Huge potential in hospitality investment in NorthEast India

The Northeast Region (NER) of India, nestled in the easternmost corner of the country, is not only a geographical wonder but also a political-administrative division. Comprising eight states – Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim – this region spans across an impressive 262,230 square kilometers (101,250 sq mi), slightly larger than the United Kingdom. What makes the NER truly fascinating is its unique position, sharing 99 percent of its borders with neighbouring countries such as Bangladesh, Bhutan, Chinese Tibet, and Myanmar, while only one percent borders another Indian state, West Bengal. Despite being considered one of India’s less developed regions, the NER is brimming with untapped potential across various industries and sectors, attracting increased attention from the government, especially in the wake of peace restoration in the area.

In the past two decades, the NER has witnessed remarkable economic growth, surpassing an annual growth rate of 8 percent. This noteworthy progress can be attributed, in large part, to the development of more productive industries. In recent years, the central government has actively positioned the NER as a promising investment destination.

In November 2021, Union Home Minister Amit Shah called upon industries and businesses to seize the opportunities in the northeast, emphasising the conducive environment for industrial growth created by the Narendra Modi government. 

Shah highlighted the government’s successful endeavours in establishing peace across the region, as well as its achievements in upgrading infrastructure and improving connectivity. Given the NER’s strategic geographical location, serving as a potential bridge between India and East and Southeast Asia, fostering robust connectivity is paramount for economic development. Consequently, the government aims to establish air connectivity to all eight states by 2024 and rail connectivity to seven of the eight state capitals.

While challenges lie ahead, the Ministry of Tourism (MoT) has taken significant strides in promoting tourism in this captivating region. Through investments from various schemes and active involvement of stakeholders, infrastructure has been enhanced and visitor attractions have been bolstered. Furthermore, acknowledging the vast talent pool from the NER, efforts are underway to rebuild confidence among the residents and provide support for their career development and education.

In March 2021, the MoT launched a campaign to propel tourism in the NER. Schemes like Swadesh Darshan and Prasad have injected investments for site development. A dedicated committee of stakeholders has been formed to spearhead the promotion of the North-East, identify alluring destinations, curate enticing itineraries, and organize engaging events to raise awareness.

In a recent announcement, the government unveiled plans for implementing the international UDAN scheme, which will facilitate air connectivity from Assam, Manipur, and Tripura to select international destinations. These initiatives not only enhance last-mile connectivity but also reduce travel time, a significant hurdle to growth in the region. An excellent example of this is the construction of a new highway between Malbazar and Sikkim, projected to shorten travel duration by over an hour and mitigate disruptions caused by landslides. Additionally, the completion of major international infrastructure projects, such as the Agartala-Akhaura rail line connecting the northeast region with Bangladesh and the India-Myanmar-Thailand Trilateral Highway, will play a vital role in boosting both inbound and outbound tourism in the region.

Recognizing the immense potential of the northeast region, the Ministry of Tourism has actively championed tourism promotion, particularly through the integrated development of theme-based tourist circuits. To facilitate this endeavor, a dedicated committee has been established to identify enchanting destinations, craft compelling itineraries, and identify suitable venues for hosting awareness-generating events. State tourism boards are also gearing up to introduce experiential tourism offerings, catering to adventure enthusiasts, eco-conscious travelers, and even those seeking entertainment at casinos. Furthermore, the tourism sector in the northeast region is on the brink of a significant transformation as renowned international and domestic hotel chains have recently entered or are planning to expand their presence in the market. The period between 2019 and 2021 witnessed the signing of agreements by hotel brands for over 1200 rooms in this region alone, highlighting the growing interest and immense potential for development.

As the Northeast Region of India continues to unveil its hidden gems, both in terms of natural beauty and economic prospects, the government and stakeholders are working hand in hand to harness its full potential. With an emphasis on infrastructure development, enhanced connectivity, and strategic investments, the NER is poised to emerge as a thriving hub for industries, a magnet for tourists, and a gateway to new opportunities in the dynamic East and Southeast Asian markets.

The enchanting landscapes, rich cultural heritage, and diverse traditions of the Northeast are set to captivate the imaginations of travellers, while the region’s economic growth promises a brighter future for its residents. With concerted efforts and a collective vision, the Northeast Region of India is ready to take centre stage and redefine its narrative as a flourishing destination that leaves a lasting impression on all who venture into its mesmerizing realms.