Andrew Holland of Avendus Capital sees a bright future for this industry
Andrew Holland, CEO of Avendus Capital told CNBC-TV18 why he is optimistic on the travel industry and shared his views on other sectors such as banking.
Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies expects the uptrend in the travel and experiences market to sustain for many more years. "....it is the very start of a long runway for the hospitality industry." Holland said in a conversation with CNBC-TV18.
Holland noted that travel is a priority for people and they are unlikely to delay it, especially after the COVID-19 pandemic.“If you speak to all the hotel companies, margins are improving. We have got some new listings coming in as well. So I don't see that going away. ”
In the 2024 interim Budget, Finance Minister Nirmala Sitharaman announced an allocation of ₹2,449.62 crore to the tourism sector for the next fiscal year (FY25), nearly a 45% increase over the revised figure for the current fiscal (FY24). The increased allocation reinstates the government's focus on the tourism industry. In 2023, the allocation for the sector was trimmed to ₹1,692.10 crore from an initial estimate of ₹2,400 crore.
Under the central sector schemes, there is a rise in allocation for tourism infrastructure, which is ₹2,080.03 crore in the 2024 interim budget from ₹1,294 crore in the preceding year.
While the tourism industry was disappointed that the government did not assign hospitality the infrastructure status, experts pointed out that the initiatives towards development of airports, railways, metros and other supporting tourism infrastructure will bolster growth.
Holland also discussed his views on other sectors, saying he is cautious on commercial real estate, particularly in the United States. Holland warned that problems in the commercial real estate sector could impact market stability, similar to the situation in China's property market.
He is cautious on banks and remains optimistic on sectors like IT, and metals.
“We expect China will do some stimulus to get the property market stabilised and that will be good for the metal industry overall on metal stocks,” he noted.
(Edited by : Shweta Mungre)
First Published: Feb 8, 2024 12:31 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM