The direct contribution of the domestic hotel industry to India’s GDP was $40 billion last year, and it is projected to reach $68 billion by 2027. According to the ‘Vision 2047: Indian Hotel Industry’ report by the Hotel Association of India (HAI) and Benori Knowledge, by 2047, the industry’s contribution to the GDP will surpass $1 trillion. This substantial growth is expected to be driven by an increase in domestic tourist visits and international arrivals.
The report emphasizes the need for the hotel industry to expand beyond metropolitan areas and venture into tier-two and tier-three cities, as well as rural regions, to achieve this target. However, it clarifies that the estimated total contribution includes related services from sectors such as food and beverage, salon and spas, while excluding scenario-based contribution estimates from the services market growth.
The projected growth can be attributed to several factors, including the overall GDP growth, an increase in domestic tourist inflow, rising income levels, and foreign tourist arrivals (FTA). The hotel industry’s expansion and development will play a vital role in supporting and leveraging these factors.
For more information, please read the full article [here](https://www.cnbctv18.com/business/domestic-hotel-industry-estimated-to-contribute-1-trillion-dollars-to-india-gdp-by-2047-report-17582511.htm).
