travel industry in india

Travel, Tourism & Hospitality

Travel and tourism industry in India - statistics & facts

The most profitable travel segments, agents to help package travel, key insights.

Detailed statistics

Travel & tourism development rank India 2011-2021

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Contribution of travel and tourism to GDP of India 2019-2022

Editor’s Picks Current statistics on this topic

Value of travel market in India FY 2018-2027

Travel market distribution in India FY 2018-2027, by type

Further recommended statistics

Key figures.

• Basic Statistic Direct contribution of tourism and hospitality to GDP in India 2012-2028
• Basic Statistic Revenue share from tourism in India 2013-2022, by segment
• Premium Statistic Distribution of direct travel and tourism GDP in India FY 2023, by spending type
• Basic Statistic Number of jobs in travel and tourism sector in India FY 2014-2022
• Premium Statistic PE/VC investment deals in travel and hospitality 2013-2022

Direct contribution of tourism and hospitality to GDP in India 2012-2028

Direct contribution of tourism and hospitality to GDP in India from 2012 to 2017, with an estimate until 2028 (in billion U.S. dollars)

Revenue share from tourism in India 2013-2022, by segment

Distribution of revenue from tourism to GDP in India from 2013 to 2022, by segment

Distribution of direct travel and tourism GDP in India FY 2023, by spending type

Distribution of direct travel and tourism GDP in India in the financial year 2023, by spending type

Number of jobs in travel and tourism sector in India FY 2014-2022

Number of direct and indirect jobs in the travel and tourism sector across India from financial year 2014 to 2022, with projection for 2023 (in millions)

PE/VC investment deals in travel and hospitality 2013-2022

Number of private equity and venture capital deals in the travel and hospitality sector in India from 2013 to 2022

• Premium Statistic Tourist arrivals at India 2022, by region
• Basic Statistic Number of domestic tourist visits in India 2000-2022
• Premium Statistic Number of foreign tourist arrivals in India 2008-2022
• Premium Statistic Number of visitors to national monument India FY 2017-2023, by type
• Premium Statistic Number of domestic visitors to ticketed monuments India FY 2023
• Premium Statistic Number of foreign visitors to ticketed monuments India FY 2023

Tourist arrivals at India 2022, by region

Tourist arrivals at India in 2022, by region (in 1,000s)

Number of domestic tourist visits in India 2000-2022

Number of domestic tourist visits in India from 2000 to 2022 (in millions)

Number of foreign tourist arrivals in India 2008-2022

Number of foreign tourist arrivals in India from 2008 to 2022

Number of visitors to national monument India FY 2017-2023, by type

Number of visitors to national monuments across India from financial year 2017 to 2023, by type (in millions)

Number of domestic visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of domestic visitors (in 1,000s)

Number of foreign visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of foreign visitors (in 1,000s)

Travel services

• Premium Statistic Online travel agency usage India 2023, by gender
• Premium Statistic Agencies used for online services India 2023 by gender
• Premium Statistic Device used for online travel agency India 2023, by age group
• Premium Statistic Purpose of online travel agency usage India 2023, by age group
• Premium Statistic Reason for not using online travel agency India 2023, by gender

Online travel agency usage India 2023, by gender

Share of online travel agency usage in India as of June 2023, by gender

Agencies used for online services India 2023 by gender

Share of agencies used for online travel services in India as of June 2023, by gender

Device used for online travel agency India 2023, by age group

Device used to access online travel agencies in India as of June 2023, by age group

Purpose of online travel agency usage India 2023, by age group

Purposes of using an online travel agency in India as of June 2023, by age group

Reason for not using online travel agency India 2023, by gender

Share of reasons for not using online travel agencies in India as of June 2023, by gender

Market overview

• Premium Statistic Value of travel market in India FY 2018-2027
• Premium Statistic Travel market distribution in India FY 2018-2027, by type
• Premium Statistic Travel market distribution in India FY 2018-2027, by booking channel
• Premium Statistic Value of hotel market in India FY 2018-2027
• Premium Statistic PE/VC investments in travel and hospitality 2013-2022

