Indian outbound travel fuels the hospitality sector in Asia-Pacific (APAC) locations: Colliers
- IBEF
- June 2, 2025
India is rapidly establishing itself as a pivotal force in the Asia Pacific (APAC) hospitality sector, driving resilient domestic growth while significantly boosting outbound travel to key regional destinations. According to Colliers’ Asia Pacific Hospitality Insights May 2025 report, India’s rising demand across luxury, lifestyle, and Meetings, Incentives, Conferences, and Exhibitions (MICE) segments, along with increasing investor confidence in experience-led assets, is sustaining premium pricing and shaping regional tourism flows. Despite a 19% decline in Asia Pacific hospitality investment volumes in Q1 2025, India’s unique market position continues to support robust valuations and a performance-led growth trajectory.
A major highlight is India’s burgeoning outbound travel market, which is strongly contributing to hospitality demand in countries like Thailand, Vietnam, and South Korea. With rising disposable incomes and a growing preference for experiential travel, Indian tourists are becoming a reliable, year-round source of demand, driving strong room rates and shifting regional hospitality dynamics structurally. On the domestic front, India’s hospitality outlook remains positive, with Tier-II cities poised to play a key role in future growth. Spiritual tourism is emerging as a crucial growth driver, with destinations such as Ayodhya, Dwarka, Puri, Shirdi, Tirupati, and Varanasi attracting new investments, supported by focused government policies and rapid infrastructure improvements.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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