India’s tourism and hospitality industry is on track to achieve nearly USD 60 billion in revenue by 2028, signaling a transformative growth phase for the sector. Reports from IBEF, Capitalmind PMS, and industry trackers highlight that the surge is fueled by rising domestic travel, robust infrastructure investments, and the booming demand for premium and experiential hospitality.
According to industry estimates, the sector is expected to generate more than INR.5.12 lakh crore in revenue by 2028, with foreign tourist arrivals projected to exceed 30.5 million. The real game-changer, however, is domestic tourism, which is forecast to double from 2.5 billion trips in 2024 to 5.2 billion by 2030, growing at a strong CAGR of 13.4%. Travel experts note that weekend getaways, regional tourism, and enhanced connectivity are reshaping consumer behavior, creating year-round demand across destinations.
The hospitality sector is witnessing unprecedented momentum, particularly in the premium and luxury segments. Out of India’s 3.4 million hotel rooms, only 11% fall under the organized sector, leaving immense scope for expansion. Weddings and curated events are emerging as powerful drivers, with nearly 3.8 million weddings in just two months of 2023 generating INR.4.74 lakh crore for hotels, event managers, and allied industries. Luxury resorts in Goa, Rajasthan, and Kerala are seeing strong demand from both affluent domestic travelers and international guests seeking high-end, personalized stays.
At the same time, wellness, local immersion, and sustainability are becoming key focus areas for resorts and hotels. Travelers today are seeking holistic and authentic experiences ranging from wellness retreats to cultural immersion creating demand that extends beyond traditional peak seasons. The rise of millennials and Gen Z as the most active travel cohorts is also fueling this shift, as younger travelers increasingly prefer eco-stays, community-led tours, adventure activities, and offbeat festivals.
The growth outlook is further strengthened by the government’s infrastructure push, including airport expansions in tier-2 and tier-3 cities, expressway and highway upgrades, and modernization of the railway network. Flagship initiatives like Dekho Apna Desh and Swadesh Darshan are spotlighting India’s cultural richness and boosting both domestic and inbound tourism.
With a powerful combination of domestic momentum, luxury-driven hospitality, and experiential travel trends, India’s tourism and hospitality industry is set to emerge as a global leader by 2028, offering unparalleled opportunities for investors, operators, and travelers alike.
