Domestic Tourism Surges Past 4 Billion Visits as Indian Hospitality Pivots to Local Travellers

Domestic tourism in India has experienced substantial expansion, crossing over 4 billion visits compared to roughly 2.3 billion in the pre-pandemic era, according to statements made by ITC and ITC Hotels Chairman Sanjiv Puri. This strong local demand is sustaining the broader hospitality sector even as international inbound travel remains below historical highs.

What Happened

Addressing shareholders at the ITC Hotels Annual General Meeting, Sanjiv Puri highlighted that domestic visits have surged significantly from pre-pandemic levels. While inbound travel by foreign visitors and Non-Resident Indians (NRIs) remains below the 2019 peak of more than one crore, domestic travellers, alongside corporate events and weddings, have become the primary growth drivers for the travel and hospitality ecosystem.

Puri projected that domestic visitor spending will nearly double over the coming decade, rising from Rs 19 trillion in 2026 to Rs 36.5 trillion by 2036. This demand is underpinned by an aspirational population, urbanisation, and increasing income levels driving experience-led journeys.

Key Highlights

• Surge in Visits: Domestic visits reached over 4 billion, marking a significant rise from the pre-Covid figure of around 2.3 billion.
• Spending Projections: Expenditure by domestic visitors is projected to climb from Rs 19 trillion in 2026 to Rs 36.5 trillion by 2036.
• Inbound Travel Lag: Inbound tourist arrivals to India remain below the 2019 benchmark of over one crore.
• Financial Performance: In FY 2026, ITC Hotels recorded a 19% increase in total income to over Rs 4,331 crore, while Profit After Tax (PAT) grew by 29%.
• Portfolio Expansion: Over the last 24 months, the company signed 63 hotels and opened 29 properties, pursuing an asset-right model.

Why This Matters

The rise of domestic tourism has shielded the Indian hospitality sector from external disruptions, including airspace closures and regional geopolitical tensions. Instead of relying heavily on high-paying inbound international tourists, hotel operators are restructuring their growth strategies around domestic demand, local leisure, and social events like weddings. This shift transforms domestic travel into a strategic engine that supports ongoing consumption, investment, and hospitality employment.

What to Watch Next

ITC Hotels is pursuing an expansion roadmap aiming to reach 250 properties and over 22,000 keys within the next five years, supported by an existing pipeline of 78 hotels with more than 8,000 keys. Upcoming projects include developments in Puri, Visakhapatnam, and Delhi, alongside an expansion in Bhubaneswar that collectively adds nearly 670 rooms. Further network additions include a newly acquired property in Kerala, a signing in Ahmedabad, and agreements across Ayodhya, Bodh Gaya, Gandhinagar, Guwahati, Jaipur, Rajgir, Shahjahanpur, and Shirdi.

Frequently Asked Questions

How much has domestic tourism grown compared to pre-pandemic figures?

According to Sanjiv Puri, domestic tourism has increased to over 4 billion visits, up from approximately 2.3 billion visits before the pandemic.

What is the financial outlook for domestic travel spending in India?

Domestic visitor spending is estimated to grow from Rs 19 trillion in 2026 to Rs 36.5 trillion by 2036.

What are the five-year expansion targets for ITC Hotels?

ITC Hotels aims to scale its operating footprint to 250 hotels and more than 22,000 keys over the next five years, backed by a pipeline of 78 hotels comprising over 8,000 keys.

Source: Times of India