India’s tourism sector is showing a stronger rebound than anticipated, with organised hotel occupancy reaching 64.1% in 2025—a rise from 42.0% in 2021—while higher average daily rates have lifted revenue per available room (RevPAR) beyond pre-pandemic levels. The findings, unveiled at the ASSOCHAM National Tourism Conclave 2026, reveal how upgraded transport links and new destinations are steering demand away from traditional hubs like Goa and Kerala. Growth is now concentrated in spiritual, MICE (meetings, incentives, conferences, exhibitions), wellness, cruise, rural, and wildlife tourism, all supported by investments in expressways, rail networks, and river-based travel routes.
The event, held in New Delhi under the theme “Tourism as an Economic Engine: Technology, Policy, Investment & Global Partnerships”, gathered government officials, industry leaders, and analysts to examine how policy, private investment, and technology could maintain this upward trend. Gajendra Singh Shekhawat, India’s Minister for Tourism and Culture, emphasised that the sector must shift from simply increasing visitor numbers to delivering richer experiences. This requires substantial investment in infrastructure, hospitality training, and digital tools. He tied tourism’s future to Viksit Bharat 2047, the government’s development vision, noting that expanded highways, airports, and transport corridors will drive demand—but only if private actors fill gaps in hospitality, local services, and digital platforms.
Artificial intelligence and data analytics are already redirecting tourists from crowded routes to lesser-known spiritual sites, rural stays, and wildlife reserves, while also supporting local businesses. Dr. Subi Chaturvedi, a fellow of the United Nations Internet Governance Forum, cautioned that the success of “smart tourism” depends not just on visitor numbers but on whether it improves livelihoods and protects heritage. She stated, “When technology, policy and private-sector innovation work together, tourism can become a powerful engine of inclusive growth for India.”
Haryana’s PPP Model Expands Rural Tourism
Regional disparities emerged as a key discussion point. Haryana, for example, is capitalising on its proximity to Delhi, spiritual landmarks like Kurukshetra, and cultural sites such as Panipat and Surajkund to attract investment. Arvind Kumar Sharma, the state’s Cabinet Minister for Cooperation, Jails, Elections, Heritage and Tourism, outlined plans to use public-private partnerships (PPPs) to develop tourism infrastructure while ensuring benefits extend to farmers, MSMEs, and local workers.
He said, “Tourism has an important role to play in driving economic growth and creating opportunities across sectors. As we work towards the vision of a developed India by 2047, it is important that the benefits of tourism reach farmers, workers, MSMEs, entrepreneurs and communities. Ease of doing business, MSME growth, the digital economy, sustainability and environmental considerations are important to creating a conducive ecosystem for tourism.”
Industry representatives stressed the need for closer government-industry cooperation. Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East and Africa, CBRE, said, “India has a strong tourism proposition, with its mix of heritage, spirituality, culture, wildlife, wellness, beaches and mountains. The opportunity now is to strengthen infrastructure, destination management, cleanliness and safety while leveraging technology and AI to create a more seamless travel experience. With greater collaboration between government and the private sector, tourism can become a major engine of employment and regional prosperity.”
The conclave also addressed policy barriers limiting expansion. While organised hotel occupancy has recovered, the report highlighted that smaller operators, particularly in rural and wellness tourism, face challenges in visa processing, digital payments, and marketing. The discussions showed that reforms to ease business operations, PPP models, and digital governance could accelerate growth, provided central and state governments align their strategies with industry needs.
Spiritual and Wellness Travel Redefine Demand
New tourism segments are reshaping the sector’s economic impact. Spiritual tourism, for instance, is evolving beyond traditional pilgrimage sites to include immersive cultural experiences tied to local traditions. These sites, previously overshadowed by more popular routes, now attract visitors seeking authenticity, with digital platforms amplifying their historical and spiritual appeal.
Wellness tourism is also diversifying, with states like Uttarakhand and Himachal Pradesh promoting yoga retreats, ayurvedic centres, and eco-resorts in mountainous areas. The ASSOCHAM-CBRE report found that wellness travellers now account for over 15% of domestic tourism arrivals, driven by a preference for health-focused travel.
Cruise and rural tourism present distinct opportunities but require targeted infrastructure. Cruise tourism, still in its early stages, is gaining ground along India’s coastal routes, including the Andaman and Nicobar Islands, Kerala’s backwaters, and the Ganges River. The government has identified 12 potential cruise hubs, with plans to upgrade port facilities, shore excursions, and regulatory frameworks. A cruise operator testing a pilot route between Mumbai and Goa in 2025 cited visa delays and limited onboard entertainment as key hurdles, though occupancy rates reached 78%, above expectations. Rural tourism, meanwhile, is thriving in Rajasthan and Tamil Nadu, where homestays and farm stays are being integrated into broader tourism networks.
Digital Divide Limits Rural Tourism Growth
Technology adoption varies significantly across segments. While AI-driven booking systems and virtual tours are standard in urban hotels, smaller operators in rural and wellness tourism lag in digital integration. The report highlighted a shortage of training programs for local guides, artisans, and homestay owners to use essential digital tools, such as social media, payment gateways, and customer feedback systems. A 2025 digital literacy initiative by a tourism ministry-affiliated NGO registered 3,200 homestay owners in rural areas, leading to a 25% rise in direct bookings. However, speakers warned that without broader digital infrastructure, such as reliable internet in remote areas, these improvements could stall.
The discussions concluded with a call for measurable benchmarks to track progress. The ASSOCHAM-CBRE report proposed three key indicators: growth in direct and indirect tourism-related employment, increased revenue for local businesses outside traditional circuits, and higher visitor satisfaction scores for emerging destinations. A tourism economist analysing the data cited Haryana’s Kurukshetra region as a model, where PPP-driven development of spiritual tourism assets has created over 12,000 jobs, including roles for farmers transitioning to agri-tourism and artisans supplying handicrafts to visitor centres.
The state’s tourism minister reiterated that future growth would depend on expanding these models to lesser-known districts, ensuring benefits reach communities beyond major urban areas. The conclave ended with the understanding that sustained collaboration between government, industry, and technology providers will determine whether India’s tourism sector can achieve its goal of becoming a significant driver of economic growth, employment, and regional development.