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India

India records 13% growth in domestic tourists

The number of domestic tourist visits to all States/Union Territories (UTs), including the visits for religious and medical purpose, rose to 161.4 crore in 2016 from 143.2 crore in 2015, registering a growth of 12.7 % in 2016 over 2015. The number of foreign tourist visits to all States/UTs, including the visits for religious and medical purpose, has increased to 2.5 crore in 2016 from 2.3 crore in 2015, registering a growth of 5.9 % in 2016 over 2015. This was informed by Dr. Mahesh Sharma, Minister of State for Culture and Tourism, Government of India in a written reply in Lok Sabha. The number of foreign tourist arrivals, as differentiated from foreign tourist visits, in India has increased to 88.0 lakh in 2016 from 80.3 lakh in 2015, registering a growth of 9.7 % in 2016 over 2015. As per the information available for the current year, the number of foreign tourist arrivals in India during January-June 2017 were 48.8 lakh registering a growth of 17.2% over the same period of 2016. As per the 2nd Tourism Satellite Account (TSA) of India - 2009-10 and subsequent estimation, the contribution of tourism to total Gross Domestic Product (GDP) during 2009-10, 2010-11, 2011-12 and 2012-13 were 6.77%, 6.76%, 6.76% and 6.88% respectively.  

India

India, Philippines discuss tourism tie-up

The Philippines is considering removing visa restrictions for Indian travellers A tourism delegation from the Philippines arrived in India recently, to discuss future cooperation between the two countries. The Philippines' Tourism Minister, Ramon Jimenez Jr, met with his Indian counterpart, Dr Mahesh Sharma, in Delhi. Issues on the table included ways of improving air connectivity between the two countries, and education in the hospitality sector. According to India's Ministry of Tourism, Jiminez revealed that the Philippines is exploring the possibility of lifting visa requirements for Indian tourists "on an experimental basis" for 2015-16. He also highlighted the difficulty of travelling between the two countries, due to a lack of direct flights, an urged Dr Sharma "to take it up on a priority basis". The Indian minister was also invited to visit the Philippines. Meanwhile, Dr Mahesh Sharma highlighted the recent steps taken by the Indian government to promote tourism, such as the new electronic visa-on-arrival scheme and moves to improve the safety of tourists in India.