Value of the travel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

Distribution of Indian travel market from financial year 2018 to 2020, with an estimate for 2027, by type

Travel market distribution in India FY 2018-2027, by booking channel

Travel market distribution across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Value of hotel market in India FY 2018-2027

Value of hotel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

PE/VC investments in travel and hospitality 2013-2022

Private equity and venture capital investments in travel and hospitality sector in India from 2013 to 2022 (in million U.S. dollars)

Hotel industry

• Premium Statistic Distribution of hotel market in India FY 2018-2027, by type
• Premium Statistic Distribution of the hotel market in India FY 2018-2027, by booking channel
• Premium Statistic Number of hotel rooms in India FY 2001-2023
• Premium Statistic Number of approved hotels in India 2022, by category
• Premium Statistic Supply of hotel rooms in India FY 2022-2023, by city
• Basic Statistic Occupancy rate in hotels in India FY 2001-2024

Distribution of hotel market in India FY 2018-2027, by type

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by type

Distribution of the hotel market in India FY 2018-2027, by booking channel

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Number of hotel rooms in India FY 2001-2023

Number of hotel rooms across India from financial year 2001 to 2023, with an estimate until 2027 (in 1,000s)

Number of approved hotels in India 2022, by category

Number of approved hotels in India in 2022, by category

Supply of hotel rooms in India FY 2022-2023, by city

Existing supply of hotel rooms across Indian cities from financial year 2022 to 2023 (in 1,000s)

Occupancy rate in hotels in India FY 2001-2024

Occupancy rate in hotels in India from financial year 2001 to 2023, with estimates of 2024

Major players

• Basic Statistic Leading hotel and restaurant companies in India 2023, by market capitalization
• Basic Statistic Domestic market share of airlines across India FY 2023, by passengers carried
• Premium Statistic Revenue of Airbnb India FY 2018-2020
• Premium Statistic Revenue of OYO across India FY 2019-2023
• Premium Statistic Thomas Cook India revenue FY 2020-2023
• Premium Statistic MakeMyTrip's revenue FY 2015-2023

Leading hotel and restaurant companies in India 2023, by market capitalization

Leading hotel and restaurant companies in India as of 2023, based on market capitalization (in billion Indian rupees)

Domestic market share of airlines across India FY 2023, by passengers carried

Domestic market share of airlines across India in financial year 2023, by passengers carried

Revenue of Airbnb India FY 2018-2020

Revenue of Airbnb India from financial year 2018 to 2020 (in million Indian rupees)

Revenue of OYO across India FY 2019-2023

Revenue of OYO across India from financial year 2019 to 2023 (in billion Indian rupees)

Thomas Cook India revenue FY 2020-2023

Revenue of Thomas Cook (India) Limited from financial year 2020 to 2023 (in billion Indian rupees)

MakeMyTrip's revenue FY 2015-2023

Revenue of MakeMyTrip Limited from financial year 2015 to 2023 (in million U.S. dollars)

Further reports

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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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Quick links, unlock the marvels of incredible india, powerhouse of tourism and hospitality.

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 (Jan-Dec 2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)

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)

39 th  on the World Economic Forum Travel & Tourism Development Index (2024)

• FOREIGN INVESTMENT
• INDUSTRY TRENDS
• POLICIES & SCHEMES

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.

Latest News

Cambodia-India Tourism Year launched in New Delhi

The country's largest hospitality company, Indian Hotels Company (IHC…

Radisson Hotel Group opened its first hotel in Bihar- Radisson Hotel …

India's largest chain of luxury properties, StayVista launches new lu…

India's rank on the World Economic Forum's Travel & Tourism Developme…

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

Press Release

Invest India and World Association of…

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…

Sagarmala Program Boosting Tourism Economy…

Shri G. Kishan Reddy launches ‘Best Tourism…

Press release

Longest river cruise by Ganga Vilas to…

50 destinations will be selected and…

Shri G Kishan Reddy launches the Visit India…

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.

