Hospitality sector employment in India witnesses a 20% surge in February, fueled by a rise in events.
India's Hospitality Sector Thrives in Early 2025
In a significant turnaround, India's hospitality sector posted a 20% year-on-year growth in February 2025, marking a significant recovery from the 3% decline recorded in February 2024 [1][3][4]. This growth was primarily driven by rising domestic tourism, improving connectivity, infrastructure development, and supportive government policies.
Boost in Domestic Tourism
The growing middle-class with higher disposable incomes played a crucial role in this growth. Domestic visitor spending was projected to rise at a CAGR of 7.9% between 2023 and 2034, and domestic air passenger traffic was expected to more than double from 307 million in FY24 to 693 million by FY30, indicating heightened demand for hospitality services [1].
Focus on Midscale Hotel Segment
Indian Hotels Company Limited (IHCL), a major player in the hospitality sector, prioritized the midscale hotel segment in 2025, led by its Ginger brand. IHCL aimed to expand to over 250 hotels, and planned significant capital expenditure to capture rising demand from the emerging middle class [4].
Policy and Taxation
The Federation of Hotel & Restaurant Associations of India (FHRAI) advocated for GST rationalization, highlighting that India’s higher GST rates on tourism and hospitality reduce affordability and competitiveness compared to Asian peers. The government's commitment to tax reforms announced mid-2025 was viewed as a step to stimulate further growth and improve the sector's global standing [3].
Employment and Economic Multiplier
The hospitality industry was recognized as a significant employment generator, especially for youth and women, with a high multiplier effect where every rupee invested generates ₹3.5 in output and one direct job supports over three indirect jobs [3].
Robust Demand from MICE, Cultural Events, and Weddings
The Indian hospitality industry saw robust demand from MICE (Meetings, Incentives, Conferences, and Exhibitions) activities, cultural events, and an active wedding season in February 2025. This further fueled the growth in the sector [2].
Technological Advancements
Emerging technologies like Artificial Intelligence and Machine Learning saw a 21% growth in hiring, with Data Scientists, Machine Learning Engineers, Search Engineers, and Data/Big Data Testing Engineers experiencing a significant increase in demand [1][5].
Regional Growth
Bengaluru, Delhi NCR, and Chennai were the major metros that drove this growth, with a 56%, 27%, and 23% increase in hiring respectively. IT hiring remained flat overall, but emerged IT cities like Jaipur recorded a 19% growth and Coimbatore a 10% growth [1].
Sectoral Growth
FMCG, Pharma, and GCC sectors also posted positive growth, contributing to the overall economic growth of the country [1]. However, the banking sector faced headwinds with a 6% decline in hiring [1].
Security and Safety Measures
In response to increasing demand and the need for safety, Security Consultants saw a 44% growth in hiring [1].
Fresher Hiring in the Hospitality Sector
Fresher hiring in the hospitality sector also saw a 23% growth in February 2025 [1].
Spiritual Tourism
Spiritual tourism triggered by the Mahakumbh in Prayagraj fuelled a surge in bookings for hotels, Dharamshala, and homestays in the region. Hotels, Dharamshala, and homestays in the region are witnessing a 300% rise in bookings due to the Mahakumbh in Prayagraj, according to Motilal Oswal report [2].
Philanthropic Initiatives
On a separate note, Bill Gates pledged his remaining fortune to the Gates Foundation, which will close in 20 years [6].
[1] Source: NielsenIQ Report on India's Job Market [2] Source: Motilal Oswal Report on Hospitality Sector [3] Source: Federation of Hotel & Restaurant Associations of India (FHRAI) Report [4] Source: Indian Hotels Company Limited (IHCL) Press Release [5] Source: NielsenIQ Report on India's Job Market [6] Source: Bill Gates Announcement on Gates Foundation
