indian tourism industry

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Tourism & Hospitality

India ranks 6th according to wttc in terms of travel & tourism total contribution to gdp in 2022  .

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Tourism and Hospitality, as one of India's largest service industries, plays an extraordinary role in driving the nation's growth and prosperity. 

The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development. 

It acts as a stimulant for the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. 

India proudly boasts a tapestry of geographical diversity, encompassing awe-inspiring world heritage sites and niche tourism offerings such as captivating cruise tourism, exhilarating adventure tourism, renowned medical tourism, and mesmerizing eco-tourism. These unique offerings have resulted in an exponential increase in tourist arrivals, opening up vast employment opportunities. 

The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process. 

Recognizing the importance of diversity and gender empowerment, the tourism industry stands as a leading employer of women. The government proactively collaborates with industry stakeholders to create a conducive work environment that fosters equal opportunities and celebrates the contributions of female employees. 

The Ministry of Tourism has also designated the Year 2023 as the 'Visit India' year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. 

Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.  

Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities. 

For comprehensive details, please refer to the FDI Policy, which highlights the investment opportunities and guidelines in the tourism sector. 

India's tourism industry stands as a beacon of boundless possibilities, with its rich heritage, cultural tapestry, and captivating destinations. We invite you to embark on an extraordinary journey of investment and partnership, where your vision aligns with the immense potential India holds

Foreign Tourist Arrivals (till Sept 2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (2022)

Share of India in International Tourism Receipts (ITRs) in World

6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)

2nd in terms of Travel & Tourism Employment, WTTC (2021)

54 th  on the World Economic Forum Travel & Tourism Development Index (2022)

• FOREIGN INVESTMENT
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Government of India envisions $56 Bn forex, creating around 140 Mn jobs in tourism by 2030 through inclusive growth and  particularly focusing on cruise tourism, ecotourism and adventure tourism.   

The Indian Tourism sector ranks among the fastest-growing economic sectors in the country. The industry significantly impacts employment and drives regional development, while also creating a multiplier effect on the performance of related industries.

By 2028, India's tourism and hospitality industry is projected to generate revenue of over $59 Bn. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 Mn by 2028.

In light of India's G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism has designated 2023 as the 'Visit India Year' to promote inbound travel.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world. 

Ministry of Tourism is planning to organize a Global Tourism Investors Summit along with Central Ministries and State/UT Governments to showcase opportunities for investment and trade. The event will allow global investors to explore Indian Tourism products and services.

Union Budget 2023 Highlights:

• 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism
• Sector-specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative
• Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme
• Unity Malls to be set up in State Capitals or prominent tourist centres

GROWTH DRIVERS

Infrastructure development.

More than half of the Ministry of Tourism’s budget is channelised for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

Hotels & Accommodation

Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027

Adventure Tourism

India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

Medical tourism

Medical tourism and wellness retreats attract 21% of international travelers, leveraging world-class healthcare facilities and traditional healing practices.

Cruise Tourism

Cruise passenger traffic expected to increase from 0.4 Mn to 4 Mn by 2032. Increase in economic potential from $110 Mn to $5.5 Bn.

Eco-Tourism

Expected to grow at 15.7% between 2019-27 & reach $4.55 Bn. India offers unique destinations, exploration of wildlife, and pristine undisturbed natural areas.

Meetings, Incentives, Conferences, and Exhibitions

The Indian MICE market has less than 1% share currently, but with initiatives such as ‘Meet in India’, National Advisory Council for Mice, India Mice Board, MICE Tourism is projected to double in next 5 years.

Entrepreneurial Opportunities

The tourism sector has 1,300+ DPIIT recognized startups.

Industrial Land Bank Portal

Gis - based map displaying available infrastructure for setting up business operations in the state., investment opportunities in tourism & hospitality.

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Year End Review 2023: Ministry of Tourism

Invest India and World Association of Investment Promotion Agencies (WAIPA) to host the 27th World Investment…

Tourism: An Enriching Journey Awaits

1st Global Tourism Investors' Summit

Monthly Tourism Statistics April 2023

Goa Roadmap for Tourism as a Vehicle for Achieving the Sustainable Development Goals

Ministry of Tourism to undertake a special initiative of “100 Episodes of Mann ki Baat – 100 days of Action…

Massive Investment Opportunities for both Start-ups and Conglomerates in the Tourism Industry

Ministry of Tourism organizes G20 Tourism Expo in Jaipur

Green Tourism: G20

Sagarmala Program Boosting Tourism Economy in Karnataka and Tamil Nadu

Shri G. Kishan Reddy launches ‘Best Tourism Village Competition Portal’, Global Tourism Investor Summit 2023…

Longest river cruise by Ganga Vilas to benefit local markets and help in providing employment in hinterland…

50 destinations will be selected and developed as a complete package of tourism

Shri G Kishan Reddy launches the Visit India Year 2023 logo in New Delhi

Year End Review: Ministry of Tourism

India Tourism Statistics 2022

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Goa Roadmap for Tourism as a Vehicle for…

Ministry of Tourism to undertake a special…

Massive Investment Opportunities for both…

Ministry of Tourism organizes G20 Tourism…

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Shri G. Kishan Reddy launches ‘Best Tourism…

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Longest river cruise by Ganga Vilas to…

50 destinations will be selected and…

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Frequently Asked Questions

The Ministry of Tourism is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. 

This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.  

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Recognising the potential of rural tourism in the country, the Ministry of Tourism has identified Rural Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme and is aimed at leveraging tourism as a force multiple for revitalizing the rural economy and for giving both domestic and international tourists a glimpse of rural aspect of the country.

Further, Ministry of Tourism has formulated a Draft 'National Strategy and Roadmap for Development of Rural Tourism in India - An initiative towards Atmanirbhar Bharat', which, inter alia, focuses on generating income and jobs in rural areas and empower local communities, youth and women, fulfilling the vision of Aatmanirbhar Bharat.

The GOI has identified 78 lighthouses in the country as centres of tourism, which are in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands. The GOI has kick started the ‘lighthouse tourism’ project by inviting initial qualification bids to develop eight lighthouses in the first phase, at a cost of INR 128 crore, under the public-private-partnership model for 7 lighthouses.

The goal of the revamped Swadesh Darshan 2.0 Scheme is to develop sustainable and responsible tourism destinations in the country. The scheme is aimed at 360-degree holistic development with a focus on increasing self-employment, youth skilling, private sector investments, and preserving local cultures.

The strategic objectives of the Scheme are: (i) To enhance the contribution of tourism to the local economies (ii) To create jobs including self-employment for local communities (iii) To enhance the skills of local youth in tourism and hospitality (iv) To increase private sector investment in tourism and hospitality (v) To preserve and enhance the local cultural and natural resources  

Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner to provide a complete religious tourism experience. As on date, total number of destinations/sites identified for development under the scheme at present are 68 in 30 states/UTs.

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Annual report 2022-23 | ministry of tourism, india tourism statistics at a glance 2022, union budget 2023-24: analysis report, economic survey 2022-23, global innovation index 2022, government ministry/department.

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From India to the world: Unleashing the potential of India’s tourists

Boosted by rising economic prosperity  and a fast-growing economy, India is set to be an important global source market for leisure travel. India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people. 1 World Bank national accounts data, GDP (current US$) India, accessed September 2023; World population prospects 2022 , United Nations Department of Economic and Social Affairs, Population Division, 2022. And the population is young—the median age is 27.6, more than ten years younger than that of most major economies. 2 World population prospects 2022 . What's more, consumption of goods and services, including leisure and recreation, is forecast to double by 2030. 3 “India’s impending economic boom,” Morgan Stanley, November 8, 2022. Adding a strong postpandemic travel recovery, and a growing appetite for international travel, these factors point to India’s significant potential for outbound tourism.

India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people.

Through nine charts, this article unpacks trends and opportunities in the Indian travel market. Selected country examples shed light on how destinations can enhance their value propositions to attract and delight Indian travelers.

