Hotel industry's contribution to India's GDP to hit USD 1 trillion by 2047: HAI

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The direct contribution of Indian hotel industry to the country’s GDP is estimated to touch USD 1 trillion by 2047 driven by a significant jump in domestic tourist visits and international arrivals, according to a report. As per ’Vision 2047: Indian Hotel Industry’ report by the Hotel Association of India (HAI) and Benori Knowledge, the direct contribution of the hotel industry to GDP was USD 40 billion in 2022 and is expected to reach USD 68 billion by 2027. As per ’Vision 2047: Indian Hotel Industry’ report by the Hotel Association of India (HAI) and Benori Knowledge, the direct contribution of the hotel industry to GDP was USD 40 billion in 2022 and is expected to reach USD 68 billion by 2027.

By 2047, it will reach around USD 1 trillion, it added. The hospitality industry body also pointed out that for the sector to achieve its target, the accommodation growth will have to go beyond the metros to two and three-tier cities and also to the rural areas. The hospitality industry body also pointed out that for the sector to achieve its target, the accommodation growth will have to go beyond the metros to two and three-tier cities and also to the rural areas. The report, however, clarified that the total contribution includes aspects of services from corresponding industry verticals such as food and beverage, salon & spas but excludes consideration of services market growth and thus taking out scenario-based contribution estimates. According to the report, the estimated growth can be attributed to factors such as GDP growth and increase in income level, increase in inflow of domestic tourists and foreign tourist arrivals (FTA).

According to the report, the estimated growth can be attributed to factors such as GDP growth and increase in income level, increase in inflow of domestic tourists and foreign tourist arrivals (FTA). In the mid-term (2027-2037), domestic tourist visits are expected to increase from 677 million in 2021 to 1.5 billion by 2030 and are further expected to jump to 15 billion by 2047 in the long term (2037-2047), it added. As for foreign tourist arrivals (FTAs) in India, the report said these are projected to increase from 1.5 million in 2021 to 15 million by 2024, and touch 25 million by 2030 and ”are further projected to grow attracting 100 million tourists by 2047”. As for foreign tourist arrivals (FTAs) in India, the report said these are projected to increase from 1.5 million in 2021 to 15 million by 2024, and touch 25 million by 2030 and ”are further projected to grow attracting 100 million tourists by 2047”. ”The number of domestic and international tourists visiting various states in India for business and recreational reasons is rapidly increasing.

All these factors have created new opportunities in tourism and the hospitality industry,” the report said. While macroecnomic factors, technology, environment and social sustainability, and policy support will be important factors, HAI Secretary General M P Bezbaruah told While macroecnomic factors, technology, environment and social sustainability, and policy support will be important factors, HAI Secretary General M P Bezbaruah told PTI.