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Union Minister Piyush Goyal on Friday said that there is no better time than now to invest in India's hospitality sector, as the industry continues to perform strongly amid the country's growing economic momentum.
Addressing the Annual Conference and 105th Annual General Meeting of ASSOCHAM, Goyal said that India's travel and tourism sector is witnessing rapid growth but also faces several challenges that need to be addressed through joint efforts by the government and the private sector. "The world is facing a shortage of aircraft. Post-COVID, I thought with work from home and all of that, people would travel less. Just seems to be the contrary," he said, adding that limited flight capacity and inadequate seats are affecting airfares globally. Highlighting the need to attract high-spending tourists, the minister said India must develop a concerted strategy to bring in visitors who spend more on shopping, premium hotels, and better travel experiences. "What we have not yet been able to get are those tourists who come in and really spend on large expenses. better rooms, better hotels, better travel goods and all that," he said. Goyal emphasized that India will require more three-star, four-star, and five-star hotels to meet the rising demand. "By and large, the hospitality industry is doing very well these days. I would think there's no better time than now to invest more in hospitality," he added. The minister also noted that Delhi has seen significant investments, but as the capital, much of the capacity is taken up by political, diplomatic, and business travel. He said there is a need to boost private sector investments in infrastructure related to tourism, including airlines, aircraft, and better facilities for travelers. Goyal said the government is working with states to identify 50 tourist destinations under a "challenge mode," where states will propose potential sites, and the best ones will be selected for development. Speaking on challenges faced by MSMEs, he said access to debt finance remains a concern as banks continue to follow a conservative approach. "Bankers are being a little tight. Another associated issue is the credit rating of MSMEs. When an MSME goes for credit rating, they are benchmarked to companies much larger," he added. On the overall economic outlook, the minister said India is showing tremendous resilience despite global challenges. "We are on the one hand living in challenging global times, on the other hand demonstrating tremendous resilience and ability to steer through the turbulence. Admirably continuing to be the world's fastest-growing economy," he said. He pointed out that the IMF recently raised India's growth forecast from 6.4 per cent to 6.6 per cent, while retail inflation in September fell to an eight-year low of 1.54 per cent. "Foreign exchange reserves continue to be robust, about 700 billion dollars," he added, expressing confidence that the people of India, businesses, and industry together are driving a new wave of dynamism and self-confidence in the economy. (ANI)
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