The future of the business, hospitality and leisure sectors remains healthy

In addition to the overall economy, the global hospitality industry has experienced explosive growth over the past decade since the end of the financial crisis. According to the World Bank, the global economy was growing at a rate of more than three percent annually until the global pandemic struck in 2019/20. Due to pent-up demand at the beginning of the Covid-19 pandemic, the global economy accelerated by 5.5% in 2021, but is expected to slow down to 4.1%. in 2022 and 3.2 percent in 2023, it will return to pre-pandemic levels.

International arrivals have increased from 900 million to over 1.3 billion in just ten years.

This not only increased the number of rooms on offer, but also led to a significant increase in employment opportunities around the world. Covid-19 has had a serious impact, and according to UNTWO, which after years of steady annual growth saw an astonishing decline in arrivals of -73% in 2020 and -71% in 2021 due to travel restrictions in response to Covid-19, 19.

New UNTWO data showed that tourism data is heading in the right direction as an estimated 235 million tourists traveled abroad in the first three months, more than double the number in the same period in 2022.

The World Travel and Tourism Council (WTTC) recognizes the importance of the hospitality industry as a key driver of global value creation. The latest data published by WTTC shows that in 2022 the travel and tourism sector contributed USD 7.6 trillion to the global economy, representing 7.6% of global GDP and 23% below pre-pandemic levels.

The hospitality and tourism industry provides one in ten employment opportunities. The number of people earning a living in this sector has grown to a remarkable 330 million. 22 million new jobs were created in 2022, an increase of 7.9% compared to 2021 and only 11.4% below the 2019 level.

Revenue growth not only benefits international companies and hotel owners, but is also a major factor in job creation for local people and tourist destinations. According to the latest data, approximately 173 million people worked in the hotel and motel industry before the outbreak of the Covid-19 pandemic.

WTTC forecasts that an additional 126 million jobs will be created by 2032.

Overall growth in the tourism industry is +5.8% compared to overall GDP +2.7%.

According to the Hospitality Global Market Report 2023, the global hotel market grew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, at a compound annual growth rate (CAGR) of 7.0%.

This strong growth rate is partly due to a rebound from global travel restrictions. The market is expected to continue to grow but at a slower pace due to the global economic situation, with a projected compound annual growth rate (GAGR) of +5.8% for 2022-2032.

The growth of the global economy has created positive momentum in the sector, contributing to total per capita income.

Marriott and Hilton remain the most valuable hotel brands in the world, valued at $53.5 billion and $37.99 billion, respectively, in 2023.

Global market estimates predict that this niche will grow at a compound annual growth rate (CAGR) of approximately 10% from 2021 to 2026. Robots are also entering the hospitality industry, automating tasks related to cleaning, food delivery and concierge services. While robots cannot completely replace humans, they allow hotel staff to focus on a higher level of guest relations and contribute to operational efficiency.

A positive step towards sustainability and technological innovation, BACL’s biophilic-inspired Business Park provides smart workspaces in a vibrant public realm. The solution, seamlessly combining work and play, aims to meet the diverse needs of companies and employees, offering a dynamic environment of development and cooperation.

The most unique and breathtaking attribute of the project is the urban forest, a lush oasis at the center of the development. This green space will serve as a focal point, seamlessly connecting indoor and outdoor spaces throughout the area.

The upcoming metro station in Airport City will provide a seamless connection to the business park from the north, ensuring convenient access.

Rao Munukutla, CEO of BACL, a wholly owned subsidiary of Bangalore International Airport Limited (BIAL), spoke about investments in the development of the business park.

“This investment by BACL will further our vision of transforming Airport City into a vibrant hub for enterprises, knowledge-based zones, research and development centers and global potential hubs. With world-class infrastructure and a focus on sustainable development, our goal is to create a thriving environment that fosters growth, creates employment opportunities and creates a positive socio-economic impact on the region,” he said.