Market Research

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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• India Tourism Development Corporation
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• Ministry of Tourism, Government of India
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Industry Associations

• Association of Tourism Trade Organizations, India
• Adventure Tour Operators Association of India
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• Indian Association of Tour Operators
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Indian Tourism Industry to Generate $24 Billion in 2024 – India Report

Bulbul Dhawan , Skift

April 16th, 2024 at 11:00 PM EDT

Travel and tourism industry accounted for around 6% of India's GDP in 2022. The country has therefore been focusing on boosting tourism.

Bulbul Dhawan

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

The travel and tourism industry in India is projected to generate revenue of nearly $24 billion in 2024, according to industry promotions body India Brand Equity Foundation. At an estimated annual growth rate of 9.6% between 2024 and 2028, the industry is also expected to reach a market volume of $34.25 billion by 2028. 

Revenue trend in India: In 2023, the tourism industry recorded a revenue of about $20 billion, according to Statista . Hotels accounted for the largest share of revenue last year. This year, however, this is expected to shift and package holidays are likely to be the biggest revenue generator in 2024. According to an ANI report , package holidays market is expected to reach 65 million travelers by 2028. 

India’s efforts to boost tourism: The country has been focusing on boosting tourism, and has announced 100% foreign direct investment in tourism-related ventures in order to facilitate growth of the sector. Efforts are also being made to preserve heritage sites in India while creating quality tourism infrastructure to enhance visitor experience. 

The road, rail, and air transportation infrastructure is also being improved. New highways, indigenous superfast trains , and regional airports are being concurrently developed across the country to make travel more convenient and inland destinations more accessible.

Radisson Opens First Hotel in Odisha

Radisson Hotel Group has announced the opening of Pramod Lands End Resort, a member of Radisson Individuals in Gopalpur, Odisha. The 100-room resort marks the group’s entry into Odisha. Radisson’s newly appointed area senior vice president for South Asia Nikhil Sharma said that Gopalpur has untapped tourism potential, and the company’s move to open a property in the location is part of its focus on tier 2 and 3 cities in India. 

Radisson has more than 160 operational and developing hotels, with over 50% of its portfolio located in tier 2 and 3 markets. In 2023, the company signed 21 properties , and is especially focusing on key spiritual destinations and inland locations to gain from the first-mover advantage. 

Fly91 Expands Network to Agatti, Jalgaon

India’s newest airline Fly91 is set to add two more destinations to its network this week, taking its operations to six destinations. Starting Thursday, the airline will fly between Goa and Agatti, Lakshadweep. It will also commence flights between Goa, Jalgaon and Hyderabad on April 18. 

The budget airline commenced its operations last month and is currently flying between four destinations. It aims to enhance regional connectivity in India and has plans to expand its network to 50 cities over the next five years. For this, the airline is planning to induct 30 aircraft to its fleet. 

ITC Hotels Open Storii Solan in Himachal Pradesh

ITC Hotels has announced the opening of Storii by ITC Hotels, The Kaba Retreat, Solan in Himachal Pradesh. The boutique property currently has 22 rooms and suites, with six cottages to open soon. 

Storii by ITC Hotels serves experiential travelers. The company is focusing on expanding the brand as CEO Anil Chadha believes that it is quickly becoming a preferred brand in the segment. With the addition of the Solan property, four hotels are operational under the brand. More Storii hotels are set to come up in Kolkata, Rishikesh, Manali, Prayagraj, and Kufri as it is aiming to enhance its presence in leisure destinations.

Delhi Airport’s Conversion of Terminal T2 to All-International Delayed Till Next Year

The conversion of Delhi airport’s terminal T2 into an all-international terminal is delayed till April 2025, according to a Times of India report . The airport has three terminals of which T1 and T2 are fully domestic, while T3 handles domestic as well as international traffic. With T1 undergoing an expansion to double its capacity to 40 million passengers, the airport operators decided to convert T2 into an all-international terminal temporarily to better handle international traffic.

