New Delhi: India’s tourism and hospitality industry is headed for its strongest run yet, with fresh estimates suggesting the sector could touch USD 60 billion by 2028. The momentum is being powered by one clear trend: more Indians are travelling within the country than ever before.
Domestic Travel Fuels Growth
More Indians are travelling within the country than ever before. In 2024, domestic visits were around 2.5 billion, and that number is expected to soar past 5 billion by 2030. Rising incomes, easier flight options, and better roads and rail networks have all made it simpler for people to explore new corners of India. This growing appetite for travel is now the single biggest force driving the sector’s growth.
The money being spent is climbing just as sharply. By 2034, travellers are expected to spend close to ₹34 trillion, nearly triple current levels. The skies are set to get busier too, with domestic air passenger traffic projected to grow from 307 million in FY24 to nearly 700 million by the end of the decade.
What’s lagging, however, is hotel supply. Out of India’s 3.4 million rooms, only a fraction — about 11 percent — belong to the organised segment. Luxury options are even scarcer, with fewer than 30,000 rooms across the country. Developers face hurdles in the form of high land prices and long project timelines, leaving a gap between growing demand and available accommodation.
Policy measures are helping bridge the gap. The GST Council recently cut tax on hotel tariffs up to ₹7,500 to 5 percent, making stays more affordable. At the same time, global hotel chains are betting big on India’s growth story. Marriott plans to add 20,000 rooms in the next five years, while Hilton is preparing for a tenfold expansion over the next decade.
The Future Ahead
With domestic travel booming and global brands stepping in, the industry is on the cusp of a transformation. The question now is whether infrastructure can keep pace with India’s ever-growing travel bug.
