Red carpet for foreign arrivals; Hospitality sector upbeat for 2025

PTI New Delhi: As the Indian hospitality industry prepares to uncork the champagne to welcome 2025, it is gearing up to roll out the red carpet to foreign tourists, whose arrivals are likely to cross pre-Covid levels next year while looking to continue its significant contribution to the country's economy and make 'India inevitable'. The sector, which is poised to contribute USD 1 trillion to India's economy by 2047, however, is looking up to the government for policy interventions, such as unified licensing, workforce upskilling, and targeted infrastructure investments to enable the vertical meet demand generated by India's drive towards becoming the world's third largest global economy.

"India aims to become the third-largest economy by 2047, and the hospitality sector is set to play a pivotal role in achieving this goal. The sector's multiplier effect on the economy surpasses that of manufacturing and agriculture," Hotel Association of India (HAI) President KB Kachru told PTI.Asserting that the future of the hospitality industry looks promising, he said, "There is an expectation of higher occupancies and average room recoveries". Citing a report by IBEF, Kachru, who is also the Chairman of South Asia at Radisson Hotel Group, said, "India's travel market is projected to grow from an estimated USD 75 billion to USD 125 billion by FY27. Additionally, the total number of international tourist arrivals in India is expected to reach 30.5 million by 2028". A boom in domestic travel in the past couple of years has helped the hospitality industry traverse an accelerated growth path.

However, international tourist arrivals to India have been lower compared to the pre-Covid times, which has been a cause of concern for the industry. Kachru, however, said the inbound tourism segment is also showing signs of steady recovery and is likely to reach pre-Covid levels early next year. Expressing similar bullishness, Indian Hotels Company Ltd (IHCL) MD and CEO Puneet Chhatwal said India will continue to be among the fastestgrowing major economies on its path to becoming the world's third largest global economy.

"The improved connectivity has fuelled the growth of hotels and resorts and the development of tourism in new areas," he added. "2024 has been a milestone year for India's hospitality and tourism sectors," Shetty added.