India's hotel industry is bracing for potential pressure on a key revenue stream after Prime Minister Narendra Modi urged Indians to prioritise domestic travel and defer non-essential overseas visits, industry sources told NDTV Profit.
Hospitality executives say the Prime Minister's appeal could weigh on MICE - meetings, incentives, conferences and exhibitions - a segment that relies heavily on corporate travel, international delegates and large-scale events. Business conferences, exhibitions and incentive travel form a significant share of room nights and food-and-beverage revenues for leading hotels.
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Government estimates peg India's MICE market at $49.3 billion in 2024, with projections of it touching $103.7 billion by 2030. Any slowdown in events, conferences or inbound delegate traffic could therefore have a visible impact on hotel revenues, executives said.
At the same time, the industry believes the Prime Minister's push for domestic travel - including domestic weddings - could help cushion the impact.
"The Prime Minister's call to prioritise domestic travel has the potential to significantly boost domestic consumption and presents a major opportunity for India's tourism and hospitality sector," K B Kachru, President of the Hotel Association of India (HAI) and Chairman - South Asia, Radisson Hotel Group, said in a statement.
Kachru said stronger domestic travel is expected to lift demand for hotels, resorts and regional tourism experiences, while supporting employment, small tourism businesses and growth in tier II and tier III destinations. India's domestic travel market, he said, has already emerged as one of the strongest demand engines globally, driving hospitality growth across metros as well as smaller cities.
Industry executives say hotels are increasingly leaning on the wedding segment to offset pressure on MICE revenues. Prime Minister Modi's renewed push for domestic weddings over overseas ceremonies is being seen as timely support for hotel balance sheets at a time when events and conferences face near-term uncertainty.
Big, destination-style weddings remain among the most profitable categories for hotels, driving high spends across room nights, banquets, catering and events. A sharper shift toward domestic weddings, sources said, could help cushion any slowdown in MICE activity, even as international business travel continues to recover unevenly post-pandemic.
At the same time, Kachru noted that the industry continues to see value in reviving inbound travel. Encouraging international arrivals, he said, would help build foreign exchange reserves while complementing the growth driven by domestic tourism.
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