#7 Reasons to Invest in the Indian Hospitality Sector

As a tourist destination, India is relatively cost-effective and brings in value from an investment standpoint

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One of the most attractive tourist destinations in Asia, India has become a land of bewildering diversity. It is a jigsaw puzzle of rich and varied cultures that co-exist in harmony. Coupled with growing infrastructural developments and complementing ecosystems to follow, India’s tourism and hospitality sector has witnessed a boom in recent years. The hospitality industry particularly has tremendous potential in India. Here is my take on why more and more investors should invest in the Indian hospitality sector:


Easy Development Opportunities

As a tourist destination, India is relatively cost-effective to develop and brings in value from an investment standpoint. The hospitality sector is sized at INR 2300 crores and is expected to witness an inflow of INR 1217 crores in investments over the next two years, according to market research. From a developer’s point of view, whether it is buying land, constructing a building or renovating a palace, opportunities for investments in development present themselves.

Growing Demographic

The demographic of India is another key reason to invest in India. The population of India is incredulously large and the economy is growing at a rapid pace. One of the things that people like to do in a growing economy is to take holidays. We are witnessing a huge number of people taking holidays frequently. Therefore we are able to cater to two important holidaying patterns. India is a very attractive country with many experiences to offer and keeping this in mind those locals that want to further explore their country may seek holiday packages within. Similarly, international holiday packages can be tailored as per the growing demand of those Indians that wish to experience different destinations on a global platform.

Supportive Legal System

In the hospitality industry, there is a seemingly endless barrage of legal formalities to comply with. However the government is investing in the hospitality and tourism industry to ensure that the market for this, is not saturated. With growing investments and additional legalities put in place to ease development, the government is taking measures to safeguard a thriving sector.

All Seasons are Good Seasons

The fact that India can be visited almost any time of the year makes it all the more fascinating to tourists globally. Unlike other tourist destinations worldwide, there is an endless list of tourist spots within the country with varying climatic differences. From snowy peaks in the Himalayas to relaxing backwaters in Kerala, and warm sandy beaches in Goa, there is an entire spectrum of climatic differences pan India. The seasons in India are equally exquisite with each season having its own appeal and charm. One does not have to wait for a particular season to facilitate a visit to India, as all its seasons allow a fair share of experiences to choose from. Be it for festivals, landscapes, events, or pilgrimages, India has various experiences to offer its visitors.

Language No Barrier

India has 24 official languages and more than 1000 minor languages & dialects. English has grown to become the world’s most learned and spoken foreign language. In the past, tourists were sceptical about visiting India due to the ostensible language gap. Despite this it does not remain an issue of concern as multiple signages on establishments, menu cards and road signs are all printed in English. Additionally, there are numerous Indians that speak the English language and are familiarised with it, which enables smooth communication between visitors and locals.

Tolerant Culture

The culture of India includes thousands of distinct and inimitable traditions stemming from various religions and communities mottled all over India. Being a secular country, India ranks high on religious tolerance. It is impossible to draw an emphasis solely on one culture as each one is more unique than the next.  Culturally-rich, it remains appealing and welcoming to every visitor.

Hospitable Locals

For years, the Indian culture has reinforced the importance of hospitality and care for both family and friends.  It is considered a duty, and even a status symbol, to be generously hospitable and humble within the social circle. Multiple religions across India instil this humility in every aspect of life and extend the same to their guests as well.

With multiple investors coming into India, there are limitations of where one can invest due to the markets being saturated. However, investors need not be deterred and even though there are some issues of development, there is a plethora of choice between land available and infrastructural capabilities. India is relatively easy to invest in comparison with other territories in South East Asia. There is no hurdle of language or problems arising due to the legal system. Lastly, the combination of local tourism and inbound tourism make India a prime destination for investors to invest in.

John Spence

Written By

Karma is the inspiration of British-born John Spence, one of the world’s most respected trail-blazers and free-thinkers in the fields of travel and entertainment. Not many winners of the Ernst & Young Entrepreneur of the Year Award, after all, admit to a youth playing in punk bands, wearing a plastic bin liner.