Exclusives

GST rate cut strengthens India’s travel sector with affordable stays

Representative Image Previous forecasts for travel and hospitality predicted positive growth which were disrupted by the Pahalgam Terror Attack on tourists, Indo Pak escalated tensions and the Air India crash. Just in time for the festive season the Govt has given succour to the hospitality and travel industry by slashing the GST rates. The GST Council’s 56th meeting on 3rd September, chaired by Finance Minister Nirmala Sitharaman, announced key reforms to India’s indirect tax structure. Let us find out what the industry has to say… Quality stays now more accessible to a wider base of Indian travellers  Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group. Stated: “We appreciate the GST Council’s progressive step in rationalizing tax rates for hotel accommodation up to INR 7,500. This is a timely and welcome reform that will make quality stays more accessible to a wider base of Indian travellers and at the same time strengthen the country’s positioning as a high-potential tourism hub. By reducing the tax burden on mid-scale and upper mid-scale hotels, the government has unlocked new opportunities for stronger domestic travel, weekend leisure breaks, and business mobility - factors that are critical to the hospitality sector’s growth. This move reflects a deep understanding of industry dynamics and traveller aspirations, and we are confident it will accelerate momentum across the hospitality landscape while reinforcing India’s ambition of becoming one of the world’s leading travel destinations." More reform needed to make the framework more equitable Dr. Sanjay Sethi, MD & CEO, Chalet Hotels Limited said: “The recent GST announcements are progressive and in line with the larger vision of nation building and sabka vikas. They will undoubtedly provide a positive impetus to the Indian economy. A big positive for Chalet and the hotel industry in general. Placing room tariffs below INR7,500 in the 5% GST slab is a welcome step. At the same time, it is important to address a key concern for the smaller and budget hotels. Simultaneous withdrawal of Input Tax Credit (ITC) creates an unintended anomaly. To ensure the intent of the reform is fully realised, I would urge three corrective measures: Retain the benefit of ITC for this segment. Revise the tariff threshold upward to INR12,000, with ITC, in line with current market dynamics. Link future tariff thresholds to the Consumer Price Index (CPI), so that periodic resets are not required. These changes will make the framework more equitable, growth-friendly, and aligned with the government’s vision for tourism as a driver of inclusive development.” Rajesh Magow, Co-Founder and Group CEO, MakeMyTrip said: “The rationalisation of GST slabs is a welcome move that will act as a stimulus to the Indian economy by boosting discretionary income and fuelling consumption across sectors. For travel and tourism, the cut in GST on hotel rooms priced below INR7,500 will make stays more affordable for a large share of Indian travellers, reinforcing demand in the domestic market.” This reform will directly boost tourism demand K Syama Raju, President, FHRAI said: “We welcome the GST Council’s decision to simplify hotel room tariffs into two slabs of 5% and 12%. Reducing the tax on rooms up to INR7,500 to 5% will make Indian hotels more affordable and attractive to both domestic and international travellers. This reform will directly boost tourism demand, increase occupancy, and encourage more spending across the hospitality value chain. As a sector that already contributes over 5% to India’s GDP and is among the largest job creators, this step will further strengthen our role in driving economic growth, generating employment for youth and women, and enhancing India’s global competitiveness. We see this as a progressive move that will help Indian tourism achieve its true potential and contribute significantly to the Government’s Vision 2047. While the hotel industry had been requesting a 5% slab with input tax credit (ITC), as is the practice in several other countries, we believe that even this initiative by the GST Council will benefit the hospitality sector substantially." Healthier growth in the hospitality sector Neha Kapoor, GM, Hyatt Place Gurgaon stated: “We welcome the government’s decision to slash the GST rate to 5% on room tariffs up to INR7,500. It makes quality hotel stays more affordable and accessible to a wider base of travellers while adding real value to their experience. We anticipate this change will translate into stronger demand and improved occupancy levels. Beyond the immediate benefits, it also paves the way for healthier growth in the hospitality sector, supports tourism, and strengthens the industry’s contribution to the economy.” Reinforces the vital role of the mid-market segment in India’s tourism growth story Perkin Rocha, Founder & CEO, ECKO Hotels & Resorts said: “We at Ecko Hotels & Resorts applaud the GST Council’s move to reduce the tax rate on hotel rooms priced up to INR7,500 per night from 12% (with input tax credit) to 5% (without ITC), effective September 22. This timely reform is poised to make quality accommodations more accessible to India’s growing domestic traveler base, particularly as we enter the festive and wedding season. While the removal of input tax credit presents operational challenges for hoteliers, this rationalization is an important step toward stimulating demand, boosting occupancy, and reinforcing the vital role of the mid-market segment in India’s tourism growth story.”  