Whitepaper: India to add 6.1 million hospitality jobs by 2034
Digital marketing, sustainable tourism and customer service skills in demand
By Vishnu Rageev RDec 23, 2024
INDIA’S TOURISM AND hospitality sector is set for significant growth, with the potential to create 6.1 million new jobs by 2034, according to a whitepaper by the Confederation of Indian Industry and EY. Currently, the sector accounts for about 8 percent of India’s total employment.
Titled “Reimagining Workforce Horizons: Employment Landscape in Tourism and Hospitality in India,” the report highlights a strong recovery in the sector, driven by a resurgence in domestic tourism despite COVID-19 setbacks. This growth is expected to continue, with sectoral spending projected to rise 1.2 times by 2034, requiring a skilled workforce.
The report said that of the 6.1 million new jobs expected by 2034, 4.6 million will be for men and 1.5 million for women. This growth underscores the sector's potential for gender inclusion and workforce expansion, while emphasizing the need for strategies to attract and retain female workers, further boosting employment opportunities.
The CII-EY study recommends focusing on specialized skills in areas such as digital marketing, sustainable tourism practices, and advanced customer service to equip the workforce for future demands. These skills will be crucial to meet the evolving needs of domestic and international tourists.
Key initiatives to address the skills gap and enhance career prospects include Gamified Learning Management Systems for continuous development, collaboration with industry associations to create career advancement pathways, and establishing a taskforce under the Ministry of Tourism to standardize skills and educational frameworks across the sector.
The whitepaper stresses the importance of an inclusive workforce, empowering women and marginalized communities. It advocates for policies that incentivize participation, particularly in emerging segments like medical tourism, and proposes a tourism employment index to track trends and provide actionable workforce insights.
The report also highlights the need to integrate Digital Public Infrastructure to position India as a global hub for innovative tourism solutions. This includes granting industry status, offering targeted subsidies, and implementing Employment Linked Incentive schemes to drive job creation.
It also explores the gig economy’s potential for providing flexible employment, particularly during peak seasons, and highlights the rise of Gen Z in the workforce as a driver of more flexible, tech-savvy, and community-driven work environments. These trends are expected to create a dynamic and innovative labor market within the sector.
Looking beyond 2034, the report projects that by 2036-37, the sector will need an additional 6.13 million workers to meet rising demand. Upskilling women and marginalized communities will be crucial in bridging skill gaps and enabling the sector to fully capitalize on its potential for economic growth and job creation.
India's rank on the World Economic Forum’s Travel & Tourism Development Index 2024 has risen to 39th, up from 54th in 2021. The sector's direct contribution to India's GDP exceeded $231 billion in 2023, making India the second-largest tourism GDP contributor in the Asia-Pacific region, the report noted.
In conclusion, the CII-EY whitepaper calls for collaboration between the government, private sector, and academic institutions to unlock the tourism and hospitality sector's full potential.
A recent study by Hotelogix found that flexible supplier contracts and cost-effective cloud solutions give Indian mid-segment hotel brands an edge over international competitors.
Tata Sons launched a hospitality platform for Indian Hotels Co. Ltd., enabling revenue-share operations on group-owned assets.
The first asset on the platform is a Ginger hotel near Kolkata airport.
IHCL is set to reach 400 hotels by the end of July and targets 700 by 2030.
TATA SONS LAUNCHED a new hospitality platform to support Indian Hotels Co. Ltd., enabling it to operate group-owned hotels on a revenue-share model while staying asset-light. The first project under this initiative is a 195-room Ginger hotel under construction near Kolkata airport.
Tata Sons will own the building and IHCL will operate the hotel. A revenue-sharing lease is planned once the hotel opens, Financial Express reported. Tata Sons is the holding company and main shareholder of the Tata Group, which includes entities such as Indian Hotels Co. Ltd., operator of the Taj, Vivanta and Ginger brands.
“Over time, this could potentially lead to the creation of an asset platform, which could become a big strategic enabler for IHCL,” IHCL managing director Puneet Chhatwal said in the Financial Express report.
The model supports IHCL’s capital-light strategy, despite ending the first quarter with $354 million in cash reserves. It plans to spend $116 to $174 million annually over the next two to three years on new properties, renovations and digital upgrades.
Meanwhile, IHCL reported a 19 percent year-on-year rise in consolidated net profit for the first quarter of this fiscal to $34.3 million, driven by growth in hotel and non-hotel segments, up from or $28.7 million a year earlier.
“It is the beginning of a journey where Tata Sons would gain from an asset platform and we gain in doing a revenue share. We will stay capital-light but benefit fully without development risk, construction risk, delays, depreciations, or future investments,” Chhatwal said.
Upcoming IHCL projects include the $290 million Taj Bandstand in Mumbai and two Taj resorts in Lakshadweep -- Suheli and Kadmat. The group has 143 hotels in the pipeline and plans to add 30 to 40 properties annually. It is on track to reach a 400-hotel portfolio by the end of July and aims for 700 hotels by 2030.
