Thiruvananthapuram, May 22 (IANS) Prime Minister Narendra Modi’s call urging Indians to increasingly choose destinations within the country for leisure travel, conferences, weddings and events has opened up a major economic opportunity for India’s tourism and hospitality sectors, according to the Hotel Association of India (HAI).

The industry body said the Prime Minister’s push for domestic tourism comes at a crucial time when geopolitical instability, slowing global growth and changing travel patterns are reshaping the international tourism market.

India, it said, is well positioned to emerge as one of the world’s preferred destinations for leisure, business, medical and spiritual tourism while also strengthening its foreign exchange reserves through higher inbound travel.

According to the HAI, the initiative goes beyond encouraging Indians to holiday within the country.

It could trigger major investments in hotels, resorts, convention centres, wellness retreats and tourism infrastructure, generating employment and economic activity across urban and rural India.

“Inbound tourism will play a decisive role in the growth of India’s hospitality sector in the coming years,” said K.B. Kachru, President of the Hotel Association of India and Chairman–South Asia of Radisson Hotel Group.

“India has the opportunity to position itself as a globally competitive tourism destination with world-class infrastructure and experiences,” he added.

The HAI noted that India’s image as a stable democracy with cultural diversity and improving infrastructure is increasingly appealing to international travellers seeking safe and experience-driven destinations amid global uncertainty.

It said stronger inbound tourism could substantially raise India’s foreign exchange earnings through spending on hotels, food and beverages, healthcare, transport, retail and entertainment.

The industry body estimated that sustained tourism growth could increase tourism-linked foreign exchange earnings by 25 to 30 per cent over the coming years.

The association also expects rising domestic tourism demand to accelerate investment in mid-market, premium and luxury hotels, cruises, heritage destinations, religious tourism circuits and MICE infrastructure.

Industry leaders believe this could attract long-term foreign capital, global expertise and technology partnerships into India’s hospitality sector.

Kachru said foreign investment in hospitality would generate wider benefits across construction, logistics, technology and supply chains while creating sustainable jobs.

The HAI stressed that faster approvals, predictable regulations and targeted incentives would be crucial for unlocking the sector’s full growth potential under India’s ‘Vision 2047’ roadmap.

–IANS

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