HAI’s 7th Hoteliers’ Conclave Puts India’s Tourism Ambitions Under The Spotlight

India aims to become a developed economy by 2047, and tourism is expected to play a significant role in achieving that goal. But while the country continues to open up new destinations and attract more travellers, its hospitality industry is still grappling with some familiar challenges. Building hotels can be a lengthy process, infrastructure remains uneven across destinations, and the gap between tourism potential and on-ground experiences is often difficult to ignore.

These concerns took centre stage at the 7th HAI Hoteliers’ Conclave in New Delhi on September 18. Organised by the Hotel Association of India at the Taj Palace, the event brought together hospitality professionals, government officials and tourism stakeholders to discuss what needs to change for India to make tourism a larger contributor to its economy.

The conversations were held under the theme ‘Re-Engineering Hospitality’, but much of the discussion came down to a practical question: what will it take to make it easier to invest in, build and operate hotels across the country?

A Push To Make Hotel Development Easier

For the hospitality industry, one of the biggest obstacles to expansion is the regulatory process. From construction approvals to operational licences, hotel projects often involve multiple permissions and considerable time.

HAI welcomed recent efforts by the Ministry of Tourism and NITI Aayog to address some of these challenges. In June 2026, the two organisations released a report examining the regulatory barriers affecting tourism and hospitality, along with recommendations to make the sector more investment-friendly.

The proposals include simplifying hotel licensing, reviewing certain building regulations and making it easier for smaller accommodation providers to operate. One recommendation suggests introducing a single health trade licence for hotels covering multiple ancillary services.

These changes are particularly relevant as India looks to expand its hotel inventory. According to HAI President KB Kachru, the country currently has around 225,000 hotel rooms. For a country with a large domestic travel market and ambitions to attract more international visitors, increasing this capacity will be important.

HAI also renewed its call for infrastructure status for the hospitality sector, along with incentives to encourage hotel development in emerging destinations.

The Destination Is More Than Its Attraction

India has no shortage of places that can draw travellers. From its mountain landscapes and wildlife reserves to its spiritual centres and historic cities, the country’s tourism offering is vast. The challenge is turning these attractions into destinations that can sustain tourism over time.

Speaking at the conclave, Amitabh Kant, former CEO of NITI Aayog and India’s former G20 Sherpa, emphasised the importance of investing in the basics that shape a visitor’s experience.

Better roads, reliable connectivity, cleanliness and essential services, he noted, are as important to destination development as promotion and branding.

It is a point of particular relevance to lesser-known destinations. A place may have the potential to become a popular tourist hub, but without adequate accommodation, transport and local services, attracting visitors at scale becomes difficult.

Kant also highlighted the need for greater accountability in destination management and a more ambitious approach to promoting India internationally.

From Accommodation To Experiences

Tourism in India is also changing in another way. Travellers are increasingly looking for experiences that go beyond sightseeing, and hospitality businesses are adapting to these expectations.

Union Tourism and Culture Minister Gajendra Singh Shekhawat, who inaugurated the conclave, spoke about this transition in his address.

“Indian hospitality is entering a new phase, moving beyond rooms and accommodation towards experience-led tourism,” he said.

The minister pointed to India’s more than 400 crore domestic tourist visits in 2024 and the growing interest in travel among the country’s middle class.

Religious and spiritual tourism, adventure travel, wellness retreats and destination weddings are among the segments creating new opportunities for businesses. MICE tourism, too, remains an important area of interest as India seeks to attract more international events and business travellers.

For hotels, this could mean a greater focus on designing experiences around local culture, food, nature and community rather than treating accommodation as the entire offering.

Why Employment Remains Central

The hospitality sector’s economic contribution extends beyond hotel revenues. It supports jobs across food and beverage, housekeeping, transport, event management and a range of allied services.

At the conclave, HAI President KB Kachru argued that hospitality should be treated as a national economic priority, given its potential to generate employment, attract investment and bring in foreign exchange.

The Prime Minister, in a message to the association, also stressed the importance of training young people and other tourism stakeholders to meet the needs of a growing industry.

For MP Bezbaruah, Secretary General of HAI, the way forward lies in expanding capacity and creating conditions that encourage long-term investment.

The event also featured discussions on artificial intelligence, sustainability, inclusion and the future of food and beverage. A session titled ‘Incredible India: Invaluable Economics’ explored tourism’s contribution to the wider economy, while a conversation between journalist Rajdeep Sardesai and former cricketer Kapil Dev touched on leadership and resilience.

More than 300 representatives from the hospitality industry and allied sectors attended the conclave.

The discussions in New Delhi reflected a broader reality for Indian tourism. The country has attractions, a growing domestic market, and the ambition to become a major global travel destination. What remains is the work of building the infrastructure, policies and workforce needed to support that ambition.

With 2047 as the larger deadline, the hospitality industry is looking for the next phase of growth to be defined not just by more visitors, but by better destinations and a more efficient tourism ecosystem.

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