There are basically four types of furniture existing in the market- domestic furniture, corporate furniture, hotel furniture, and furniture parts. Amongst these furniture comprises of the 15 percent of production value. Also, according to a recent study, the furniture industry has the maximum potential to grow by 20 percent in the Indian market every year.
The reasons why there is an increase in demand for hospitality furniture in 2019 are:
- Population growth:
In 2019 there is an expected growth in the population of about 81 million people. This will be the result of 140 million new births and 59 million deaths. Also, the population is growing at a rate of 1.07 percent per year. This growth has come up with diverse strategies and ideas. There is a shift from price-conscious consumers and tourists to guests seeking longer term accommodation. There are even guests who look for the accommodation of a year. The hotels are also entertaining these types of consumers as this benefits both the parties. Moreover, the new generation is marching towards shattering age ideas and prefer living life on their own terms and conditions. The new approach has led to this increment.
- Tourism and leisure travel:
The tourism industry is growing at a rate of 3.9% every year. It is also the second fastest growing sector in the world. This industry has not only benefited a particular industry or area but the whole world. The increasing number of tourists worldwide is demanding an increase in hospitality furniture. As stated earlier these holidaymakers are not penny-pinchers who want to make the most of their tours. They do not believe in settling for less, and this accounts for the share of leisure spending to 78.5%. Not only this travel and tourism contributes immensely to the world economy.
- Rising investment interest:
A rise in investment and its significant use for that industry has always taken it steps forward. Same is the case with the hospitality furniture industry. According to recent statistics,the hotel and tourism sector attracted about the US $ 12 billion of FDI.Talking of India, the tourism industry received 6.3% of the total investment in India. This shows that investors have begun realizing the potential of tourism and hospitality. These investors are not only from India, but foreign investors have also started investing in the hospitality sector.
Moreover, mega infrastructure projects and major global events are also reasons behind the increasing demand. Infrastructure has played a very important role in every country’s developmentso, they are looking forward to preserving the existing resources and building new ones. Major global events organized at different places invite personalities from every continent and genre so, there comes the need to have quality services in the hospitality sector.
These were some of the driving factors behind the increasing demand for hospitality furniture in 2019. Though there are many other areas left untouched, but these are the well-known ones.
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