Indian globetrotters set to soar

Racing ahead: indian wanderlust is taking off, top picks: united arab emirates reigns, new gems discovered, regional flavors; global explorers.

Indian travelers are not a homogenous group; destination preferences vary across regions. For example, travelers from North India constitute a large share of travel to the United States and Canada, while two-thirds of travelers from Kerala prefer destinations in the Middle East. 1 India tourism statistics 2020 , Ministry of Tourism, Government of India, January 2021; MarketIS. Purpose of travel, distribution of the diaspora, and cultural linkages play a role in destination choice.

Destination matchmaking: Five ways to build value

Destinations looking to harness the full potential of the growing Indian market could consider tailoring their value propositions in alignment with one or more of the five key decision points that influence where travelers choose to go. Destinations might ask the following questions to determine which factors align with what Indian travelers look for when planning a trip.

• Research. How attractive and popular is the destination with Indian tourists?
• Accessibility. Is it easy to obtain a travel visa?
• Connectivity. Are there convenient flights that connect India to the destination?
• Booking. Is the destination affordable for Indian travelers, and is there an adequate supply of hotels in the appropriate price range?
• Travel experience. What is the on-the-ground experience like for Indian tourists in terms of weather, attractions, and whether or not the local population is English speaking?

There’s something for everyone in Thailand

Azerbaijan’s visa policy wows indian travelers, vietnam takes off: direct flights skyrocket arrivals.

In 2019, Kolkata was the only city in India with direct connectivity to Vietnam, and three other Indian cities offered sporadic flights. To stand out from Southeast Asia neighbors and gain popularity with Indian travelers, Vietnam improved direct connectivity from India by increasing flight frequency and adding new routes. Indian arrivals are now at an all-time high. 1 Data from Google trends and Diio Mi.

The luxury of Dubai is within reach

In 2022, India was the largest source market for leisure travelers to Dubai. 1 “1.24 million Indian tourists visit Dubai in first 9 months of 2022,” Business Standard , December 10, 2022. The city is known for its luxury offerings and, perhaps surprisingly, also offers a wide range of accommodations, such as 3-star options. And flights from India are affordable when compared with flights of similar distances. Taken together, these factors make the luxury of Dubai accessible to Indian travelers. 2 MarketIS.

Bollywood magic in Switzerland

While only 9 percent of Indian travelers focus on long-haul destinations in Western Europe, Switzerland has been an Indian top-20 destination for over a decade. Switzerland may be popular, as it feels familiar to Indian travelers: many Bollywood hits feature Swiss attractions, there are plenty of Indian restaurants and cultural festivals, and English is widely spoken. 1 “Switzerland and romantic songs of Indian movies,” Solo Backpacker, September 20, 2019; India-Switzerland relations , Ministry of External Affairs, Government of India, February, 2020; Festival of India in Switzerland and Liechtenstein – Events , Ministry of Culture, Government of India, 2018; Swiss hospitality for Indian guests , a joint report from HotellerieSuisse, Berne and Switzerland Tourism, November, 2019.

Namaste, India!

India is a high-potential, growing source market for leisure travel. Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality that caters to Indian preferences. Destinations may need to take steps now to build a strong value proposition and distinguish themselves as a preferred location. To do so, they could take action in the following areas:

Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality.

• Connect. Make travel seamless, for instance, by simplifying visa application processes and providing direct connectivity.
• Entice. Offer affordable packages with a range of choices that appeal to specific groups, such as families, couples, or solo travelers.
• Welcome. Make the experience traveler-friendly, for example, by providing appropriate food and beverage options like vegetarian and Indian cuisine.
• Attract . Design targeted campaigns to showcase experiences that Indian travelers want, and use appropriate channels to get the word out, for example leveraging over-the-air partnerships and social media.
• Unlock. Include the MICE (meetings, incentives, conferences, and exhibitions) and business tourism segments in marketing efforts to boost interest in leisure travel.

Divya Aggarwal is an associate partner in McKinsey’s Gurugram office, Margaux Constantin is a partner in the Dubai office, and Kanika Kalra is a partner in the Mumbai office, where Neelesh Mundra is a senior partner.

The authors wish to thank Ashu Airan, Steffen Köpke, Richa Kothari, Karthik Krishnan, Kargil Mishra, and Jean Petersen for their contributions to this article.

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India set to be fourth largest global travel spender by 2030; here's what's inspiring Indians to travel

India's tourism industry is experiencing a remarkable growth, especially post-pandemic, with travellers spending like never before. it is anticipated that the total expenditure made by indian travellers will soar to $410 billion by 2030 making india the fourth largest global spender..

• Updated Oct 19, 2023, 12:19 PM IST

• India's tourism industry is experiencing a remarkable growth, especially post-pandemic, with travellers spending like never before
• It is anticipated that the total expenditure made by Indian travellers will soar to $410 billion by 2030
• India led the way on tourism expenditure recovery in 2022 by reaching 78 per cent of 2019 levels, as compared with 52 per cent for Asia

India's tourism industry is experiencing a remarkable growth, especially post-pandemic, with travellers spending like never before. It is anticipated that the total expenditure made by Indian travellers will soar to $410 billion by 2030 making India the fourth largest global spender.  

This is a massive 173 per cent rise compared to pre-Covid period (2019) when Indian travellers spent a total of $150 billion on travel marking India as the sixth largest global spender.

These are some of the revelations from Booking.com and McKinsey & Company's new report titled ‘How India Travels’.

According to the report, India led the way on tourism expenditure recovery in 2022 by reaching 78 per cent of 2019 levels, as compared with 52 per cent for Asia. Meanwhile, the number of aggregate trips is expected to increase from 2.3 billion in 2019 to a staggering 5 billion in 2030.

Indians prefer 'thrill' and 'excitement' when it comes to travelling

With an average window of just 29 days, Indian travellers showcase remarkable spontaneity in their trip planning followed by Japan (57 days) and USA (63 days). What's more is that travellers focussed on culinary convenience, with over 80 per cent of them valuing restaurant and room service options during their stay.

In terms of stay, there is a rise in demand for alternative accommodation options, such as hostels, campsites, vacation rentals, and chalets.

Moving beyond conventional destinations

As per Booking.com data, a new trend is emerging, where the lesser-known gems are now capturing the wanderlust of travellers. Cities such as Varanasi, Gurugram and Coimbatore are increasingly showing up in bookings with remarkable growth.

Even as old favourites like Manali, Shimla and Lonavala remain popular among hilly destinations, off-beat locations like Panchgani, Madikeri and Mount Abu are topping the charts on growth for demand in 2023.

Moreover, travellers are increasingly looking overseas for their next vacation with new destinations from Vietnam, Indonesia and Nepal entering the top ranks.

Where are Indians getting travel inspiration from?

Indian travellers’ interests are shaped by TV shows and Indian cinema, with more than half (54 per cent) indicating they would choose a destination showcased in a show or a movie. Just 2 per cent of travellers see no influence.

Mega events like sporting tournaments (ICC Men’s Cricket World Cup 2023), diplomatic meetings (G20 Summit 2023), music concerts (Lollapalooza) and many more exert a magnetic pull on travellers, acting as compelling catalysts for their journeys, the report said.

It also stated that in the year 2022, 91 per cent of Indian travellers expressed that YouTube is their preferred social media platform for travel inspiration, followed by Instagram, which holds the interest of 85 per cent of Indian travellers.

"The Indian traveller is willing, eager and confident to keep going, travelling near and far in the search for new experiences. This is a unique opportunity for India’s travel ecosystem to meet Indian travellers where they are - with attractive, personalised and more sustainable experiences. The best is yet to come," Santosh Kumar, Country Manager, India, Sri Lanka, Maldives and Indonesia, Booking.com said.

