Hotel Industry Likely To Contribute $1.5 Trillion To GDP By 2047: Report

The Indian hotel industry, which showcases immense growth opportunities, is poised to contribute $1,504 billion to the country’s overall GDP by 2047, according to a report by Hotel Association of India (HAI), as cited by Livemint.

The report further forecasted that the demand for hotels will increase over the next 25 years, however, the supply will grow in the same ratio if there remains a continuous development plan for the pipeline and new projects.

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The growth of the overall hospitality industry is projected to be 11%, 13%, and 15% in the short, mid, and long term, as per the report. The growth contribution includes industry verticals such as food and beverages, salon & spas, etc.

According to the HAI report, the hotel industry’s direct contribution to the GDP was $40 billion in 2022 and is further expected to reach $68 billion by 2027, and $1 trillion by 2047.

However, the travel and tourism and hospitality sector will need policy support, including but not limited to ease of doing business and infrastructure status, in order to reach the $3 trillion mark by 2047.

The report further highlights that there is an urgent need for a robust tourism policy structure, a rise in national and international tourist footfalls and 100% FDI.

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“Different states have different policies when it comes to tourism, while some have given the sector an industry status, others have not. We do not understand why because it doesn’t cost states money to do this,” Madan Prasad Bezbaruah, HAI’s secretary general and former secretary of the Ministry of Tourism.

The report further added that the infrastructure status to hotels will facilitate long-term loans at competitive interest rates thereby boosting the industry’s growth.