What’s Driving Growth for India’s Hotel Industry? – India Report
Photo Credit: The Indian hotel industry is expected to grow at an annual rate of nearly 14%. Pixabay / Davidlee770924
Skift Take
Tourism in India is growing, especially from domestic travelers. This is leading to a robust demand for accommodation across the country. But the India hotel industry needs to provide enough supply.
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The hotel industry in India is estimated to reach around $247 billion in 2024, and projected to hit $475 billion by 2029, according to market research firm Mordor Intelligence. That's an annual growth rate of nearly 14%.
Now, a new report from the India Brand Equity Foundation (IBEF) highlights the factors that will drive this growth:
Rising Disposable Income: With the Indian middle class growing and having more spending power, domestic tourism is increasing, leading to a growing demand for hotel accommodations. Development of Infrastructure: India is getting airports, highways, and other transportation infrastructure expansion. This is improving connectivity to various tourist destinations. MICE Tourism: International conferences such as the G20 Summit last year, corporate events, and trade shows are being organized in the country. Several dedicated spaces for MICE events, such as the Bharat Mandapam, Yashobhoomi, and Jio Convention
