By Siddharth Thaker | HVS InternationalA wise entry strategy into the Indian market that is so buoyant - Develop budget hotel with a mid-market orientation that satisfies the value for money principleThe Indian tourism industry has performed well over the last eighteen months. Foreign tourist arrivals in 2004 touched their highest-ever figure of 3 million, and the size of the domestic tourism is presently estimated at 230 million. The outlook for the economy is positive; the government’s polices are perceived as investment friendly and, for the first time ever, domestic carriers can test foreign grounds. The hotel industry is on cloud nine, with hotels witnessing record occupancies and average rate growth. The macro economic outlook is expected to continue providing momentum for growth, and we expect demand for room nights across key commercial and leisure destinations across India to grow annually at an average of 16-20 percent over the next three to five years.