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Indian Tourism Industry Setting a Benchmark With Its Multiple Growths

Nitin Konde , Apoorva Bajj

The tourism business was one of the hardest damaged by the global spread of the COVID-19 pandemic. As governments tightened their grip and citizens stayed indoors, the tourism industry as a whole crashed. However, just as the old adage says, "There is always a bright light on the other side of the tunnel," so too did the industry begin to rise again after enduring such adversity as the globe emerged from the pandemic in question. The lockdown was one circumstance that worked to benefit of the tourism industry. After nearly two years of captivity, the unexpected release encouraged people to dust off their backpacks and set out to see the globe once more. According to a report jointly released by Booking.com and McKinsey & Company, particularly in the post-pandemic age, the tourism industry in India is seeing phenomenal growth, thanks in large part to the extraordinary expenditure habits of Indian tourists. By 2030, Indian tourists are expected to have spent $410 billion, making their country the fourth biggest spender in the world. India was the world's sixth-largest spender in 2019, with a total expenditure of $150 billion, a 173% rise over this year.

According to the data published in the report, Indian tourists were a big reason why the tourism industry bounced back in 2022 when it reached 78% of 2019 levels compared to 52% for Asia. Another interesting fact is that Indian tourists are expected to increase their travel numbers from 2.3 billion in 2019 to a whopping 5 billion in 2030.

The World Travel and Tourism Council ranks India at number ten out of 185 nations for the total contribution of travel and tourism to GDP in 2019. In 2022, the travel and tourism sector's impact on India's economy was valued at Rs. 15.9 trillion (US$ 191.25 billion), according to WTTC.

The World Travel and Tourism Council predicts that India's travel and tourism sector will contribute 7.8 percent to the country's GDP in the coming decade. There were 39 million jobs in India's tourist industry in 2020, or about 8% of the overall workforce.

The travel and tourism industry is projected to increase its contribution to the GDP from $178 billion in 2021 to $521 billion in 2028. It will likely be responsible for almost 53 million jobs by the year 2029. From 2019 to 2030, the industry's direct contribution to India's GDP is projected to expand at a pace of 7–9% per annum.

Going from an estimated $75 billion in FY20 to 125 billion by FY27, that's the size of the Indian tourism market. Due to improvements in airport infrastructure and increasing access to passports, the Indian airline travel market, which was valued at approximately $20 billion in FY20, is expected to quadruple in size by FY27. The rising demand from travelers and the ongoing efforts of travel agencies are driving the Indian hotel market, which was valued at approximately US$ 32 billion in FY20 and is projected to reach over US$ 52 billion by FY27. This includes both domestic and international hotels.

Investments and Developments Government Backing the Industry

Investments and Developments

A hotel in Bandra, Mumbai, was signed by IHCL in December 2023, expanding its footprint in Maharashtra. An IHCL-SeleQtions hotel will be the brand name given to the Brownfield project. German '101 Best Executive Summit' honored TAJ as one of the "World's finest luxury grand palaces" in December 2023. Indian Hotels Company (IHCL) declared Ginger Mumbai Airport open for business in November 2023. Situated close to the domestic airport, the 371 Keys flagship Ginger Hotel will expose visitors to the brand's lean luxe design and service concept, which aims to provide a dynamic, modern, and hassle-free hospitality experience. In September 2023, Mahindra Holidays & Resorts (MHRIL) and the Government of Uttarakhand (UK) inked a memorandum of understanding (MOU) to construct four or five large-scale resorts in Uttarakhand with an investment of one thousand crores (US$120.16 million).

The Ministry of Tourism has been granted an investment of 2,400 crore (US$ 289.89 million) since the tourism industry offers young people a lot of chances to start their businesses and find employment. For new hotels in India that are 2 stars or higher, there is an investment-linked deduction available under Section 35 AD of the Income Tax Act. This means that any capital expenditures, or the entire expenditure, can be fully deductible. To boost India's attractiveness as a tourist destination, the government lowered the Goods and Services Tax (GST) on hotel rooms priced between Rs. 1,001 (US$14.32) and Rs. 7,500 (US$107.31) per night to 12% and on rooms priced over Rs. 7,501 (US$107.32) to 18% in 2019.

Government Backing the Industry

The tourism industry has always been a vital industry to the government of India. The government through its various schemes and policies has always supported this sector and always handheld as and when required. The Ministry of Tourism has been granted US$ 290.4 million in the Union Budget 2023-24. The Swadesh Darshan Scheme received US$ 170.85 million from the Union Budget 2023-24 to build 50 tourist spots that offer a holistic experience for visitors by ensuring physical, digital, and virtual connectivity, the availability of tour guides, and visitor security.

The PRASHAD tourist circuit development project has received US$ 30.25 million from the government's budget for 2023–24. A total of US$ 91.6 million has been disbursed for 37 projects throughout 24 states since the program's inception in January 2015. These projects have an estimated budget of US$ 146.4 million. Recently, the government told Parliament that twenty-seven additional sites have been selected for development as part of the PRASHAD initiative, which is run by the Centre. In a written reply to a question in the Lok Sabha, Union Minister of Tourism G Kishan Reddy stated this. He also mentioned that 57 locations have been chosen for development as part of the Swadesh Darshan 2.0 program.

Through an initiative called SAATHI (System for Assessment, Awareness, and Training for Hospitality Industry), the Ministry of Tourism and the Quality Council of India (QCI) are collaborating to help the hospitality industry be ready to continue operations safely and reduce risks caused by the COVID-19 pandemic . A hotel or other unit can get self-certification after going through the SAATHI framework and promising to adhere to all regulations in the letter. Guests of self-certified hotels and other lodging units can ask questions and get answers in live webinars. An assessment report outlining potential areas for improvement is shared with the assessed unit after a site evaluation based on the SAATHI framework is conducted by QCI-approved organizations if the hotel or unit so wants.

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Hospitality Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Hospitality Market in India is Experiencing Growth Due To the Country's Rich Culture and Diversity, Attracting Global Guests. The Service Sector, Known for Spiritual Tourism, Has Seen A Rise in Domestic Travel, Driven by A Growing Middle Class and Increased Disposable Income. Innovations in Accommodation Like Airbnb and Oyo Rooms Offer Cost-Effective Stays, While the Government Develops Ports As Cruise Tourism Hubs, Providing Hotel Services, Retail, and Restaurants. The Hotel Industry is Expanding With New Projects From International Chains, Driven by Increased Travel and Government Efforts To Boost Tourism.

India Hospitality Market Size

Need a report that reflects how COVID-19 has impacted this market and its growth?

India Hospitality Market Analysis

The Hospitality Industry In India Market size is estimated at USD 24.61 billion in 2024, and is expected to reach USD 31.01 billion by 2029, growing at a CAGR of 4.73% during the forecast period (2024-2029).

The hospitality industry in India has been scoring a moderate growth number in the past few years and has great potential to score an even greater number in the future. The nation which is rich in culture and diversity has been attracting a large number of tourists from all over the globe. India has also been recognized as a destination for spiritual tourism for international and domestic tourists. 

India is showing continuous growth in position moving from 65th in 2013 to 34th position in 2019 in the World Economic Forum's travel and tourism competitiveness index. On the other side, the consistently growing middle class, rising levels of disposable income, and increasing interest among millennials to travel in their home country are a few major reasons that are making the domestic travel industry a profitable one. To attract the millennials ventures like Airbnb, Oyo rooms have changed hospitality scenarios on a global level and are offering price-sensitive stays in most of the prime locations with flexible check-in and check-out options to attract the increasing number of travelers.

The hospitality and tourism industry has been witnessing a healthy growth number and accounted for 7.5% of the GDP. India is a part of the top 100 clubs on Ease of Doing Business (EoDB) and ranks 1st in the greenfield FDI ranking globally and to strengthen the cruise tourism sector, the Government of India (GoI) has selected Chennai, Goa, Kochi, Mangalore, and Mumbai ports to develop them as cruise tourism hubs. These terminals will have facilities like hospitality, retail, shopping, and restaurants.

