The Indian hospitality sector for the year 2023 is expected to be a key contributor to the country's GDP growth. According to a study, the hospitality industry will witness a travel surge across both inbound and outbound segments.
Industry statistics state India is expected to grow at a CAGR of 3.7% from 2018-2023. In 2019, the Indian hospitality sector accrued revenue of US$ eight billion while employing over 1.3 million people.
In an interaction with ABP Live, hospitality industry expert, Chander K Baljee, Chairman and Managing Director, Royal Orchids & Regenta Hotels Ltd, said that there has been further impetus owing to increased inbound and domestic travel. Forecasts suggest that the Indian hospitality sector is projected to grow at a rate of five per cent this year, with an anticipated increase of seven per cent in 2023 coupled with travel spending on the rise and expected to grow at a rate of five per cent.
Going by numbers, 2019 witnessed over two million tourists travelling overseas. Following the trend, the number of tourists traveling abroad is expected to increase by eight per cent annually from 2021 - 23. This growth can be attributed to increased awareness about India as an attractive tourist destination for international travellers. The next segment is a boost of Foreign Direct Investment (FDI), especially in the hospitality industry since 2017. This is coupled with more proactive government support and smoother legislative frameworks governing the sector across states.
In a post-pandemic world, the Indian traveller is now looking at exploring India in all its glory. There is increased spend by domestic tourists, especially on domestic services such as air travel, hotel rooms, and car rentals among many others. This has further aided the industry over the past few years.
The Tourism Boom:
The Indian tourism and hospitality industry is on a positive growth path owing to the fact that Indians now want to explore more and experience a destination. The industry has been growing steadily over the past five years and is expected to grow even further in the years to come. As per government statistics, in 2020, it was estimated that there would be over 50 million visitors arriving in India, with an estimated expenditure of US$ one billion.
"The impact of growth in the tourism sector has played positively for the hospitality industry too. Looking at the past decade, the number of hotels has risen from 5,000 to 20,000 and more than 1.5 million people are expected to travel within the country each day by 2030," said Chander K Baljee.
"The domino effect across different segments of the industry has meant well for three key sectors – Inbound, Outbound and Overseas travel. Industry research states that outbound travel is expected to grow by three per cent by 2023. This growth will be driven by increased interest in international travel as well as domestic travel within India. Inbound tourism on the other hand is expected to grow at a rate of two per cent per year between now and 2023. This growth will be propelled by the newfound experiences driving tourists. Today, travellers are looking for different aspects of the destination and are no more confined to just attractions," he added further.
Finally, international travel which is expected to grow at a rate of two per cent until 2023 is also slowly on the rise as more off-beat destinations are opening up for tourists.
"Today, travellers are looking to take back something from a destination be its local cultures, cuisines or even a traditionally made artisan craft," Chander K Baljee remarked.