Indian Tourism @2047
Puneet Chhatwal, MD & CEO, IHCL; Chairperson of FAITH
As India moves towards becoming a USD 3 trillion tourism economy by 2047, the sector stands at the threshold of pivotal inflection point. Yet, despite the unparalleled cultural heritage, geographical diversity, and spiritual richness, the stark realities are sobering including India commanding less than 2% of global tourist arrivals compared to other major global lodging markets—a profound disconnect between potential and performance. In this authored piece, Puneet Chhatwal, MD & CEO of The Indian Hotels Company and Chairperson of FAITH, outlines a strategic blueprint needed to unlock the full potential of Indian tourism—one built on strategic infrastructure development, bold policy reforms, aggressive investments, and private sector participation. Even though India’s moment to claim its rightful position on the world stage has arrived, Chhatwal believes the next leap will require more than just resilience.
By Puneet Chhatwal
Tested by pandemics, geopolitical uncertainties and economic cycles, India’s tourism and hospitality sector has repeatedly shown its ability to rebound, reimagine and re-emerge stronger. As we chart the road to Vision 2047, targeting a USD 3 trillion contribution to India’s GDP, this enduring spirit must now fuel our next wave of transformation.
The journey to this bold goal cannot rely on momentum alone. It requires a well-orchestrated national roadmap, grounded in time-bound milestones that track not just tourist arrivals, but infrastructure growth, employment generation and investment flows across regions. India’s tourism sector contributed USD 250 billion in 2024 and the path to USD 3 trillion can be traversed on the back of policy alignment, public-private collaboration and consistent execution.
India’s untapped potential in tourism is vast—from hidden hill towns and coastal treasures to spiritual circuits and cultural legacies. Yet, despite the variety, India accounts for less than 2% of global tourist arrivals and remains significantly underserved compared to major global lodging markets. The country currently has approximately 200,000 branded hotel rooms, translating to a penetration rate of just 0.1 rooms per 1,000 people. In contrast, China boasts a supply of 4.5 million rooms with a penetration rate of 3.2. This presents a compelling opportunity for investment and expansion in the country’s hospitality sector.
The Union budget in February 2025, recognising the importance of the Tourism Sector offered a multi-pronged approach laying a foundation for unlocking its potential. This includes developing 50 tourist destinations with their inclusion in the harmonised master list of infrastructure, expansion of the Udan scheme enhancing the connectivity to 120 new destinations, facilitating ease of travel by streamlining visas and special incentives for skilling to build employability in the sector.
FAITH, India’s apex policy federation for tourism and hospitality, has complemented government’s measures playing a key role as a catalyst in this journey. The upcoming conclave, “Indian Tourism: Invincible Spirit!”, to be held in New Delhi on August 12-13, is more than a gathering—it is a platform to crystallise action. A key focus this year is building economic and climate resilience into tourism businesses. Resilience is no longer optional—it is a strategic imperative. FAITH will work with its member associations to integrate sustainability, risk mitigation and digital transformation into their operating models, ensuring the sector is future-ready.
India’s tourism vision 2047 is about inclusive and sustainable growth that touches every corner of the country. While metros and heritage cities have led tourism growth, Tier 2 and 3 destinations hold the key to future expansion.
These regions are rich in experience, culture and natural beauty, however, there is a need for investment, connectivity and visibility. To encourage private investment beyond the big cities, we need targeted incentives of tax holidays, capital subsidies, interest subvention schemes and marketing partnerships with states. Tourism is the world’s largest employer—and in India, it holds the power to create 50 million direct and indirect jobs by 2047.
As we look ahead to 2047, our centenary of independence, we envision an India where tourism is not only a key economic engine but also a force for cultural exchange, job creation and community empowerment. India can truly become a global tourism powerhouse, welcoming the world, showcasing our diversity and uplifting millions.
(The author is MD & CEO of The Indian Hotels Company Limited and Chairperson of FAITH -Federation of Associations in Indian Tourism & Hospitality)
