India's tourism industry's unprecedented growth boosting investor confidence: Report

New Delhi [India], February 9 (ANI): India's tourism sector, which shattered records in 2023-24, is demonstrating further growth in the current financial year, the hospitality consulting firm Hotelivate said in a report.
In 2023-24, India's hotel inventory grew significantly to 180,403 rooms, marking a 9.2 per cent year-on-year increase.
This expansion was notable not only in major cities such as Mumbai, Bengaluru, and Delhi, but also in growing markets like Dehradun, Jaipur, and Navi Mumbai.
The strong hotel network in other regions suggests a dynamic shift, driven by increased business travel, leisure tourism, and marquee events - cricket, and international conferences, the consulting Hotelivate said.
Demand from Meetings, Incentives, Conventions and Exhibitions (MICE) is also supporting the tourism industry.
Mumbai, New Delhi, and Bengaluru dominate the landscape, benefiting from a strong mix of MICE and corporate travel. These cities show high room revenue per key, indicative of premium pricing and strong occupancy rates. Mumbai saw a substantial increase in room revenue, growing by over 61 per cent year-on-year, solidifying its lead as the top city for room revenue.
"This widespread expansion indicates strong investor confidence and rising demand across multiple segments of India's hotel industry," the report read.
The surge in domestic tourism post-COVID has encouraged travellers to explore Tier 1 and Tier 2 cities, attracting heightened interest from investors eager to develop these areas.
As a result, emerging destinations are gaining visibility, becoming attractive not only for leisure and business travel but also for investment and development opportunities.
Hotelivate's 'Trends and Opportunities' report primarily focuses on the top 20 hotel markets in India.
However, it is important to highlight several additional towns and cities that have captured the attention of hotel developers and operators over the past year. Hotelivate has conducted various studies in the Northeastern states, including key destinations such as Guwahati, Shillong, Gangtok, Siliguri, and Makaibari, along with several pristine tea estates and scenic trails.
Among smaller towns attracting developer interest, Indore, Bhopal, Nagpur, Jodhpur, Chikmagalur, and Thiruvananthapuram emerged as notable contenders.
In India, sports tourism and cruise tourism are also gaining steam.
According to UN Tourism, sports tourism is projected to grow at a rate of 17.5 per cent between 2023 and 2030. In response to this rising demand, stadiums and sporting venues are enhancing their facilities with hospitality features to accommodate larger crowds.
India's cruise tourism industry is experiencing a remarkable surge with a record-breaking 4,70,000 passengers in the 2023-24 financial year.
This growth is fuelled by the increasing popularity of domestic itineraries like Mumbai-Goa and Lakshadweep, as well as international cruises to Sri Lanka.
"Despite its potential, cruise tourism has been a niche segment in India's travel industry. The industry currently faces significant infrastructure challenges," the report asserted. Only 6 out of 229 ports can accommodate large cruise ships, limiting the industry's growth potential, it noted. (ANI)