TeamLease’s Employment Outlook Report for HY2 FY2024-25 highlights an 8.2% net employment change in the travel and hospitality sector, with 66% of surveyed companies planning workforce expansion. Growth is driven by smart tourism technologies, MICE revival, and sustainable practices, creating demand for skilled professionals in areas like sustainability coordination and smart travel design. 

Jammu and Kashmir’s Sustainable Promotion of Emerging Alternate Destination (SPREAD) initiative seeks multilateral funding to develop alternate tourism destinations and ease overcrowding. “We aim to distribute tourist traffic evenly and ensure sustainable growth by adhering to global standards,” said Lt Governor Manoj Sinha. The initiative focuses on creating equitable opportunities while promoting sustainable tourism across the region. 

Suresh Khadakbhavi, CEO, Digi Yatra Foundation, said, “The travel and tourism industry remains a critical economic driver, contributing $178 billion to GDP.” With the market projected at $125 billion by FY 2027, he stressed, “Technology is key to growth, and this year’s budget must focus on innovation and seamless customer experiences.” 

The hospitality sector needs critical reforms, including infrastructure status, tax rationalisation, streamlined visa processes, and state-level investment incentives, said KB Kachru, President, HAI. “We need to market India in a much better way to unlock its full potential,” he added, emphasising these measures to boost global competitiveness and attract investments. 

According to UN Tourism, global tourism reached 1.4 billion international arrivals in 2024, achieving 99% of pre-pandemic levels. This represents an increase of 11% over 2023, or 140 million more international tourist arrivals, fuelled by strong post-pandemic demand, robust performance from large source markets, and the ongoing recovery of destinations in Asia and the Pacific.   

New research by SHR reveals that hotels allowing Online Travel Agents (OTAs) to undercut their rates pay nearly 50% more for PPC leads. An analysis of 27 million CPC impressions shows that hotels pay an average of 47% more per click compared to offering the lowest rate on their own website. 

In 2024, 715 deals, including mergers, acquisitions, private equity, and venture financing, were announced globally in the travel and tourism sector, marking a 4.3% decline from 747 in 2023, according to GlobalData. The UK, India, and Japan saw growth in activity by 10.8%, 36%, and 45.7%, respectively. 

A Rs 150 crore tourism development project, approved by the Asian Development Bank (ADB), has been launched in Manali to enhance tourism infrastructure and create new facilities. Sukhvinder Singh Sukhu, Chief Minister, Himachal Pradesh, announced the initiative, aimed at boosting the region’s appeal as a key tourist destination. 

The Bihar government has initiated the development of three new five-star hotels in Patna to meet the rising demand from tourists and support the state’s industrial growth. These hotels aim to boost economic activity and create new employment opportunities. The construction will focus on state-of-the-art facilities while prioritising the preservation of heritage.

The Federation of Hotel & Restaurant Associations of India (FHRAI) has called on the government to introduce reforms in the 2025-26 Union Budget to support the hospitality and tourism sectors. A key recommendation from the association is granting infrastructure status to hotel and convention centre projects with investments of INR 10 crore or more.