India’s tourism economy has entered a transformative phase, shifting from a heritage-driven, foreigner-focused model to one powered by domestic demand, business events, youth-led experiences, and spiritual
journeys. The change is both cultural and economic, marking a new chapter in how Indians travel, spend, and reimagine hospitality.
The Rise of Domestic and Spiritual Tourism
“Before the pandemic, India’s tourism was about foreigners chasing heritage: Taj Mahal, forts, palaces. That engine has flattened. Post-pandemic, the real pillars are domestic and business-driven,” says Sahil Pandit, Founder and CEO, Promiller Group.
He points to a surge in weddings moving from private farms to hotels, as well as MICE (Meetings, Incentives, Conferences, Exhibitions) and corporate off-sites growing nearly 40% since 2020, now worth over ₹50,000 crore. “Gen Z and millennials, restless by nature, are spending on boutique stays, mountains, and Instagrammable escapes. And now spiritual tourism is exploding – Ayodhya, Varanasi, Kedarnath, Puri, Tirupati – these places are pulling crowds like never before,” he adds.
Innovation Beyond Guest Experience
While the demand side is diversifying, business innovation is reshaping the industry’s backbone. Sanjiv Agarwal, Chairman and CEO, Fairfest Media, explains: “Hospitality and business innovation are the new pillars of India’s tourism economy, going beyond guest experiences. Hospitality continues to be the anchor with trust, comfort and cultural richness. On the other hand, business innovation is enabling enterprises to operate smarter, scale faster and adapt to changing market realities.”
Agarwal highlights how the convergence of these two forces is creating sustainable business models and stronger industry ecosystems. “The next phase of tourism growth will be defined by those who integrate hospitality with innovative practices, be profitable and relevant in the long term,” he says.
Building an Economic Powerhouse
The numbers underscore this confidence. Kumar Pandey, Chief Strategy Officer, Hostbooks, notes: “The tourism and hospitality sector in India is becoming part of an economic force with projections estimating it will contribute over Rs 22 lakh crore to GDP in 2025 and support over 48 million jobs.”
Pandey adds, “Multiple records of international visitor spend and the growth of domestic demand demonstrate the increasing maturity and resilience of the sector.”
India’s tourism story is no longer confined to monuments and foreign visitors. It is being rewritten by domestic travellers, fuelled by business events, spiritual journeys, and innovation across hospitality. The road ahead belongs to those who can combine tradition with technology, culture with commerce, and experience with efficiency – setting global benchmarks for tourism excellence.
