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India has ambitious plans in the field of airport infrastructure. Minister of state (independent in charge) for civil aviation Mr. Praful Patel has stated that the government will continue to build an aviation grid of one airport in every 50-100 km amid global recession. Going by this rate the country will have 125 operational airports in the next five years.
Understandably, investments in airports have gone up in the last few years. During the 11th five year plan, the government will invest Rs 15,000 crore as compared to Rs 3,000 crore during the previous plan. Besides this Rs 30,000 crore will be invested in airport projects based on the Public-Private-Partnership model.
In the midst of these plans for India's airports, the Tuticorin airport is also going to see some upgrades. Currently it accommodates ATR type aircraft, aircraft which seats mainly 50 to 70 passengers. Part of the airport upgrade will be the introduction of wide bodied aircraft, aircrafts that can accommodate 200 to 600 passengers. Besides the aircraft, the airport will also see expansion in its terminal building capacity.
There is also a demand to start short haul international flights from Tuticorin to Dubai, Singapore. Looking at this, the Tamil Nadu Industrial Development Corporation will put forward a proposal to the Airports Authority of India to start such a service from here.
According to the World Travel and Tourism Council, the growth in the hospitality industry is pegged at 15% every year, and with 2, 00,000 rooms (both luxury and budget) needed in India, the segment is poised for a stupendous growth.
The Indian hospitality industry is projected to grow at a rate of 8.8% between 2007 and 2016; this makes the country the second-fastest growing tourism market in the world. What has improved the business prospects of the hotel industry is the Government's decision to upgrade 28 regional airports in smaller towns as well as privatizing and expansion of Delhi and Mumbai airports.
Seeing the scope of the hospitality industry in the country, Choice Hotels India, a leading American chain of mid market hotels in India has tied up with Peninsula Hotels Pvt. Ltd. to set up Quality Inn The Mayflower in Tuticorin. The hotel would commence in the first week of September, 2009. This new hotel, just close to the Tuticorin city centre, is located at a short distance from the railway station and is just 5 kms from the Tuticorin airport.
Part of the progressive plan for the Tuticorin airport will be the entry of wide bodied aircraft as well as expansion in terminal building capacity. This will lead to an increase in trade activities since passenger numbers will increase. With the increase in passenger arrival, the capacity of the terminal building is being expanded. As a result additional services will eventually be provided in the airport.
With the high growth potential seen in the hotel sector, the 'Quality Inn The Mayflower' hotel near the airport has come at the right time. Anticipating increased passenger arrivals due to the proposed wide bodied aircraft at the airport, the hotel will eventually see business increasing due to these passengers.
Coupling together the Tuticorin airport and the hotel, Expat Properties foresees real estate in the region appreciating well. Located within 10 kms from the Tuticorin airport is 'Horizon'-offering quarter acre panchayat approved non-agricultural plots.
Investing in such a time as this will bring in good returns since Tuticorin as a region has also been attracting investments in the areas of special economic zones, port, and other industries. These developments are set to trigger appreciation in real estate.
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