Less than three million foreign tourists visited India in 2020, a dip of around 75 per cent as compared to the previous year, due to travel restrictions imposed to control the coronavirus pandemic. "To incentivize stakeholders in the tourism industry, the guidelines for the scheme of Market Development Assistance (MDA) for providing financial support to stakeholders for the promotion of domestic tourism have been modified to enhance the scope and reach of the scheme, to provide maximum benefits to the stakeholders. In addition, promotional activities have been incorporated including online promotions and the extent of financial assistance permissible has been enhanced.

Due to the COVID-19 pandemic, India's hotel sector is one of the worst-hit segments of the economy, contracted by 47% in April-June 2020, as per data released by the National Statistical Office (NSO) on August 31, 2020. The hotel industry, in May 2020, experienced an occupancy decline of 77% over the same time last year. The domestic hospitality industry, which has been severely affected by the COVID-19 related disruptions, is likely to witness a decline of over 65% in 2021.

India Hospitality Market Trends

Increase in the number of hotel projects is driving the market.

India's hospitality sector is being driven by the increase in the number of hotel projects. India's Hospitality Industry ended in the current year with occupancy in the 59-61 percent range, up 15-17 percentage points (pp) from the previous year. However, average rates (ARR) recovered fully in the current year, being 37-39 percent higher than the previous year's levels. As a result, RevPAR in the current year increased by 89-91 percent over the previous year.

Driven by a strong recovery in demand, hotel companies accelerated their growth plans in the current year, resulting in an over 33 percent increase in brand signings by keys over the previous year. 166 new hotels with 14,885 rooms were signed during the year, while 90 hotels with 5,702 rooms were rebranded. Hoteliers continued to expand their portfolios in leisure destinations as well as Tier-3 and -4 cities, recognizing the enormous untapped potential in these areas.

Furthermore, Over 200 G20 meetings are expected to be held across 55 destinations in the country during India's G20 presidency till November 2023. The Indian hotel sector stands to gain significantly from this development, as there will be substantial incremental demand for hotels in the cities where the meetings will be held.

In April 2023, three international hotel chains announced the debut of their luxury brands in India. Hilton's Waldorf Astoria and Minor Hotels' Anantara brands are set to make their India debut in Jaipur, while Radisson has picked Hyderabad for the launch of its Radisson Collection brand. Fairmont Hotels & Resorts announced that it would be opening a property in Agra in 2025.

Government Initiatives to Attract More Tourism and Rise in Tourism is Driving the Market

The Indian hospitality sector is driven primarily by buoyant domestic demand, the revival of inbound travel, and the Indian government's renewed emphasis on the expansion of the tourism industry, which is expected to contribute USD 250 billion to the country's GDP by 2030. The Government is recognizing the importance of the tourism sector as an employment generator and is looking to promote the sector on a mission mode with active participation from all stakeholders, including public-private partnerships. 

The revival of 50 additional airports, heliports, and water aerodromes to increase regional air connectivity and the development of fifty tourism destinations as a complete package for domestic and international tourism, as well as the government's continued emphasis on infrastructure development, including the significant investment in railways and last-mile connectivity, bodes well for the sector. Furthermore, the reduction in personal income tax will increase disposable income, which will drive demand in the tourism and hospitality sectors.

Travel and Tourism are driving the market. According to the Indian Tourism Statistics current year report, India received 677.63 million domestic tourist visits in the last year. The percentage has increased by 11.05% from 610.22 in the previous year. The top states in terms of domestic visits were Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Karnataka. India saw the beginning of the recovery for the country's tourism sector, with a maximum number of countries contributing to Foreign Tourist Arrivals (FTAs) numbers in the current year. 

Total FTAs in India surged by 406.6% to 2,764,975 from January-July 2022 compared to the previous year. The sharp rise in FTAs is a result of many driving forces that include the COVID-19 Vaccination campaign, the 'Heal in India' and 'Heal by India' campaigns announced by the Indian Government, and several other infrastructural measures.

India Hospitality Industry Overview

The report on the Hospitality Industry in India covers the major international players and the leading domestic players in the hotel and hospitality industry in India. The hospitality sector in India is dynamic and emerging. It holds greater potential to grow for both the national and international players who are interested in entering the Nation's hospitality industry. Some of the major players in the market include Oberoi Hotels & Resorts, The Park Hotel, ITC Hotels, Lemon Tree Hotels, and Taj Hotels, among others.

India Hospitality Market Leaders

Oberoi Hotels & Resorts

The Park Hotel

Lemon Tree Hotels

*Disclaimer: Major Players sorted in no particular order

India Hospitality Market News

• March 2023: ITC's Hotel Group announced the opening of its first Mementos property by ITC Hotels, Ekaaya, Udaipur, under the brand name - Mementos.
• January 2023: Marriott announced the opening of the debut property of Westin Hotels and Resorts in the Indian state of Uttarakhand with the opening of The Westin Resort and Spa, Himalayas.
• January 2023: Six Senses Hotels and Resorts announced the opening of Six Senses Vana, the brand's first dedicated Wellness Retreat. The Himalayan retreat marks the second Six Senses property in India after Six Senses Fort Barwara.

India Hospitality Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.2.1 Rise in the Travel and Tourism

4.2.2 Increase in the Number of Hotel Projects

4.3 Market Restraints

4.3.1 Lack of Skilled Labor is a Challenge for the Market

4.3.2 Sustainability and Competition Threaten Industry Success

4.4 Market Opportunities

4.4.1 Government initiatives can be used to expand the horizons of the sector

4.4.2 Online marketing can be leveraged to grow the customer base

4.5 Impact of COVID-19 on the Hospitality Industry

4.6 Insights Into Revenue Flows From Accommodation and Food and Beverage Sectors

4.7 Leading Cities in India with Respect to Number of Visitors

4.8 Investments (Real Estate, FDI and others) in Hospitality Industry

4.9 Technological Innovations in the Hospitality Industry

4.10 Shared Living Spaces Impact on the Hospitality Industry

4.11 Insights Into other Economic Contributors to the Hospitality Industry

4.12 Industry Attractiveness - Porter's Five Forces Analysis

4.12.1 Bargaining Power of Buyers

4.12.2 Bargaining Power of Suppliers

4.12.3 Threat of New Entrants

4.12.4 Threat of Substitutes

4.12.5 Intensity of Competitive Rivalry

4.13 Insights Into Types of Tourism and Travel Agencies Present in India

5. MARKET SEGMENTATION

5.1 By Type

5.1.1 Chain Hotels

5.1.2 Independent Hotels

5.2 By Segment

5.2.1 Service Apartments

5.2.2 Budget and Economy Hotels

5.2.3 Mid and Upper mid scale Hotels

5.2.4 Luxury Hotels

6. COMPETITVE INTELLIGENCE

6.1 Market Concentration

6.2 Company Profiles

6.2.1 Oberoi Hotels & Resorts

6.2.2 ITC Hotels

6.2.3 The Park Hotel

6.2.4 The Leela Palaces, Hotels and Resorts

6.2.5 Taj Hotels

6.2.6 Lemon Tree Hotels

6.2.7 Hyatt Hospitality company

6.2.8 Marriott International, Inc

6.2.9 Radisson Hotel Group

6.2.10 OYO Rooms*

• *List Not Exhaustive

6.3 Loyalty programs offered by Major Hotel Brands

7. MARKET FUTURE TRENDS

8. DISCLAIMER AND ABOUT US

India Hospitality Industry Segmentation

The term "hospitality" refers to the relationship that exists between a host and a guest in which the host accords the guest some measure of goodwill. This includes welcoming and entertaining guests, visitors, or strangers. A complete background analysis of the Hospitality Industry in India, which includes an assessment of the industry associations, overall economy, emerging market trends by segments, significant changes in the market dynamics, and market overview, is covered in the report. The Hospitality Industry in India is segmented by Type (Chain Hotels and Independent Hotels) and by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels, and Luxury Hotels). The report offers market size and forecasts in value (USD billion) for all the above segments.

