The hospitality industry is witnessing a significant boost in operating performance, fueled by strong demand from corporate travel, Meetings, Incentives, Conferences, and Exhibitions (MICE), live events, and a vibrant wedding season, according to a report by Antique Stock Broking Limited.
The sector has experienced sharp increases in Average Room Rates (ARRs) and occupancy levels, with industry experts predicting continued growth. “The hospitality industry should maintain strong performance, aided by corporate demand and large-scale events,” the report noted.
Medium-term growth is expected to benefit from sustained demand-supply imbalances and new hotel additions, driving a Compound Annual Growth Rate (CAGR) of 10.4% from FY24 to FY29, outpacing supply growth at 9%.
In FY23, tourism’s contribution to GDP rebounded to 5%, creating 7.6 crore jobs. International tourist arrivals (ITAs) also returned to pre-pandemic levels, with India receiving 1.8% of global tourism receipts and ranking 14th in world tourism earnings.
With shifts in consumer preferences, rising disposable incomes, and increased travel spending, the hospitality sector is poised for sustained growth. Executives anticipate continued rate growth momentum driven by large-scale events, conferences, and weddings, solidifying the industry’s long-term prospects.
