BMI View: The outlook for India's tourism market is broadly positive as the government is places emphasis on policies to develop the tourism industry. Initiatives such as the introduction of electronic visas is already yielding tangible results. The government's push for connectivity will see increasing investment in infrastructure in the next coming years. India's enormous domestic tourism market will benefit from improvements to household income rates which will see a growing middle-class demand for higher quality accommodation and transport services. The country's wide range of attractions, large labour market and positive growth prospects mean India will continue to attract developers and we expect to see strong investment in the market.
Key Updates And Forecasts
The implementation of the Goods and Services Tax (GST) could present downside risk on the hotel and restaurant industry as it sets out to replace 20 state and federal taxes across India.