India Hospitality Market Research FAQs

How big is the india hospitality market.

The India Hospitality Market size is expected to reach USD 24.61 billion in 2024 and grow at a CAGR of 4.73% to reach USD 31.01 billion by 2029.

What is the current India Hospitality Market size?

In 2024, the India Hospitality Market size is expected to reach USD 24.61 billion.

Who are the key players in India Hospitality Market?

Oberoi Hotels & Resorts, The Park Hotel, ITC Hotels, Lemon Tree Hotels and Taj Hotels are the major companies operating in the India Hospitality Market.

What years does this India Hospitality Market cover, and what was the market size in 2023?

In 2023, the India Hospitality Market size was estimated at USD 23.45 billion. The report covers the India Hospitality Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Hospitality Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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Indian Hospitality Industry Report

The hotel and tourism industry in India has been witnessing steady growth due to the country's rich culture and diversity, drawing in guests from around the world. India's service sector has been acknowledged for spiritual tourism and has seen an increase in domestic travel due to the expanding middle class, growing disposable income, and heightened interest among millennials. Innovations like Airbnb and Oyo rooms have revolutionized the accommodation scenario, offering cost-effective stays in prime locations with flexible check-in and check-out options. The government has also taken steps to develop ports as cruise tourism hubs, providing facilities like hotel services, retail, shopping, and restaurants. The hotel industry has also seen a rise in new projects, with international hotel chains announcing their debut in India. The government's efforts to attract more tourism and the increase in travel have been driving the market. The report on the hotel and tourism industry in India covers major international and domestic players in the hotel and catering industry. For a more detailed understanding of key trends, a free PDF download of the sample report is available.

Indian Hospitality Market Report Snapshots

• Indian Hospitality Market Size
• Indian Hospitality Market Share
• Indian Hospitality Market Trends
• Indian Hospitality Companies
• Indian Hospitality News

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Moscow offers indian tourists high-tech, accessible, and comfortable environment: moscow city tourism committee.

Moscow is emerging as a popular destination for Indian tourists with a focus on business, leisure, and MICE (Meetings, Incentives, Conferences, and Exhibitions) travel. Initiatives like the Moscow MICE Ambassador program and the introduction of e-visas have contributed to the growth, making travel to Moscow more accessible for Indians.

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Quick getaways, spiritual quests fuel India's tourism: Booking.com's Houldsworth

The surge in india's travel industry is not only fueled by expanding spiritual and wedding tourism but also by a strong outbound travel market.

NEW DELHI : India's travel and tourism sector is seeing robust growth, propelled by an increasing appetite for frequent and shorter trips, said Laura Houldsworth, Asia Pacific managing director for Booking.com. In a recent interview with Mint, she said this surge is not only fueled by expanding spiritual and wedding tourism but also by a strong outbound travel market.

"We're expecting Indians to want to travel more frequently and take a lot of shorter trips as well, unlike the one to two trips we saw in the past," Houldsworth said.

Indians took about 2.3 billion trips in 2019, which is estimated to rise to about 5 billion by 2030, the company had said earlier.

She said the rise in cultural and religious exploration, particularly in India's tier-two and three cities, is driving domestic inbound travel.

The trend towards more frequent and shorter trips represents a marked departure from the past, with emerging travel destinations like Varanasi, Kochi, and Mysore gaining popularity among travelers from metropolitan areas, she said.  "As more branded properties come into these locations, we will continue to see inbound travel increase too," she added.

Ooty,  Srinagar, Manali, Darjeeling and Goa were among the most searched leisure destinations for Indians travelling domestically from 15 April to 15 July, as per Booking.com.

The company has a list of over 70,000 properties on its platform in India and a third of the bookings being made are for alternative accommodations.

Houldsworth said the country is among the top five markets for Booking.com in the Asia Pacific region and the top three within Asia. 

India's travel industry continues to rise, and the resiliency has shown the country is not necessarily following world challenges, she added.

Meanwhile, easier visa policies from a lot of short-haul destination countries, seeking to attract Indian travelers, helped continue this momentum of growth for the travel industry.

“While domestic travel continues to shine, Indians are also exploring short and long-haul destinations within Asia and beyond. Competitive packages, easier booking processes and improved visa access have made foreign travel more accessible to Indian tourists," she said.

This summer, 40% of Indians are traveling within the Asia Pacific region, 20% to the Middle East, and 40% to London, New York and European countries.

Dubai with its luxurious offerings and futuristic appeal tops the list of most searched international destinations this year. Asia continues to hold immense charm with cities like Singapore, Bangkok, Tokyo and Bali high on Indians' summer travel wishlist, according to the company.

Despite the recovery of Chinese outbound tourism to 60% of its pre-pandemic levels, many countries still want to welcome Indian visitors.

The company sees China recovering rapidly this year and expects a reasonable contribution to the region's growth. However, the airline capacity out of the region is still hovering around 60-70% of the pre-covid level and the country may not recover fully until the end of 2024, she said.

"What that has meant is that the world pivoted towards looking at India more seriously since it has the world's largest population with a rising middle class that has an increased desire to travel. We're seeing more and more countries looking to capture that Indian traveller by making visas easier and increasing flight capacity to and from here. We're starting to see more and more Indians wanting to travel more often," she added.

Houldsworth said the company has seen a record number of room nights being booked on its platform over the last couple of years globally. "In 2022, we had 900 million room nights and last year over a billion room nights," she said.

Notably, although international travel rebounded somewhat in 2023, India saw a drop in visitors compared to pre-pandemic levels. A survey by hotel consultancy WTTCII and Hotelivate found that only 7.24 million international travelers came to India last year. 

This is a far cry from the 10.93 million visitors India received in fiscal year 2020, according to the country's tourism ministry. It's important to note that pre-pandemic figures included a large number of non-resident Indians (around 6.98 million) returning home to visit family and friends.

Despite some recovery, India remains a small player in Asia-Pacific tourism market. The region attracted roughly 230 million visitors in 2023, with India capturing only 3.13% of that market share, according to the report. This translates to approximately 7.24 million international travelers choosing India as their destination.

Meanwhile, regional giants like China (35.5 million visitors) and Thailand (28.04 million) attracted considerably more tourists. Malaysia also pulled in a good number (14.47 million). Notably, the entire Asia-Pacific region is still recovering from the pandemic, falling short of the 347.7 million international arrivals it saw in 2018, the survey said.

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Moscow Showcases Tourism Potential at SATTE 2024 International Exhibition in India

22.02.2024, New Delhi:  Moscow Tourism is thrilled to participate in the highly anticipated SATTE (South Asia’s Travel & Tourism Exchange) trade fair, held in Greater Noida, NCR, India from February 22-24. The delegation from Moscow is one of the largest at the event, featuring representatives from the Moscow City Tourism Committee, the Made in Moscow project team, and other key figures in the city’s tourism industry.

During the first day of the event, held on February 22, representatives from the Moscow City Tourism Committee took part in various business sessions and introduced the capital’s flagship projects. One of these projects, the Moscow Estates Festival, received significant attention during a discussion on cultural heritage. The festival, which gained popularity among foreign tourists last summer and this winter, offers visitors the opportunity to immerse themselves in the history of Moscow’s historical mansions through theatrical tours, master classes, and other unique events. This interactive approach to studying cultural heritage has proven especially appealing to children and young people, who appreciate the recreated atmosphere and the chance to take stunning photographs.

Another highlight of Moscow’s tourism scene is the Moscow Tea Time project. At the Moscow exhibition stand, guests had the opportunity to taste different tea blends and learn about the city’s tea traditions. Currently taking place in Moscow hotels and restaurants, this project offers visitors the chance to enjoy tea time sets featuring an array of jams and pastries between 16:00 and 19:00 daily.

