Beyond the busy metropolises and into the heart of India’s smaller cities, the landscape of Indian hospitality is changing right before our eyes. At Spectra Hospitality Services, we’re thrilled to be a part of this transformation rather than merely seeing it as a trend. Come along as we examine the dynamic rise of hospitality in tier-2 and tier-3 cities, where shifting travel patterns, economic growth, and well-timed expansions by major hotel chains are crafting a new story.
It’s the tale of India’s developing economic landscape, not just some statistics on a report. India’s travel and tourism industry is expected to contribute 6.7% of GDP annually between 2019 and 2029. This expansion is a blatant indication of smaller cities’ growing power as they emerge as new hubs for business and tourism.
“At Spectra, we believe that tier-2 and tier-3 cities are assuming a central role in India’s growth narrative at this crucial juncture.”
Imagine entering a recently constructed hotel in a place like Siliguri or Raipur. With an estimated 7,000 rooms scheduled to be constructed in the upcoming years, expanding at a compound annual rate of around 8%, this vision is rapidly coming to pass. This is a qualitative shift that will benefit local economies and provide tourists with a variety of unique and meaningful experiences, not just a numeric one.
The story of traveling in India is evolving. Good lodging in smaller cities is in higher demand than it has ever been. Well-known companies like Radisson, Taj Hotels, and ITC are branching out into these areas. Rich in culture and history, cities such as Ayodhya and Vrindavan are now acknowledged as booming economic hubs. This change is in line with India’s general economic expansion and the middle class’s increasing affluence.
The hospitality of India’s smaller cities has a certain allure that stems from a combination of cheaper real estate and the growing ‘Bleisure’ tourism trend. These cities are creating distinctive experiences, redefining hotel offers by fusing business and pleasure. Authentic, customized local experiences are also in high demand, and smaller hotels are well-positioned to meet this need. At Spectra, we see these cities as trailblazers in providing rich and varied hospitality experiences, not just as alternative travel destinations.
In our opinion at Spectra Hospitality, the smaller Indian cities’ hospitality sectors are thriving and have a lot of untapped potential. The forces for this expansion are numerous and diverse, ranging from government programs that support tourism to industrial development. We envision a future full of prospects, substantial financial growth, and a variety of experiences that go beyond typical urban environments.