The travel and tourism industry in India is experiencing significant growth, with projections indicating that it will generate revenue of nearly $24 billion in 2024. This growth is fueled by an estimated annual growth rate of 9.6% between 2024 and 2028, with the industry expected to reach a market volume of $34.25 billion by 2028.
In 2023, the tourism industry in India recorded a revenue of about $20 billion, with hotels accounting for the largest share of revenue. However, in 2024, package holidays are expected to become the biggest revenue generator, with the package holidays market projected to reach 65 million travelers by 2028.
To further boost tourism, India has announced 100% foreign direct investment in tourism-related ventures and is making efforts to preserve heritage sites and enhance tourism infrastructure. This includes improving road, rail, and air transportation infrastructure, developing new highways, superfast trains, and regional airports to make travel more convenient and inland destinations more accessible.
In recent news, Radisson Hotel Group has opened its first hotel in Odisha, marking its entry into the region. The 100-room resort in Gopalpur, Odisha, is part of Radisson’s focus on tier 2 and 3 cities in India. Additionally, Fly91, India’s newest airline, is expanding its network to include two more destinations, with plans to enhance regional connectivity in the country.
ITC Hotels has also opened a new property in Himachal Pradesh under the Storii brand, catering to experiential travelers. The expansion of Delhi airport’s terminal T2 into an all-international terminal has been delayed until April 2025 to better handle international traffic. Lastly, EaseMyTrip subsidiary Spree Hospitality has opened a boutique hotel in McLeod Ganj, further expanding its portfolio of properties across India.