-KH News Desk (cbedit@imaws.org)
India’s hospitality sector is a crucial component of its tourism industry, significantly influencing regional economic growth, employment, and infrastructure development. As of 2024, tourism contributed approximately 9% to the national GDP, with the hospitality sector playing a pivotal role. This relationship between tourism and hospitality is evident in the economic and social transformation of regional destinations.
The hospitality sector has made a profound economic impact on regional areas by attracting both domestic and international tourists. In 2024, the Indian government allocated ₹2,479 crores to tourism, showing its commitment to expanding the sector. Regional tourism markets have benefitted from this investment, with destinations like Varanasi, Amritsar, and Hampi witnessing increased tourist footfall. These areas generate substantial revenues from hotel stays, food services, and related activities, boosting local economies.
The hospitality industry in India is expected to reach $31 billion by 2029. States like Madhya Pradesh and Odisha are increasingly attracting domestic and international tourists, where new hotels and resorts have created economic hubs, directly supporting tourism and regional growth.
The growth of tourism in India has significantly enhanced infrastructure development, with the hospitality sector playing a pivotal role. In the financial year 2024, the Indian government allocated approximately ₹14 billion for the development of tourist circuits under the Swadesh Darshan scheme, aiming to improve infrastructure in key tourist destinations.
For example, the expansion of hotel chains like Radisson in Ayodhya and ITC properties in less-explored regions has spurred economic activity and improved infrastructure.
Sustainability has become a key focus for India’s hospitality industry, especially in eco-tourism hotspots like Kerala and Ladakh. Hotels in Kerala’s backwaters and Ladakh have implemented waste-free and carbon-neutral initiatives to attract eco-conscious travelers and ensure long-term tourism viability.
For example, a vegan homestay in Kerala promotes plant-based cuisine, reducing carbon emissions. In Ladakh, the Green Ambassador initiative focuses on sustainable tourism, including yak preservation. These efforts support both environmental conservation and local culture. As climate change intensifies, such sustainable practices are crucial for maintaining the balance between tourism growth and environmental preservation
