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.

India remains a key source market for Singapore, and Kean Bon LIM, Area Director-India, South Asia, Africa, Singapore Tourism Board, shared insights into their 2025 plans to draw more Indian travellers. “We have a three-city roadshow planned for February in Chandigarh, Mumbai, and Bangalore to further engage with Indian travellers and promote Singapore as a preferred destination,” he said.

The TAFI Convention 2025 has concluded in Ninh Binh province of Vietnam. Ajay Prakash, President, TAFI, said, “We hope that after this convention, while the number of Indian tourists continues to grow, Ninh Binh will see a greater number of tourists because it is a perfect destination for Indians.”

Gajendra Singh Shekhawat, Minister of Tourism highlighted the crucial role of the private sector in driving the growth of tourism. “The tourism sector, wherever in the world, has grown. The private sector’s initiatives and contributions play a vital role. So, in India as well, looking at the growth and potential of the tourism sector, the investment by the private sector is much solicited” he said. 

Arjun Sharma, Chairman, Select Group, said, “The industry must recognise that the high prices of hotels in India are considered normal on a global standard. Certain markets seek lower pricing; however, high prices are not a major concern as long as they are backed by exceptional service. The Indian hospitality sector consistently ranks among the top globally in terms of service quality. Thus, it is evident that the sector still has considerable scope for further growth in average daily rates (ADR).” 

Suman Billa, Additional Secretary, Ministry of Tourism, emphasised the need for fundamental reforms to boost India’s tourism sector. “We need to widen the infrastructure status, which will provide lower interest rates and longer repayment tenures for hotel properties. This needs to be addressed through coordination between the Ministry of Finance and the RBI. Currently, this is limited to destinations with populations under 1 million. We need to expand this, as without altering the capital structure, investments from private equity and funds will not flow in.” 

According to HVS Anarock, November 2024 saw most major markets record an increase in Average Room Rates (ARR) compared to the previous year, except Ahmedabad and Kolkata. Mumbai led the market with the highest ARR of INR 13,500-15,000, while Hyderabad posted the most notable growth, with a 28-30% year-on-year increase. 

Rajiv Mehra, President, IATO, said, “By 31 March 2025, we should achieve the same arrival figures we had in March 2020. Thereafter, we can focus on increasing those numbers further. Hotel rates should stabilise, airfare should stabilise, and the Government of India should immediately begin promoting tourism abroad through both print and electronic media to attract more business.” 

As per ixigo, domestic airfares to popular mountain destinations have surged due to rising demand. Flights from Mumbai to Dehradun saw a 13% increase in fares, while New Delhi to Srinagar fares jumped by 18%. Jammu emerged as a hot destination, with bookings up by 147% year-over-year (YoY).