges and opportunities

Puducherry's hospitality sector growth attracts luxury brands, creating job opportunities and revenue potential for the region.

The entry of Puducherry’s hospitality sector into a transformative phase has thrown up opportunities as well as challenges for the territorial administration.

Over the years, the rise in tourist footfall has led to a parallel growth in the hospitality sector with several new hotels, guest houses and home stays coming up in Puducherry.

Now, with the region gaining more prominence in the tourism circuit, luxury brands have started their foray into the territory’s market. Several hotel projects in the town, including those on Kamaraj Salai, Mahatma Gandhi Road, are nearing completion, according to tourism industry sources.

“Our region is fast becoming one of the most preferred tourism destinations in the country. Many corporate chains, such as Residency Towers, Radisson, Mahindra, Accord, CGH Earth and Poppys have established their base in the region in recent months. The presence of these brands shows Puducherry’s growing importance as a tourist destination,” said Anand Gandhiraj, Secretary, Hotels Association of Pondicherry.

More top brands will join the sector with Tata group backed Indian Hotels Company (IHCL) all set to enter the hospitality business in the Union Territory. The IHCL has signed a memorandum of understanding with Auroma Soft Resorts and Hotels Private Limited to set up Vivanta in Puducherry. The 85 key-hotel will come up in the heart of the town.

“The entry of iconic Taj will set new benchmarks in the hospitality standards, positioning Puducherry to deliver world-class experiences,” said Sandip Ganguli of Auroma Soft Resorts and Hotels Private Limited.

Not just Taj, tourism industry sources say, major international brands, such as Mariott, Accord and ITC have their sights on the growing tourism market of the Union Territory. Some of these brands are in talks with developers in Puducherry, an industry source said.