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This is the first of a two-case series. Fuelled by the country's booming economy, low cost air carrier introduction and liberalisation of FDI (foreign direct investments) norms that allow 100% foreign investment in real estate, the Indian hotel industry is currently seeing a boom. Demand for hotel accommodation has increased tremendously across India but the rooms' supply has seen an insignificant growth, causing staggering room rates and insufficient room availability. Inbound tour operators blame these as key deterrents that keep tourists from visiting the country. Moreover, with poorly facilitated airports, inadequate road infrastructure, high taxation levels and a bureaucratic visa processing system, India's hotel industry has serious challenges ahead. Significant investments in tourism infrastructure are essential for this industry to progress and ultimately achieve its potential.