“IHCL continued its growth momentum with 12 signings, taking the portfolio to over 390 hotels and opened six new hotels in the quarter,” Chhatwal said. “Taj remains an icon in the global hospitality landscape. The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth.”
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ITC Hotels posted record quarterly profit and revenue in the first quarter of fiscal 2026, with revenue up 20 percent to $103.2 million and profit up 53 percent to $16.08 million.
The portfolio has grown to more than 200 hotels, with 143 operational and 58 in the pipeline.
Welcomhotel Prayagraj, ITC’s seventh property in Uttar Pradesh, includes 60 rooms and banqueting space.
INDIA’S ITC HOTELS posted its highest-ever quarterly profit and revenue in the first quarter of fiscal year 2026, with consolidated revenue up 20 percent to $103.2 million and profit rising 53 percent to $16.08 million, according to a Times of India report. Meanwhile, ITC launched Welcomhotel Prayagraj in Uttar Pradesh, bringing its total to seven properties in the state, with six more in the pipeline.
The company's portfolio has grown to more than 200 hotels, with 143 operational and 58 in the pipeline, the Times said, citing a company statement. Over the past 24 months, it recorded 55 signings and 25 openings.
ITC is targeting 220 operational hotels and over 20,000 keys by 2030, the statement said. Its asset-right strategy aims to drive capital-efficient growth through partnerships with asset owners, leveraging brand credentials and providing operational expertise. Its presence has expanded to tier 2 and tier 3 cities, where demand for premium hospitality is rising.
It presently has 58 hotels in the pipeline with more than 5,300 keys.
ITC Ltd demerged its hotel business into a separate entity, ITC Hotels Ltd, effective Jan. 6, enabling both companies to pursue separate growth paths.
Welcomhotel Prayagraj
ITC Hotels’ Welcomhotel Prayagraj is operated under a management contract, aligns with the company’s asset-right strategy. The property features 60 rooms and suites with city views, along with indoor and outdoor banqueting spaces for weddings, gatherings and corporate events, ITC said in a statement.
“It is with great pride that we unveil Welcomhotel Prayagraj in a city of profound cultural and spiritual significance,” said Anil Chadha, ITC’s managing director. “This expansion not only strengthens our footprint in Uttar Pradesh but also reflects our commitment to delivering meaningful hospitality experiences—celebrating the region’s heritage while upholding the highest standards of service. Prayagraj, with its enduring appeal and spiritual depth stands as a beacon of India’s rich history and offers a destination that resonates deeply.”
Prayagraj, located near the confluence of the Ganga, Yamuna and Saraswati rivers, reflects India’s spiritual and intellectual heritage, the statement said. The hotel is close to key sites including the ghats of Triveni Sangam and Allahabad Fort. It offers guided heritage walks, spiritual trails to Shri Bade Hanuman Ji Mandir and excursions to Khusro Bagh and the Kumbh Mela grounds.
JK Agrawal of the Owning Board said the project marks a milestone, combining their vision for the city with ITC Hotels’ expertise in hospitality.
“Our purpose has always been to create developments that serve travelers and contribute to the local community and economy,” he said. “This hotel reflects that belief, a recognition of the city’s identity, with a promise of quality and care.”
Tata Sons and Tata Trusts formed a $58 million welfare trust for victims of the June 12 Air India crash, contributing $29 million each.
Tata Sons, established in 1917 and registered in Mumbai, is the Tata Group’s holding company; Tata Trusts collectively own 66 percent of it.
Tata Sons reacquired 100 percent of Air India in January 2022 through its subsidiary Talace Pvt Ltd.
TATA SONS ESTABLISHED a $58 million, or Rs 500 crore, welfare trust for victims of the June 12 Air India crash. The AI-171 Memorial and Welfare Trust is registered in Mumbai.
The Air India flight from Ahmedabad to London crashed shortly after takeoff, killing 260 people, including 19 on the ground. A preliminary report by the Aircraft Accident Investigation Bureau found that fuel supply to the engines was cut off. A crane is removing the tail section from the wreckage.
Tata Sons and Tata Trusts have each committed $29 million or Rs 250 crore to the trust, Tata said in a statement. The fund will provide $116,100, or Rs 1 crore, as ex gratia to the families of those who died. It also will support medical treatment for the injured and reconstruction of the B.J. Medical College Hostel, which was damaged in the crash.
The trust will be managed by a five-member board of trustees. The first two appointees are S. Padmanabhan, a former Tata executive and Sidharth Sharma, General Counsel at Tata Sons. Additional trustees will be appointed. The trust will begin operations after registration with tax authorities and completion of other formalities.
Air India was founded by J.R.D. Tata and began operations on Oct. 15, 1932. The Government of India nationalised it in March 1953, taking full ownership from Tata Sons. In January 2022, Tata Sons reacquired 100 percent of Air India through its subsidiary Talace Pvt Ltd.
Tata Sons Pvt Ltd., established in 1917 and registered in Mumbai, is the holding company of the Tata Group. It holds stakes in all group companies and owns the Tata trademarks. Tata-branded companies operate under the Brand Equity and Business Promotion Agreement, which requires adherence to the Tata Code of Conduct and Tata Business Excellence Model.