The initial plan was to begin the conversion of the terminal in July or August this year , after the expansion of domestic terminal T1 becomes operational in June. This would close T2 for a few months. However, the authorities have now decided to postpone the conversion work until after winter, as they want all terminals to be operational during the season. This is to avoid a repeat of winter last year when a key low-visibility runway was shut for repairs during the foggy season and led to delays. 

EaseMyTrip Subsidiary Opens Hotel in McLeod Ganj

Spree Hospitality, a subsidiary of online travel company EaseMyTrip, has announced the opening of ZiP By Spree Hotels Bella Heights in McLeod Ganj, Himachal Pradesh. The boutique property is a part of Spree Hospitality’s portfolio of more than 30 hotels. 

The company focuses on boutique and mid-market segments, while operating full-service properties across India. It was acquired by EaseMyTrip in 2021. 

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Tags: air traffic , air travel , airline , airlines , airport , aviation industry , aviation news , boutique hotels , delhi airport , easemytrip , hotels , india , india travel , itc hotels , online travel , online travel companies , radisson , radisson hotel group , revenue , skift india report , tourism

Photo credit: In 2023, the tourism industry recorded a revenue of about $20 billion. Pixabay

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Tourism and Hospitality

Tourism & hospitality industry in india, the tourism sector is projected to contribute us$ 250 billion to the country’s gdp by 2030, generating employment for 137 million individuals., advantage india, robust demand.

* Drawing upon world-class healthcare amenities and traditional healing practices, medical tourism and wellness retreats entice 21% of international travelers.

* 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 7.1% 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$ 199.6 billion to the country’s GDP.

* The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

Policy support

* In the 2024 interim Budget, Finance Minister Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year.

* The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0).

* The Prime Minister, Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.

Diverse Attractions

* Airport enhancement and the spread of regional airports are opening new opportunities for business, and for drawing larger visits from tourists.

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

Tourism and Hospitality Industry Report

Introduction.

With a total area of 3,287,263 sq. km extending from the snow-covered Himalayan heights to the tropical rain forests of the south, India has a rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. This provides a significant opportunity to fully exploit the potential of the tourism sector. The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

India being one the most popular travel destinations across the globe has resulted in the Indian tourism and hospitality industry emerging as one of the key drivers of growth among the services sector in India. The tourism industry in India has significant potential considering that Tourism is an important source of foreign exchange in India similar to many other countries.

It is widely acknowledged that the tourist and hospitality sector, which encompasses travel and hospitality services like hotels and restaurants, is a development agent, a catalyst for socioeconomic growth, and a significant source of foreign exchange gains in many countries. India's rich and exquisite history, culture, and diversity are showcased through tourism while also providing significant economic benefits. The consistent efforts of the central and state governments have helped the tourism industry to recover from the COVID-19 pandemic shock and operate at the pre-pandemic level.

Market Size

According to WTTC, India is ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019. According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth US$ 199.6 billion in 2022.

The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum. In WTTC’s Economic Impact 2023 report, India’s Travel and Tourism GDP contribution grew by 5.9%.

In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. By 2029, it is expected to account for about 53 million jobs. In India, the industry’s direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. The Indian airline travel market was estimated at ~US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. The Indian hotel market including domestic, inbound, and outbound was estimated at ~US$ 32 billion in FY20 and is expected to reach ~US$ 52 billion by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue of over US$ 59 billion. However, domestic tourists are expected to drive the growth, post-pandemic. International hotel chains are increasing their presence in the country, and they will account for around 47% share of the tourism and hospitality sector of India by 2020 and 50% by 2022.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in December 2023 were 1,070,163. FTAs during the period January-December 2023 were 9,236,108 as compared to 6,437,467 in January-December 2022.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top five ports was highest at Delhi Airport (29.92%) followed by Mumbai Airport (18.46%), Haridaspur Land Check Post (7.09%), Chennai Airport (7.02%), Bengaluru Airport (6.20%). FTAs during the period January-December 2023 were 9.24 million.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top five source countries was highest from UAE (22.33%) Bangladesh (16.97%), followed by UK (10.33%), Australia (8.58%) and Canada (4.15%).

