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Tourism is one of the few areas in Lakshadweep which can play a vital role in generating income, employment and over all development of islands. Recognizing vast tourism potential, a humble beginning was made in 1974 and one of the uninhabited island Bangaram was opened for International Tourism. The Hotel Corporation of India was looking after the affairs of Bangaram island resort up to 1982. The tourists on those days were coming by ship Amindivi. During 1978-tourists came by chartered ship 'M.S. Europa '. But in the absence of a permanent set up, the flow of tourists were not encouraging. After the Hotel Corporation of India wound up their business the SPORTS was directly dealing with the tourist activities both Indian and foreign. The Casino Group of hotels, Cochin entered the field of Lakshadweep Tourism through a lease deed dated 22nd October 1988 with SPORTS for operating the Bangaram Island Resort. Encouraged by the Bangaram experiment, the Lakshadweep administration has gone ahead with Tourism promotion in the Islands of Kavaratti, Kadmat, Kalpeni and Minicoy were opened for domestic tourists in 1983.

India has become one of the most sought after tourist destination in recent times. India's amazing diversity offers everything one could ask for, while on a holiday and a holiday without a comfortable stay is incomplete. This is where Indian hospitality and the importance of hotels arise. India has various state of the art hotels to cater to its ever-growing tourism industry. There are various group hotels in India, which offer modern day facilities at par with world standards. They are the epitome of heritage hospitality and have helped in carving India's name in the hospitality industry.

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One of the major group hotels in India is the Ambassador Group of Hotels. These hotels are situated in the main cities of India like Mumbai, Chennai and Aurangabad. The ITDC, a public sector corporation, established in 1966, offers a wide range of tourism services. Some of the ITDC Group of Hotels are The Ashok, Delhi, Lake View Ashok, Bhopal and Hotel Jammu Ashok. Le Meridian Group of Hotels is known for its luxury and world-class hospitality. It has its hotels in many countries of the world as well as in major Indian cities. The Oberoi Group of Hotels is an epitome of luxury and hospitality. It owns and manages various luxury hotels in India, Egypt, Indonesia, Mauritius and Saudi Arabia. Another major group hotel is the Taj Group of Hotels. There are around 75 Taj Hotel Resorts and Palaces in Delhi, Jaipur, Udaipur and many other places of the country. The Welcome Heritage Group of Hotels is a joint effort by ITC hotels and Marudhar Hotels. This group also has some of the most exquisite hotels in the country, which offer impeccable service.

Taking into account all the aspects involved the Administrative set up of the department of Tourism has been reorganized and strengthened. The department, till 1989 was functioning with a skeleton staff of one UD Clerk and an Ex-officio Director. In 1990, the Department was strengthened with the posting of Tourism Officers and other necessary ministerial staff.SPORTS (Society for promotion of Nature Tourism and Sports) has been recognized as a nodal agency for the promotion of tourism in Lakshadweep. It has got its staff trained in various disciplines of water sports. In the absence of any restaurants in Lakshadweep, this SPORTS has been running restaurants for the tourists in every tourists focal Islands.
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