New Delhi, April 16 (NationPress) The tourism and hospitality sectors in India are demonstrating remarkable strength thanks to robust domestic demand, despite the ongoing conflict in the West Asia region which is hindering international travel, as reported by a leading industry association on Thursday.

In the face of global challenges, the hospitality industry shows notable stability, bolstered by a strong 'V-shaped' recovery and solid domestic market support, as highlighted in a report from the PHD Chamber of Commerce and Industry (PHDCCI).

Furthermore, the restaurant and food services sector exhibited a mix of trends.

While domestic consumption and food delivery services—accounting for nearly 30% of revenues for organized players—are helping maintain stability, rising input costs of 10-15% and reduced international visitor numbers are impacting profit margins.

The report emphasized that domestic tourism is serving as the main catalyst for growth, driven by new travel patterns such as “revenge travel”, staycations, bizcations, and experiential dining.

Inbound tourism has suffered a setback, with foreign tourist arrivals decreasing by 15–20%, especially in the leisure sector, as travelers remain cautious due to geopolitical turmoil.

The PHDCCI's findings indicate that India’s tourism, aviation, and hospitality sectors—contributing almost 8% to GDP and providing over 40 million jobs—are again facing external pressures from geopolitical conflicts.

Simultaneously, outbound travel habits are evolving, with Indian travelers showing a preference for short-haul destinations like Thailand, Singapore, and Vietnam, while long-haul and transit-heavy routes have seen a decline.

The significant recovery observed in 2025 has helped cushion the adverse effects, with branded hotel inventory expanding to approximately 200,000 rooms and domestic air traffic exceeding 500,000 passengers daily, reflecting a sustained growth in demand.

The report also noted that these disruptions have increased flight durations by 2-4 hours on major routes.

The blockage of key Middle East air corridors, some of the busiest global transit routes, has also diminished connectivity efficiency and driven up airfare costs.

To address these challenges and bolster resilience, the PHDCCI has recommended diversifying international air routes, enhancing bilateral connectivity, and rationalizing taxes on aviation turbine fuel (ATF), hospitality, and food services.

The report further stressed the importance of improving digital travel facilitation, streamlining visa processes, and enhancing marketing efforts for alternative global destinations.

In conclusion, while the West Asia conflict presents immediate disruptions, it also offers India a chance to cultivate a more resilient, diverse, and self-sufficient tourism ecosystem.