According to a survey by the Hotel Association of India (HAI), the Indian hotel business has enormous growth potential and is expected to contribute $1,504 billion to the GDP of the entire nation by 2047, up from $65 billion in 2022. Over the following 25 years, it predicts an increase in hotel demand. If there is still a plan for ongoing pipeline development and new projects, however, supply will increase in the same proportion.
The association projected that the hospitality industry will rise by 11%, 13%, and 15% during the short, mid, and long term, respectively. Aspects of services from comparable industry verticals like food and beverage, salons and spas, etc. are included in the total contribution. The hotel sector’s direct GDP contribution was $40 billion in 2022, and it is anticipated to increase to $68 billion by 2027 and $1 trillion by 2047.
The report emphasised the need for governmental support for the tourist and hospitality sectors to meet the $3 trillion economic target by 2047, including but not limited to the ease of doing business and infrastructural status. A strong tourism policy framework, an increase in domestic and foreign visitor numbers, and 100% foreign direct investment are urgently needed, it claimed.
According to Madan Prasad Bezbaruah, the secretary general of HAI and a former secretary in the ministry of tourism, policies and the ease of doing business will be crucial in determining how the tourist industry develops.
Bezbaruah said within the tourism and hospitality sector, 30 key segments had been identified by the government which are important for the sector to function properly to reach its desired size.
“Different states have different policies when it comes to tourism. While some have given the sector an industry status, others have not. We do not understand why because it doesn’t cost states money to do this,” he said. The report added that granting infrastructure status to hotels will facilitate long-term loans at competitive interest rates, thereby boosting the industry’s growth.
Source : The Mint