India’s Hospitality Industry Set to Soar with Tourism Impact - News

The Indian hotel industry continues to be significantly influenced by tourism, with substantial growth projected in the coming years. The direct GDP contribution of hotels was recorded at US$ 40 billion in 2022 and is predicted to rise to US$ 68 billion by 2027 and US$ 1 trillion by 2047. 

The Indian hospitality industry is expected to reach US$ 31.01 billion by 2029, with a CAGR of 4.73 percent from US$ 24.61 billion in 2024. The moderate growth of the industry is driven by the rising demand from the Meetings, Incentives, Conferences, and Exhibitions (MICE) and the increasing Foreign Tourist Arrivals (FTAs). 

Premium hotel occupancy is expected to gain around 70-72 percent in FY2024, where average room rates are likely to fall within INR 6,000-6,200. Supply growth in the hotel industry will increase, but it might not fully meet demand because of land availability problems. This could lead to the rebranding and upgrading of existing properties.