Report forecasts Indian hotel industry’s $1 trillion GDP contribution by 2047
According to a report, the Indian hotel industry is set to make a direct contribution of $1 trillion to the nation's GDP by 2047, linked to a notable surge in both domestic tourism and international arrivals.
A report by the Hotel Association of India (HAI) and Benori Knowledge indicates that the Indian hotel sector is projected to make a direct contribution of $1 trillion to the country’s GDP by 2047. This growth is linked to the rise in domestic tourism and international visits. The “Vision 2047: Indian Hotel Industry” report outlines that the hotel industry’s direct GDP contribution was $40 billion in 2022 and is expected to climb to $68 billion by 2027.
The report further highlighted the potential to achieve a $1 trillion contribution by 2047. The hotel industry association emphasized that to attain this objective, growth needs to extend beyond metropolitan areas and encompass second- and third-tier cities, along with rural regions.
The report acknowledged that the overall contribution considers services from related business sectors like food and beverage, salons, and spas. However, it does not factor in speculative estimations regarding service market expansion. The report attributes the projected increase to factors such as GDP growth, increasing income levels, and higher numbers of domestic and international visitors.
The report forecasts an increase in domestic tourist visits from 677 million in 2021 to 1.5 billion by 2030, and an even greater surge to 15 billion by 2047 in the long term (2037-2047). In terms of international visitors, the survey predicted 1.5 million arrivals in 2021, followed by 15 million by 2024 and 25 million by 2030. The projection further indicates a significant growth, attracting 100 million tourists by 2047.
The report suggests that these factors have created fresh opportunities in the tourism and hospitality industries. According to HAI Secretary General M P Bezbaruah, technology, environmental and social sustainability, support from policymakers, and macroeconomic conditions will play crucial roles in shaping these prospects.
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