Tata Trusts, endowed by Tata family members, collectively own 66 percent of Tata Sons. The largest trusts include the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Tata Trusts appoint one-third of the Tata Sons board and hold significant governance influence. Noel Tata was appointed chairman of Tata Trusts in October 2024 and joined the Tata Sons board in November 2024.
Tata Group companies employed more than 1 million people in 2023–24 and recorded total revenue of $165 billion. As of March 31, 2024, the 26 listed Tata companies had a combined market valuation of $365 billion, according to the group’s website.
N. Chandrasekaran has served as chairman of Tata Sons and Tata Group since January 2017.
Air India to partially restore international wide-body schedule from Aug. 1 after 15 percent cut following June 12 AI 171 crash.
Delhi–New York (JFK) and Mumbai–New York (JFK) cut to six weekly; Delhi–Newark to four.
Revised schedule takes effect in August; full restoration expected from October.
AIR INDIA WILL partially restore its international wide-body schedule from Aug. 1, following a 15 per cent reduction after the June 12 crash of flight AI 171 on the Ahmedabad to London Gatwick route, operated by a Boeing 787. Delhi to New York’s JFK International Airport and Mumbai to New York (JFK) will operate six weekly flights each, down from seven, while Delhi to Newark, New Jersey, will drop to four from five.
The announcement follows the release of the preliminary report on the AI 171 crash, which killed 260 people—241 of 242 passengers and 19 on the ground. The report identified the primary trigger as both engine fuel control switches moving from “RUN” to “CUTOFF” in quick succession after lift-off. Investigators are examining the cause of this transition. The report found no fault with Air India and made no recommendations for other Boeing 787 or GE engine operators.
Following the Directorate General of Civil Aviation’s mandated safety inspections of Air India’s 787 fleet, the airline conducted its own checks and adopted a cautious operating approach, resulting in delays and cancellations in the following week.
Safety pause and partial restoration
Air India announced a 15 percent cut in international wide-body flights on June 18. Airspace closures over Pakistan and parts of West Asia, along with night curfews at several overseas airports, added to the disruption.
“The safety pause enabled Air India to conduct additional precautionary checks on its Boeing 787 aircraft and accommodate longer flying times due to airspace closures over Pakistan and the Middle East,” the airline said. “The partial resumption will restore some frequencies from 1 August, relative to July, with full restoration planned from Oct. 1.”
The restoration includes changes to the earlier schedule.
“As the schedule reductions implemented as part of the Safety Pause were in effect until July 31 and the restoration to full operations is being phased, some services initially planned between Aug. 1 and Sept. 30 will be removed from the schedule,” the statement said. “Air India is proactively contacting affected passengers to offer rebooking on alternative flights or a full refund, as per their preference. Air India apologizes for the inconvenience.”
OYO is working with travel platform Yatra to expand in the business travel segment in Delhi-NCR, Mumbai and Bengaluru, with more than 500 hotels already added.
Hotels under OYO brands—Sunday, Palette, Clubhouse, Townhouse, Townhouse Oak and Collection O—are now available on Yatra for business travellers across India.
OYO plans to add 1,000 more serviced hotels by September, expanding Yatra’s inventory in emerging metros with growing business travel demand.
OYO IS WORKING with travel agent platform Yatra to expand in the business travel segment, focusing on Delhi-NCR, Mumbai and Bengaluru. More than 500 OYO-operated hotels have reportedly been added to Yatra's platform as part of the alliance.
OYO CEO Ritesh Agarwal also chairs G6 Hospitality, parent of Motel 6 and Studio 6, while Yatra is led by cofounder and CEO Dhruv Shringi.
“While direct demand continues to be our mainstay, contributing nearly 80 percent of our total business, we are now looking to tap into a niche segment of business travellers exploring emerging business hubs,” said Varun Jain, OYO’s chief operating officer, according to PTI. “This partnership also opens up opportunities to serve companies adopting blended travel programs—combining business and leisure—and flexible mobility plans aimed at improving cost efficiency and employee productivity.”
Hotels under OYO’s brands—Sunday, Palette, Clubhouse, Townhouse, Townhouse Oak, and Collection O—have been onboarded to Yatra’s platform for business travellers across India, the companies said in a statement. OYO plans to add 1,000 more company-serviced hotels to the platform by September.
This will expand Yatra's inventory in emerging metros where demand for accommodation is rising due to increased business travel, the statement said.
India's business travel spending reached ₹38.2 billion in 2024, ranking eighth globally and fourth in Asia-Pacific. Spending is expected to return to pre-2019 levels by 2025, driven by economic growth, corporate earnings, and demand for in-person meetings, the statement said, citing a Global Business Travel Association study.
OYO added 50 new DanCenter units, its European vacation rental brand, across India in the first quarter of financial year 2026. It plans to add 200 more homes by the end of the financial year, expanding its presence in the vacation rental market.