India targets $3 billion tourism economy by 2047 as domestic travel fuels hospitality growth

India’s tourism sector accounts for 1.4% of global arrivals but generates 2.02% of worldwide tourism earnings. President of the Hotel Association of India, KB Kachru, said the country aims to expand its tourism economy to US$ 3 billion by 2047, emphasizing the need for both high‑volume and high‑value visitors. Kachru noted gaps in cleanliness, safety, maintenance and last‑mile connectivity that must be addressed to deliver a premium tourism experience.

Domestic travel is the main engine of growth, with an estimated 2.9 billion domestic tourist visits recorded in 2024, representing about 85% of total tourism spending. The hospitality market, one of the world’s largest, is heavily domestic and highly fragmented, expanding beyond major metros into tier‑2 and tier‑3 cities. Operators face opportunities from strong demand but must manage consistency across diverse regional markets.