According to Evgeny Kozlov, First Deputy Head of the Office of the Mayor and the Government of Moscow, as well as Chairman of the Moscow City Tourism Committee, Moscow hosts over 350 cultural and entertainment events each day, catering to all audiences, including families with children. With its extensive range of gastronomic establishments, including restaurants serving Indian cuisine, and hotels developing tailored offers for Indian guests, Moscow ensures a convenient and enjoyable experience for Indian tourists. Additionally, tourist navigation in the city is comprehensively duplicated in foreign languages, further enhancing the comfort of the journey.

As part of the SATTE business program, the “Moscow +” project showcased interregional routes designed to meet the demands of foreign travelers, including those from India, who often seek to combine visits to several cities within one trip. As the country’s main transport hub, Moscow offers ready-made tourist packages that combine experiences in Moscow with other regions such as St. Petersburg, Tyumen, and the Moscow Region. Russian tour operators participating in the project discussed their package offers specifically tailored to the Indian tourist market.

At the exhibition, Moscow also presented a wide range of traditional souvenirs crafted by participants of the “Made in Moscow” project. Sixteen Moscow-based entrepreneurs brought goods in categories including grooming cosmetics, home fragrances, HoReCa (Hotel, Restaurant, Catering/Café) products, children’s items, accessories, as well as vegetarian and vegan products, which captured the interest of Indian consumers.

The partnership between Moscow and India is thriving, encompassing both classic tourist trips and business tourism. Business visits have become increasingly popular among Indian travelers to Moscow. The Moscow City Tourism Committee shared successful experiences in organizing international conferences like the Meet Global MICE Congress, demonstrating Moscow’s potential in the field of business tourism.

The internationally acclaimed Gzhel theatre, known for its unique fusion of folk and ballroom dance, as well as classical ballet, also showcased its talent at the exhibition. The theatre is renowned worldwide and serves as a symbol of Moscow’s rich cultural traditions.

Moscow remains a top tourist destination in Russia, with visitor numbers soaring year after year. In 2023, a record-breaking 24.5 million tourists from various regions and countries visited the capital, marking a 37% increase compared to the previous year.

The city boasts almost 2,000 hotels, ensuring that every tourist finds suitable accommodation options. Cultural enthusiasts will also be delighted, with thousands of cultural sites spread across Moscow, including theaters, museums, and libraries. Iconic historical and cultural sites, such as the renowned VDNKh and the recently reopened Northern and Southern River stations, have undergone renovations and reconstructions, becoming major tourist attractions in their own right.

With over 19,000 food industry establishments, ranging from world-famous restaurants to accessible Moscow gastroclusters, the capital offers a diverse and exciting culinary scene. Visitors can also enjoy breathtaking views of the city from various vantage points, including the Moscow cable car, skyscrapers, observation platforms, and view restaurants.

Moreover, Moscow caters to families and children, providing numerous family-friendly attractions throughout the year. Notable highlights include the Moscow Zoo, one of Europe’s largest oceanariums, and Russia’s first indoor amusement park, Dream Island. The city boasts over 400 museums and over 1,000 excursions, including tailored walk-quests for parents and children. In recognition of its dedication to providing exceptional experiences for young travelers, Moscow was named the Capital of Children’s Tourism in 2023 and the Youth Capital for 2024.

As the SATTE exhibition continues, Moscow Tourism is excited to further engage with Indian visitors and strengthen the already flourishing relationship between the two nations.

Author: Anirban

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Advantage India

Robust demand.

* The Medical Tourism sector is predicted to increase at a CAGR of 21.1% from 2020-27.

* The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

* International tourist arrivals are expected to reach 30.5 million by 2028.

* According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.8% annually.

Attractive Opportunities

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

* Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 178 billion to the country’s GDP.

* The country’s big coastline is dotted with attractive beaches.

Policy support

* US$ 2.1 billion is allocated to Ministry of Tourism in budget 2023-24 as the sector holds huge opportunities for jobs and entrepreneurship for youth. Rs. 2,400 crore (US$ 289.89 million) allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth.

* Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme.

* 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Diverse Attractions

* According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.9 trillion (US$ 191.25 billion) in 2022.

Tourism and Hospitality State Presentation

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MI CE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income have supported the growth of domestic and outbound tourism.

India has been ranked 54th in Travel and Tourism Development Index (TTDI) in 2021 published by the World Economic Forum and contributed ~US$ 178 billion to the country’s GDP.

The Indian travel and tourism industry is expected to record an annual growth of 6.7% per annum and achieve 9.2% of GDP with US$ 488 billion.

In 2020, the travel & tourism industry’s contribution to the GDP was US$ 121.9 billion. In 2019, it contributed US$ 212.8 billion to the GDP. In 2022, the contribution of the travel and tourism industry to India’s economy stood at US$ 15.7 trillion.

In WTTC’s Economic Impact 2022 report, India’s Travel and Tourism GDP contribution grew by 5.8%, which was the sixth-highest after the US, China, Germany, Japan and Italy.

Tourism is the third largest foreign exchange earner for the country.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in March 2023 were 7,95,827 as compared to 3,42,308 in March 2022 with a positive growth rate of 132.5%.

FTAs during the period January-March 2023 were 25,29,766 as compared to 7,84,750 in January-March, 2022 and 31,79,792 in January-March 2019 registering a growth of 222.4% and -20.4% with respect to 2023 and 2019 respectively.

The percentage share of Foreign Tourist Arrivals in India during March 2023 among the top 15 ports was highest at Delhi Airport (31.72%) followed by Mumbai Airport (13.29%), Haridaspur Land Check Post (12.31%), Chennai Airport (7.91%), Bengaluru Airport (5.24%), Kolkata Airport (3.16%), Cochin Airport (2.98%), Hyderabad Airport (2.87%), Ghojadanga Land Check Post (2.14%), Dabolim (Goa) Airport (1.96%), Ahmedabad Airport (1.79%), Agartala Land Check Post (1.77%), Amritsar Airport (1.44%), Changrabandha Land Check Post (1.34%), and Sonauli Land Check Post (1.34%).

The G-20 Presidency will give India’s tourism sector an unparalleled opportunity to highlight India’s tourism offerings and share India’s tourism success stories on a global stage

By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.

In the Union Budget 2023-24, US$ 290.4 million has been allocated to the Ministry of Tourism. Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme to develop a complete package of 50 tourist destinations for providing a wholesome tourism experience by facilitating physical, digital, and virtual connectivity, availability of tourist guides and tourist security.

Ministry has sanctioned 76 projects under the scheme since its inception under 13 themes for a revised sanctioned cost of US$ 668.95 million and has released US$ 534.9 million (till December 31, 2021).

Under Budget 2023-24, the Government has allocated US$ 30.25 million for the development of tourist circuits under PRASHAD. Since its launch in January 2015 and Ministry has sanctioned 37 projects in 24 states with estimated expenditure of US$ 146.4 million and a cumulative amount of US$ 91.6 million has been released for these projects. 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified hotels/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake a site assessment based on the SAATHI framework through QCI-accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

In June 2022, the Ministry of Tourism along with the Associations of Indian Universities (AIU) initiated a 12-episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.

Accor, a French hospitality major will expand its India portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels to 54 in India.

The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-27.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's North-East.

The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.

The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

OYO estimates India to present a US$ 26 billion opportunity by 2030. To further strengthen its position in India, in October 2021, the company filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board of India (SEBI).

The Government of India launched the e -Visa on November 27, 2014 and subsequently e-Tourist Visa was initially introduced for 46 countries.

The e-Tourist Visa is part of t   e-Visa facility which includes an e-Business Visa, e-Conference Visa, e-Medical Visa, and e-Medical Attendant Visa.

In 2021, the Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.

In December 2019, e-visa facility was offered to around 170 countries.

The facility for e-tourist visa has been extended to passengers arriving at these ports of Mumbai, Mormugao, Mangalore, Kochi, and Chennai and immigration counters have been set up at five major ports visited by cruise ships, thus facilitating the cruise passenger arrivals at the seaports.

