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Hotel wage bill up 107 per cent: Assocham

The Indian hospitality industry is increasingly forced to foot higher wage bills owing to a dearth of trained manpower coupled with rapid exodus of existing staff. A recent study conducted by Assocham titled 'Eco Pulse Study on Wage Cost' revealed that amongst other industries such as media, entertainment and real estate that have witnessed an increase in wage bills that hospitality industry too saw a rise of 107 per cent in its salaries. "Increasing cost of salaries in absolute terms and in share of total expenditure can be accounted to the rising aspirations of the young population of India, rising standard of living and shooting up of living cost due to inflation," expressed Assocham president Venugopal Dhoot.

In effect, even as there seems to be no end in sight to these rising attrition rates, the wage bills might come close to international levels, which will nullify the ‘cheap labour’ option that Indian hotels use to their advantage today, according to industry sources. Coupled with the increase room inventory that will be available in the market five years from now, this forcast gains even more significance as the hotels will be unable to charge the existing room tarriffs.