. As per Federation of Hotels and Restaurants Association of India (FHRAI), more hotel rooms need to be added to meet the growing demand from overseas and domestic tourists. The apex body for hotel and restaurant industry in India has said that an estimated 1.8 lakh guestrooms need to be added in the organized sector whereas 25 lakh new guestrooms would be required in the unorganized sector. The Ministry of Tourism has set a target to increase foreign tourist arrivals from 6.2 m to 11 m by 2016 with 1,496 m domestic tourist visits. According to FHRAI, the drop in hotel occupancy rates from 66.8% to 62.1% in December 2011 was on account of oversupply in rooms in certain pockets of the country such as Pune, Bangalore and Delhi. The industry body feels that the demand is high in cities such as Mumbai and Chennai.