Accommodation is the basic component of tourism. The concept of travel accommodation has transformed itself as Hospitality Industry on account of its utility in tourism and life away from home.
Tourism is to a great extent dependent on the range and type of accommodation available at the destination. Accommodation is a core area of the tourist industry and plays a distinctive role in the development of this ever-expanding industry.
The United Nations Conference on International Travel and Tourism held in Rome in 1963 considered, in particular, issues relating to means of accommodation.
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The conference acknowledged the importance of means of accommodation, both traditional (hotels, motels) and supplementary (camp, youth hostels, etc.), as incentives to international tourism.
The conference recommended that governments should consider the possibility of including tourism projects, and particularly those relating to accommodation, in the list of projects eligible for loans from their industrial or other corporations, and that, where required; they should establish special financial corporation’s for tourism.
It also recommended that governments should give sympathetic consideration to the possibility of granting special facilities and incentives for accommodation projects.
Many countries have recognised the importance of accommodation industry in relation to tourism and their governments have coordinated their activities with the industry by providing big incentives and concessions to hoteliers, which have resulted in the building up of a large number of hotels and other type of accommodations.
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For example, availability of hotel sites on liberal repayment terms, special concessions in the form of long-term loans, liberal import licenses and taxation reliefs, contributions to the equity capital, cash grants for construction and renovation of building, and similar other concessions are provided to the industry.