In 2023, 26.52% of foreign tourists visited for Indian Diaspora which marks 9,236,108 foreigners.

FEE during the period January-December 2023 were US$ 28.1 billion.

Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.1 billion during the period April 2000-December 2023. This constitutes 2.57% of the total FDI inflow received across sectors.

Investments/Developments

• In April 2024, EaseMyTrip.com launches its first franchise store in Karnal, Haryana, as part of its expansion via the franchise model, reinforcing its dedication to offering superior experiences across offline and online channels.
• As of February 2024, Ayodhya is anticipated to host between 50 to 100 hotels over the next 3 to 4 years. The city, acclaimed as a global religious destination, is primed for substantial development, with Taj Hotels poised to establish its fourth property in the area.
• In March 2024, MakeMyTrip revealed a partnership with the Department of Tourism, Madhya Pradesh, and redBus to boost tourism in the region, aiming for sustainable development and positioning Madhya Pradesh as a premier destination.
• In March 2024, Indian Hotels Corporation Ltd (IHCL) has announced plans to recruit 2,000-2,500 employees in the fiscal year 2025. This expansion of the workforce aligns with IHCL's ambitious plans, which include a pipeline of 85 hotels.
• In February 2024, Mahindra Holidays & Resorts India Ltd (MHRIL) intends to invest around Rs. 4,500 crore (US$ 541.6 million) over the next three to four years, aiming to double its room capacity to 10,000.
• In February 2024, Oberoi Realty, a real estate developer, has partnered with Marriott International, a global hospitality leader, to develop two Marriott properties in Mumbai.
• In February 2024, OYO announced its venture into sports hospitality, selecting 100 hotels across 12 cities like Delhi, Chennai, and Bangalore. The focus is on catering to large sports events by providing accommodation and services for athletes and officials.
• In February 2024, the Radisson Hotel Group announced its rapid expansion in India, securing agreements for 21 hotels across nine distinct brands in 2023.
• In February 2024, Lemon Tree Hotels intends to launch 30 new properties across the country this year, potentially increasing its room capacity by over 2,000 rooms. The hospitality chain is optimistic about the demand driven by middle-class consumers.
• In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.
• In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.
• In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.
• In September 2023, Easemytrip signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.
• An investment of Rs. 2,400 crore (US$ 289.89 million) was allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth.
• An investment-linked deduction under Section 35 AD of the Income Tax Act is in place for establishing new hotels under the 2-star category and above across India, thus permitting a 100% deduction in respect of the whole or any expenditure of capital nature.
• In 2019, the Government reduced GST on hotel rooms with tariffs of Rs. 1,001 (US$ 14.32) to Rs. 7,500 (US$ 107.31) per night to 12% and those above Rs. 7,501 (US$ 107.32) to 18% to increase India’s competitiveness as a tourism destination.
• In Union Budget 2023-24, US$ 290.64 million was allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth in particular and to take the promotion of tourism on mission mode, with the active participation of states, the convergence of government programmes and public-private partnerships.
• An app will be developed covering all relevant aspects of tourism. States will be encouraged to set up Unity Malls in State Capital as the most prominent tourism centres to promote One District One Product, GI products, handicrafts, and products of other States.
• In 2021, 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.
• Government of India has set a target to create 220 new airports by 2025.
• The Emergency Credit Line Guarantee Scheme (ECLGS) covered through a liberal definition of MSME (micro small and medium enterprises) has been expanded to include tourism and hospitality stakeholders. Infrastructure status has been granted to exhibition-cum-convention centres.
• A separate liquidity window of Rs. 15,000 crore (US$ 1.8 billion) has been released for the sector.
• A total of 48,775 accommodation units (both classified and unclassified) have been registered on the National Integrated Database of Hospitality Industry (NIDHI) portal and 11,220 units have self-certified for SAATHI standards in September 2022.
• In October 2022, Indian Hotels Company (IHCL) announced the launch of its new Indian-concept restaurant brand, Loya. Debuting at Taj Palace, New Delhi, Loya captures the culinary essence traversing the landscape of North India.
• Hospitality unicorn OYO has acquired Europe-based vacation rental company Direct Booker for US$ 5.5 million in May 2022.
• Accor, a French hospitality major will expand its India's portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels 54 in India.
• The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-2027.
• India was globally the third largest in terms of investment in travel and tourism with an inflow of US$ 45.7 billion in 2018, accounting for 5.9% of the total investment in the country.
• Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31. Dream Hotel Group plans to invest around US$ 300 million in the next 3-5 years for the development of the cruise sector in India.
• 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 has supported the growth of domestic and outbound tourism.
• The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