Will help hoteliers increase occupancy across budget and mid-scale segments Rikant Pittie, CEO and Co-Founder, EaseMyTrip stated: "The GST reforms effective September 22nd are transformative for India's travel and tourism sector. The simplified tax regime, which has reduced the earlier four GST slabs to just two - 5% and 18% - will make travel more affordable for people and boost overall demand. The reduction to 5% GST on hotel rooms up to INR7,500 will not only encourage tourism but also help hoteliers increase occupancy across budget and mid-scale segments. These changes come at a perfect time ahead of the festive season and will significantly stimulate domestic tourism while bringing much-needed operational clarity to the industry."  Will encourage corporate travel to tier-2 and tier-3 cities Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts said: “"The GST overhaul marks a turning point for India’s hospitality sector. By reducing GST on hotel stays under INR7,500 to 5%, the government has effectively democratised travel. This will boost domestic tourism, encourage corporate travel to tier-2 and tier-3 cities, and improve occupancy for mid-scale hotels, which form the backbone of our industry. However, luxury hotels remain at 18%, which keeps India aligned with global practices, where premium stays are taxed at a higher rate. The challenge will be balancing this benefit with the loss of input tax credit (ITC), which could compress margins for some operators. Overall, the move signals a clear policy direction, making travel more affordable and inclusive, while still protecting the exclusivity of luxury experiences." Broadened affordability in domestic tourism Sumit Mitruka, CEO and founder, Summit Hotels & Resorts stated: “The reforms announced at the 56th GST Council are far more than a matter of taxation; they represent a structural reset in the way India approaches housing, travel, and consumption. By placing mid-scale hotel accommodation within the 5% bracket, the government has significantly broadened affordability in domestic tourism, ensuring that demand in emerging destinations can flourish. At the same time, the simplification of GST for residential real estate,  through reduced construction costs and clearer slab structures, is poised to stimulate housing supply and bolster confidence, particularly across tier-II and tier-III cities. Hospitality and real estate are inextricably linked: affordable housing underpins urban growth, whilst accessible travel fuels mobility and commerce. A streamlined GST regime allows these sectors to reinforce one another, creating a powerful multiplier effect on employment, consumption, and investment. The task before industry leaders now is to harness these efficiencies and translate them into greater value not only for guests and homeowners, but for the wider economy."  Lower room rates mean longer stays Dinesh Yadav, Founder & MD of Fine Acers stated: “The decision to bring down GST from 12% with input credit to just 5% on hotel rooms priced under INR7,500 is a welcome move. This change will drive a wave of consumers, especially the mid-market travellers, who usually take a step back because of price considerations. Occupancy is projected to go up by 5%-7% in leisure markets and 3%-5% in business hubs, while revenue at large is expected to go up by at least 10%. With increasing demand, there is positive pressure on businesses to improve consumer experience and provide better service, drive repeat consumers, increase loyalty programs and increase outreach to consumers from the Tier 2 and 3 markets. Moreover, it quite simply works for compliance and ensures lesser tax disputes that have been plaguing the sector for long. Lower room rates mean longer stays, thereby driving domestic tourism, building investor confidence.”  Strengthens our commitment to ‘Make in India’ with ease in input costs Ahmed Abdel Wahab, General Manager, Mars Wrigley India stated: "We welcome the GST Council's decision to move a wide range of FMCG products, including chocolates, to the 5% tax slab. The reduction of GST on many raw materials from 12% or 18% down to 5% is also a significant relief that will ease input costs and strengthen supply chains for manufacturers like Mars Wrigley. This forward-looking reform comes at an ideal time during this festive season, helping make everyday treats more affordable for consumers preparing to celebrate. With these tax reductions, the industry can respond quickly - restoring value in packs, innovating new formats, and supporting retailers nationwide. Importantly, this step further strengthens our commitment to ‘Make in India’ by reinforcing trust in the government’s vision of creating a supportive manufacturing ecosystem and a mutually beneficial environment for all players to invest and grow. We believe this landmark step will empower the entire FMCG sector to deliver greater choice, freshness, and value for Indian families during this festive period and beyond." Airfares across both economy and business classes have become lighter Hari Ganapathy, Co-founder of Pickyourtrail, said: "The government’s move to lower GST on flights and hotels is more than just a tax revision, it’s an invitation to travel. Airfares across both economy and business classes have become lighter, while the majority of hotel stays, which fall in the INR 1,000 - INR 7,500 bracket, now carry less tax weight. For everyday travellers, this directly translates into more accessible journeys. When these savings flow through to travellers, the impact is immediate: a family may choose to stay an extra night, a business traveller might upgrade for comfort, and groups could explore new destinations without stretching budgets. Timed with India’s festive calendar and the busy travel months ahead, this step sets the stage for stronger demand both within the country and abroad. When flights and stays become easier on the wallet, travellers are able to design journeys around experiences rather than compromises. That’s where the true benefit of this reform lies." Travel remains accessible Mahesh Iyer, Managing Director and Chief Executive Officer, Thomas Cook (India) Limited said: “At the Thomas Cook India Group, we welcome the Government’s simplification of the GST structure across sectors — from daily essentials and healthcare to education, electronics, automobiles as well as travel and hospitality. The elimination of the 12% slab and the lowering of several categories to the 5% bracket, marks a decisive shift towards boosting affordability and driving increased consumption. Additionally, the earlier income tax exemption for income up to Rs. 12 lakhs, coupled with this GST reduction, is expected to result in higher disposable income. For the travel and tourism industry, this is a very positive development across B2C & B2B segments.  