Hotels have long been important element in the economics of many countries. The enormous increase in tourism of the 20th century has caused the hotel business to outgrow national boundaries and become global in character. Hotels are directly linked to and are integral part of many other economic activities. In particular the relationship between tourism and hotels is very crucial in a proper understanding of the role of hotels in the process of economic development of a State. Hotel industry. It is said, "No hotels no tourism." The relationship between hotels ad tourism can be expressed in two ways: (a) Firstly hotel industry provides the basic ingredients of the total supply of the tourism sector. (b) Secondly the bulk of business demand of hotel industry comes from tourism.