According to a projection, a large increase in domestic travel and foreign arrivals will lead the Indian hotel industry’s direct contribution to the GDP to reach USD 1 trillion by 2047. The Hotel Association of India (HAI) and Benori Knowledge released a report titled “Vision 2047: Indian Hotel Industry” that estimates the direct GDP contribution of the hotel industry at $40 billion in 2022 and $68 billion by 2027.
It was also stated that it would be close to $1 trillion by 2047. The association for the hotel industry also made the point that, in order for the sector to reach its goal, lodging growth must expand outside of metro areas into second and third-tier cities as well as rural areas.
The report made it clear that the total contribution does take into account aspects of services from related business verticals, such as food and beverage and salons and spas but does not take into account the expansion of the services market, eliminating scenario-based contribution estimations.
The paper claims that variables including GDP growth, rising income levels, and a rise in both domestic and international visitor arrivals (FTA) are to blame for the predicted gain. According to the survey, there would be 1.5 million international visitors arriving in India in 2021, 15 million by 2024, 25 million by 2030, and “are further projected to grow to attract 100 million tourists by 2047.”
“For both business and pleasure, more and more local and foreign tourists are traveling to different Indian states. According to the survey, all of these variables have opened up new prospects in the tourist and hospitality sectors.
The survey noted that during the pandemic, the hospitality sector experienced a change in consumer preferences, and service providers have discovered new strategies for advancing, with hotel corporations acknowledging the tremendous potential of domestic travel.
The report stated that “major players are diversifying into the mid-market segment to develop budget hotels and cater to increase the inbound travel,” adding that the sector is on its way to a digital transformation, where operations are getting leaner.
