Executive Summary

Key Factors Influencing Growth

Government Policies

1. Visa Policies: Innovative visa policies, such as visa on arrival and visa-free

travel, are being implemented to attract more tourists. For example, the

introduction of AYUSH visas for wellness tourism in India.

2. Financial Allocations: Government budgets are allocating funds to promote

tourism. For instance, the interim budget for FY25 in India includes measures

to promote leisure and spiritual tourism with financial allocations and

proposals for interest-free loans.

3. Industry Status: There is potential for the tourism sector to be granted

industry status, which could lead to more structured growth and investment.

4. Tax Policies: Changes in tax policies, such as the potential reduction of GST

on hotels and restaurants, are aimed at promoting tourism.

Sector Trends

1. Sustainable Tourism: There is an increasing demand for sustainable tourism

practices and eco-friendly hotels. This trend is driven by a growing awareness

of environmental issues among travelers.

2. MICE Tourism: The rising popularity of Meetings, Incentives, Conferences,

and Exhibitions (MICE) tourism is another significant trend. India’s G20

presidency is positioning the country as a focal point for the MICE industry.

3. Technological Adoption: Although currently low, there is an intention to

increase technological adoption in the tourism sector, particularly in digital

reservation and payment technologies.

Economic Indicators

1. Job Creation: The tourism sector has the potential to create 25 million new

jobs in the next five years, highlighting its importance in economic growth and


2. GDP Contribution: The tourism and hospitality sector currently contributes

7.5% to India’s GDP , amounting to US$3420 billion.

3. Domestic Tourism: There were 1.7 billion domestic tourist visits within India

in 2023, indicating a strong domestic tourism market.

Emerging Technologies

1. Digital Connectivity: High-speed digital connectivity at tourist destinations is

being emphasized to enhance the tourist experience.

2. Data Analysis and Revenue Management: Emerging skills such as data

analysis and revenue management are becoming important in the tourism


Sentiment and Impact

1. Positive Sentiment: The overall sentiment in the tourism sector is positive,

driven by government measures, financial allocations, and emerging trends.

2. Potential for Growth: The sector is highlighted as having significant potential

for growth, with a projected need for 3 million additional workers by 2028.


1. Low Wages and Long Working Hours: These issues need to be addressed

to attract and retain talent in the tourism and hospitality sector.

Emerging Trends and Innovations

High-Value Tourism and Job Creation

Focus on High-Value Customers: There is a focus on attracting high-value

customers to boost job creation in the tourism sector. This is highlighted by

the development of tourism infrastructure around cultural and heritage circuits,

world-class museums, and unique experiences through Public-Private

Partnerships (PPPs).

Sustainable Tourism

Eco-Friendly Practices: There is a growing demand for sustainable tourism

practices and eco-friendly hotels. This trend aligns with the broader global

emphasis on sustainability and ESG (Environmental, Social, and Governance)


MICE Tourism

Meetings, Incentives, Conferences, and Exhibitions (MICE): The rising

popularity of MICE tourism is noted, especially with India’s G20 presidency

positioning the country as a focal point for this industry.

Wellness Tourism

AYUSH Visas and Wellness Tourism: The development of wellness tourism,

including Ayurveda, yoga, and traditional practices, is gaining traction. The

introduction of AYUSH visas supports this trend.

Premium Accommodations and Unique Experiences

Higher Room Categories: There is an increase in demand for premium

accommodations and higher room categories.

Unique Travel Experiences: Innovations such as glass igloo stays, husky

safaris, and other unique travel experiences are becoming popular.

Solo Travel and Specialized Retreats

Solo Travel: There is a surge in solo travel bookings.

Specialized Retreats: Specialized retreats like sleep tourism are gaining


Government Policies and Visa Reforms

Visa-Free Travel: Visa policy changes, such as visa-free arrangements with

countries like Sri Lanka, Thailand, and Malaysia, have led to a substantial

surge in bookings.

Industry Status for Tourism: Potential government policies granting industry

status to the tourism sector could further boost growth.

Technological Innovations

AI and Digital Connectivity: The utilization of AI for enhancing travel

experiences and providing budget-friendly travel itineraries is on the rise.

High-speed digital connectivity at tourist destinations is also emphasized.

8 NEWSGENIETourism Industry Trends May 2024

Sentiment Analysis

Positive Sentiment: The overall sentiment in the tourism industry is positive,

with several articles highlighting growth potential, increased bookings, and

positive impacts from government policies and innovations.

Investor Confidence: The positive sentiment and emerging trends suggest

that investors may have increased confidence in the tourism sector, potentially

leading to more investments and higher stock valuations for companies

involved in travel and tourism.

Potential Shifts in Investor Behavior

1. Increased Investments in Sustainable and Wellness Tourism: Investors

may focus on companies that emphasize sustainable practices and wellness

tourism, aligning with global sustainability trends.

2. Focus on Premium and Unique Travel Experiences: Companies offering

premium accommodations and unique travel experiences may attract more

investments due to the growing demand in these areas.

3. Interest in MICE Tourism: With the rising popularity of MICE tourism trends,

investors might look for opportunities in companies that cater to this segment.

4. Technological Innovations: Investments in travel tech companies utilizing AI

and enhancing digital connectivity could see a rise, given the emphasis on

technological advancements in the sector.

5. Government Policy Beneficiaries: Companies that benefit from favorable

government policies, such as visa reforms and potential industry status, may

attract more investor interest.

Actionable Insight

Stock Recommendation: Expedia Group (EXPE)

Recommendation: Hold

Reason: Expedia Group has shown strong performance and is

well-positioned to benefit from the positive trends in the tourism industry, such

as increased travel demand, technological integration, and sustainable

tourism practices. However, given the current market conditions and emerging

trends, it would be prudent to hold the stock and monitor further developments

in the industry and government policies that could impact the company’s


Stock Recommendation: Marriott International (MAR)

Recommendation: Buy

Reason: Marriott International has demonstrated strong financial metrics and

is poised to benefit from the growing demand for premium accommodations

and unique travel experiences. The company’s focus on sustainability and

wellness tourism aligns with emerging trends, making it an attractive

investment opportunity.

Stock Recommendation: Delta Air Lines (DAL)

Recommendation: Look into More Data

● Reason: Despite facing challenges, Delta Air Lines shows strong financial

metrics. However, the airline industry is highly sensitive to economic

conditions, political stability, and health concerns.

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