With hotel tariffs up to INR7,500 per down to 5% from 12%, the domestic travel and tourism sector especially in the mid and upper-mid market stands to benefit significantly. Additionally, retaining economy airfares at the lower 5% slab, ensures that travel remains accessible. The reform thus delivers a two-pronged impact: directly, through lower GST rates on travel-related services, and indirectly, by enhancing consumer purchasing power via reduced rates across several consumption sectors - at a strategically opportune time, just ahead of the festive season." Sandeep Arora, Director, Brightsun Travel, India said: "We welcome the government’s decision to reduce the GST rates from 12% to 5% on budget hotels and economy flights, a relief to both travel industry and the consumer. This move will make travel more affordable and accessible to a large number of Indian travellers, boosting the domestic travel and encouraging more people to explore different destinations. We are excited to help customers take advantage of these savings and plan memorable trips without breaking the bank.” Anuj Puri, Chairman – ANAROCK Group stated: “The forthcoming GST changes, which will go into effect from September 22, 2025, will have a positive impact on the Indian residential, retail, and office real estate sectors. Residential Real Estate Lower construction costs - Reduced GST on construction materials like cement can reduce construction costs by as much as 3-5%. Developers, especially those engages in creating affordable housing, will get major relief in terms of cash flows and margins. ANAROCK Research reveals that the affordable housing category (below Rs 40 lakh) has seen its share of total sales decline from 38% in 2019 to just 18% in 2024. The share of new supply dropped even more dramatically from 40% in 2019 to just 12% in H1 2025. The reduced construction costs, if passed on to homebuyers, can boost demand in these segments. Clearer taxation - The simplified GST structure does away with the old five-slab system and now has only two primary slabs of 5% and 18%, in addition to a 40% rate on luxury and so-called ‘sin goods’. The resultant pricing clarity will go a long way in improving overall consumer confidence. The simplified framework will make the tax implications of buying homes clearer and this clarity can potentially bring significant numbers of first-time buyers and fence-sitters to the market. This would have an especially notable impact in tier-II and tier-III cities. Commercial Real Estate Commercial real estate currently attracts 12% GST with Input Tax Credit (ITC) available. However, recent developments have complicated the landscape a bit. The elimination of ITC on commercial property leasing implies that developers will no longer be able to claim ITC on project-related costs. This retrospective amendment may increase operational costs and rental prices for office spaces and other commercial properties. The Reverse Charge Mechanism (RCM) for commercial property rentals by unregistered suppliers, which requires tenants rather than landlords to pay 18% GST on such rentals, adds compliance burden for businesses renting commercial spaces.  Retail Real Estate Better project viability – The reduced GST on building materials will result in lower input costs for developers and help speed up the supply of retail real estate projects. Since shopping centres and retail complexes will now incur reduced construction costs, this may result in more competitive rental rates. Supply chain benefits - The GST rationalization will bring down logistics costs and help streamline supply chains, benefiting retail real estate operations. However, retail properties used for commercial purposes will continue to attract 18% GST on rental income. Sector-Wide Boost These reforms are major positive shift for the Indian real estate industry. Apart from improved transparent and ease of compliance, this simplified GST system will remove most classification confusion and disputes. Since developers will now face lower administrative burdens, they will be able to focus on what really matters – timely completion of projects and overall customer satisfaction – rather than on ways on means to save on taxes. We can logically expect this major reform to attract more institutional investment into the Indian real estate sector, while also boosting housing supply across the country. The government is dovetailing these reforms with the festive season to maximize their positive impact on consumption. This is a major relief amid the ongoing macro-economic challenges and their impacts on sentiment and business outcomes. The reforms are especially positive news for affordable housing. India currently has a shortfall of nearly 1 crore budget homes in urban markets, and this number could rise to 2.5 crore by 2030 without focused interventions. These GST reforms bring lower construction costs and improved ease of compliance, which can go a long way towards reversing this trend making homeownership more accessible to middle-class families.”  

