India ‘s Tourism And Hospitality Sector Poised For Record Growth, Projecting Nearly Sixty Billion By 2028

Published on August 19, 2025

Domestic tourism of India is nan main driver of this growth, pinch nan number of visitors expected to double from 2.5 cardinal successful 2024 to 5.2 cardinal by 2030, balanced to a compound yearly maturation complaint (CAGR) of 13.4%. The World Travel & Tourism Council (WTTC) predicts that spending by visitors will almost triple to ₹33.95 trillion by 2034.

This roar is underpinned by enhanced connectivity, done developments successful air, road, and obstruction infrastructure, which are turbocharging nan home tourism boom. Domestic aerial recreation besides is anticipated to much than double, expanding from 307 cardinal passengers successful FY24 to 693 cardinal by FY30.

Hospitality Industry’s Growing Demand and Supply Challenges

The hospitality industry successful India presently boasts 3.4 cardinal edifice rooms arsenic of March 31, 2024, but nan organized sector, including branded hotels and high-quality independents, represents only 11% of this total, amounting to 375,000 keys. The luxury edifice segment comprises conscionable 17% of this, pinch only 29,000 keys crossed 230 hotels.

The demand-supply gap is peculiarly pronounced successful nan luxury edifice segment, pinch rising incomes and premium preferences exacerbating nan scarcity. The precocious costs of land, capital investment, and agelong gestation periods make it difficult to support up pinch nan increasing demand, particularly for luxury accommodations. The Average Room Rate (ARR) and occupancy rates successful luxury hotels person seen important growth, pinch luxury hotels showing 60-70% occupancy and TRevPAR (Total Revenue per Available Room) 117% higher than upscale hotels, and 298% higher than midscale properties.

The Growing Influence of Weddings, MICE, and Food & Beverage (F&B)

The Food and Beverage (F&B) assemblage plays a important domiciled successful nan profitability of hotels. In luxury hotels, F&B revenue per occupied room is 1.9 times nan manufacture average. Additionally, nan weddings and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments are driving beardown maturation successful nan hospitality sector.

The Confederation of All India Traders (CAIT) reported a staggering 3.8 cardinal weddings successful India betwixt November 23 and December 15, 2023, generating ₹4.74 lakh crore successful revenue, which marks a 26% year-on-year growth. This surge successful wedding-related tourism is mostly driven by nan country’s 600 million-strong younker demographic, including nan world’s largest millennial and Gen Z cohorts. With accrued disposable income and changing depletion patterns, this property group is fueling request for luxury wedding services and destination events, which straight use nan hospitality industry.

A Booming Tourism Industry pinch Expanding Opportunities

The tourism and hospitality manufacture successful India is expanding astatine an unprecedented rate, pinch home recreation starring nan charge. As infrastructure continues to improve, luxury accommodations grow, and consumer spending rises, nan assemblage is expected to make important economic benefits, including job creation and investment opportunities. The increase successful wedding tourism and nan increasing demand for MICE services further support this trend.

With a focus connected sustainable development, nan luxury segment is poised to lead nan measurement successful accommodating nan increasing number of home and world visitors. As India moves towards its 2030 tourism goals, nan expanding domestic tourism market and hospitality sector will play cardinal roles successful nan country’s broader economical development.

The maturation is driven by factors specified arsenic rising disposable incomes, infrastructure upgrades, and a resurgence successful some domestic and world travel. This description marks a important displacement for India, positioning its tourism manufacture arsenic a awesome contributor to nan nation’s economy.

India’s Tourism Sector Ready for Future Growth

India’s tourism manufacture is witnessing maturation astatine historical highs arsenic home-based tourism continues to support nan system connected track. With increasing numbers of visitors, tourism expenditure, and nan description of nan luxury edifice industry, nan federation is poised to look arsenic a world tourism giant.

The occurrence of wedding, MICE travel, and nan nutrient and beverage manufacture reflects nan diverseness of tourism opportunities for nan tourism manufacture professionals and enterprises. As infrastructure develops and sustainable methods are integrated, India’s hospitality and tourism assemblage will support growing, offering economical improvement and a amended visitant experience.