The tourism and hospitality sector is on track for record growth, with industry size projected to reach nearly US$ 60 billion by 2028, according to IDBI Capital report. The surge will be driven by domestic tourism, with visitor numbers likely to double from 2.5 billion in 2024 to 5.2 billion by 2030, reflecting a CAGR of 13.4 per cent. This boom is underpinned by enhanced connectivity, through developments in air, road, and rail infrastructure, which turbocharge domestic tourism boom.
The report focussed the hospitality industry in India boasted 3.4 million hotel rooms as on 31 March, 2024, but the organised sector, including branded hotels and high-quality independents, represents 11 per cent of this total, amounting to 375,000 keys. The luxury hotel segment comprises 17 per cent of this, with 29,000 keys across 230 hotels. The demand-supply gap is particularly pronounced in the luxury hotel segment, with rising incomes and premium preferences exacerbating the scarcity.
