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25th August 2025- India’s tourism and hospitality industry is entering a new era of opportunity, with revenues projected to touch nearly USD 60 billion by 2028. According to reports from IBEF, Capitalmind PMS, and industry trackers, the sector is benefiting from a sharp rebound in domestic travel, robust infrastructure investments, and growing demand for premium and experiential stays.
Unprecedented Domestic Momentum
The Indian Brand Equity Foundation estimates that the sector will generate over ₹5.12 lakh crore in revenue by 2028, with foreign tourist arrivals expected to cross 30.5 million. Equally significant is the domestic surge, with annual trips projected to rise from 2.5 billion in 2024 to 5.2 billion by 2030, reflecting a healthy CAGR of 13.4%.
“Domestic travellers are exploring beyond annual vacations, with weekend getaways and regional tourism becoming mainstream. This shift, supported by enhanced connectivity, is creating steady demand across destinations,” said Amit Garg, Director, Garg Holidays.
Premium Hospitality & Weddings Drive Growth
India has approximately 3.4 million hotel rooms, yet only 11% fall under the organized sector, leaving substantial room for expansion. Demand for high-quality accommodations is rising sharply, particularly in leisure hubs like Goa, Rajasthan, and Kerala, where weddings and curated social gatherings are fueling year-round revenues.
Pramod Kumar Patra, Director of Sales and Marketing, JW Marriott, Vagator, highlighted the luxury trend: “India’s luxury travel segment is evolving at a rapid pace. In destinations like Goa, we are witnessing strong demand not just from international guests but also from affluent domestic travelers seeking high-end, personalized stays. Weddings and curated events are becoming powerful drivers of occupancy and revenues for the premium hospitality sector.”
The scale of the opportunity is evident in the fact that nearly 3.8 million weddings between November–December 2023 generated ₹4.74 lakh crore in business for hotels, event managers, and allied industries.
Year-Round Destination Experiences
Resorts and hotels are also reimagining their offerings to match evolving traveler expectations. Beyond comfort and leisure, there is a growing focus on wellness, local immersion, and sustainability—trends shaping the future of the industry.
Miguel Rebello, General Manager, Mandrem Beach Resort by Radisson, observed: “Today’s travelers are looking for holistic experiences that combine comfort with authenticity. Resorts are responding by integrating local culture, wellness, and sustainability into their offerings. In Goa, this has created a year-round demand cycle, far beyond just the traditional peak season.”
Youth & Experiential Travel Fuel Expansion
The rise of millennials and Gen Z as the most active travel cohorts is also reshaping demand. These travelers prioritize immersive and authentic experiences—whether it’s trekking hidden trails, attending tribal festivals, or engaging in local crafts. Digital platforms are accelerating discovery and bookings for such offbeat experiences.Tithi Garg, Founder of Tytlees.com, explained: “Young travelers are not just booking holidays, they are curating stories. They want trips that reflect their lifestyle and values—eco-stays, community-led tours, or wellness retreats. This appetite for experiential travel is expanding the industry beyond conventional tourism.”
Infrastructure Push Strengthens Outlook
The government’s ongoing infrastructure drive—including airport expansion in tier-2 and tier-3 cities, highway upgrades, and rail modernization—is opening up new destinations. Initiatives like Dekho Apna Desh and Swadesh Darshan are further boosting domestic travel and spotlighting India’s cultural diversity on the global stage.
The Road Ahead
With revenues projected to reach USD 60 billion in just three years, India’s tourism and hospitality sector is set to become a powerhouse of economic growth and employment. The combination of organized hospitality expansion, rising disposable incomes, and a cultural shift toward travel as a lifestyle is transforming the industry.
“In the coming years, India won’t just be seen as a destination—it will position itself as an experience economy,” added Amit Garg. “For operators, hotels, and startups alike, the opportunities are unprecedented.”