Government Initiatives

The Indian Government has realised the country’s potential in the tourism industry and has taken several steps to make India a global tourism hub. Some of the major initiatives planned by the Government of India to boost the tourism and hospitality sector of India are as follows:

In the 2024 interim Budget, Finance Minister, Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year. This marks a positive change from the 2023 Union Budget's initial allocation of Rs. 2,400 crore (US$ 288.8 million), later revised to Rs. 1,692.10 crore (US$ 203.6 million).

The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0), it targets sustainable tourism, selecting 57 destinations for development, with States/UTs preparing plans accordingly.

The Prime Minister Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.

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 Hotel/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake site-assessment based on SAATHI framework through QCI accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

Under this Loan Guarantee Scheme for Covid Affected Tourism Service Sector (LGSCATSS), loan up to US$ 12,110 will be extended to each Tour Operators/ Travel Agents/ Tourist Transport Operators approved/recognized by the Ministry of Tourism.

Guarantees for Skill Development Loans by the member banks of IBA up to Rs. 1.5 lakh (US$ 1,801) extended by lending institutions to eligible borrowers without collateral or third-party guarantee.

• Visa reforms include a significantly expanded Golden Visa scheme, a five-year Green residency and new entry permits, including one for job seekers. The new system also offers additional benefits to sponsor family members.
• To ease travels for international tourists, the Government of India has launched a scheme wherein five lakh tourists will get free visas.
• In August 2022, Ministry of Tourism sanctioned 76 projects for Rs. 5,399.15 crore (US$ 678.39 million) under Swadesh Darshan Scheme for development of tourism infrastructure in the country.
• In June 2022, the Ministry of Tourism along with 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.
• Till the end of September 2022, a total of 155 Dekho Apna Desh webinars have been organized by Ministry of Tourism.
• The Ministry of Tourism has launched the National Strategy for Sustainable Tourism and Responsible Traveller Campaign in June 2022.
• From November 15, 2021, India allowed fully vaccinated foreign tourists to visit India, which in turn will help revive the Indian travel and hospitality sector.
• In November 2021, the Ministry of Tourism signed a Memorandum of Understanding (MoU) with Indian Railway Catering and Tourism Corporation to strengthen hospitality and tourism industry. The ministry has also signed a MoU with Easy My Trip, Cleartrip, Yatra.com, Make My Trip and Goibibo.
• In November 2021, the Indian government planned a conference to boost film tourism in the country with an aim to establish domestic spots as preferred filming destinations. This move is expected to create jobs and boost tourism in the country.
• In September 2021, the government launched NIDHI 2.0 (National Integrated Database of Hospitality Industry) scheme which will maintain a database of hospitality sector components such as accommodation units, travel agents, tour operators, & others. NIDHI 2.0 will facilitate the digitalisation of the tourism sector by encouraging all hotels to register themselves on the platform.
• Government is planning to boost the tourism in India by leveraging on the lighthouses in the country. 71 lighthouses have been identified for development as tourist spots.
• 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 Indian Railway Catering and Tourism Corporation (IRCTC) runs a series of Bharat Darshan tourist trains aimed at taking people to various pilgrimages across the country.
• During 2019-20, an additional fund Rs. 1,854.67 crore (US$ 269.22 million) was sanctioned for new projects under the Swadesh Darshan scheme.
• Ministry of Tourism sanctioned 18 projects covering all the Northeastern States for Rs. 1,456 crore (US$ 211.35 million) to develop and promote of tourism in the region under Swadesh Darshan and PRASHAD schemes.
• Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity,’ was inaugurated in October 2018 and the total revenue generated till November 2019 stood at Rs. 82.51 crore (US$ 11.81 million).

