India's Hospitality Sector Eyes Robust Growth in 2026, Driven by Domestic Demand

• India's hospitality sector anticipates sustained growth into 2026, fueled primarily by resilient domestic demand and a strong macroeconomic environment.
• Domestic tourism, accounting for 85-90% of total volumes, remains the backbone, supported by rising incomes, improved connectivity, and a preference for short-duration travel.
• Foreign tourist arrivals are expected to surpass pre-COVID levels by 2026, aided by better air connectivity, easing visa norms, and global travel recovery.
• Industry leaders like HAI and FHRAI emphasize the need for infrastructure status to unlock cheaper financing and accelerate development.
• Digital adoption, event-based travel, and infrastructure development are emerging as additional growth drivers, with tourism employment projected to reach 63 million by 2034.

Why It Matters: India's hospitality sector is set for strong 2026 growth, led by domestic demand and rising tourism.