‘Medical Visa’ has been introduced, which can be given for specific purpose to foreign travelers coming to India for medical treatment. ‘E-Medical Visa’ has also been introduced for 166 countries.

India has invested heavily in AYUSH and is in a unique position to attract medical value travellers for a cure through AYUSH and for enhancing wellness.

India is ranked 10th out of the top 46 countries in the world in the Medical Tourism Index 2020-21 by Medical Tourism Association. The Indian medical tourism industry was estimated to be valued at US$ 7,417 million in 2022 and it is projected to surpass US$ 42,237.47 million by 2032.

Cruise tourism is one of the most vibrant and fast-growing sectors of the leisure and travel industry. The Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.

Moreover, India is looking to take advantage of its 7,500 km coastline to tap the growth potential of the cruise tourism segment.

Ministry of Tourism is funding the development of cruise terminals, lighthouses, and other tourist infrastructure in several coastal locations to promote domestic and international cruise terminals at selected ports by 2023.

Ministry of Tourism has also sanctioned US$ 27.7 million for various projects towards the development of Cruise Terminals and related infrastructure in different States at the major ports under the scheme for ‘Assistance to Central Agencies for Tourism Infrastructure Development.

National strategy and roadmap for the development of rural tourism aims at prioritization of rural tourism at the national level.

This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.

India has rich natural and eco-tourism resources ranging from pristine forests, the snow-clad Himalayas, montane grasslands, golden and silver deserts, rivers, lakes, wetlands, mangroves, beaches, volcanoes and corals, housing tremendous biodiversity.

In 2021, the Ministry of Forest, Environment and Climate Change issued “Ecotourism guidelines in and around protected areas 2021” based on the key recommendations of the Tiger Task Force (2005), provisions contained in the Wildlife (Protection) Act 1972, Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act 2006.

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Digi Yatra app surpasses 45.8 lakh users, transforming air travel with contactless experiences and rapid adoption.

The Indian hotel industry is expected to see a 7-9% revenue growth in FY2025 due to increased domestic travel and events, leading to high occupancy and room rates.

CRISIL Ratings projects a bright outlook for the Indian hospitality sector, with an expected 11-13% revenue growth fuelled by strong domestic demand and increasing foreign traveller interest.

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Global chains expand, spiritual tourism surges, analysts bullish on growth India’s hospitality industry currently valued at around $24 billion is experiencing robust growth and is projected to reach around $31 billion over the next five years. International hotel chains are set to launch new brands in the country anticipating increased foreign tourism and higher spending by Indian travellers on vacations, weddings, and corporate events in the country’s booming hospitality industry. As the Indian hospitality market experiences resurgence , several hotel companies such as Hilton, Marriott, Indian Hotels, ITC Hotels, Hyatt, Accor, IHG among many others bluechip names are introducing new brands to cater to the diverse demographics of the nation.

While international hotel brands historically had a limited presence in the country but are now becoming more aggressive in their approach. Spiritual tourism has turned out to be a very big opportunity for hotels in the country with places like Ayodhya, Ujjain, Varanasi, Bodh Gaya and Mathura are experiencing booming bookings . It is interesting to note that Indians are discovering their own country in terms of the diversity, spirituality, wellness and leisure . The travel and tourism industry is seeing robust growth on the back of expanding spiritual and wedding tourism and outbound travel fuelling hotel demand. Even online booking companies such as booking .com which has more than 70,000 registered properties on its platform are bullish on India .

Domestic travel has gained momentum due to easier booking process, competitive packages , easy credit , higher disposable income, large population with a rising middle class, an increasing desire to travel, access to language education and growth in technology. There is a void of adequate hotels in the lifestyle space in the country and hence global hospitality giants are looking at investing in India at the faster pace. The Radisson hotel Group is the second largest international operator with hotels under brands such as Radisson, Park Inn and suites is investing in the country with about 60 new properties under development. The company has been in India for the last 25 years and has set up a target of opening 30 new hotels properties every year for the next five years to capture the boom in the Indian travel and tourism sector . Other global hospitality giants like Hilton attribute their recent success story in the country on the back of bent up demand, consumer confidence and infrastructure development to be the major factors .

The hotel chain has seen exponential growth and assuming the current boom to be the new normal , expect a cycle of sustained growth over long term. The management of Bengaluru headquartered , Royal Orchid hotels have recently announced that they are launching a hotel brand with five star offerings at the Mumbai international airport . Apart from the five star brand, the company plans to launch a Smart Basic brand and a Boutique brand. At present , Royal Orchid hotels have brands such as Regenta Central and Regenta Inn with a current portfolio of 100 hotels with close to 6000 rooms. On the other hand , Hyatt has 48 hotels in the country and expect to open another 50 hotels over the next five years at locations such as Goa , Bengaluru and Bhopal . According to analysts tracking the hospitality sector , high net worth individuals and institutions have been major investors in the Indian hotel industry with investments of over $400 million in 2023 which is four times as against last year .The French multinational hospitality chain ACCOR has 62 hotels in India with 11,000 rooms and the management has expressed that this is not enough for a country like India . The Accor group expect to open 30 hotels with 5500 keys over the next 5 years . It has luxury brands like Fairmont , Sofitel and Raffles as its brand and is currently No 2 in the world , behind Marriott in the luxury lifestyle space.

While hotel and tourism related stocks have done very well on the bourses over the last two years , analysts tracking the sector are extremely bullish and expect the industry to grow by leaps and bound in the next 5 years . In the homegrown hospitality space , ITC Limited has the bluechip brand ITC Hotels in their fold which they will demerge and list it separately on the stock exchanges during the course of this year . Portfolio investors looking at solid fundamentals can bet on ITC Ltd and expect handsome returns when ITC Hotels gets listed on the bourses . ITC Ltd stock is currently quoting at Rs 427 and can be purchased by investors for decent long term gains .

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Moscow offers a lot to casual and budget tourists. Summer movie theatres and urban amphitheatres, pedestrian routes, hundreds of cafe and restaurant terraces, strolls in renovated parks and public gardens, and much more. With over 18,500 food service establishments and 3500 summer terraces, Moscow offers a wide variety of food options for any taste and budget: restaurants serving cuisines from all around the world, unique cafes offering national dishes, and a vast selection of foodmarkets.

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Saudi Tourism Aiming to Make India Top Source Market – India Report

Bulbul Dhawan , Skift

April 1st, 2024 at 11:00 PM EDT

Saudi Arabia witnessed a 50% increase in Indian visitors in 2023. Now, it is ramping up its efforts to meet its ambitious target of 7.5 million Indian visitors over the next seven years.

Bulbul Dhawan

The Skift India Newsletter is your go-to platform for all news related to travel, tourism, airlines, and hospitality in India.

The Saudi Tourism Authority has said that the kingdom aims to make India its top source market. The country is seeking to bring in 7.5 million Indian visitors over the next seven years. 

As part of its outreach strategy in India, the Saudi Tourism Authority held networking events in Mumbai, Ahmedabad, Bengaluru, and Delhi and interacted with travel trade associations. 

Saudi-India tourism: In 2023, the kingdom witnessed a 50% increase in the number of Indian tourists as compared to 2022. As many as 1.5 million Indian tourists visited the Middle Eastern nation. The air connectivity between the two countries has also increased by 31% between 2019 and 2023. Flights now connect 12 major hubs in India with Riyadh, Jeddah, and Dammam. 

Ramping up marketing efforts: Saudi Tourism Authority signed agreements and forged partnerships with several tour operators, travel trade associations, and event planners during the networking events. Notably, the country has simplified its visa process for Indian travelers by offering options such as e-visa and visa-on-arrival. 

Indian Hotels Company Opened 34 Hotels in 2023-24 Fiscal Year

Indian Hotels Company (IHCL), which owns the Taj Hotels, signed 52 hotels and opened 34 properties in the 2023-24 financial year (April 1, 2023 – March 31, 2024). The IHCL portfolio has crossed 300 properties, of which 91 hotels are in the development pipeline. 