State Government Initiatives

• In Jammu and Kashmir, in April 2021, a mega tourism promotion event “Tapping the Potential of Kashmir: Another Day in Paradise” was organised in Srinagar. The event aimed to showcase the myriad tourism products of Jammu & Kashmir and promote tourism in the region as the destination for leisure, adventure, eco, wedding, films and MICE tourism steps have been taken by the government to provide better facilities to the old.
• The strategy of Uttarakhand Tourism is to identify key originating regions and tourist segments, which would then be the focus of marketing campaigns.
• Madhya Pradesh tourism board has opened the door for private investment within the state by providing all the aid and facilities to the investors.
• The AP Tourism Development Corporation (APTDC) plans to establish 100 kiosks across the state in the first phase, providing employment opportunities to the youth.
• In October 2021, the Tripura government collaborated with Infovalley Educational & Research (P) Ltd. as part of a public-private partnership (PPP) to run the State Institute of Hotel Management (SIHM). Through the SIHM, the government aims to empower the youth and contribute to the growth of hotels and hospitality management in the state.
• The Ministry of Tourism sanctioned three projects for a total amount of Rs. 179.68 crore (US$ 24.24 million) under the Swadesh Darshan scheme in Gujarat. The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's Northeast under the “Swadesh Darshan” Scheme.
• In July 2021, the Tamil Nadu state government decided to implement an integrated mega tourism plan, which included new lighting arrangements for the Thiruvalluvar statue at Kanyakumari, starting renovations at Poompuhar tourist spot and improving roads leading to tourist spots, spiritual places, and adventure tourism spots. It also includes unveiling a new tourism policy, establishing more hotels, resorts, and convention centres, and increasing contribution of public and private sectors in the tourism sector.
• In July 2021, Andhra Pradesh Tourism Authority urged stakeholders in the tourism sector in the state to register with the Andhra Pradesh Tourism under the Tourism Trade Registration and Facilitation Guidelines 2020.
• Jharkhand Tourism Policy Offers Attractive Incentives and Opportunities for Investors.
• Nagaland Launches Initiatives to Promote Off-Road Tourism.

Staycation is seen as an emerging trend were people stay at luxurious hotels to revive themselves of stress in a peaceful getaway. To cater to such needs, major hotel chains such as Marriott International, IHG Hotels & Resorts and Oberoi hotels are introducing staycation offers where guests can choose from a host of curated experiences, within the hotel. India’s travel and tourism industry has huge growth potential. The industry is also looking forward to the expansion of e-Visa scheme, which is expected to double the tourist inflow in India. India's travel and tourism industry has the potential to expand by 2.5% on the back of higher budgetary allocation and low-cost healthcare facility according to a joint study conducted by Assocham and Yes Bank.

It is irrefutable that the tourist industry is becoming a more significant economic force and has the potential to be used as a tool for development. The tourist industry not only drives growth, but it also raises people's standards of living with its ability to provide significant amount of diverse employment opportunities. It promotes environmental preservation, champions diverse cultural heritage, and bolsters international peace. 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.

Note: *in US$ terms

Note: Conversion rate used in March 2024, Rs. 1 = US$ 0.012

References: Media Reports, Ministry of Tourism, Press Releases, Department for Promotion of Industry and Internal Trade (DPIIT), Press Information Bureau (PIB), Union Budget 2023-24, Economic Survey 2022-23

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States with Largest Domestic Tourist Arrivals in 2021

• Uttar Pradesh
• Andhra Pradesh
• Maharashtra

Industry Contacts

• Department of Tourism
• Palace on Wheels
• Hotel Association of India
• Federation of Hotel and Restaurant Associations of India

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