New Delhi [India], June 22 (ANI): The hospitality industry will maintain strong operating performance in the near term, supported by strong corporate travel, MICE activity, live events, and a buoyant wedding season, according to a report by Antique Stock Broking Limited.

As per the report, medium-term growth of the industry is expected to be driven by sustained demand-supply imbalances and a healthy pipeline of new hotel additions.

The hospitality sector has significantly benefited by the increased demand from the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector.

'The hospitality industry should continue to deliver strong operating performance in the near term aided by strong corporate demand, MICE, live events, and the wedding business,' the report added.

This growth has resulted in a sharp increase in Average Room Rates (ARRs) and occupancy levels.

The sector is expected to be in a long-term upcycle, supported by shifts in consumer preferences, rising disposable incomes, and increased travel spending, say several experts.

In the fourth quarter, the large hotel firms reported strong demand, and they highlighted strong demand visibility for 1Q and FY26 driven by large-scale events, concerts, conferences and weddings.

The hotel industry executives anticipate the strong rate growth momentum to continue in the near term, as highlighted in the report.

Several reports say that the overall industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.4 per cent from FY24 to FY29, outpacing supply growth at 9 per cent.

India's tourism sector, rich in heritage, culture, and diversity, is emerging as a global favourite and a key driver of economic growth.

Recognising its potential for employment-led development, the Union Budget 2025-26 has allocated Rs 2541.06 crore to enhance infrastructure, skill development, and travel facilitation.

A major initiative includes developing 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity.

As per the government data, the tourism sector's contribution to GDP regained the pre-pandemic level of 5 per cent in FY23. The tourism sector created 7.6 crore jobs in FY23. International tourist arrivals (ITAs) in India have rebounded to pre-pandemic level in 2023.

The share of India's ITAs in World ITAs stands at 1.45 per cent in 2023. Foreign exchange earnings through tourism were 28 billion USD. India received 1.8 per cent of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023. (ANI)