Hotels

Radisson Resort Whitefield Bengaluru to open with 150 keys in Q1 2028

The signing of Radisson Resort Whitefield Bengaluru underscores the Group’s dedication to strengthening its foothold in the vibrant city, which serves as a crucial gateway to Southern India. Scheduled to open in Q1 2028, the new resort will be a key MICE destination and further enhance RHG’s presence in this metro. Featuring 150 well-appointed rooms and suites, Radisson Resort Whitefield Bengaluru will redefine hospitality in the region by providing a unique blend of business and leisure amenities after opening its doors in Q1 2028. The hotel will feature an array of dining options, including a specialty restaurant, a stylish bar and a coffee lounge. Guests can also enjoy state-of-the-art wellness facilities such as a gym, swimming pool and a luxurious spa. The resort will cater to corporate and social events with a spacious ballroom, four versatile meeting rooms and an outdoor lawn, making it an ideal venue for MICE and social gatherings. This hotel will be located in the bustling micro market of Whitefield which resonates with the overall economic make of the city. “As we continue to strengthen our presence in key destinations across India, the signing of Radisson Resort Whitefield Bengaluru is a major step in our expansion plans. This signing underscores our commitment to strategically expanding in metros like Bengaluru, where the demand for premium accommodation continues to rise. Whitefield's thriving business hub and its emerging leisure appeal create the perfect setting for us to deliver an exceptional and upscale resort experience in this dynamic micro-market. As the fastest-growing upscale brand globally and in India, Radisson is uniquely positioned to meet the diverse needs of this micro-market," said Nikhil Sharma, Managing Director and Area Senior Vice President, South Asia, Radisson Hotel Group. Conveniently located in the Whitefield district, one of the fastest-developing hotel micro-markets in the country, the resort will benefit from its proximity to major tech hubs, upscale residential townships, and entertainment zones. Whitefield is home to several global technology giants, including Capgemini, IBM, Accenture, Hewlett Packard, GE Healthcare and TCS, making it a prime destination for corporate travelers and leisure seekers. The resort’s strategic position also ensures connectivity to Bengaluru's Kempegowda International Airport. "The signing of Radisson Resort Whitefield aligns with our vision to expand strategically across key Tier 1 markets in India. Bengaluru is a focus hub for our strategic growth in South India, where we are committed to capitalizing on the growing demand for quality hospitality. With our recent signings and openings in cities such as Vellore, Thrissur, Chennai, Calicut, and Ooty, we are ready to support and enhance the region’s growth," said Davashish Srivastava, Senior Director, Development South Asia, Radisson Hotel Group. "We are excited to partner with Radisson Hotel Group to bring the Radisson brand to Whitefield. This unique development will elevate Bengaluru’s hospitality landscape by offering an upscale resort experience within the city limits. We are confident that Radisson Resort Whitefield Bengaluru will become the preferred choice for travelers seeking a balance of business and leisure," said Mahesh Narayanappa Ramesh, Chief Executive Officer, Sai Leela Hospitality Private Limited. Radisson Hotel Group continues to command a leading presence in the Indian market and is one of the country’s largest international hotel operators with over 194 hotels in operation and development. It continues to be the largest hotel operator in a tier-1 market like Delhi NCR, while over 50% of its portfolio is in tier-2 and 3 markets. With hotels in over 114 destinations across India, Radisson Hotel Group has properties located within a four-hour drive of each other.      

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