Citing that rising prices and weak inbound demand are affecting tourism growth, industry leaders caution that without urgent alignment and execution, India faces the risk of losing ground to more competitive global destinations.
Janice Alyosius
Industry leaders, speaking at the 2nd ICC Aviation & Tourism Conference 2026, acknowledged that while the Indian tourism industry is resilient and expanding, it is still “not where India should be” on the global tourism map. Addressing concerns that India is becoming an expensive destination, KB Kachru, President, Hotel Association of India (HAI), said, “We are not priced high, but are we priced right? That is what we have to see,” he said, pointing to rising operational costs across the sector. He highlighted a critical imbalance — India currently has fewer than 200,000 hotel rooms against a demand exceeding one million. “That is the reality… unless there is demand and supply balance, pricing pressures will remain,” he noted. Kachru also emphasised the shift beyond metro cities, noting that by 2030, nearly 93 per cent of tourism business is expected to come from non-metro regions. This decentralisation, while promising, requires coordinated development.
Earlier, moderating the session, SanJeet, Director, DDP Publications, set the tone by raising a fundamental question. “Tourism is big in India… but are we where India should be? If not, what is holding us back — policy, infrastructure, or the industry itself?” he asked, emphasising that, “Growth will only happen if we are aligned and not working in silos.” Ravi Gosain, President, Indian Association of Tour Operators (IATO), pointed to deeper systemic challenges. “Tourism runs on ease, experiences, and perception — and we are lacking on all three fronts,” he said. He highlighted how negative global perceptions around hygiene, overcrowding, and infrastructure continue to impact India’s image. Gosain stressed the need for stronger destination branding. While acknowledging industry efforts, he underscored the role of government in creating enabling conditions. “If India wants to be a prominent tourism destination, there has to be effort from the government. This is what every successful country is doing.” A key concern raised was the lack of industry regulation. Despite an estimated 100,000 travel operators in India, only a fraction of them is formally registered. “Unless there is mandatory registration, we cannot present ourselves as one unified industry. This fragmentation is hurting us,” Gosain added.
The challenge in MICE segment is equally structural. Chander Mansharamani, Vice Chairman, India Convention Promotion Bureau (ICPB), highlighted that while India has significantly improved its infrastructure — including large convention venues — the absence of a cohesive national policy remains a major barrier. “There is no centralised policy to attract global conferences. We are working individually, not as a country,” he said, pointing out that international events often depend on government-backed incentives, something India lacks at scale.
Adventure tourism, another high-growth segment, presents both opportunity and risk. Ajeet Bajaj, President, Adventure Tour Operators Association of India (ATOAI), revealed that the global adventure tourism market stood at $683 billion in 2024 — significantly larger than the cruise industry. “India’s natural heritage is among the top six globally. The opportunity is massive,” he said. Yet, regulatory gaps threaten to undermine this potential. “There are no entry safeguards,” he said, calling for a national framework. Kachru summed it up. “Nobody can do it alone. Government has to facilitate, and the industry has to be proactive,” he said.
