Investing in tourism and hospitality of India

Development problems of international tourism and hospitality, associated with unstable foreign economic relations and international payments, lack of a stable insurance system and other socio-economic problems, including terrorism and uncontrolled migration, make it difficult to attract investment in this sector of economy. The example of Asian newly industrialized countries, which demonstrate comprehensive, steady and very rapid development, proves viability of this economic model and prospects for investment in tourism and hospitality. The huge and growing market, developing infrastructure, sophisticated financial sector, flexible regulatory environment, benefits, sustainability of state system and good economic prospects make India attractive for investments. Thus, in India the following opportunities for foreign investors to contribute in Indian tourism and hospitality were formed: government initiatives in various segments of tourism, significant relations of tourism with other important sectors of economy (construction, industry, transport, in gardening, agriculture, etc.), growing middle class and the availability of natural resources, democratic visa rules and social freedom, presence of well-known foreign corporations, the growth of average annual income of the hotel segment of "5 stars" and others. Further study of this subject can be continued in the development of investment risk insurance mechanisms to promote foreign direct investment into developing countries to support economic growth, poverty reduction and improvement of people's lives. The options for improving investment risk insurance may include not only financial risks insurance, but also insurance of political (by state guarantees) or certain non-commercial risks for investment in developing countries, as well as the provision of services for the settlement of disputes between the public and private entities to guarantee the investment of capital.