The hospitality sector witnessed a robust recovery on Monday as India and Pakistan agreed to cease military actions across land, air, and sea. This development, effective from May 10, has rekindled optimism in the industry, with hotel stocks such as Indian Hotels and Chalet Hotels surging by up to 10%.
The de-escalation follows days of heightened conflict, including India’s ‘Operation Sindoor’ targeting terror infrastructure in Pakistan. As a precaution, over 450 domestic flights were canceled, and 20 airports, including those in Srinagar, Leh, Amritsar, and Shimla, were temporarily closed. These disruptions severely impacted hotel bookings and event schedules, especially in northern India.
Investor confidence soared further after the government allowed operations at 32 airports that had been shut during the military standoff. The reopening of these hubs, coupled with the easing of tensions, is expected to revive domestic and inbound travel. Hotels anticipate a surge in occupancy rates as corporate travel, leisure tourism, and event bookings pick up pace.
The aviation and hospitality industries, both critical to tourism, are seen as key beneficiaries of the ceasefire. Industry leaders are optimistic about regaining momentum after a challenging period marked by cancellations, revenue losses, and operational slowdowns.
source : Money Control
