India's tourism sector set to cross $59 billion by 2028: Capitalmind PMS

New Delhi [India], August 17 (ANI): India's tourism sector is witnessing a rapid growth surge, with projections indicating the industry will generate over Rs 5,12,356 crore (USD 59 billion) by 2028, according to a new report released by Capitalmind PMS.
The report cites rising disposable incomes, enhanced connectivity, and infrastructure improvements as key growth enablers.
Domestic tourism is expected to double from 2.5 billion visits in 2024 to 5.2 billion by 2030, growing at a CAGR of 13.4 per cent.
However, the report highlighted that India's tourism and hospitality sector, while a key GDP driver, still trails global peers--2 per cent below the US and 4 per cent below Thailand in contribution to GDP.
As per the report, domestic visitor spending is projected to reach Rs 33.95 trillion by 2034, up from Rs 14.64 trillion in 2023, reflecting a CAGR of 7.9 per cent, per the WTTC's Economic Impact Research 2024.
Domestic air passenger traffic is also set to more than double from 307 million in FY24 to 693 million by FY30, the report added.
In 2023, Domestic Tourist Visits (DTVs) increased by 44.98 per cent year-on-year to 2.5 billion. Uttar Pradesh led with 478.53 million visits, followed by Tamil Nadu at 286.01 million. Maharashtra and Gujarat saw the highest number of Foreign Tourist Arrivals (FTAs), at 3.39 million and 2.81 million, respectively.
Total FTAs reached 18.89 million in 2023, a 5.47 per cent increase over the pre-pandemic peak in 2019. Key source markets included South Asia (29.02 per cent), North America (21.82 per cent), and Western Europe (20.40 per cent).
The hospitality sector in India currently has 3.4 million hotel keys, of which only 11 per cent fall under the organized sector. Luxury hotels account for 17 per cent of branded properties, highlighting a significant demand-supply gap in premium offerings. Average occupancy in the luxury segment stands at 60-70 per cent, with Total Revenue per Available Room (TRevPAR) 117 per cent higher than upscale and 298 per cent higher than midscale categories.
India's aviation market has expanded significantly, with 148 operational airports in 2024, aiming for 220 by 2027. Scheduled flights reached 1.3 million in 2024, a 77.7 per cent increase over the past decade.
Weddings, MICE events, and luxury F&B have emerged as strong revenue streams. In late 2023, 3.8 million weddings generated INR 4.74 lakh crore. India sees around 10 million weddings annually, making it the second-largest wedding industry globally.
Corporate travel is also driving demand, with gross office leasing reaching a record 89 million square feet in 2024. The growth of Global Capability Centers has contributed significantly to this trend, the report added. (ANI)