Hospitality industry leaders believe Prime Minister Narendra Modi’s recent call to reduce overseas spending and prioritise domestic consumption could provide a fresh boost to India’s tourism and hospitality sector, particularly across luxury travel, experiential stays, and premium leisure segments.
According to a report published by CNBC-TV18, Indian Hotels Company Ltd (IHCL) Managing Director and CEO Puneet Chhatwal said the development could strengthen the “Apna Desh” sentiment and encourage affluent Indian travellers to spend more within the country. He noted that themes such as “Make in India, Heal in India, and Wed in India” could further support hospitality growth while also enhancing India’s positioning among international visitors.
Industry stakeholders, however, indicated that it remains too early to fully assess the long-term impact of the Prime Minister’s remarks amid ongoing geopolitical and economic uncertainty. Chhatwal added that business trends across IHCL properties continue to remain stable, with May and June bookings showing positive momentum.
Echoing similar optimism, Anuraag Bhatnagar, CEO and Whole-Time Director of The Leela Palaces, Hotels and Resorts, said the domestic travel market was already witnessing strong seasonal demand, which could further accelerate if outbound discretionary spending moderates.
Bhatnagar highlighted that affluent Indian outbound travellers currently outnumber inbound international tourists by nearly three times, presenting a significant opportunity for the domestic hospitality ecosystem.
The conversation also underlined the growing importance of India’s experience economy. Rahul Ganjoo, CEO of District by Zomato, said demand for out-of-home experiences and urban lifestyle consumption continues to expand, creating larger opportunities for hospitality, dining, and entertainment-led businesses.
Hospitality companies are increasingly diversifying their offerings across luxury, upscale, midscale, and experiential segments to cater to evolving traveller preferences. Chhatwal noted that IHCL continues to expand beyond the Taj brand to address India’s broad and fast-growing travel market, while maintaining luxury hospitality as a core growth pillar.