The portfolio includes 14 new hotels that have been added as part of IHCL’s strategic partnership with boutique hotel chain Tree of Life Resorts & Hotels . The company has a robust pipeline for its luxury brand Taj, upscale brand Vivanta, and budget brand Ginger. 

The company’s future plans include upscale full-service hotels in order to tap into the potential of emerging markets, the company said . 

Akasa Air’s International Operations Commence

Budget airline Akasa Air commenced its international operations last week. Its inaugural outbound flight took off from Mumbai, Maharashtra and landed in Doha, Qatar. The airline is set to fly the route four times a week. 

In a statement, the airline also said that it has received traffic rights for three other international destinations. In the coming months, Akasa Air is expecting to expand its network to Kuwait, Jeddah, and Riyadh.

Akasa Air has been operational for less than two years. However, the carrier accounted for a 4.5% market share in the Indian aviation market in February 2024 . For context, full-service airlines Air India and Vistara had 12.8% and 9.9% market shares, respectively. It flies to 20 domestic destinations, including Port Blair and Srinagar. 

IndiGo Commences Operations From Jagdalpur, Agatti 

India’s largest airline IndiGo has its operations in Jagdalpur, Chhattisgarh. It operated its first flight from Hyderabad, Telangana to the destination on Sunday. Another flight connecting Raipur, Chhattisgarh with Jagdalpur commenced on Monday. 

The airline on Sunday also commenced operations between Bengaluru, Karnataka and Agatti island in Lakshadweep archipelago. IndiGo is set to fly this route daily. 

With these additions, the budget airline’s network has expanded to 88 domestic destinations. 

India to Witness 10.5% Surge in Seat Capacity in Second Quarter

The Indian aviation industry is expected to witness a surge in airline seat capacity in the second quarter of 2024. According to a report by travel data provider OAG , the seat capacity this year is set to increase 10.5% as compared to the second quarter of previous year. Further, it would also be nearly 17% up as compared to the 2019 levels. 

The projection by OAG places India at the third position in terms of average seat capacity, behind the USA and China. The aviation analytics firm also stated that IndiGo, India’s largest airline in terms of market share, will witness a 4% increase in average capacity per flight in the second quarter of 2024 as compared with the 2019 figure. 

India Fourth-Largest International Tourism Market for Canberra 

India was the fourth-largest international tourism market for Australia’s capital city Canberra in 2023. The number of Indian tourists in Canberra last year surpassed the pre-Covid levels. In a statement, VisitCanberra said that 50% of the Indian travelers had visited the city to visit friends and family.  Indian arrivals in Australia last year were record breaking. Between February 2023 and January 2024, over 402,000 travelers visited the island country.

In an interview with Skift , Nishant Kashikar, country manager — India and Gulf for Tourism Australia said that India was the fastest-growing inbound market for the country due to the growing middle class. He added that the government agency is working with Indian as well as Australian carriers and airports to boost direct air connectivity between the two countries.

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Tags: airline , Airline Capacity , airlines , akasa air , australia , aviation , aviation industry , aviation news , doha , hotels , india , india outbound , india travel , indian airlines , Indian Hotels Company , indigo , indigo airlines , qatar , riyadh , Saudi Tourism , skift india report , taj hotels , tourism , tourism australia , Travel Trends

Photo credit: Saudi Arabia has simplified its visa process for Indian travelers by offering options such as e-visa and visa-on-arrival Delhi Airport

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Tel Aviv [Israel], April 5 (ANI/TPS): Six months since October 7, the tourism industry in Israel’s Galilee and Golan regions is reinventing itself as it navigates the adversities of war.

“The north is empty of visitors these days,” Safi Maklada, the Negev and Galilee Authority’s Druze and Circassian tourism coordinator, told The Press Service of Israel. “You won’t find anyone around except for the soldiers doing their duty, guarding the border and the communities, and their families dropping by for a visit.”

Tourism, along with other small businesses and farms, is suffering losses as most Israeli residents evacuated the north in the face of daily Hezbollah rocket attacks.

“We’re always the ones taking the hardest hit, whether it’s during a pandemic like COVID-19 or times of conflict,” Shokat Monder, travel guide and resident of Ein Qiniyye Local Council in Golan Heights told TPSIL.

“In every crisis, tourism businesses are the ones feeling the impact first and struggling to bounce back.”

When questioned about visitor numbers in the north, both Monder and Maklada simultaneously responded, “None. There are no visitors.”

In the absence of tourists, the Negev and Galilee Authority has pivoted to support tourist businesses. Maklada has taken the initiative to organise day trips for evacuated residents now residing in Tiberias and Nazareth, providing them with a much-needed break from hotel stays. Besides giving evacuees relief, the trips bolster the economies of local Druze and Circassian communities.

“Hopefully we will return to normalcy, and the tourists, both from Israel and abroad, will come back to travel with us, we have the most beautiful, and breathtaking destinations, for the world to see,” said Monder.

“It’s such a shame, now, during this period, there are still flowing streams in the area…and no travellers to enjoy them.”

The government is providing economic relief to small businesses in proximity to the Lebanese border. But municipalities further from the border, such as the Bedouin village of Ka’abiyye-Tabbash-Hajajre near Haifa are also experiencing a tourism drought.

“After the start of the war, everything was cancelled, all the groups that were coordinated were cancelled, and only a few months ago we can see the tourists returning to travel little by little, but it’s not what it used to be,” Banzaheer Kaabiya, manager of Razor Nachal Tzipori, told TPSIL.

Before October 7, Razor arranged outdoor excursions around the village and natural tourist attractions such as the Tzipori River, natural springs and a nearby nature reserve, including jeep and ATV rides. Kaabiya said she also offered Bedouin hospitality, but it was secondary. With fewer visitors, Kaabiya said her business is focusing more on hospitality now.

“We still offer hospitality with Bedouin food and folklore, and it lasts, but Razor tours that once accommodated 50-60 people are no longer the norm.travellers The flow of travelers to our area has become sporadic and unpredictable. We realize that even this state of affairs could change abruptly at any time,” Kaabiya said.

In Moshav Ramot in the Golan, LOL-Art experiences the same change in visitor patterns. The family business on the shore of the Sea of Galilee hosts woodworking workshops and sells crafts, but nobody visits.

“Our community isn’t even within range of rocket fire, yet visitors simply disappeared. While the workload hasn’t significantly changed, the absence of large groups is very noticeable. Instead of hosting 70-80 people, I now see about ten visitors per visit,” Danielle Rotter, one of the owners told TPS-IL.

Operations have become more complex because her brother, a co-owner, was called up for army reserve duty. The staff is learning to cover work with fewer employees around.

‘What can you do? This is the reality of our times,” Rotter said with a bittersweet smile. “We adapt. We have no choice.”

The need to adapt is all too familiar to business owners who had to evacuate their homes. Shula Giladi, a grandmother of five, embarked on her entrepreneurial journey roughly a decade ago. Before October, Giladi welcomed guests to her home in Moshav Shtula to taste homemade meals crafted from her family’s Kurdish recipes. These meals were intertwined with stories about her family’s migration from Kurdistan during Israel’s early years.

“People love this kind of experience; they connect to it,” Giladi remarked, explaining her business’s popularity.

In the month preceding October 7, Giladi hosted more than a dozen visits. To accommodate the growing interest, she expanded the house.

But now, the moshav, located right on the Lebanese border, faces rocket barrages and nobody knows when residents will be able to return. In the meantime, Giladi is staying at the Royal Beach Hotel, which graciously allowed her to set up a pop-up shop for her culinary creations. The rest of the time, she cooks for private events at other people’s homes.

“My business is me, and I can cook anywhere,” Giladi said.

“In the end, tourism is about the business owners, and even in this tough period, we want to continue working,” Giladi stressed. “Hopefully, visitors will come, as here in Israel, we have the most interesting people and the most important stories that need to be heard.” (ANI/TPS)

This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.

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