Hotel Management in India is about to hit it’s boom. The Indian hotel industry is expected to touch $1 trillion by 2047, driven by a significant jump in domestic tourist visits and international arrivals. This is according to a report by the Hotel Association of India (HAI) and Benori Knowledge.
Furthermore, The report estimates that the direct contribution of the hotel industry to GDP will increase from $40 billion in 2022 to $68 billion by 2027 and to $1 trillion by 2047. This growth will be supported by factors such as GDP growth, increase in income level, and increase in domestic and foreign tourist arrivals.
In the mid-term (2027-2037), domestic tourist visits are expected to increase from 677 million in 2021 to 1.5 billion by 2030 and are further expected to jump to 15 billion by 2047 in the long term (2037-2047).
As for foreign tourist arrivals (FTAs) in India, the report said these are projected to increase from 1.5 million in 2021 to 15 million by 2024, and touch 25 million by 2030 and “are further projected to grow attracting 100 million tourists by 2047”.
The report also pointed out that the hospitality industry has witnessed a shift in consumer preference after the pandemic. Service providers have found new ways to move forward, with hotel companies acknowledging the significant potential of domestic tourism.
In addition, Major players are diversifying into the mid-market segment to develop budget hotels and cater to increase the inbound travel. The industry is also on its journey for digital transformation, where operations are becoming leaner.
Likewise The growth of the hotel industry will create new opportunities for employment and investment. It will also help to boost the economy and promote tourism in India.
Key Takeaways:
- The Indian hotel industry is expected to touch $1 trillion by 2047.
- This growth will be driven by a significant jump in domestic tourist visits and international arrivals.
- The industry will need to expand beyond the metros to two and three-tier cities and also to the rural areas in order to meet the growing demand.
- The government’s policy of convergence of all stakeholders is a crucial factor for the success of the industry.
- The industry is on its journey for digital transformation, where operations are becoming leaner.
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