India’s tourism sector is being influenced by two simultaneous shifts: a connectivity build-out that is bringing destinations into wider travel circuits, and a broadening of demand beyond leisure and heritage travel, according to CBRE South Asia Pvt. Ltd’s. latest report titled “Reimagining Indian Tourism: Unlocking the Next Wave of Growth”, released today at the ASSOCHAM National Tourism Conclave in New Delhi. CBRE South Asia Pvt. Ltd. was the Knowledge Partner at the conclave.
The report was released by Gajendra Singh Shekhawat, Minister for Tourism and Culture, Government of India, in the presence of Dr Arvind Kumar Sharma, Minister for Co-operation, Jails, Elections, Heritage & Tourism, Government of Haryana; Saurabh Sanyal, Secretary General, ASSOCHAM; Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE; and Nirmal Kumar Minda, President, ASSOCHAM.
The report notes that India’s expressway network has begun functioning as a set of tourism corridors. The Delhi-Mumbai Expressway now connects Jaipur, Ranthambore, Sariska and Ahmedabad along a single heritage and wildlife corridor; the Samruddhi Mahamarg links Shirdi, Nashik, Trimbakeshwar and the Ajanta and Ellora caves; the Bundelkhand Expressway brings Khajuraho, Orchha, Chitrakoot and Jhansi into one circuit.
Upcoming corridors, including the Char Dham Mahamarg, Shaktipeeth Expressway and Somnath-Dwarka Expressway, are set to create further multi-destination itineraries.
Rail and alternative transport are extending this shift. Dedicated tourism circuits, luxury heritage journeys and panoramic coaches have added a distinct tourism dimension to rail travel, while the strongest growth in high-speed rail has been concentrated along pilgrimage corridors. Improved access to Kashmir and the Northeast is opening up leisure and cultural markets previously constrained by travel time.
Ropeways and river cruise circuits are emerging as mobility options in hill, riverine and island destinations where conventional infrastructure is limited.
The report further notes that demand has broadened into segments with materially different real estate requirements. Spiritual travel is generating demand across hospitality, transport and retail around pilgrimage centres, with premiumisation creating scope for experiential and higher-value stays. MICE and destination weddings are creating demand for convention and event infrastructure in emerging cities. Wellness and medical travel are supporting hospital-adjacent and retreat formats.
Cruise tourism is driving hospitality, retail and F&B development around port terminals. Rural tourism is growing largely through existing housing stock rather than new construction, creating a low-capital but fragmented market. Wildlife lodges, constrained by regulation near reserves, are emerging as a potentially high-yield niche as branded operators enter destinations such as Ranthambore and Satpura.
CBRE’s hospitality data further indicate that this broader demand base is translating into stronger hotel performance. Occupancy across India’s organised hotel sector rose to 64.1% in 2025 from 42.0% in 2021, with Average Daily Rate (ADR) growth lifting Revenue Per Available Room (RevPAR) above pre-pandemic levels. Leisure markets are also recording strong occupancy alongside gateway metros, with Goa at 75-80% and Jaipur at 62-67%, while Bengaluru led RevPAR growth at 20-25% year-on-year.
Economy, Upper Midscale and Midscale hotels account for nearly 60% of branded room stock, reflecting a diversified supply base catering to a broad spectrum of travellers. In Uttar Pradesh, inventory has grown 18% since 2021, with the midscale share rising from 15% to 19%.
Gajendra Singh Shekhawat, Minister for Tourism and Culture, Government of India, said, “Tourism is emerging as an important driver of economic growth and employment, with the potential to play a much larger role in India’s journey towards Viksit Bharat 2047. As the economy grows and connectivity improves through highways, airports, railways and new transport corridors, the demand for tourism and travel experiences will also expand significantly. This will require greater investment and stronger participation from the private sector. The next phase of tourism growth will require us to look beyond increasing tourist numbers and focus on building new destinations, creating new experiences and improving destination management. The quality of the visitor experience is critical, and this requires investment in infrastructure, hospitality and human resource development across the tourism ecosystem. Technology will also be central to improving the tourism experience, from destination discovery and parking to feedback and visitor services. The government has been working with technology companies, airlines and other platforms to strengthen this ecosystem, but greater private-sector participation and partnerships will be important. With the right combination of policy support, technology and investment, tourism can create significant opportunities for businesses, communities and the wider economy.”
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said, “Connectivity has done a lot of the heavy lifting. Expressways, new rail routes and regional airports have put destinations within reach that weren’t five years ago. The harder part sits at the destination itself — rooms, trained people, and the kind of assets each type of traveller actually needs. But we expect the sector to continue growing with new segments becoming increasingly important.”
Nirmal K. Minda, President, ASSOCHAM, said, “India’s tourism sector is at a defining juncture, evolving beyond leisure into a powerful engine of economic growth, employment, investment and regional development. As we move towards Viksit Bharat 2047, we must build a tourism ecosystem that is globally competitive, inclusive and sustainable. The ASSOCHAM-CBRE report highlights how improved connectivity and emerging segments such as spiritual, MICE, wellness, cruise, rural and wildlife tourism are opening new avenues for growth and investment. To unlock this potential, we must focus on five pillars – Make in India, Ease of Doing Business, MSME growth, the Digital Economy and Sustainability. Through this Conclave, ASSOCHAM seeks to bring government and industry together to translate these opportunities into actionable policy and investment roadmaps, strengthening India’s journey towards a $1 trillion tourism economy.”